Time Value of Money Calculations
70
Example: An Annuity Account
You opt for an early retirement after a successful business career. You have accumulated a
savings of 400,000 that earns an average of 7% annual interest, compounded monthly. What
annuity (repetitive, uniform, withdrawal of funds) will you receive at the beginning of each
month if you wish that savings account to support you for the next 50 years?
Figure 13 Cash flow diagram (Calculate the amount)
Set to Begin mode. Press
\¯
if
BEGIN
annunciator is
not
displayed.
S7DÒ
6.30
Stores interest rate.
JV\Ú
360.00
Stores the number of deposits.
É
52,975.60
Calculates the balance amount.
Table 6-11 Calculating the amount at the beginning of each month
Keys
Display
Description
JG\Í
12.00
Sets payments per year.
Y:::::yÏ
-400,000.00
Stores your nest egg as an
outgoing deposit.
jÒ
7.00
Stores annual interest rate you
expect to earn.
V:\Ú
600.00
Stores number of withdrawals.
:É
0.00
Stores balance of account after
50 years.
Ì
2,392.80
Calculates the amount that you
can withdraw at the beginning
of each month.
Table 6-10 Calculating the balance amount
Keys
Display
Description
Содержание 10bII+
Страница 1: ...i HP 10bII Financial Calculator User s Guide HP Part Number NW239 90001 Edition 1 May 2010 ...
Страница 3: ...iii HP 10bII Financial Calculator ...
Страница 30: ...At a Glance 22 ...
Страница 144: ...Statistical Calculations 136 ...
Страница 183: ...Warranty Regulatory and Contact Information 9 ...
Страница 184: ...Warranty Regulatory and Contact Information 10 ...