HP 10B - Manual (Page 113)

The purchasing power of that future value depends upon the inflation rate
and the duration of the account.
Example.
You are considering opening a lax-deferred account with a
dividend rate of 8.175%. If you invest $2,000 at the beginning of each yc;ir
for 35 years, how much will be in the account at retirement? How much
will you have paid into the account? How much interest will you have you
earned? If your post-retirement tax rate is 15%, what will the after-tax
future value of the account be? Assume that only the interest is taxed
(assume the principal was taxed before deposit). What is the purchasing
power of that amount, in toda/s dollars, assuming an 8 % inflation rate?
Set to Begin mode. Press B ibeg /ENDI if BEGIN annunciator is not
displayed.
Keys: Display: Description:
1 »[ p T yr I 1.00 Sets 1 payment per year.
35 (N) Stores number of periods
8.175 fi/YRl
8.18
and interest rate.
o(Pvi 0.00
Stores amount you start
with.
2000 F7q (EM) -2,000.00
Stores amount of annual
payment.
m 387.640.45 Calculates amount in
account at retirement.
I rc D ( pm TI ixl Calculates amount you
| rc L| ( n ) (3 -70,000.00 have paid into account by
retirement.
(3(RcD(pg(3
317,640.45 Calculates interest
account has earned by
retirement.
(x) 15 © 0
47,646.07 Calculates taxes at 15%
of interest.
0 (RCLl iFVl[3 339,994.39 Calculates after-tax FK
110 8: Additional Example»