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 today’s dollars, assuming a 4% inflation rate?

Set to Begin mode. Press \¯if BEGIN annunciator is not displayed.

Table 13-23 Calculating the purchasing power of the amount

KeysDisplay Description

J\Í

1.00

Sets 1 payment per year.

 

 

 

 

DVÙ

35.00

Stores number of periods and

 

interest rate.

 

 

 

g7JjVÒ

8.18

 

 

 

 

 

 

:Ï

0.00

Stores amount you start with.

 

 

 

 

G:::yÌ

 

payment.

 

-2,000.00

Stores amount of annual

 

 

 

É

387,640.45

Calculates amount in account at

 

retirement.

 

 

 

vÌPvÙ4

 

paid into account by retirement.

 

-70,000.00

Calculates amount you have

 

 

 

1vÉ4

317,640.45

Calculates interest account has

 

earned by retirement.

 

 

 

PJV§4

 

interest.

 

47,646.07

Calculates taxes at 15% of

 

 

 

y1vÉ4

339,994.39

Calculates after-tax FV.

 

 

 

 

É

339,994.39

Stores after-tax future value in

 

FV.

 

 

 

YÒ:ÌÏ

-86,159.84

Calculates the present value

 

purchasing power of after-tax

FV, assuming a 4% inflation rate.

Value of a Taxable Retirement Account

This problem uses the TVM application to calculate the future value of a taxable retirement account that receives regular, annual payments beginning today (Begin mode). The annual tax on the interest is paid out of the account. (Assume the deposits have been taxed already.)

Additional Examples 151

Page 158 Page 160
Page 159
Image 159
HP 10bII+ Financial manual Dvù, PJV§4, Yòìï
Page 158 Page 160

10bII+ Financial specifications

The HP 10bII+ Financial Calculator is a versatile and powerful tool designed to meet the needs of finance students, professionals, and anyone involved in financial planning and analysis. Known for its compactness and user-friendly interface, this calculator incorporates a range of features specifically tailored for financial calculations, making it an essential gadget for banking, real estate, and investment analysis.

At the heart of the HP 10bII+ is its ability to perform a wide variety of financial functions, including time value of money calculations, cash flow analysis, bond pricing, and depreciation. Its built-in functions facilitate the computation of interest rates, present and future values, net present value (NPV), internal rate of return (IRR), and annuities. This array of functionalities allows users to tackle complex financial problems with ease.

One of the standout technologies in the HP 10bII+ is its RPN (Reverse Polish Notation) input system, which allows for efficient data entry and calculation. Users can perform consecutive calculations without the need for parentheses, streamlining the process significantly. Alternatively, the calculator can also function with a standard algebraic input, catering to different user preferences.

The design of the HP 10bII+ is sleek and compact, making it highly portable and easy to handle. With a large, easy-to-read display, it ensures that users can view their calculations clearly, even in low-light environments. The keys are well-spaced and tactile, allowing for a comfortable typing experience during intensive calculations.

The calculator also offers a range of memory functions, enabling users to store and recall important values easily. This is particularly useful for financial professionals who must deal with multiple calculations and refer back to previous results frequently.

Additionally, the HP 10bII+ is powered by two AAA batteries, providing a long battery life that ensures reliability during extended use. It also features an automatic shut-off function, which conserves battery life when the calculator is not in use.

In summary, the HP 10bII+ Financial Calculator is a high-performance device that combines essential financial functions with user-friendly design and robust technology. Whether for educational purposes or professional finance work, its capabilities make it an invaluable asset for anyone dealing with financial calculations and decision-making.
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