Table
KeysDisplay Description
| S7DÒ | 6.30 | Stores interest rate. |
| ||
|
|
|
| JV\Ú | 360.00 | Stores the number of deposits. |
| ||
|
|
|
É | 52,975.60 | Calculates the balance amount. |
|
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.
Table
KeysDisplay Description
JG\Í | 12.00 | Sets payments per year. |
| ||
|
|
|
| Y:::::yÏ |
| outgoing deposit. |
| Stores your nest egg as an | |
|
|
|
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.
70 Time Value of Money Calculations