Value of a Tax-Free Account, 206 14 Additional Examples | HP 17bII

Step 2: Calculate NUS for the monthly deposit.

Keys:	Display:	Description:
v9 /12	"	Figures the periodic

u;68(&-." (monthly) interest rate and stores it in I%.

w<4F8#*$&%(" Amount of monthly deposit needed to meet planned withdrawals.

v<5O8#-K,-%&+*" Calculates the net present value of the monthly deposits, which is the same as the NPV of the four future withdrawals.

Value of a Tax-Free Account

See appendix F for RPN keystrokes for this example.

You can use the TVM menu to calculate the future value of a tax-free or tax-deferred account, such as an IRA or Keogh account. Remember that for calculations with cash flows, money paid out is negative and money received is positive. (Current tax law and your current income will determine whether just interest or also principal are tax-free, and for how long. You can solve for either case.)

N= the number of payments until retirement. I%YR = the annual dividend rate.

PV = the present value of the retirement account.

PMT = the amount of your deposit. (It must be constant for the duration of the account.)

FV = the future value of the retirement account.

The purchasing power of that future value depends on the inflation rate and the duration of the account.

206 14: Additional Examples

File name : 17BII-Plus-Manual-E-PRINT-030709

Print data : 2003/7/11

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HP 17bII manual Value of a Tax-Free Account, 206 14 Additional Examples

Contents

HP 17bII+ Financial Calculator Printing History Edition June Welcome to the HP 17bII+ Welcome to the hp17bII+ Contents Power Function Exponentiation Error MessagesUsing Parentheses in Calculations Saving and Reusing Numbers Cash Flow Calculations Time Value of MoneyInterest Rate Conversions 10 121 Running Total and Statistics BondsDepreciation 11 141 Time, Appointments, and Date Arithmetic 12 153 The Equation Solver 14 190 Additional Examples Assistance, Batteries, Memory, and Service More About Calculations Menu Maps RPN Summary RPN The Stack RPN Selected Examples Error Messages Index General Business Calculations List of ExamplesList of Examples Currency Exchange Calculations Interest Rate Conversions Bonds and Notes Time, Alarms, and Date ArithmeticHow to Use the Equation Solver Running Total and Statistical Calculations Important Information Important Information Getting Started Power On and Off Continuous MemoryAdjusting the Display Contrast Getting Started Keys for language Key Description Setting the LanguageWhat You See in the Display 18 1 Getting Started Shift Key @ Backspacing and Clearing 20 1 Getting Started Keys for ClearingKeys Display Description Doing Arithmetic KeysDisplayDescription 22 1 Getting Started Using the Menu KeysKeying in Negative Numbers Main Menu Menu Labels Menu Keys Main Menu Menu Label Operations Done Covered This Category 24 1 Getting Started Choosing Menus and Reading Menu Maps Displaying the MU%C menu Using the MU%C menu26 1 Getting Started Calculations Using Menus 28 1 Getting Started Exiting Menus eClearing Values in Menus Solving Your Own Equations Solve = Cost Typing Words and Characters the ALPHAbetic Menu 30 1 Getting Started 34 5? Editing ALPHAbetic TextKeys Characters Keyboard Calculating the Answer CalcAlphabetic Editing Operation Label or Key to Press 32 1 Getting Started Menu for carpeting Internal Precision Controlling the Display FormatDecimal Places Temporarily SHOWing ALL Rounding a Number Exchanging Periods and Commas in Numbers 36 1 Getting Started Error MessagesModes Calculator Memory @M Memory still free VDoing Calculations ArithmeticCalculator Line 38 2 Arithmetic Keys Display VUsing Parentheses in Calculations456 75 × 18.5 30 x 40 2 Arithmetic VThe Percent KeyMathematical Functions Key VThe Power Function ExponentiationShifted Math Functions KeysDisplay Description Math MenuMath Menu Labels 42 2 Arithmetic Saving and Reusing Numbers History Stack of Numbers 44 2 Arithmetic VReusing the Last Result @LVKeys Display VKeys Display Description Storing and Recalling Numbers475.6 560.1 + 39.15 Arithmetic in Registers Keys New Register ContentsDoing Arithmetic Inside Registers and Variables Scientific Notation Range of Numbers 48 2 Arithmetic Menu Description Percentage Calculations BusinessBusiness Percentages BUS Menus Percentage Calculations in Business Percent Change %CHG Using the BUS MenusExamples Using the BUS Menus 50 3 Percentage Calculations in Business Percent of Total %TOTL 52 3 Percentage Calculations in Business Markup as a Percent of Cost MU%CMarkup as a Percent of Price MU%P Sharing Variables Between Menus Cost Price M%C Cost Price M%P 54 4 Currency Exchange Calculation Currency Exchange CalculationsCurrx Menu Currency Exchange Calculation Selecting a Set of CurrenciesCurrx Menu Currencies Currency Rate United States Conversion Chart in US$Entering a Rate Select HK$ as currency 58 4 Currency Exchange CalculationSelect CAN$ as currency Example Converting between Hong Kong and U.S Dollars Converting Between Two CurrenciesStoring and Recalling Sets of Currencies Clearing the Currency Variables 60 4 Currency Exchange Calculation Time Value of Money Time Value of MoneyTVM Menu First Level of TVM Second Level of TVM Second Level TVM Menu LabelsMenu Label Description First Level Cash Flow Diagrams and Signs of Numbers 64 5 Time Value of Money PMT Using the TVM Menu 66 5 Time Value of Money Loan Calculations 68 5 Time Value of Money Figures and stores number 11.5 70 5 Time Value of Money Figures and stores Savings Calculations 000 72 5 Time Value of Money 15X 12X 359 360 Leasing Calculations 74 5 Time Value of Money @28#+ 76 5 Time Value of Money Amortization Amrt Label Displaying an Amortization ScheduleAmrt Menu Labels 78 5 Time Value of Money Number of payments 80 5 Time Value of Money Next successive set of payments authorized Printing an Amortization Table Table 82 5 Time Value of Money 508 /,%&-$ GO8 Interest Rate Conversions 84 6 Interest Rate Conversions Interest Rate Conversions Icnv MenuConverting Interest Rates 86 6 Interest Rate Conversions Compounding Periods Different from Payment Periods 88 6 Interest Rate Conversions Per year 90 6 Interest Rate Conversions Cash Flow Calculations Cash Flow CalculationsCflo menu Cflo Menu Labels 92 7 Cash Flow Calculations Cash Flows Ungrouped Creating a Cash-Flow List 94 7 Cash Flow Calculations Entering Cash Flows For grouped cash flows The display now shows Prompting for #TIMES #T?. When the calculator displays 96 7 Cash Flow Calculations Viewing and Correcting the List EGG 98 7 Cash Flow Calculations Copying a Number from a List to the Calculator LineNaming and Renaming a Cash-Flow List Deleting Cash Flows from a List. Pressing ndeletes both Viewing the Name of the Current List. Press o, then e Clearing a Cash-Flow List and Its NameStarting or GETting Another List Cash-Flow Calculations IRR, NPV, NUS, NFV 100 7 Cash Flow Calculations Calc Menu for Cflo Lists Menu Label 102 7 Cash Flow Calculations 115,000 500 G9ECL#T8U Group Number Amount 104 7 Cash Flow Calculations G9ECL.T8U 106 7 Cash Flow Calculations 50 50 50 Doing Other Calculations with Cflo Data 108 8 Bonds BondsBond Menu Bonds Bond Menu LabelsMenu Description Label To calculate the price or yield of a bond Doing Bond Calculations110 8 Bonds Since there is no call on 112 8 Bonds MM.DDYYYY format 114 9 Depreciation DepreciationDeprc Menu Deprc Menu Labels Depreciation 116 9 Depreciation Doing Depreciation CalculationsDB, SOYD, and SL Methods To calculate the depreciation for an asset KeysDisplay Basis Salv 4,000 118 9 Depreciation Acrs MethodYear Percentage Deductible Keys Display Description Partial-Year Depreciation Calendar Year Depreciation Value 120 9 Depreciation Running Total and Statistics Running Total and Statistics 122 10 Running Total and Statistics SUM MenuSUM Menu Labels Creating a SUM List Entering Numbers and Viewing the Total 124 10 Running Total and Statistics Transaction DateAmount Date Naming and Renaming a SUM List 126 10 Running Total and Statistics Clearing a SUM List and Its Name Doing Statistical Calculations Calc 128 10 Running Total and Statistics Calculations with One VariableCalc Menu for SUM Lists Menu Key Month Phone Expense Calculations with Two Variables Frcst 130 10 Running Total and Statistics Calc Total Frcst Menu Labels 132 10 Running Total and Statistics Curve Fitting and Forecasting Logarithmic Curve Fit 134 10 Running Total and Statistics To do curve fitting and forecasting Number of Minutes Radio Dollar Sales Advertising Values 136 10 Running Total and Statistics Minutes Minutes Weighted Mean and Grouped Standard Deviation 138 10 Running Total and Statistics Summation Statistics Doing Other Calculations with SUM Data 140 10 Running Total and Statistics Time, Appointments, and Date Arithmetic Time, Appointments, Date ArithmeticViewing the Time and Date Menu Label Description Time MenuTime Menu Labels 142 11 Time, Appointments, and Date Arithmetic Or DD.MMYYYY Setting the Time and Date SETSET Menu Labels To set the date 144 11 Time, Appointments, and Date Arithmetic Adjusting the Clock Setting AdjstChanging the Time and Date Formats SET Appointments Appt Viewing or Setting an Appointment APT1-APT10Menu Labels for Setting Appointments Description Appointment message optional To set, change, or just view a To set an appointment or view its current setting146 11 Time, Appointments, and Date Arithmetic Acknowledging an Appointment 148 11 Time, Appointments, and Date Arithmetic Unacknowledged AppointmentsClearing Appointments To acknowledge a past-due appointment Date Arithmetic Calc Calc Menu Labels for Date Arithmetic Determining the Day of the Week for Any DateCalculating the Number of Days between Dates 150 11 Time, Appointments, and Date Arithmetic Calculating Past or Future Dates 152 11 Time, Appointments, and Date Arithmetic DATE2 Equation Solver Equation SolverSolver Example Sales Forecasts 154 12 The Equation Solver Next =OLD Display Description Menu Label Keys Solve Menu156 12 The Equation Solver To make an entry into the Solver list Entering EquationsSolve Menu Labels 158 12 The Equation Solver Calculating Using Solver Menus CalcTo do a calculation using a Solver menu Rmenu label 160 12 The Equation Solver Eqty Editing an Equation Edit Naming an Equation Clearing Variables Finding an Equation in the Solver ListShared Variables 162 12 The Equation Solver Deleting Variables and Equations Deleting a variable is quite different from clearing it Deleting All Equations or All Variables in the Solver @c Writing EquationsDeleting One Equation or Its Variables Delet 164 12 The Equation Solver × E 100× C Could be entered as What Can Appear in an Equation 166 12 The Equation Solver Using the Alpha Menu 168 12 The Equation Solver Using a Typing AidSolver Functions Solver Functions for Equations Description DDAYSd1d2cal IFcond expr 1 expr 170 12 The Equation SolverHH.MMSS format ITEMSUM-listnameitem# SIZESSUM-listname Σcfr c 1 c 2 s exprSIZECCFLO-listname #TCFLO-listnameflow# 172 12 The Equation Solver Days ≥ ³= Conditional Expressions with ifOperatorKeys 174 12 The Equation Solver Rating Percent Salary Increase Examples of Conditional EquationsVALUE＝FIRST＋1 ÷ FIRST. If FIRST＝0, then VALUE＝FIRST HC8E9AL#GL28#I&%IGL28$I&I&#TTT Summation Function ∑176 12 The Equation Solver Accessing Cflo and SUM Lists from the Solver Creating Menus for Multiple Equations S Function 178 12 The Equation Solver How the Solver Works Halting and Restarting the Iterative Search 180 12 The Equation Solver Entering Guesses 182 12 The Equation Solver 52EG8527H Y@/O127EF Y@/GX7EF Keys @I$&/Solves for QTY iteratively Printing 184 13 Printing Printing the DisplayP Printer’s Power SourceDouble Space Printing Printing Printer Menu Labels Printing Other Information @pPrinting Variables, Lists, and Appointments List 186 13 Printing Except IRR%. Instead, press tPto print the value for IRR% 188 13 Printing Printing Descriptive Messages MSGTrace Printing Trace How to Interrupt the Printer KeysPrint-out Simple Annual Interest Additional ExamplesLoans 190 14 Additional Examples Yield of a Discounted or Premium Mortgage Additional Examples 192 14 Additional Examples Figures and stores total Annual Percentage Rate for a Loan with Fees See appendix F for RPN keystrokes for the next two examples 194 14 Additional Examples @c e Loan with an Odd Partial First Period 196 14 Additional Examples Solver Equation for Odd-Period Calculations Canadian Mortgages 198 14 Additional Examples Solver Equation for Canadian Mortgages Advance Payments Leasing Solver Equation for Advance Payments 200 14 Additional Examples SavingsValue of a Fund with Regular Withdrawals Displays periodic Deposits Needed for a Child’s College Account 202 14 Additional Examples Additional Examples Flow of Withdrawals 204 14 Additional Examples For FLOW1 Value of a Tax-Free Account 206 14 Additional Examples # 5?@2 JH= 0EAH Value of a Taxable Retirement Account 208 14 Additional Examples Modified Internal Rate of Return 210 14 Additional Examples Group No. of Months Cash Flow, $ Flow no V8 /12 100000 212 14 Additional Examples 200000V13 /12 Price of an Insurance Policy Solver Equation for Insurance Price 214 14 Additional Examples Bonds Discounted Notes 216 14 Additional Examples Statistics Moving Average 218 14 Additional Examples Solver Equation for Moving Averages Chi-Squared χ2 Statistics If necessary 220 14 Additional Examples If the expected values vary Use Keystroke Display DescriptionNumber Answers to Common Questions Assistance, Batteries Memory, and ServiceAssistance, Batteries, Memory, and Service Obtaining Help in Operating the Calculator Assistance, Batteries, Memory, and Service Do not use rechargeable batteries Power and BatteriesLow-Power Indications Installing Batteries Assistance, Batteries, Memory, and Service Managing Calculator Memory Resetting the Calculator Reset hole For selecting English language For English language Erasing Continuous MemoryFor selecting the other languages For the other languages Environmental Limits Determining If the Calculator Requires ServiceClock Accuracy If the calculator doesn’t respond to keystrokes Confirming Calculator Operation Self-TestIf the calculator won’t turn on Warranty Assistance, Batteries, Memory, and Service Europe Country Telephone numbers America Country Telephone numbers Regulatory informationAsia Pacific Country Telephone numbers Canada Japan Possible Outcomes of Calculating IRR% More About CalculationsIRR% Calculations More About Calculations Halting and Restarting the IRR% Calculation Storing a Guess for IRR% O F I T = P R I C E － C O S T Direct SolutionsSolver Calculations S T = P R I C E － P R O F I T E a ＝L x W ＝ a R E a ÷ W Iterative Solutions Case 1a Case 1b Is exactly Is not exactly More About Calculations J1A =4HFFHFI  － n Equations Used by Built-in MenusActuarial Functions 100  Amortization Percentage Calculations in Business BUSTime Value of Money TVM NOM %  P Interest Rate ConversionsCash-Flow Calculations NPV ＝ CF0 + ∑CFj x Uspv i% nj x Sppv i% Nj Bond Calculations NUS ＝ Uspv i% N Total ＝ ∑nj × CFj Depreciation Calculations DB ＝ Basis × Fact % /100 Model Transformation Sum and StatisticsForecasting SX 2 × SY Equations Used in ChapterSXY = Σ PV = − PMT Modified Internal Rate of Return Odd-Period CalculationsAdvance Payments Menu Maps Menu Maps Figure C-2. Currx Menu Figure C-3. FIN Menu Figure C-3 . FIN Menu Figure C-4. SUM Menu Figure C-5. Time Menu Figure C-6. Solve Menu About RPN on the HP 17bII+ RPN SummaryAbout RPN RPN Summary Setting RPN Mode To select RPN mode Press @ ~ same as Where the RPN Functions AreFunction Definition Key to Use Name Same as Simple Arithmetic Arithmetic Topics Affected by RPN ModeDoing Calculations in RPN 27 % To Calculate Press Display Chain Calculations－No Parentheses RPN Mode ALG ModeCalculations with STO and RCL + 5 E 6 + RPN The Stack RPN The StackWhat the Stack Is Reviewing the Stack Roll Down Exchanging the X- and Y-Registers in the Stack Arithmetic－How the Stack Does It How Enter Works ＋ 6 ： Clearing Numbers Retrieving Numbers from Last Reusing NumbersLast X Register Chain Calculations Solution 23 @w13 E9 *-7@t+ Exercises RPN Selected Examples RPN Selected Examples RPN Selected Examples #$ 5?@2 HA 0EAH 10 @ Stores total number Payments 1000000 E For E, press =, not #TIMES1 for FLOW1 I11 I G9ECLT8U # 5?@2 JH= # 5?@2 JH= Begin mode Error Messages Error Messages H22E2I EOH2G9EC Error Messages Error Messages EOH2G9EC Error Messages Index Index#Special Characters 143 2, 42 -,150 169 147 156 166 56 ›, 132 a, 78 Z =, F 74-75 85-87 31-32174-76 149 115 ?, 32 ª, 150 «, 150 ¬145 116 144162-64 64 I 181-83 133 168-71 138-39 239 72-73213-15 132 , 109 +, 49, 53 6, 52, 128 ‘, 128 132 k, 186 o, 42 3, 42 L132-34 \, 143 N 143-44 Memory. See also Continuous Memory146 175 101 w, 101 x, 101 /, 157 @, 56 B, 56 J, 56 4, 42 j92-94 56 5, 42 , 18 @p, 186 P 80-81 85-86PMT. See also Payments in TVM, 63 rounded amortization 115 128 Using56 Q, 56 l, 186 ¡ 146-47 243-46 176 171 132 L 148178 109 ‹, 115 M This regulation applies only to The Netherlands