Step 2: Calculate NUS for the monthly deposit.
| Keys: | Display: | Description: | |
v9 /12 | | Figures the periodic | ||
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| | (monthly) interest rate and |
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| stores it in I%. |
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| Amount of monthly deposit | |
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| needed to meet |
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| planned withdrawals. |
Calculates the net present value of the monthly deposits, which is the same as the NPV of the four future withdrawals.
Value of a
See appendix F for RPN keystrokes for this example.
You can use the TVM menu to calculate the future value of a
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
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