Value of a Taxable Retirement Account | HP 17bII specs

v*15 %=			
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v		=	



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

Taxes at 15% of interest.

Subtracts taxes from total FV to calculate after-tax

FV.

Stores after-tax future value in FV.

Calculates present-value purchasing power of the above after-tax FV at 8% inflation rate.

Value of a Taxable Retirement Account

See appendix F for RPN keystrokes for this example.

This problem uses the TVM menu 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.)

N= the number of years until retirement.

I%YR = the annual interest rate diminished by the tax rate: interest rate ⋅ (1－tax rate).

PV = the current amount in the retirement account. PMT = the amount of the annual payment.

FV = the future value of the retirement account.

Example: Taxable Retirement Account. If you invest $3,000 each year for 35 years, with dividends taxed as ordinary income, how much will you have in the account at retirement? Assume an annual dividend rate of 8.175% and a tax rate of 28%, and that payments begin today. What will be the purchasing power of that amount in today’s dollars, assuming 8% annual inflation?

208 14: Additional Examples

File name : English-M02-1-040308(Print).doc Print data : 2004/3/9

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HP 17bII manual Value of a Taxable Retirement Account, 208 14 Additional Examples

Contents

Hp 17bII+ Financial Calculator Printing History Edition June January Welcome to the hp 17bII+ Welcome to the hp17bII+ Contents Error Messages Using Parentheses in CalculationsPower Function Exponentiation Saving and Reusing Numbers Interest Rate Conversions Time Value of MoneyCash Flow Calculations Bonds Depreciation10 121 Running Total and Statistics 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 List of Examples List of ExamplesGeneral Business Calculations Currency Exchange Calculations Interest Rate Conversions Time, Alarms, and Date Arithmetic How to Use the Equation SolverBonds and Notes Running Total and Statistical Calculations Important Information Important Information Power On and Off Continuous Memory Adjusting the Display ContrastGetting Started Getting Started Setting the Language What You See in the DisplayKeys for language Key Description 18 1 Getting Started Shift Key @ Backspacing and Clearing Keys Display Description Keys for Clearing20 1 Getting Started Doing Arithmetic Keys DisplayDescription Keying in Negative Numbers Using the Menu Keys22 1 Getting Started 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 26 1 Getting Started Using the MU%C menuDisplaying the MU%C menu Calculations Using Menus Clearing Values in Menus Exiting Menus e28 1 Getting Started Solving Your Own Equations Solve = Cost Typing Words and Characters the ALPHAbetic Menu 30 1 Getting Started Editing ALPHAbetic Text Keys      Characters Calculating the Answer Calc Alphabetic Editing Operation Label or Key to PressKeyboard 32 1 Getting Started KeysDisplayDescription Controlling the Display Format Decimal PlacesInternal Precision Temporarily SHOWing ALL Rounding a Number Exchanging Periods and Commas in Numbers Error Messages Modes36 1 Getting Started Double Space. Press Calculator Memory @M Number of bytes Percentage of total Memory still free Arithmetic Calculator LineVDoing Calculations 38 2 Arithmetic Keys Display VUsing Parentheses in CalculationsArithmetic Mathematical Functions VThe Percent Key40 2 Arithmetic Shifted Math Functions VThe Power Function ExponentiationKey Math Menu Math Menu Labels42 2 Arithmetic Description Saving and Reusing Numbers History Stack of Numbers VKeys Display VReusing the Last Result @L44 2 Arithmetic Storing and Recalling Numbers VKeys Display Description Doing Arithmetic Inside Registers and Variables Keys New Register ContentsArithmetic in Registers Scientific Notation Range of Numbers 48 2 Arithmetic Percentage Calculations Business Business Percentages BUS Menus Description Using the BUS Menus Examples Using the BUS MenusPercent Change %CHG 50 3 Percentage Calculations in Business Percent of Total %TOTL Markup as a Percent of Price MU%P Markup as a Percent of Cost MU%C52 3 Percentage Calculations in Business Sharing Variables Between Menus Currx Menu Currency Exchange Calculations54 4 Currency Exchange Calculation Selecting a Set of Currencies Currx MenuCurrency Exchange Calculation Menu Key Currencies United States Conversion Chart in US$ Entering a RateCurrency Rate Select CAN$ as currency 58 4 Currency Exchange Calculation Select HK$ as currency Storing and Recalling Sets of Currencies Converting Between Two CurrenciesExample Converting between Hong Kong and U.S Dollars Clearing the Currency Variables 60 4 Currency Exchange Calculation TVM Menu Time Value of MoneyTime Value of Money First Level of TVM Second Level of TVM TVM Menu Labels First LevelSecond Level Shortcut for N Multiplies the number in the display by Cash Flow Diagrams and Signs of Numbers 64 5 Time Value of Money FV is Using the TVM Menu 66 5 Time Value of Money Loan Calculations 68 5 Time Value of Money Figures and stores number @c  70 5 Time Value of Money Figures and stores Savings Calculations 000 72 5 Time Value of Money Figures and stores number Leasing Calculations 74 5 Time Value of Money  76 5 Time Value of Money Amortization Amrt Displaying an Amortization Schedule Amrt Menu LabelsLabel 78 5 Time Value of Money Time Value of Money 80 5 Time Value of Money Next successive set of payments authorized First year Printing an Amortization Table Table 82 5 Time Value of Money Calculates and prints Interest Rate Conversions 84 6 Interest Rate Conversions Converting Interest Rates Icnv MenuInterest Rate Conversions 86 6 Interest Rate Conversions Compounding Periods Different from Payment Periods 88 6 Interest Rate Conversions  90 6 Interest Rate Conversions Cflo menu Cash Flow CalculationsCash Flow Calculations 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 Display Description Copying a Number from a List to the Calculator Line Naming and Renaming a Cash-Flow List98 7 Cash Flow Calculations Deleting Cash Flows from List. Pressing Starting or GETting Another List Clearing a Cash-Flow List and Its NameViewing the Name of the Current List. Press , then e Cash-Flow Calculations IRR, NPV, NUS, NFV 100 7 Cash Flow Calculations Calc Menu for Cflo Lists Menu Label 102 7 Cash Flow Calculations Calculates NPV Group Number Amount 104 7 Cash Flow Calculations Prompts for next cash 106 7 Cash Flow Calculations Doing Other Calculations with Cflo Data Bond Menu Bonds108 8 Bonds Menu Description Label Bond Menu LabelsBonds 110 8 Bonds Doing Bond CalculationsTo calculate the price or yield of a bond Since there is no call on 112 8 Bonds MM.DDYYYY format Deprc Menu Depreciation114 9 Depreciation Deprc Menu Labels Depreciation Doing Depreciation Calculations DB, SOYD, and SL Methods116 9 Depreciation To calculate the depreciation for an asset Basis Salv 4,000 Year Percentage Deductible Keys Display Description Acrs Method118 9 Depreciation Partial-Year Depreciation Calendar Year Depreciation Value 120 9 Depreciation Running Total and Statistics Running Total and Statistics SUM Menu Labels SUM Menu122 10 Running Total and Statistics Creating a SUM List Entering Numbers and Viewing the Total 124 10 Running Total and Statistics Amount Date DateTransaction Naming and Renaming a SUM List 126 10 Running Total and Statistics Clearing a SUM List and Its Name Doing Statistical Calculations Calc Calc Menu for SUM Lists Menu Key Calculations with One Variable128 10 Running Total and Statistics Month Phone Expense Calculations with Two Variables Frcst 130 10 Running Total and Statistics Calc Total Mean Medn Stdev Range More MIN MAX Sort Frcst 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 Radio Number of Minutes Dollar SalesAdvertising Values 136 10 Running Total and Statistics Minutes Minutes Weighted Mean and Grouped Standard Deviation 138 10 Running Total and Statistics Summation Statistics Rent Doing Other Calculations with SUM Data 140 10 Running Total and Statistics Viewing the Time and Date Time, Appointments, Date ArithmeticTime, Appointments, and Date Arithmetic Time Menu Labels Time Menu142 11 Time, Appointments, and Date Arithmetic Setting the Time and Date SET SET Menu LabelsMenu Label Description Or DD.MMYYYY Changing the Time and Date Formats SET Adjusting the Clock Setting Adjst144 11 Time, Appointments, and Date Arithmetic Menu Labels for Setting Appointments Description Viewing or Setting an Appointment APT1-APT10Appointments Appt To set an appointment or view its current setting 146 11 Time, Appointments, and Date Arithmetic Acknowledging an Appointment Unacknowledged Appointments Clearing Appointments148 11 Time, Appointments, and Date Arithmetic To acknowledge a past-due appointment Date Arithmetic Calc Determining the Day of the Week for Any Date Calculating the Number of Days between DatesCalc Menu Labels for Date Arithmetic 150 11 Time, Appointments, and Date Arithmetic Calculating Past or Future Dates 152 11 Time, Appointments, and Date Arithmetic DATE2 Solver Example Sales Forecasts Equation SolverEquation Solver 154 12 The Equation Solver Next =OLD   Menu Label 156 12 The Equation Solver Solve MenuKeys Solve Menu Labels Entering EquationsTo make an entry into the Solver list To do a calculation using a Solver menu Calculating Using Solver Menus Calc158 12 The Equation Solver Rmenu label 160 12 The Equation Solver Eqty Editing an Equation Edit Naming an Equation Finding an Equation in the Solver List Shared VariablesClearing Variables 162 12 The Equation Solver Deleting Variables and Equations Deleting a variable is quite different from clearing it Writing Equations Deleting One Equation or Its Variables DeletDeleting All Equations or All Variables in the Solver @c 164 12 The Equation Solver ⋅ C 100⋅ E 166 12 The Equation Solver What Can Appear in an Equation+ 5 ⋅ E Using the Alpha Menu Solver Functions Using a Typing Aid168 12 The Equation Solver Solver Functions for Equations Description DDAYSd1d2cal 170 12 The Equation Solver HH.MMSS formatIFcond expr 1 expr Svariable name Cfr c 1 c 2 s expr SIZECCFLO-listnameSIZESSUM-listname #TCFLO-listnameflow# 172 12 The Equation Solver Days OperatorKeys Conditional Expressions with if≥ = ≤ = ≠  174 12 The Equation Solver Rating Examples of Conditional EquationsVALUE＝FIRST＋1 ⎟ FIRST. If FIRST＝0, then VALUE＝FIRST Percent Salary Increase 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  Printing 184 13 Printing Printer’s Power Source Double-Space PrintingPrinting the DisplayP Printing Printing Other Information @p Printing Variables, Lists, and Appointments ListPrinter Menu Labels 186 13 Printing    Trace Printing Trace Printing Descriptive Messages MSG188 13 Printing How to Interrupt the Printer Keys Print-out Additional Examples LoansSimple Annual Interest 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 11.5  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 Value of a Fund with Regular Withdrawals Savings200 14 Additional Examples 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 35  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 180000 V8 /12FLOW0 V13 /12  200000 I212 14 Additional Examples 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 Use Chi-Squared χ2 StatisticsIf necessary 220 14 Additional Examples If the expected values vary Keystroke Display Description Number Assistance, Batteries Memory, and Service Assistance, Batteries, Memory, and ServiceAnswers to Common Questions Obtaining Help in Operating the Calculator Assistance, Batteries, Memory, and Service Low-Power Indications Power and BatteriesDo not use rechargeable batteries Installing Batteries Assistance, Batteries, Memory, and Service Managing Calculator Memory Resetting the Calculator Reset hole For English language Erasing Continuous MemoryFor the other languages Determining If the Calculator Requires Service Clock AccuracyEnvironmental Limits „ If the calculator won’t turn on Assistance, Batteries, Memory, and Service Confirming Calculator Operation Self-Test Warranty Assistance, Batteries, Memory, and Service Service Europe Country Telephone numbersAsia Pacific Country Telephone numbers America Country Telephone numbers HP Invent Canada Regulatory informationJapan More About Calculations IRR% CalculationsPossible Outcomes of Calculating IRR% More About Calculations Halting and Restarting the IRR% Calculation Storing a Guess for IRR% Direct Solutions Solver CalculationsO F I T = P R I C E － C O S T 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 More About Calculations More About Calculations More About Calculations Equations Used by Built-in Menus Actuarial Functions Time Value of Money TVM Percentage Calculations in Business BUSAmortization Interest Rate Conversions Cash-Flow CalculationsNOM %  P 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 Forecasting Sum and StatisticsModel Transformation Equations Used in Chapter SXY = Σ X− M SX 2 ⋅ SY Advance Payments Odd-Period CalculationsModified Internal Rate of Return 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 RPN Summary About RPNAbout RPN on the hp 17bII+ RPN Summary Setting RPN Mode To select RPN mode Press @  Where the RPN Functions Are Function Definition Key to Use Name~ same as Same as Arithmetic Topics Affected by RPN Mode Doing Calculations in RPNSimple Arithmetic ↓. Except in Cflo and SUM lists, Efunction and the key also 27 % To Calculate Press Display Calculations with STO and RCL RPN Mode ALG ModeChain Calculations－No Parentheses To Calculate Press Display What the Stack Is RPN The StackRPN The Stack Reviewing the Stack Roll Down Exchanging the X- and Y-Registers in the Stack Arithmetic－How the Stack Does It How Enter Works Lost Clearing Numbers Last X Register Reusing NumbersRetrieving Numbers from Last Chain Calculations Solution 23 @w13 E9 *-7@t+ Exercises RPN Selected Examples RPN Selected Examples KeysDisplay   Calculates annual interest For E, press =, not #TIMES1 for FLOW1 I11 I  Annual payment deposit    Error Messages Error Messages Error Messages Error Messages                 Error Messages Special Characters IndexIndex 169 147 156 166 ,  31-32 174-76 149 145144 162-64 116 181-83 229Examples 133 168-71 138-39 ,  72-73213-15 239 242-46 , 132 , 109 , 49, 53 , 52, 128 , 128 , 128 , 128  Memory. See also Continuous Memory 143-44 , 101 , 101 , 101 , 157 , 56 , 56 , 56 , 42  92-94175 164-67 , 56 , 42 , 18 @p, 186 P PMT. See also Payments in TVM, 63 rounded amortization Repeating appointments past-due, 148 setting 128 Using146-47 243-46 176 171 148 178 133-34 This regulation applies only to The Netherlands