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206 14: Additional Examples
File name : 17BII-Plus-Manual-E-PRINT-030709 Print data : 2003/7/11
Step 2: Calculate NUS for the monthly deposit.
Keys: Display: Description:
9
/
12
u
"
;68(&-."
Figures the periodic
(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.
v