HP 10bII+ User Manual page 78

Table 6-10 Calculating the balance amount
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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?
Set to Begin mode. Press
Table 6-1 1 Calculating the amount at the beginning of each month
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70 Time Value of Money Calculations
Display
360.00
52,975.60
Figure 13 Cash flow diagram (Calculate the amount)
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if BEGIN annunciator is not displayed.
Description
6.30 Stores interest rate.
Stores the number of deposits.
Calculates the balance amount.
Display Description
12.00 Sets payments per year.
-400,000.00 Stores your nest egg as an
outgoing deposit.
7.00 Stores annual interest rate you
expect to earn.
600.00 Stores number of withdrawals.
0.00 Stores balance of account after
50 years.
2,392.80 Calculates the amount that you
can withdraw at the beginning
of each month.