Y y y y y y, Keys, Display – HP 10B User Manual
Page 63: Description, 2000fnipv, Example: an individual retirement account
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Since (he calculated value of
N
is between S and
6
, it will take six years of
annual compounding to achieve a balance of at
least
$3,000. Calculate the
actual balance at the end of six years.
6
®
m
6.00
3,035,28
Sets ® to
6
years.
Calculates amount you
can withdraw after
6
years.
Example: An Individual Retirement Account.
You opened an
individual retirement account on April IS, 1985, ^^ith a deposit of $2,000.
Thereafter, you deposit $80.00 to the account at the end of each half
month. The account pays 8.3% annual interest compounded semimonthly.
How much will be in the account on April 15, 2000?
(Half-month periods)
l/YR - 8.3%
N - 360 (15 years x 24 half-months)
P/YR » 24
« • •
Y t i i
PMT = - 80.00
Y
PV = -2,000.00
FV =. ?
A
360
Y Y Y Y Y Y
Set to End mode. Prcs,s BÍBÉG/ENDI if BEGIN annunciator i.s displayed.
Keys:
24 iEZYR]
2000FniPv|
Display:
24.00
-
2
,
000.00
Description:
Sets number of periods
per year.
Stores initial deposit.
60
5: Time Value of Money Calculations