Calculated Industries 3430 User Guide - Manual (Page 45)

44 — Q
UALIFIER
P
LUS
® III
FX
Retirement Savings Account Problem (Future Value of an Initial
Deposit or Lump Sum)
If you invest $50,000 today into an IRA with an 8% yield (compound-
ed monthly), what is the future value in 25 years? What will it be
worth in 30 years?
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Recall payments/year* ® ÷ 12.00
Enter deposit into Loan Amt
(present value) 5 0 ) l 50,000.00
Enter Interest rate 8 ˆ 8.00
Enter Term in years 2 5 T 25.00
Find future value s l “run” 367,008.80
Enter new Term in years 3 0 T 30.00
Find new future value s l “run” 546,786.48
*Calculator must be set to default of 12 periods per year, for compounding monthly. If
it isn’t, enter
1 2 s ÷. If you need to set the calculator to compounded interest
other than monthly, enter the number of periods, then s ÷ (e.g., for interest com-
pounded quarterly, enter 4 s ÷).
Retirement Savings (Future Value of Monthly Investment —
Using Beginning Mode)
If you invest $500 per month at the beginning of each month in a
retirement plan that earns annual interest of 7% compounded
monthly, what is the future value in 20 years? 30 years?
Note: the calculator defaults to End of the Month Mode, so you must change it to
Beginning Mode.
STEPS KEYSTROKES DISPLAY
Access End Mode via Preference
Settings s =
(press = seven times) TYP END
Set to Beginning Mode + TYP BEG
Clear calculator o o BEG 0.00
Recall payments/year* ® ÷ 12.00
Enter monthly deposit 5 0 0 p 500.00
Enter annual Interest rate 7 ˆ 7.00
Enter Term in years 2 0 T 20.00
Find value in 20 years s l -261,982.70**
(Cont’d)