HP 10bII+ User Manual page 159

account be? Assume that only the interest is taxed (assume the principal was taxed before
deposit). What is the purchasing power of that amount, in today's dollars, assuming a 4%
inflation rate?
Set to Begin mode. Press
Table 13-23 Calculating the purchasing power of the amount
Keys
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Value of a Taxable Retirement Account
This problem uses the TVM application 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.)
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if BEGIN annunciator is not displayed.
-2,000.00
387,640.45
-70,000.00
317,640.45
47,646.07
339,994.39
339,994.39
-86,159.84
Display Description
1.00 Sets 1 payment per year.
35.00 Stores number of periods and
interest rate.
8.18
0.00 Stores amount you start with.
Stores amount of annual
payment.
Calculates amount in account at
retirement.
Calculates amount you have
paid into account by retirement.
Calculates interest account has
earned by retirement.
Calculates taxes at 15% of
interest.
Calculates after-tax FV.
Stores after-tax future value in
FV.
Calculates the present value
purchasing power of after-tax
FV, assuming a 4% inflation
rate.
Additional Examples 151