Retirement Annuity; Begin/End Interest Mode - Calculated Industries 3442 User Manual

Retirement Annuity

What is the future value of an intial deposit of $87,000 after 15
years, if an additional $250 is deposited monthly, the interest rate is
5%, compounded at the beginning of each month?
STEPS
Clear calculator
Enter present value
Enter payment
Enter term
Enter interest rate
Find the Investment FV
Note: If calculating annual lump-sum payments, you must set your payment per year to one
(e.g. 1 s ÷ ). To change back to compound monthly, press 1 2 s ÷ .

Begin/End Interest Mode

The new begin/end preference setting allows you to set the interest
to compound at the beginning or end (default) of the period. See
Preference Settings.
Below is an example of using beginning mode in conjunction with
the future value function to get the same results as the investment
future value function in the previous retirement annuity calculation.
STEPS
Clear calculator
Go to begin/end preference s = ( press = 7 more times)
Set to beginning mode
Set to 1 pmt/yr
Enter present value
Enter payment
Enter term
Enter interest rate
Find the Investment FV
Return to 12 pmt/yr
Go to begin/end preference s = ( press = 7 more times)
Set to end mode
*When using the future value function, you must enter payments as a negative value. When
using the new investment future value function, payments are entered as a positive value.
KEYSTROKES
o o
8 7 ) l
2 5 0 p *
1 5 T
5 I
s +
KEYSTROKES
o o
+
1 s ÷
8 7 ) l
1 5 ) s _ p *
1 5 T
5 I
s l
1 2 s /
+
DISPLAY
87,000.00
250.00
15.00
250,992.90
DISPLAY
87,000.00
-15,000.00
15.00
520,729.13
12.00
U ' G — 49
SER S UIDE
0.00
5.00
0.00
End
bE9
1.00
5.00
bE9
End