8
0
Example: Taxable Retirement Account. If you invest $3,000 each year
for 35 years, with dividends taxed as ordinary income, how much will
you have in the account at retirement ? Assume an annual dividend rate
of 8.175% and a tax rate of 28%, and that payments begin today.
What will be the purchasing power of that amount in today's dollars,
assuming 8% annual inflation ?
Keys:
1
e
35
8.175
E
28
-
0
3000
&
8
0
282 F: RPN: Selected Examples
Display:
%
Calculates present-value
purchasing power of the
above after-tax FV at 8%
inflation rate.
Description:
Displays TVM menu.
Sets 1 payment per year
and Begin mode.
Stores years until
retirement.
Calculates interest rate
diminished by tax rate.
Stores interest rate.
Stores no present value.
Stores annual payment.
Calculates future value.
Calculates present-value
purchasing power of the
above FV at 8% inflation.