03-16-2014, 11:26 PM

Input - Store before running:

R0 = months to retirement

R1 = months of retirement (annuity)

PMT = monthly annuity payment

i = discount rate

Output:

1. Press R/S to get the value of all annuity

2. Press R/S to get the present value of the deferred annuity

Program:

Key : Step - Key Code

0 : 01- 0

FV : 02 - 15

RCL 1 : 03 - 45, 1

n : 04 - 11

PV : 05 - 13

R/S : 06 - 31

CHS : 07 - 16

FV : 08 - 15

0 : 09 - 0

PMT : 10 - 14

RCL 0 : 11 - 45, 0

n : 12 - 11

PV : 13 - 13

GTO 00 : 14 - 43, 33, 00

Note: This is done on a "classic" HP 12C. With a HP 12C Platinum, use RPN mode and replace GTO 00 with GTO 000.

Example:

An annuity that will pay $2,000 a month for 324 months (27 years) will be paid 312 months (26 years) from now. Assume an annual discount rate of 5.5% (periodic rate of about 0.4583%).

Steps:

324 STO 0

312 STO 1

5.5 g 12รท

3000 PMT

R/S: Result: -505,785.53

R/S: Result: -121,435.08

The annuity needs to be funded with $121,435.08 in order to meet the required payment structures 26 years from now.

R0 = months to retirement

R1 = months of retirement (annuity)

PMT = monthly annuity payment

i = discount rate

Output:

1. Press R/S to get the value of all annuity

2. Press R/S to get the present value of the deferred annuity

Program:

Key : Step - Key Code

0 : 01- 0

FV : 02 - 15

RCL 1 : 03 - 45, 1

n : 04 - 11

PV : 05 - 13

R/S : 06 - 31

CHS : 07 - 16

FV : 08 - 15

0 : 09 - 0

PMT : 10 - 14

RCL 0 : 11 - 45, 0

n : 12 - 11

PV : 13 - 13

GTO 00 : 14 - 43, 33, 00

Note: This is done on a "classic" HP 12C. With a HP 12C Platinum, use RPN mode and replace GTO 00 with GTO 000.

Example:

An annuity that will pay $2,000 a month for 324 months (27 years) will be paid 312 months (26 years) from now. Assume an annual discount rate of 5.5% (periodic rate of about 0.4583%).

Steps:

324 STO 0

312 STO 1

5.5 g 12รท

3000 PMT

R/S: Result: -505,785.53

R/S: Result: -121,435.08

The annuity needs to be funded with $121,435.08 in order to meet the required payment structures 26 years from now.