(12C) Deferred Monthly Annuity for the HP 12C

[Eddie W. Shore]

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 12÷
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.