HP 12-C calc question

**CDNSushi** · 20th March 10, 01:24 AM

Can't get more off-topic than this... And I realize this is a very random question... But is there anyone on the forum that's into business or finances, that could help me figure out how to calculate the present value of a growing annuity, using an HP 12-C?

Please PM me if you do... Please & thank you.

Now back to your regular broadcast.

**BEEDEE** · 20th March 10, 04:48 AM

You mean this:

http://homepages.wmich.edu/~balik/ca.../hp12canit.htm

Google is your friend!

Brian

**CDNSushi** · 20th March 10, 05:26 AM

Close, but not quite... Thanks though... I've been googling this and I did come up with something but it didn't seem to work for some reason....

The problem I'm trying to solve goes something like this:

A college graduate is applying for a job that would earn him $80,000 a year. If he keeps his position, his salary will go up by 9% a year, and he expects to work 40 years before he retires. Assuming a discount rate of 20%, what is the present value of his lifetime earnings.

**DougC** · 20th March 10, 06:44 AM

It's been a few years, but, I think you could probably use the same type of calc as you would when you take into account inflation. I lost my manual years ago, but, check out the sight.

**Macman** · 20th March 10, 11:43 AM

Jim, I used to sell HP calculators, but that was ~30 years ago. I don't think the 12-C will calculate the PV of a growing annuity.
That said, I think DougC has it. Isn't it the same thing to calculate the PV of the $80,000 annuity at a discount rate of (20% - 9%) = 11%? This is just intuitive, as I don't have the time to work it out using formulae. Maybe try it on Excel so see if it works.

**joecool** · 20th March 10, 12:03 PM

I am pretty sure you can do this in Excel. We did a few problems like this last summer, but I can't remember for the life of me how to do it

Try Excel though, I know it can do those kind of calculations...

**CDNSushi** · 20th March 10, 06:14 PM

I would be happy to learn how to do it in Excel too, or any other financial calculator, for that matter, because their functions are inherently similar. I'll revisit this on Monday after I've cleared my head a bit and feel more fresh... But Doug seems to be on the right track with that.

Thank you to those who've responded so far!

Cheers.

Jim