The Projected Present Value of an Ordinary Annuity

A German pension fund manager anticipates that benefits of €1 million per year must be paid to retirees. Retirements will not occur until 10 years from now at time t = 10. Once benefits begin to be paid, they will extend until t = 39 for a total of 30 payments. What is the present value of the pension liability if the appropriate annual discount rate for plan liabilities is 5 percent compounded annually?


PMT: 1 million euro

N = 30

i = 5

PV = I calculated and get 15.372.451,03

Now in my HP12C I have 15.372.451,03, how I can go back with this value in 9 times (N = 9), without having to type this value on my calculator again?

Could anyone help me with this issue please?

After you press PV and get 15,372,451.03, press FV to set that amount as the future value. Continue from there.

I tried that but after I press FV 0,013 shows up in the calculator, than I try to press 9 N, 5 i and than press PV I get the wrong answer:

$ 7.107.821,684

Do you know whats happening or a fix for this?

Try the CF worksheet. Fewer keystrokes…

CF0=0, C01=0, F01=9, C02= 1,000,000 F02=30

2nd quit

NPV I=5 CPT PV 9,902,218.996

On the HP 12C?

That’s why I got me a BAII. :+1:

Does the HP12 not have a non-level CF worksheet???

Sorry, but what is a CF worksheet?

I have no idea whats C01=0, F01=9, C02= 1,000,000 F02=30

and CPT…

My mistake: press ENTER, then FV. Then 9 n, 0 PMT, PV



It’s some functionality specific to the BAII. I thought the HP12 would have something similar. :blush:

You could also calculate a 39 year annuity and subtract a 9 year annuity. This should produce the same end result. ETA: :+1:

Ok, now it worked haha, but it`s not as easy as I thorugh, It will actually be easier to type the entire number again maybe

“You could also calculate a 40 year annuity and subtract a 9 year annuity. This should produce the same end result.” - I don´t know how to do that through haha, but thank you