I’m currently working on a project where I am to find the net present value of a hypothetical career earnings. I figured out how to do it on excel, but I need to be able to do it on the BA II Plus calculator.
The situation goes like this…
An employee gets a lump sum salary at the end of each year. The employee’s salary increases 5% each year, and his current salary is $75,000. He has a tax rate of 30%. He plans to retire after 30 years of work.
You can use the cash flow function on a BA II calculator, although you may have to enter each year’s salary individually saying as it changes by inflation each year.
Heres a vid to show you how to use it:
Just make sure you input the after tax, inflation adjusted earnings each year in the cash flow worksheet.
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