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Chip wants to have a \$1,000,000 in 30 years.  If Chip is able to make his money work at 15% interest, and he only makes a one time investment today with no more contributions later, how much must he invest today to have \$1,000,000 in 30 years?

Answer:  (These are the entries to put into you HP10bii Financial Calculator)

N (number of months) = 360 (it is 30 year period, and the calculator defaults to months, and there are 360 months in 30 years)

I/YR (interest rate/year) = 15 (Chip can make his money work at 15%)

PV (present value) = ??  (this is what we are solving for as Chip wants to know how much he must invest today)

PMT (payments) = 0 (Chip will not invest anything extra apart from the initial investment)

FV  (future value) = \$1,000,000 (this is Chip's goal amount that he wants to have in 30 years)

Once all four of the numbers above are entered into your calculator, simply press the "PV" button, and the answer will be \$11,423.22.  This means that if Chip invested \$11,423.22 today at 15% interest that at the end of 30 years he would have \$1,000,000.