40
Savings
Initial Deposit with Periodic Deposits
Given an initial deposit into a savings account, and a series of periodic deposits coincident
with the compounding period, the future value (or accumulated amount) may be
calculated as follows:
1. Press g and press fCLEARG.
2. Key in the initial investment and press Þ$.
3. Key in the number of additional periodic deposits and press n.
4. Key in the periodic interest rate and press ¼.
5. Key in the periodic deposit and press ÞP.
6. Press M to determine the value of the account at the end of the time period.
Example: You have just opened a savings account with a $200 deposit. If you deposit
$50 a month, and the account earns 5 ¼ % compounded monthly, how much will you
have in 3 years?
12c platinum / 12C
RPN Keystrokes
12c platinum
ALG Keystrokes
Display Comments
g gÂ
fCLEARG fCLEARG
200Þ$ 200Þ$
3gA 3gA
5.25gC 5.25gC
50ÞPM 50ÞPM
2,178.94
Value of the account.
Note: If the periodic deposits do not coincide with the compounding periods, the account
must be evaluated in another manner. First, find the future value of the initial deposits and
store it. Then use the procedure for compounding periods different from payment periods
to calculate the future value of the periodic deposits. Recall the future value of the initial
deposit and add to obtain the value of the account.
To Next Page
Loading...
