HP 12C#ABA hp 12c_solutions handbook_English_E.pdf - Page 39
Savings, Initial Deposit with Periodic Deposits
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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 and press CLEAR . 2. Key in the initial investment and press . 3. Key in the number of additional periodic deposits and press . 4. Key in the periodic interest rate and press . 5. Key in the periodic deposit and press . 6. Press 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 1/4 % compounded monthly, how much will you have in 3 years? Keystrokes Display CLEAR 200 2,178.94 Value of the account. 3 5.25 50 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. 38