Number Of Periods To Deplete A Savings Account Or To Reach A Specified Balance; Periodic Deposits And Withdrawals - HP 12c Solutions Handbook

Number of Periods to Deplete a Savings
Account or to Reach a Specified Balance.
Given the current value of a savings account, the periodic interest rate,
the amount of the periodic withdrawal, and a specified balance, this
procedure determines the number of periods to reach that balance (the
balance is zero if the account is depleted).
1. Press
2. Key in the value of the savings account and press
3. Key in the periodic interest rate and press
4. Key in the amount of the periodic withdrawal and press
5. Key in the amount remaining in the account and press
may be omitted if the account is depleted (FV=0).
6. Press
balance.
Example: Your savings account presently contains $18,000 and earns 5
1/4% compounded monthly. You wish to withdraw $300 a month until the
account is depleted. How long will this take? If you wish to reduce the
account to $5,000, how many withdrawals can you make?
Keystrokes
CLEAR
18000
5.25
300
5000

Periodic Deposits and Withdrawals

This section is presented as a guideline for evaluating a savings plan
when deposits and withdrawals occur at irregular intervals. One problem
is given, and a step by step method for setting up and solving the problem
is presented:
Example: You are presently depositing $50 and the end of each month into a
local savings and loan, earning 5 1/2% compounded monthly. Your current
balance is $1023.25. How much will you have accumulated in 5 months?
and press
to determine the number of periods to reach the specified
Display
71.00
53.00
CLEAR .
.
Months to deplete account.
Months to reduce the account to
$5,000
39
.
.
. This step