Savings; Initial Deposit With Periodic Deposits - HP 12c Solutions Handbook

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
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
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
CLEAR
200
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.

Savings

and press
to determine the value of the account at the end of the time
Display
2,178.94
CLEAR .
.
Value of the account.
38
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.
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