Number Of Periods To Deplete A Savings Account Or To Reach A Specified Balance - HP 12c Platinum Reference Manual

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 g and press fCLEARG.
2. Key in the value of the savings account and press Þ$.
3. Key in the periodic interest rate and press ¼.
4. Key in the amount of the periodic withdrawal and press P.
5. Key in the amount remaining in the account and press M.
This step may be omitted if the account is depleted (FV=0).
6. Press n to determine the number of periods to reach the desired balance.
Example: Your savings account presently contains $18,000 and earns 5 ½% 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 $5000, how many withdrawals can you
make?
12c platinum / 12C
RPN Keystrokes
gÂ
fCLEARG
18000Þ$
5.5gC
300Pn
5000Mn
12c platinum
ALG Keystrokes
gÂ
fCLEARG
18000Þ$
5.5gC
300Pn
5000Mn
Display
Months to deplete account.
71.00
Months to reduce the account to
53.00
$5000.
Savings 41
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