Periodic Deposits And Withdrawals - HP 12c Platinum Reference Manual

42 Savings

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 ½% compounded monthly. Your current balance is $1023.25.
How much will you have accumulated in 5 months?
The cash flow diagram looks like this:
1
- 50
PV = - 1023.25
12c platinum / 12C
RPN Keystrokes
gÂ
fCLEARG
50ÞP
5.5gC
1023.25Þ$
5nM
Now suppose that at the beginning of the 6th month you withdrew $80.
What is the new balance?
12c platinum / 12C
RPN Keystrokes
80-
2
- 50
12c platinum
ALG Keystrokes
gÂ
fCLEARG
50ÞP
5.5gC
1023.25Þ$
5nM
12c platinum
ALG Keystrokes
-80³
3 4
- 50 - 50
Display
Amount in account.
1,299.22
Display
New balance.
1,219.22
FV = ?
5
- 50
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