User 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 and press CLEAR .
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
. This step may be omitted if
the account is depleted (FV=0).
6. Press
to determine the number of periods to reach the specified 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 Display
CLEAR
18000
5.5
300
71.00 Months to deplete account.
5000
53.00 Months to reduce the account to $5,000
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?