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42 Section 3: Basic Financial Functions
File name: hp 12c_user's guide_English_HDPMBF12E44 Page: 42 of 209
Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm
Example 2:
You’re opening a savings account today (the middle of the month)
with a $775 deposit. The account pays 6
1
/
4
% interest compounded semimonthly.
If you make semimonthly deposits of $50 beginning next month, how long will it
take for your account to reach $4000
?
Keystrokes Display
fCLEARG
6.25\24z¼
0.26
Calculates and stores i.
775Þ$
–775.00
Stores PV (with minus sign for cash
paid out).
50ÞP
–50.00
Stores PMT (with minus sign for cash
paid out).
4000M
4,000.00
Stores FV.
gÂ
4,000.00
Sets the payment mode to End.
n
58.00
Number of semimonthly deposits.
2z
29.00
Number of months.
As in Example 1, it is likely that only 57 full deposits will be required, the next and
final deposit being less than $50. You can calculate this final, fractional, 58th
deposit as in Example 1, except that for this example you must subtract the original
FV. (In Example 1, the original FV was zero.) The procedure is as follows: