Use Term to compute the number of payment periods in the term of an ordinary annuity necessary to accumulate a future value earning a specified periodic interest rate. Store the following information in the memory registers:
Register 0: Amount of each periodic payment
Register 1: Future value
Register 2: Periodic interest rate
You deposit $1,800 at the end of each year into a bank account. Your account earns 11% a year, compounded annually. You want to determine how long it will take to accumulate $120,000.
Memory register usage:
Register 0 - 1800 (periodic payment) Register 1 - 120000 (future value) Register 2 - 0.11 (periodic interest rate is 11%)
Clicking SELECT on Term returns 20.32, the number of years it will take to accumulate $120,000 in your account.