Sinking fund
This will calculate: how much to set aside each period if you need so much money in the future.
Example: you need to put a new roof on a building in 10 years at an estimated cost of $20,000. How much must you invest every month, earning 5% compounded monthly, to have $20,000 in the bank in 10 years?
Please note: the result is a negative number because it is a cash outlay.
Prefer to let the site do the arithmetic? Use the sinking fund form.
- HP-10B keystrokes
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1
12
P/YR
Sets twelve periods per year
- 2 10 N
- 3 5 I/YR
- 4 20000 FV
- 5 PMT = -128.80
P/YR tells the calculator how many payments there are in a year. Set it first: 12 for monthly, 1 for annual. It stays set until you change it. The plain gold key is the shift key. Press it immediately before another key to reach the gold function printed above that key.