There are generally two types of
Determine the interest rate you will be earning. This can be done by calling your bank and asking what the interest rate is on a
savingsaccount. You can also discuss your optionswith a financial planner. However, if you are starting a new planwith a new account, a savingsaccount at a bank or credit union may be your simplest option.
- Open the myOwn10-Key BizWizard. After starting myOwn10-Key, either click on the Functions menu and then the BizWizard command or press F2. The “Annuity future value”
optionshould already be selected in the BizWizard.
- Enter the interest rate earned by your
savingaccount in the APR textbox. As shown in the BizWizard window, an example interest entry is 6.5 when the rate is 6 1/2%.
- Enter the number of months or years until you need the money in the Total Periods textbox. If you enter months, select the “Mo”
optionto the right of the Total Periods textbox. If you enter the number of years, select the “Yr” option.
- Enter a Payment Per Month amount. Enter the maximum amount you feel you can afford to deposit every month toward your
- Calculate the Future Value. Click the Calculate button. The amount of money you will accumulate making the entered deposits for the entered amount of time will be displayed in the Future Value textbox.
- Lower the Payment Per Month amount and click the Calculate button. This will make your monthly deposits smaller while accumulating the recalculated Future Value amount in the same number of months or years.
- Lower the Total Periods amount and click the Calculate button. This will keep your monthly deposits the same and accumulate the recalculated Future Value amount in a shorter period of time.
- Leave the Payment Per Month and Total Periods the same. You will accumulate the higher calculated Future Value amount instead of the original target amount.
If the calculated Future Value is less than your goal, the best