HP 12C Financial calculator - Manual (Page 154)

154 Section 14: Leasing
File name: hp 12c_user's guide_English_HDPMBF12E44 Page: 154 of 209
Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm
Solving for Yield
To calculate the periodic yield, information is entered as follows:
1. Press g and fCLEARG.
2. Key in the total number of payments in the lease then press \.
3. Key in the total number of payments made in advance then press
?0-n.
4. Key in the periodic payment to be received then press P.
5. Key in the total amount of the loan then press Þ:0:P§+$.
6. Press ¼ to obtain the periodic yield.
Example 1: A lease has been written to run for 60 months. The leased
equipment has a value of $25,000 with a $600 monthly payment. The lessee has
agreed to make 3 payments at the time of closing ($1800). What is the annual
yield to the lessor?
Keystrokes Display
gÂ
fCLEARG
60\3
?0-n 57.00 Number of periodic payments.
600P
25000Þ:0 3.00 Number of advance payments.
:P§+$ -23,200.00 PV.
¼ 1.44 Monthly yield (calculated).
12§ 17.33 Annual yield (as a percentage).