HP 12C Financial calculator - Manual (Page 41)

Section 3: Basic Financial Functions 41
File name: hp 12c_user's guide_English_HDPMBF12E44 Page: 41 of 209
Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm
Keystrokes Display
12z 27.33 Twenty-seven years and four months.
Because the calculator rounds the calculated value of n up to the next higher
integer, in the preceding example it is likely that — while 328 payments will be
required to pay off the loan — only 327 full payments of $325 will be required,
the next and final payment being less than $325. You can calculate the final,
fractional, 328th payment as follows:
Keystrokes Display
328n 328.00 Stores total number of payments. *
M 181.89 Calculates FV — which equals the
overpayment if 328 full payments
were made.
:P –325.00 Recalls payment amount.
+ –143.11 Final, fractional payment.
Alternatively, you could make the fractional payment together with the 327th
payment. (Doing so will result in a somewhat smaller total of all payments, since
you will not have to pay interest during the 328th payment period.) You can
calculate this final, larger, 327th payment (essentially a balloon payment) as
follows:
Keystrokes Display
327n 327.00 Stores number of full payments.
M –141.87 Calculates FV — which is the balance
remaining after 327 full payments.
:P –325.00 Recalls payment amount.
+ –466.87 Final, balloon payment.
Instead of having a fractional (or balloon) payment at the end of the loan, you
might wish to make 327 or 328 equal payments. Refer to “Calculating the
Payment Amount” on page 46 for a complete description of this procedure.
* You could skip this step, since 328 is already stored in the n register. If you do so, however,
you will need to press M twice in the next step (for the reason discussed in the first footnote
on page 32; you would not have to press M twice if you had not pressed 12z after w in
the example above.) We choose to show this and the following example in a parallel format
so that the procedure is easy to remember: the number you key is the number of the final
payment — either the fractional payment or the balloon payment — whose amount is to be
calculated.