HP 12C Financial calculator User Manual

Page 43

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Section 3: Basic Financial Functions

43

File name: hp 12c_user's guide_English_HDPMBF12E44

Page: 43 of 209

Printered Date: 2005/7/29

Dimension: 14.8 cm x 21 cm

Keystrokes Display

MM

4,027.27

Calculates FV – which equals the
balance in the account if 58 full
deposits were made.

*

:P

–50.00

Recalls amount of deposits.

+

3,977.27

Calculates the balance in the account
if 57 full deposits were made and
interest accrued during the 58

th

month.

†

4000-

–22.73

Calculates final, fractional, 58

th

deposit required to reach $4,000.

Calculating the Periodic and Annual Interest Rates

1. Press fCLEARG to clear the financial registers.
2. Enter the number of payments or periods, using n or A.
3. Enter at least two of the following values:

z

Present value, using $.

z

Payment amount, using P.

z

Future value, using M.

Note:

Remember to

observe the cash flow sign
convention.

4. If a PMT was entered, press g× or g to set the payment mode.
5. Press ¼ to calculate the periodic interest rate.
6. To calculate the annual interest rate, key in the number of periods per year,

then press §.

*

In this example, M must be pressed twice, since the preceding key pressed was z. If we

had stored the number of deposits in n (as we did following Example 1), we would have to
press M only once here, since the preceding key pressed would have been w (as it was
following Example 1). Remember that it is not necessary to store the number of payments in n
before calculating the amount of the final, fractional payment. (Refer to the preceding
footnote.)

†

You might think that we could calculate the balance in the account after 57 full deposits were

made simply by storing that number in n and then calculating FV, as we did using the second
method following Example 1. However, this balance would not include the interest accrued
during the 58th month.

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