HP 12C Financial 12C manual Annual Percentage Rate APR Calculations

Page 268

268 Appendix G: United Kingdom Calculations

Annual Percentage Rate (APR) Calculations

In the United Kingdom, the calculation of the Annual Percentage Rate of Charge (APR) in accordance with the United Kingdom Consumer Credit Act (1974) differs from the calculation of the APR in the United States. Unlike the practice in the United States, where the APR can be calculated by multiplying the periodic interest rate by the number of periods per year, in the United Kingdom the APR is calculated by converting the periodic interest rate to the “effective annual rate,” then rounding the result to one decimal place. With the periodic interest rate in the display and in the i register and the payment mode set to End, the effective annual rate can be calculated by pressing ÞP, then keying in the number of compounding periods per year and pressing w0$M. Pressing f1 will then display the rounded APR.

Bond Calculations

Solutions for the price and yield to maturity of United Kingdom bonds are not included in this handbook. Actual practice differs according to the type of bond; variations such as cumulative and ex-dividend pricing, simple or compound interest discounting, etc., may be encountered.

Application Notes covering such situations may be available in the United Kingdom; check with your local authorized Hewlett-Packard dealer.

File name: hp 12c pt_user's guide_English_HDPMF123E27

Page: 268 of 275

Printed Date: 2005/8/1

Dimension: 14.8 cm x 21 cm

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Contents Hp 12c platinum financial calculator Printing History Introduction About This HandbookFinancial Calculations in the United Kingdom For More Solutions to Financial ProblemsIntroduction Contents Contents SectionPart II Programming 103 Part III Solutions 155 227 Appendix E Formulas Used 250 267 Making Financial Calculations Easy 48.00 500.0021,396.61 14.0010,371.79 168.0011,024.82 42.03Part Problem Solving Power On and Off Low-Power IndicationAdjusting the Display Contrast Getting StartedGetting Started Keying in NumbersDigit Separators Negative NumbersKeying in Large Numbers 7814Backspacing 123.63KeystrokesDisplay ALG mode 63+Clear Keys Keys ClearsRPN mode ALG mode Undo OperationRPN and ALG Keys ExampleKeystrokes RPN mode Display Simple Arithmetic Calculations in RPN Mode13.00 Simple Arithmetic Calculations in ALG Mode Chain Calculations in RPN Mode Keystrokes RPN mode22.95 35.3810.14 1053+ 30.00 42.00Chain Calculations in ALG Mode Parentheses CalculationsStorage Registers Keystrokes ALG mode 8zgØ5 1gÙ DisplayStoring and Recalling Numbers Later that same day … Keystrokes Display RPN mode 250.00Keystrokes Display 1250?0 500?2Storage Register Arithmetic Clearing Storage Registers58.33 13.70 10.14053.00 064.54Percentages in RPN Mode Percentage and Calendar FunctionsPercentage Functions 300Percentages in ALG Mode Percentage and Calendar Functions860.00 21,390.00283.40 22,673.40Keystrokes ALG mode Display Percent Difference58.50 53.25Percent of Total in RPN Mode 29.69Percent of Total in ALG Mode Calendar Functions Date FormatFuture or Past Dates 14.05 11,09,2004Number of Days Between Dates 11.09498.00 491.00Basic Financial Functions Financial RegistersStoring Numbers into the Financial Registers Displaying Numbers in the Financial RegistersBasic Financial Functions Simple Interest CalculationsClearing the Financial Registers 60.00 450.00455.25 455.18Financial Calculations and the Cash Flow Diagram Basic Financial Functions Payment Mode Cash Flow Sign ConventionGeneralized Cash Flow Diagrams Basic Financial Functions Compound Interest Calculations Calculating the Number of Payments or Compounding Periods35,000.00 Stores PV Sets the payment mode to End325.00 328.00 27.33181.89 143.11327.00 141.87466.87 Recalls payment amountGÂ n Keystrokes ALG mode 775.0050.00 Stores FV58.00 29.0050.00 977.27 4000Keystrokes Display ALG mode 4000 22.73Calculating the Periodic and Annual Interest Rates 10,000.00 Stores FVKeystrokes RPN mode Keystrokes ALG mode Calculating the Present Value9gC 450ÞP 1500+ 12.00 17,500.00540,000.00 369,494.09243,400.00 Stores PV 200.00 60,000.00717.44 Calculating the Future ValueSets payment mode to End 5gA243400$ 243,400.00 1363.29ÞP -1,363.29 222,975.98 Amount of balloon payment24.00 281.3432,000.00 28,346.96Odd-Period Calculations Basic Financial Functions 135.17 0120045gC Z30+ 950.00 120.00GÒ z30+ §12Basic Financial Functions 250,000.00 AmortizationKeystrokes Display FCLEAR G Enters 25 gC 250000 $ 498.12 970.91245,029.09 238.26093.75 404.37360.00 380.51Additional Financial Functions Discounted Cash Flow Analysis NPV and IRRAdditional Financial Functions Calculating Net Present Value NPVNegative cash flow 130,000.00 212.18Year Cash Flow 79,000.00 14,000.0011,000.00 10,000.00Calculating Internal Rate of Return IRR 13.72Reviewing Cash Flow Entries 100,000.00 500.00 14,000.00 79,000.00 Changing Cash Flow Entries644.75 857.21Bond Calculations Bond Price042018 120.38122.13 Bond YieldTotal price, including accrued Depreciation Calculations 400.001f# 2f#660.00 440.003f# Additional Operating Features Continuous MemoryAdditional Operating Features Status IndicatorsDisplay Number Display Formats14.8746 14.9 14.87456320 Scientific Notation Display Format487456 1487456320Key in RPN Mode Special DisplaysArithmetic Calculations With Constants Recovering From Errors in Digit Entry 429,000.00Statistics Functions Accumulating StatisticsCorrecting Accumulated Statistics MeanStatistics Functions Register Statistic32.00 40.0038.00 35.00820.59 Standard Deviation463.00 Linear Estimation 28,818.93Keystrokes Display 48 gQ Estimated sales for a 48 hourKeystrokes RPN mode 0gR Display Keystrokes ALG mode 0gR 1gR~d-~ Display001 GR~d~Weighted Mean One-Number Functions Mathematics Number-Alteration Functions100 258 Mathematics and Number-Alteration Functions3880000000 Power Function in ALG Mode Power Function in RPN ModeKeystrokes To CalculateDisplay ALG mode Part Programming Why Use Programs? Programming BasicsCreating a Program 104Programming Basics 200150.00 155.00Running a Program 001 002 003 004 005 006 007625 473.75159 124.25Program Memory Identifying Instructions in Program LinesNnn Nnn, 44 Nnn,43,33,000Displaying Program Lines Instruction KeycodeMode and displays current line Pressing gÜdoes the reverse Keystrokes Display RPN modeSets calculator to Program Program memoryKeystrokes Display 008,43,33,000 Program line 000 Instruction and Program Line Expanding Program MemoryProgramming Basics Setting the Calculator to a Particular Program Line Executing a Program One Line at a TimeProgram line 002 Program line 003Program line 004 b Program line 006Program line 005 + Pausing During Program Execution Interrupting Program Execution68.5 119 Keystrokes RPN mode ?+1 ?+2 ?+3 Keystrokes ALG mode?+1 ?+2 ?+3 001 002 004 005 006008 001 002 003 004012, 44 40 950.61890.50 60.11402.82 370.52Stopping Program Execution 003,44 004 005 006FCLEAR² 13\68.5 18\72.9 24\85 Fourth item Simple Branching Branching and Looping125 Looping Branching and Looping150,000.00 007,43,33,002782.47 593.75 593.75 005188.72 188.72 007,43,33,002592.25 Conditional Branching190.22 Branching and Looping Recalls test value into X-register 006,43,33,008 004,43,33,007Stores income into register R9 006,43,33,009 008,43,33,010010 20,000.0015,000.00 15,000.00 004,43,33,00715,000.00 007 20,00020,000.00 007 25,00025,000.00 25,000.00 00515,000 15,000.00 00515,000.00 006,43,33,009 15,000.00 009012,43,33,000 Line 012 gi000 000.00 005, 43 34 Line 005 go 20,000.0020,000.00 009 Line 00925,000.00 007 25.00 010Changing the Instruction in a Program Line Program Editing139 Adding Instructions at the End of a Program Keystrokes RPN mode Keystrokes ALG mode Fs gi.006 DisplayProgram Editing 12,000.00 012013 014Adding Instructions by Replacement Adding Instructions within a ProgramFs 15000t 016 Adding Instructions by BranchingKeystrokes RPN mode Fs gi.000 001,43,33,012011,43,33,000 Gi.010014 015,43,33,000 016 012 013017,43,33,002 018 019 017,43,33,000020 021,43,33,000 022 Program Editing Storing Another Program Multiple Programs149 018,43,33,000 019 020 021 022023 024 025 026 027,43,33,019029 030 031 032 025 026 027 028033,43,33,025 028 029 030 031 032 033 034,43,33,029034 035 036 037 038 039 040,43 33,035Running Another Program Page Part Solutions Annual Percentage Rate Calculations With Fees Real Estate and Lending156 Real Estate and Lending 160,000.00908.46 156,800.00159,250.00 156,050.00Keystrokes Display RPN mode ALG mode 12§ §12³ Keystrokes Display RPN mode ALG mode FCLEARGPrice of a Mortgage Traded at a Discount or Premium 72.00137.17 777.61312.00 657.97252.00 Yield of a Mortgage Traded at a Discount or Premium300,000.00 096.57 210.00Rent or Buy Decision 258,377.2418.00 12.11000 001 002 003 004,44 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021RPN mode Registers Real Estate and Lending 165.00 700.00900.00 270,000.00Keystrokes Display RPN mode ALG mode Yield Deferred Annuities46,048.61 15,218.35750.00 600.0012,831.75 Investment Analysis Partial-Year DepreciationStraight-Line Depreciation 000 001 002 003 004 005 006 007 008 009 010 011012 013 014 015 016 017 018 019 020 021 022 023 024 025,43 026 027 028 029 030 031032,44 033,44036 037 038 039 040 041,43,33036,44 037,43,33Investment Analysis 125,000.00 666.67123,333.33 118,333.33730.00 504.75Declining-Balance Depreciation 000 001 002 003 004 005 006 007 008 009010 011 012 013 014 015 016 017 018 019 020 021,43 022 023 024 025 026 027028,44 029,44034 035 036 034 035 036 037 038 039 04050,000.00 11,458.33 Sum-of-the-Years-Digits Depreciation018 019 020 021 022 023 024 025,43,33026 027 028 029 030 031 035 036 037 038 039 040042 043 044 500M Keystrokes Display RPN mode ALG mode FCLEARG 12000$25n Full- and Partial-Year Depreciation with Crossover 008 009 010 011 012 013 014 008 009 010 011?-0 032,43,33 033 034 035 036 037 038 039040,44 041,44 042057,43,33 058 059 060 061 062063,44 064,43,33080,44 081 082 083 084 085,43,33086 087 088 089 090 091 092 093 094,43,33Keystrokes Display RPN mode ALG mode FCLEAR H 11000 $ 375.00 125.00406.25 804.69Excess Depreciation 10,500.00312.50 531.25Modified Internal Rate of Return Group # of Months Cash Flow $ 200,000.00657,152.37 775,797.83Black-Scholes Formula for Valuing European Options Keystrokes Display Keystrokes Display 065 066 067 068 069 070 071,43,33,077073,44 074 075,44 076 077 078089 090 091 092,44 093 094 095096,44 097 098 099 089,44 090199 113 114,44 115 116 117118,43,33 Program Instructions52.00 20.5414.22 71.1510.00 20.00Leasing Advance PaymentsSolving for Payment 202Leasing 11.6464.45 000 001008 009 010 011 012 013 014 015 016 017 008 009 010 011 012 013 014 015 016 017 018 01965.43 66.86Solving for Yield 57.0023,200.00 600 P17.33 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016Annual yield as a PercentageKeystrokes ALG mode 017,45,4319.48 ? tAdvance Payments With Residual 018 019 020 021 022 023 024 025 026 027 028 029 030 15.00 22,000.00487.29 520.8134.00 710.0018.10 Keystrokes Display RPN mode ALG mode FCLEARG 25\ 25z 4nz¼ SavingsNominal Rate Converted to Effective Rate 213002 003 004 005 006 007 008 Savings002 003 004 005 006 007 008 009 010 Effective Rate Converted to Nominal Rate ³ÞM¼Keystrokes Display RPN mode ALG mode FCLEAR G N100 $ Continuous Rate Converted to Effective Rate105.35 35 +Þ +5.35 ³ÞBonds 30/360 Day Basis Bonds001 002 003 004 005 006 007 008 009 010 011 012 013 217014 015 016 017 018 019 020 021 022 023 024 025 026 027 029 030 031 032 033 034 035 036 037038,43,33 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028039 040 041 042 043 044 045 046 Bonds 219040,43,33 041 042 043 044 045 046 047 048 049102.55 103.41 104.74Annual Coupon Bonds 223 20 ?0 12.01 94.75Page Appendices RPN and the Stack 228Getting Numbers Into the Stack The Key Appendix a RPN and the StackRearranging Numbers in the Stack Termination of Digit EntryStack Lift KeyTwo-Number Functions and the Stack One-Number Functions and the StackMathematics Functions Percentage Functions Calendar and Financial Functions RegisterLast X Register and the Key Arithmetic Calculations with Constants + 5 6 +84,000 168,000.00336,000.00 672,000.00Algebraic Mode ALG 237Keying in Negative Numbers Appendix B Algebraic Mode ALG532.50 Key in ALG Mode History Stack in ALG Mode400.43 737.07 18.5 §8zgØ 1250+7b To Calculate Keystrokes Display ALG mode Power FunctionPercent of Total More About L 243Appendix C More About L Error 0 Mathematics Error Conditions245 Error 1 Storage Register Overflow Error 2 StatisticsError 3 IRR Error 4 MemoryError 5 Compound Interest OperationConditionError 7 IRR Error 6 Storage RegistersOperation Condition Error 9 Service Error 8 CalendarPr Error Formulas Used PercentageInterest Simple InterestAppendix E Formulas Used Compound InterestDiscounted Cash Flow Analysis CalendarBonds 200Depreciation DPN J Finite Compounding Interest Rate ConversionsContinuous Compounding Weighted Mean StatisticsLinear Estimation Standard DeviationRent or Buy Decision Battery, Warranty, Service Information BatteryLow-Power Indication 259Appendix F Battery, Warranty, and Service Information Installing a New BatteryVerifying Proper Operation Self-Tests Appendix F Battery, Warranty, and Service Information Warranty Service Regulatory Information USATemperature Specifications Noise DeclarationCanada JapanMortgages United Kingdom Calculations267 Annual Percentage Rate APR Calculations Appendix G United Kingdom Calculations269 Financial Function Key IndexStatistics Modes MathematicsNumber Alteration Stack Rearrangement272 Programming Key Index Run Mode Active KeysPressed from Keyboard Subject Index 274Subject Index Subject Index Subject Index Subject Index
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