Edition
HP Part Number 0012C-90001
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Printing History
Introduction
4 Introduction
Financial Calculations in the United Kingdom
For More Solutions to Financial Problems
Contents
6Contents
Section 4:
Additional Financial Functions
Section 5:
Additional Operating Features
Section 6:
Statistics Functions
Section 7: Mathematics and Number-AlterationFunctions
Section 8:
Programming Basics
Section 11: Multiple Programs
Section 12: Real Estate and Lending
Section 13: Investment Analysis
Section 14: Leasing
Section 15: Savings
Appendix A: The Automatic Memory Stack
Getting Numbers Into the Stack: The
Key
One-NumberFunctions and the Stack
Two-NumberFunctions and the Stack
Appendix E: Battery, Warranty, and Service Information
Appendix F: United Kingdom Calculations
Function Key Index
Programming Key Index
Subject Index
Example 1:
zn: the number of compounding periods
zi: the interest rate per compounding period
zPV: the present value of a compounded amount
zPMT: the periodic payment amount
12Making Financial Calculations Easy
Note:
running
Keystrokes fCLEARHf2
CLEAR
Example 3:
Keystrokes Display
fCLEARG 10,470.85
14gA
–41.65
Page
Problem Solving
Getting Started
Section 1: Getting Started
Keying in Numbers
Digit Separators
Negative Numbers
18 Section 1: Getting Started
Keying in Large Numbers
The CLEAR Keys
Key(s)Clears:
Simple Arithmetic Calculations
20 Section 1: Getting Started
Chain Calculations
Example:
Solution:
1,064.54
22 Section 1: Getting Started
Your hp 12c calculates the answer in just the same way:
3\4§
Step 1: Multiply the numbers in the
first parentheses
Storage Registers
Storing and Recalling Numbers
3,250.00
2,500.00
24 Section 1: Getting Started
19,500.00
22,000.00
Clearing Storage Registers
Storage Register Arithmetic
1,053.00
Percentage and Calendar
Functions
Section 2: Percentage and Calendar Functions
Net Amount
13,250.00
1,060.00
12,190.00
28 Section 2: Percentage and Calendar Functions
Percent of Total
Calendar Functions
Date Format
Month-Day-Year
30 Section 2: Percentage and Calendar Functions
11,09,2004
Number of Days Between Dates
Basic Financial Functions
Section 3: Basic Financial Functions
Clearing the Financial Registers
Simple Interest Calculations
1.Key in or calculate the number of days, then press n
2.Key in the annual interest rate, then press ¼
3.Key in the principal amount, then press Þ$
4.Press fÏ to calculate and display the interest accrued on a 360-daybasis
Financial Calculations and the Cash Flow Diagram
Page
36 Section 3: Basic Financial Functions
The Cash Flow Sign Convention
The Cash Flow Sign Convention:
The Payment Mode
BEGIN
Generalized Cash Flow Diagrams
38 Section 3: Basic Financial Functions
Compound Interest Calculations
Specifying the Number of Compounding Periods and the Periodic Interest Rate
Calculating the Number of Payments or Compounding Periods
40 Section 3: Basic Financial Functions
total
n equal
fCLEARG 10.5gC
35000$
12z
Twenty-sevenyears and four months
full
328n
Stores total number of payments
42 Section 3: Basic Financial Functions
–775.00
–50.00
4,000.00
4,027.27 Calculates FV – which equals the
balance in the account if 58 full
deposits were made
3,977.27
Recalls amount of deposits
44 Section 3: Basic Financial Functions
8\4§w
–6,000.00
10,000.00
Calculating the Present Value
–150.00
5,389.72
6,889.72
46 Section 3: Basic Financial Functions
17,500.00
540,000.00
–369,494.09
Calculating the Payment Amount
29gA
43400$ 43,400.00
g 43,400.00
P –523.99
–3200.00
48 Section 3: Basic Financial Functions
Calculating the Future Value
5gA
43,400.00
–523.99
2gA
1,281.34
50 Section 3: Basic Financial Functions
noninteger n
Page: 51 of
52 Section 3: Basic Financial Functions
4,500.00
–157.03
3,950.00
–120.00
54 Section 3: Basic Financial Functions
Amortization
To obtain an amortization schedule:
3.Enter the amount of the loan (the principal), using $
Key in the periodic payment, then press
5.Press g× or (for most direct reduction loans) g to set the payment mode
–573.35
–6,608.89
–271.31
49,728.69
–6,570.72
56 Section 3: Basic Financial Functions
1f! –552.08
~ –21.27
1f! –551.85
~ –21.50
Additional Financial
Page
Page
Page
Page
Page
Page
Page
Page
Page
Page
Page
Page
Additional Operating
Features
Section 5: Additional Operating Features
The Display
Status Indicators
Number Display Formats
Standard Display Format
72 Section 5: Additional Operating Features
Scientific Notation Display Format
Mantissa Display Format
fCLEARX
f214.87
Special Displays
Running
74 Section 5: Additional Operating Features
Errors
Arithmetic Calculations With Constants
1,095.00
Recovering From Errors in Digit Entry
429,000.00
9,987
Statistics Functions
Section 6: Statistics Functions
Register
Statistic
Correcting Accumulated Statistics
gFg^
Mean
78 Section 6: Statistics Functions
Salesperson
Hours/Week
21,714.29
Standard Deviation
4,820.59
Standard deviation of sales
Standard deviation of hours worked
best estimates
Linear Estimation
28,818.93
gR~d
0gR
1 gR~d
Weighted Mean
82 Section 6: Statistics Functions
Mathematics and
Number-AlterationFunctions
84 Section 7: Mathematics and Number-AlterationFunctions
Fractional
Section 7: Mathematics and Number-AlterationFunctions
The Power Function
To Calculate
2Þ\3q
–8.00
2\3yq
Page
Programming
Programming Basics
Section 8: Programming Basics
Running a Program
90 Section 8: Programming Basics
Program Memory
Identifying Instructions in Program Lines
Instruction
Keycode
nn
?=1
92 Section 8: Programming Basics
Displaying Program Lines
08- 43, 33
The 00 Instruction and Program Line
94 Section 8: Programming Basics
Expanding Program Memory
Setting the Calculator to a Particular Program Line
gi
96 Section 8: Programming Basics
gi.00
Executing a Program One Line at a Time
Interrupting Program Execution
Pausing During Program Execution
98 Section 8: Programming Basics
?+1
:0 b ?+2
?+3
100 Section 8: Programming Basics
gu ?+2
1,312.20
1,400.77
2,040.00
Stopping Program Execution
Keystrokes fs fCLEARÎ
?+1 :0 b t
?+2
?+3 fs fCLEAR² 13\68.5
102 Section 8: Programming Basics
Branching and Looping
104 Section 9: Branching and Looping
Looping
f! gu
gi02
Section 9: Branching and Looping
–543.35
106 Section 9: Branching and Looping
Ê 03- –531.25
–531.25
–12.10
–531.12
Conditional Branching
108 Section 9: Branching and Looping
Keystrokes fs
Î :
110 Section 9: Branching and Looping
Keystrokes gi07
gi08 :1 b fs
06- 43, 33
08- 25 –12.36
Display 15,000.00
3,000.00
20,000
25,000
112 Section 9: Branching and Looping
25,000.00
Ê06- 43, 33 08 Line 06: gi08
6,250.00
Program Editing
Page
Section 10: Program Editing
Adding Instructions Within a Program
Adding Instructions by Replacement
116 Section 10: Program Editing
gi.08
12,000.00
Adding Instructions by Branching
~gogi
gi12
01- 43
gi.10
11- 43
118 Section 10: Program Editing
go gi00 :0
7,500.00
6,500.00
Page
Multiple Programs
Section 11: Multiple Programs
Keystrokes fs gi.17
t gi19 fs
122 Section 11: Multiple Programs
gi.27
Running Another Program
gi19
Solutions
Real Estate and Lending
Section 12: Real Estate and Lending
–594.17
:$2b-$
58,800.00
:$150-$
Price of a Mortgage Traded at a Discount or Premium
g fCLEARG
72n
9gC
137.17P*137.17
2000M$ –8,777.61
Yield of a Mortgage Traded at a Discount or Premium
9gC
–100,000.00
89,849.34
Þ$¼
130 Section 12: Real Estate and Lending
NCPR
:.0
Page: 130 of
KEYSTROKES DISPLAY KEYSTROKES DISPLAY
132 Section 12: Real Estate and Lending
REGISTERS
n: Period
i: Apprec
PV: Price
16.Press tto compute the yield on your investment in the house
17.Press tto compute the value of a savings account or other investment
7000?1
7,000.00
30?2
Deferred Annuities
0gJ
0gK
8ga
15,218.35
5ga
6ga
12,831.75
Investment Analysis
Section 13: Investment Analysis
gi30
41-43,33
n: Life
i: Unused
138Section 13: Investment Analysis
~:$:3
+~- gi00
125,000.00 Book value
1,666.67
3,333.33
6,730.00
Declining-BalanceDepreciation
gi31
21-43,33
140 Section 13: Investment Analysis
?+0
gi22
30-43,33
37-43,33
8,000.00
11,458.33
Sum-of-the-Years-DigitsDepreciation
142 Section 13: Investment Analysis
~-:M
9.For a new case press gi00 and return to step
12000$
11t
Fourth year:
Full- and Partial-YearDepreciation with Crossover
gi53
51-43,33
gi65
52-43,33
Section 13: Investment Analysis
?-2
?-1
gi39
32-43,33
146 Section 13: Investment Analysis
94-43,33
gi58
95-43,33
R1: Dep
fCLEARH 11000$ 500M 8n
11,000.00 Book value
500.00Salvage value
8.00Life
200.00Declining-balancefactor
Excess Depreciation
10,500.00
1,312.50
8,531.25
Modified Internal Rate of Return
Group
# of Months
Cash Flow ($)
0gK5ga
0gK9ga
150 Section 13: Investment Analysis
10gCfl Þ$
6gCfl
657,152.37
775,797.83
Leasing
152 Section 14: Leasing
Section 14: Leasing
?2t
154 Section 14: Leasing
Solving for Yield
:P§+$
?0-n
-23,200.00
:gC
17-45,43
156 Section 14: Leasing
Advance Payments With Residual
Solving for Payment
Page
158 Section 14: Leasing
?1t
Solving For Yield
§=gJ
–4,710.00
1,500.00
fL12§
Savings
Section 15: Savings
162 Section 15: Savings
Nominal Rate Converted to Continuous Effective Rate
g>à
Bonds
164 Section 16: Bonds
Section 16: Bonds
166 Section 16: Bonds
Annual Coupon Bonds
–4.58
–94.75
Page
Appendixes
The Automatic Memory Stack
Appendix A: The Automatic Memory Stack
172 Appendix A: The Automatic Memory Stack
Termination of Digit Entry
replaces
Stack Lift
Rearranging Numbers in the Stack
The key
Pressing ~ exchanges the numbers in the X- and
Y-registers
The Key
One-NumberFunctions and the Stack
Two-NumberFunctions and the Stack
Mathematics Functions
174 Appendix A: The Automatic Memory Stack
Percentage Functions
Calendar and Financial Functions
n, ¼, $
Register
P, M, l
INT365
The LAST X Register and the Key
LAST
Arithmetic Calculations with Constants
2
178 Appendix A: The Automatic Memory Stack
84,000
Enters base amount into displayed
X-register
168,000.00
More About L
180 Appendix B: More About L
Error Conditions
182 Appendix C: Error Conditions
Error 1: Storage Register Overflow
Error 2: Statistics
Error 3: IRR
Error 4: Memory
Appendix C: Error Conditions
Error 5: Compound Interest
Error 6: Storage Registers
K a l
184 Appendix C: Error Conditions
Error 7: IRR
Error 8: Calendar
Error 9: Service
Refer to Appendix E
Pr Error
Formulas Used
Base(y) ⋅ Rate(x)
Base(y)
Total(y) ⎠
I360 = 360n ⋅ PV ⋅
0 PV (1 iS) PMT ⎢⎥ FV (1 i)
∑ INT = ∑ INTj = INT1 + INT2 + ... + INTn
∑ PRN = ∑ PRNj = PRN1 + PRN2 + ... + PRNn
PVn = PV0 + ∑ PRN
NPV = CF0
0 = ∑CF
100(RDV +
CPN
DSM
DPNJ
SBV − SAL
SOYDk = (W + 1)(W + 2F)
DPNJ = (L − j + 1) ⋅ (SBV − SAL)
SOYDL
DPN1
DPNj
⎝ SOYD ⎠
⎛ LADJ − j +
⋅ (SBV − D − SAL)
NOM ⎞C
EFF = ⎜1+
EFF = (eNOM − 1)
yˆ = A + Bx
xˆ = y − A B
⎢∑ xy −
Battery, Warranty, and
Service Information
p sitive p l rity facing ou ward
slide ;
Appendix E: Battery, Warranty, and Service Information
Page: 195 of
196 Appendix E: Battery, Warranty, and Service Information
Warranty
Service
Europe
Country :
Telephone numbers
198 Appendix E: Battery, Warranty, and Service Information
Asia Pacific
L.America
N.America
Regulatory Information
USA
Canada
Japan
Temperature Specifications
Disposal of Waste Equipment by Users in Private Household in the European Union
United Kingdom Calculations
202 Appendix F: United Kingdom Calculations
Annual Percentage Rate (APR) Calculations
Function Key Index
204 Function Key Index
Financial
CLEAR GClears contents of financial registers (page 33)
(page 37)
Sets payment mode to End for compound interest calculations involving payments
Function Key Index
(page 81)
(page 79)
(page 80)
Mathematics
Programming Key Index
Programming Key Index
Go to. Followed by a decimal point and a
(page 95)
(page 92)
Pressed from
Subject Index
with
Constants, arithmetic calculations with
37, 70, 72, 93
, 29–31
, 68
210 Subject Index