HP 12C Financial 0012C-90001, 12C Financial 12C#ABA, 12C Financial F2231AA#ABA 0 PV (1 iS) PMT ⎢⎥ FV (1 i), ∑ INT = ∑ INTj = INT1 + INT2 + ... + INTn, ∑ PRN = ∑ PRNj = PRN1 + PRN2 + ... + PRNn, PVn = PV0 + ∑ PRN, Compound Interest

186 Appendix D: Formulas UsedCompound Interest

Without an odd period:

= + + ⋅ ⋅ ⎡1− (1+ i)−n ⎤ + + −n

0 PV (1 iS) PMT ⎢⎥ FV (1 i)

⎢⎣ i ⎥⎦

With simple interest used for an odd period:

⎡1	− (1	+ i)− INTG(n) ⎤
0 = PV [1+ iFRAC(n)] + (1+ iS)PMT ⎢			⎥	+
		i
⎣⎢			⎦⎥

FV (1+ i)−INTG(n)

With compound interest used for an odd period:

	⎡		− (1+ i)	− INTG(n) ⎤
0 = PV (1+ i)FRAC(n)	+ (1+ iS)PMT ⎢	1			⎥	+
			i
	⎣⎢				⎦⎥
FV (1+ i)−INTG(n)

Amortization

n= number of payment periods to be amortized.

INTj	= amount of PMT applied to interest in period j.
PRNj	= amount of PMT applied to principal in period j.
PVj	= present value (balance) of loan after payment in period j.

j= period number.

INT1	= {0 if n = 0 and payment mode is set to Begin.
	PV0 × iRND (sign of PMT)
PRN1	= PMT – INT1
PV1	= PV0 + PRN1
INTj	= PVj –1× iRND × (sign of PMT) for j > 1.
PRNj	= PMT – INTj
PVj	= PVj –1+ PRNj

n

∑ INT = ∑ INTj = INT1 + INT2 + ... + INTn

j=1

n

∑ PRN = ∑ PRNj = PRN1 + PRN2 + ... + PRNn

j=1

PVn = PV0 + ∑ PRN

File name: hp 12c_user's guide_English_HDPMBF12E44	Page: 186 of 209
Printered Date: 2005/7/29	Dimension: 14.8 cm x 21 cm