HP 12C Financial 12C 4gA, 6gC, 14n, 500P, Note:, 5.35¼, 5000Þ$, policy, running, Display, Display, fCLEARG, periods, fCLEARHf2, -5,000.00, Keystrokes, -21,396.61, Example 2:

Making Financial Calculations Easy 13

Note: A battery symbol () shown in the upper-left corner of the display when the calculator is on signifies that the available battery power is nearly exhausted. To install new batteries, refer to Appendix F.

The calendar functions and nearly all of the financial functions take some time to produce an answer. (This is typically just a few seconds, but the¼, !, L, and S functions could require a half-minute or more.) During these calculations, the word running flashes in the display to let you know that the calculator is running.

Keystrokes	Display
fCLEARHf2	0.00	Clears previous data inside the
		calculator and sets display to show
		two decimal places.
4gA	48.00	Calculates and stores the number
		of compounding periods.
6gC	0.50	Calculates and stores the periodic
		interest rate.
500P	500.00	Stores periodic payment amount.
g×	500.00	Sets payment mode to Begin.
$	-21,396.61	Amount required to be deposited.*

Example 2: We now need to determine how to accumulate the required deposit by the time your daughter enters college 14 years from now. Let’s say that she has a paid-up $5,000 insurance policy that pays 5.35%, compounded annually. How much would it be worth by the time she enters college?

In this example, we need to calculate FV, the future value.

Keystrokes	Display
fCLEARG	-21,396.61	Clears previous financial data
		inside the calculator.
14n	14.00	Stores the number of compounding
		periods.
5.35¼	5.35	Stores the periodic interest rate.
5000Þ$	-5,000.00	Stores the present value of the
		policy.

*Don’t be concerned now about the minus sign in the display. That and other details will be explained in Section 3.

File name: hp 12c pt_user's guide_English_HDPMF123E27	Page: 13 of 275
Printed Date: 2005/8/1	Dimension: 14.8 cm x 21 cm