Deferred Annuities, 46,048.61, 15,218.35 | HP 12C Financial 12C

Section 12: Real Estate and Lending 169

Keystrokes	Keystrokes	Display
(RPN mode)	(ALG mode)	Display
(RPN mode)	(ALG mode)

t	t	8.57	Yield.
		8.57	Yield.
t	t	46,048.61	Balance in savings.
		46,048.61	Balance in savings.

By purchasing a house, you would gain $7,047.04 (53,095.65 – 46,048.61) over an alternate investment at 3% interest.

Deferred Annuities

Sometimes transactions are established where payments do not begin for a specified number of periods; the payments are deferred. The technique for calculating NPV may be applied assuming zero for the first cash flow. Refer to pages 73 through 77.

Example 1: You have just inherited $20,000 and wish to put some of it aside for your daughter’s college education. You estimate that when she is of college age, 9 years from now, she will need $7,000 at the beginning of each year for 4 years for college tuition and expenses. You wish to establish a fund which earns 6% annually. How much do you need to deposit in the fund today to meet your daughter’s educational expenses?

	Keystrokes	Keystrokes	Display
	(RPN mode)	(ALG mode)	Display
	(RPN mode)	(ALG mode)

	f]	f[

	fCLEARH	fCLEARH	0.00
	0gJ	0gJ	0.00
	0gK	0gK	0.00
	8ga	8ga	8.00
	7000gK	7000gK	7,000.00
	4ga	4ga	4.00
	6¼	6¼	6.00
	fl	fl	15,218.35
			15,218.35

Initialize.

First cash flow.

Second through ninth cash flows.

Tenth through thirteenth cash flows.

Interest.

NPV.

Leases often call for periodic contractual adjustments of rental payments. For example, a 2-year lease calls for monthly payments (at the beginning of the month) of $500 per month for the first 6 months, $600 per month for the next 12 months, and $750 per month for the last 6 months. This situation illustrates what is called a “step-up” lease. A “step-down” lease is similar, except that rental payments are decreased periodically according to the lease contract. Lease payments are made at the beginning of the period.

File name: hp 12c pt_user's guide_English_HDPMF123E27	Page: 169 of 275
Printed Date: 2005/8/1	Dimension: 14.8 cm x 21 cm

Image 169

HP 12C Financial 12C manual Deferred Annuities, 46,048.61, 15,218.35, Keystrokes Display RPN mode ALG mode Yield

Contents

Hp 12c platinum financial calculator Printing History About This Handbook Introduction Financial Calculations in the United Kingdom For More Solutions to Financial ProblemsIntroduction Contents Section Contents Part II Programming 103 Part III Solutions 155 227 Appendix E Formulas Used 250 267 Making Financial Calculations Easy 500.00 48.0021,396.61 14.00 168.00 10,371.7911,024.82 42.03 Part Problem Solving Low-Power Indication Power On and OffAdjusting the Display Contrast Getting Started Keying in Numbers Getting StartedDigit Separators Negative Numbers 7814 Keying in Large NumbersBackspacing 123.63 63+ KeystrokesDisplay ALG modeClear Keys Keys Clears Undo Operation RPN mode ALG modeRPN and ALG Keys Example Keystrokes RPN mode Display Simple Arithmetic Calculations in RPN Mode13.00 Simple Arithmetic Calculations in ALG Mode Keystrokes RPN mode Chain Calculations in RPN Mode22.95 35.38 10.14 1053+ 42.00 30.00 Parentheses Calculations Chain Calculations in ALG Mode Storage Registers Keystrokes ALG mode 8zgØ5 1gÙ DisplayStoring and Recalling Numbers 250.00 Later that same day … Keystrokes Display RPN modeKeystrokes Display 1250?0 500?2 Storage Register Arithmetic Clearing Storage Registers58.33 10.14 13.70053.00 064.54 Percentage and Calendar Functions Percentages in RPN ModePercentage Functions 300 Percentage and Calendar Functions Percentages in ALG Mode 21,390.00 860.00283.40 22,673.40 Percent Difference Keystrokes ALG mode Display58.50 53.25 29.69 Percent of Total in RPN Mode Percent of Total in ALG Mode Date Format Calendar Functions Future or Past Dates 11,09,2004 14.05 11.09 Number of Days Between Dates498.00 491.00 Financial Registers Basic Financial FunctionsStoring Numbers into the Financial Registers Displaying Numbers in the Financial Registers Basic Financial Functions Simple Interest CalculationsClearing the Financial Registers 450.00 60.00455.25 455.18 Financial Calculations and the Cash Flow Diagram Basic Financial Functions Cash Flow Sign Convention Payment Mode Generalized Cash Flow Diagrams Basic Financial Functions Calculating the Number of Payments or Compounding Periods Compound Interest Calculations 35,000.00 Stores PV Sets the payment mode to End325.00 27.33 328.00181.89 143.11 141.87 327.00466.87 Recalls payment amount 775.00 GÂ n Keystrokes ALG mode50.00 Stores FV 29.00 58.0050.00 977.27 4000 22.73 Keystrokes Display ALG mode 4000Calculating the Periodic and Annual Interest Rates 10,000.00 Stores FV Calculating the Present Value Keystrokes RPN mode Keystrokes ALG mode 9gC 450ÞP 1500+ 17,500.00 12.00540,000.00 369,494.09 243,400.00 Stores PV 60,000.00 200.00717.44 Calculating the Future Value 5gA Sets payment mode to End243400$ 243,400.00 1363.29ÞP -1,363.29 222,975.98 Amount of balloon payment 281.34 24.0032,000.00 28,346.96 Odd-Period Calculations Basic Financial Functions 135.17 0120045gC Z30+ 120.00 950.00GÒ z30+ §12 Basic Financial Functions 250,000.00 AmortizationKeystrokes Display FCLEAR G Enters 25 gC 250000 $ 970.91 498.12245,029.09 238.26 404.37 093.75360.00 380.51 Discounted Cash Flow Analysis NPV and IRR Additional Financial Functions Calculating Net Present Value NPV Additional Financial Functions Negative cash flow 212.18 130,000.00 Year Cash Flow 14,000.00 79,000.0011,000.00 10,000.00 13.72 Calculating Internal Rate of Return IRR Reviewing Cash Flow Entries Changing Cash Flow Entries 100,000.00 500.00 14,000.00 79,000.00 857.21 644.75 Bond Price Bond Calculations042018 120.38 122.13 Bond YieldTotal price, including accrued 400.00 Depreciation Calculations1f# 2f# 660.00 440.003f# Continuous Memory Additional Operating Features Status Indicators Additional Operating FeaturesDisplay Number Display Formats Scientific Notation Display Format 14.8746 14.9 14.87456320 1487456320 487456 Special Displays Key in RPN Mode Arithmetic Calculations With Constants 429,000.00 Recovering From Errors in Digit Entry Accumulating Statistics Statistics Functions Mean Correcting Accumulated StatisticsStatistics Functions Register Statistic 40.00 32.0038.00 35.00 820.59 Standard Deviation463.00 28,818.93 Linear EstimationKeystrokes Display 48 gQ Estimated sales for a 48 hour Keystrokes ALG mode 0gR 1gR~d-~ Display Keystrokes RPN mode 0gR 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 Programming Basics Why Use Programs?Creating a Program 104 200 Programming Basics150.00 155.00 001 002 003 004 005 006 007 Running a Program 473.75 625159 124.25 Identifying Instructions in Program Lines Program Memory Nnn,43,33,000 Nnn Nnn, 44Displaying Program Lines Instruction Keycode Pressing gÜdoes the reverse Keystrokes Display RPN mode Mode and displays current lineSets calculator to Program Program memory Keystrokes Display 008,43,33,000 Program line Expanding Program Memory 000 Instruction and Program Line Programming Basics Executing a Program One Line at a Time Setting the Calculator to a Particular Program Line Program line 003 Program line 002Program line 004 b Program line 006 Program line 005 + Interrupting Program Execution Pausing During Program Execution 68.5 119 Keystrokes RPN mode ?+1 ?+2 ?+3 Keystrokes ALG mode?+1 ?+2 ?+3 004 005 006 001 002008 001 002 003 004 950.61 012, 44 40890.50 60.11 370.52 402.82Stopping Program Execution 003,44 004 005 006 FCLEAR² 13\68.5 18\72.9 24\85 Fourth item Simple Branching Branching and Looping125 Branching and Looping Looping 150,000.00 007,43,33,002782.47 593.75 005 593.75188.72 188.72 007,43,33,002 592.25 Conditional Branching190.22 Branching and Looping Recalls test value into X-register 006,43,33,008 004,43,33,007Stores income into register R9 008,43,33,010 006,43,33,009010 20,000.00 15,000.00 004,43,33,007 15,000.0015,000.00 007 20,000 25,000 20,000.00 00725,000.00 25,000.00 005 15,000.00 005 15,00015,000.00 006,43,33,009 15,000.00 009 005, 43 34 Line 005 go 20,000.00 012,43,33,000 Line 012 gi000 000.0020,000.00 009 Line 009 25.00 010 25,000.00 007 Changing 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 012 12,000.00013 014 Adding Instructions within a Program Adding Instructions by Replacement Fs 15000t Adding Instructions by Branching 016 001,43,33,012 Keystrokes RPN mode Fs gi.000011,43,33,000 Gi.010 014 015,43,33,000 016 012 013017,43,33,002 018 019 017,43,33,000020 021,43,33,000 022 Program Editing Storing Another Program Multiple Programs149 019 020 021 022 018,43,33,000023 024 025 026 027,43,33,019 029 030 031 032 025 026 027 028033,43,33,025 032 033 034,43,33,029 028 029 030 031034 035 036 037 038 039 040,43 33,035 Running Another Program Page Part Solutions Annual Percentage Rate Calculations With Fees Real Estate and Lending156 160,000.00 Real Estate and Lending908.46 156,800.00 156,050.00 159,250.00 Keystrokes Display RPN mode ALG mode FCLEARG Keystrokes Display RPN mode ALG mode 12§ §12³Price of a Mortgage Traded at a Discount or Premium 72.00 777.61 137.17312.00 657.97 252.00 Yield of a Mortgage Traded at a Discount or Premium300,000.00 210.00 096.57 258,377.24 Rent or Buy Decision18.00 12.11 008 009 010 011 012 013 014 015 016 017 018 019 020 021 000 001 002 003 004,44 005 006 007 RPN mode Registers Real Estate and Lending 700.00 165.00900.00 270,000.00 Deferred Annuities Keystrokes Display RPN mode ALG mode Yield46,048.61 15,218.35 750.00 600.0012,831.75 Partial-Year Depreciation Investment AnalysisStraight-Line Depreciation 000 001 002 003 004 005 006 007 008 009 010 011 025,43 026 027 028 029 030 031 012 013 014 015 016 017 018 019 020 021 022 023 024032,44 033,44 041,43,33 036 037 038 039 040036,44 037,43,33 Investment Analysis 666.67 125,000.00123,333.33 118,333.33 504.75 730.00Declining-Balance Depreciation 000 001 002 003 004 005 006 007 008 009 021,43 022 023 024 025 026 027 010 011 012 013 014 015 016 017 018 019 020028,44 029,44 034 035 036 037 038 039 040 034 035 036 50,000.00 Sum-of-the-Years-Digits Depreciation 11,458.33 025,43,33 018 019 020 021 022 023 024026 027 028 029 030 031 035 036 037 038 039 040 042 043 044 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?-0 033 034 035 036 037 038 039 032,43,33040,44 041,44 042 058 059 060 061 062 057,43,33063,44 064,43,33 085,43,33 080,44 081 082 083 084086 087 088 089 090 091 092 093 094,43,33 Keystrokes Display RPN mode ALG mode FCLEAR H 11000 $ 125.00 375.00406.25 804.69 10,500.00 Excess Depreciation312.50 531.25 Modified Internal Rate of Return 200,000.00 Group # of Months Cash Flow $657,152.37 775,797.83 Black-Scholes Formula for Valuing European Options Keystrokes Display Keystrokes Display 071,43,33,077 065 066 067 068 069 070073,44 074 075,44 076 077 078 092,44 093 094 095 089 090 091096,44 097 098 099 089,44 090 113 114,44 115 116 117 199118,43,33 Program Instructions 20.54 52.0014.22 71.15 20.00 10.00 Advance Payments LeasingSolving for Payment 202 11.64 Leasing64.45 000 001 008 009 010 011 012 013 014 015 016 017 018 019 008 009 010 011 012 013 014 015 016 017 66.86 65.43 57.00 Solving for Yield23,200.00 600 P 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 17.33Annual yield as a Percentage 017,45,43 Keystrokes ALG mode19.48 ? t Advance Payments With Residual 018 019 020 021 022 023 024 025 026 027 028 029 030 22,000.00 15.00487.29 520.81 34.00 710.0018.10 Savings Keystrokes Display RPN mode ALG mode FCLEARG 25\ 25z 4nz¼Nominal Rate Converted to Effective Rate 213 002 003 004 005 006 007 008 Savings002 003 004 005 006 007 008 009 010 ³ÞM¼ Effective Rate Converted to Nominal Rate Continuous Rate Converted to Effective Rate Keystrokes Display RPN mode ALG mode FCLEAR G N100 $105.35 35 +Þ +5.35 ³Þ 30/360 Day Basis Bonds Bonds001 002 003 004 005 006 007 008 009 010 011 012 013 217 029 030 031 032 033 034 035 036 037 014 015 016 017 018 019 020 021 022 023 024 025 026 027038,43,33 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 Bonds 219 039 040 041 042 043 044 045 046040,43,33 041 042 043 044 045 046 047 048 049 102.55 104.74 103.41 Annual Coupon Bonds 223 20 ?0 94.75 12.01Page Appendices 228 RPN and the Stack Appendix a RPN and the Stack Getting Numbers Into the Stack The Key Termination of Digit Entry Rearranging Numbers in the StackStack Lift Key Two-Number Functions and the Stack One-Number Functions and the StackMathematics Functions Percentage Functions Register Calendar and Financial Functions Last X Register and the Key + 5 6 + Arithmetic Calculations with Constants 168,000.00 84,000336,000.00 672,000.00 237 Algebraic Mode ALG Keying in Negative Numbers Appendix B Algebraic Mode ALG532.50 History Stack in ALG Mode Key in ALG Mode400.43 737.07 18.5 § 8zgØ 1250+7b To Calculate Keystrokes Display ALG mode Power FunctionPercent of Total 243 More About L Appendix C More About L Error 0 Mathematics Error Conditions245 Error 2 Statistics Error 1 Storage Register OverflowError 3 IRR Error 4 Memory OperationCondition Error 5 Compound Interest Error 7 IRR Error 6 Storage RegistersOperation Condition Error 9 Service Error 8 CalendarPr Error Percentage Formulas UsedInterest Simple Interest Compound Interest Appendix E Formulas Used Calendar Discounted Cash Flow Analysis 200 Bonds Depreciation DPN J Finite Compounding Interest Rate ConversionsContinuous Compounding Statistics Weighted MeanLinear Estimation Standard Deviation Rent or Buy Decision Battery Battery, Warranty, Service InformationLow-Power Indication 259 Installing a New Battery Appendix F Battery, Warranty, and Service Information Verifying Proper Operation Self-Tests Appendix F Battery, Warranty, and Service Information Warranty Service USA Regulatory Information Noise Declaration Temperature SpecificationsCanada Japan Mortgages United Kingdom Calculations267 Appendix G United Kingdom Calculations Annual Percentage Rate APR Calculations 269 Financial Function Key IndexStatistics Mathematics ModesNumber Alteration Stack Rearrangement 272 Programming Key Index Run Mode Active KeysPressed from Keyboard 274 Subject Index Subject Index Subject Index Subject Index Subject Index