Edition
HP part number F2232-90001
Notice
Introduction
4 Introduction
Financial Calculations in the United Kingdom
For More Solutions to Financial Problems
Contents
Part I: Problem Solving
6Contents
Section 3:
Basic Financial Functions
Section 4:
Additional Financial Functions
Section 5:
Part II: Programming
Part III: Solutions
Section 15: Savings
Nominal Rate Converted to Effective Rate
Effective Rate Converted to Nominal Rate
Continuous Rate Converted to Effective Rate
Appendices
Appendix E: Formulas Used
Appendix F: Battery, Warranty, and Service Information
Appendix G: 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
Making Financial Calculations Easy
Note:
running
Display
fCLEARHf2
14 Making Financial Calculations Easy
10,371.79
Example 3:
Keystrokes Display
11,024.82
Part
Problem Solving
Getting Started
Section 1: Getting Started
Keying in Numbers
Digit Separators
Negative Numbers
18 Section 1: Getting Started
Keying in Large Numbers
Backspacing
KeystrokesDisplay (RPN mode)
gÚgÚ
KeystrokesDisplay (ALG mode)
.63+
The CLEAR Keys
Key(s)Clears:
20 Section 1: Getting Started
Undo Operation
The RPN and ALG Keys
To select RPN mode:
RPN
Simple Arithmetic Calculations in RPN Mode
Keystrokes (RPN mode)
22 Section 1: Getting Started
Simple Arithmetic Calculations in ALG Mode
Keystrokes (ALG mode)
(ALG mode)
–13.54
gr§
Chain Calculations in RPN Mode
Example:
Solution:
24 Section 1: Getting Started
1,064.54
Your hp 12c platinum calculates the answer in just the same way in RPN mode:
3\4§
12.00Step 1: Multiply the numbers in the first parentheses
5\6§
Step 2: Multiply the numbers in the
Chain Calculations in ALG Mode
1,400.43
Parentheses Calculations
(5 − 1)
8zgØ5
Storage Registers
Storing and Recalling Numbers
28 Section 1: Getting Started
1,250.00
(RPN mode)
7,500.00
8,000.00
Clearing Storage Registers
Storage Register Arithmetic
30 Section 1: Getting Started
1,053.00
Percentage and Calendar
Functions
32 Section 2: Percentage and Calendar Functions
Percentages in ALG Mode
Section 2: Percentage and Calendar Functions
Net Amount in RPN Mode
23,250.00
1,860.00
21,390.00
34 Section 2: Percentage and Calendar Functions
Percent Difference
–8.97
Percent of Total in RPN Mode
36 Section 2: Percentage and Calendar Functions
Percent of Total in ALG Mode
Calendar Functions
Date Format
Month-Day-Year
38 Section 2: Percentage and Calendar Functions
For example, to key in April 7, 2004:
Day-Month-Year
1.Key in the one or two digits of the day
3.Key in the two digits of the month
11,09,2004
40 Section 2: Percentage and Calendar Functions
Number of Days Between Dates
Basic Financial Functions
42 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
Section 3: Basic Financial Functions
–450.00
fÏd
44 Section 3: Basic Financial Functions
Financial Calculations and the Cash Flow Diagram
Page
46 Section 3: Basic Financial Functions
The Cash Flow Sign Convention
The Cash Flow Sign Convention:
The Payment Mode
BEGIN
Generalized Cash Flow Diagrams
48 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
50 Section 3: Basic Financial Functions
total
n equal
fCLEARG 10.5gC
35000$
Number of payments required
12z
Twenty-sevenyears and four months
z12}
Twenty-sevenyears and four months
52 Section 3: Basic Financial Functions
+:P
–141.87
–466.87
g n
–775.00
–50.00
4,000.00
4,000.00 Stores FV
54 Section 3: Basic Financial Functions
z2}
4,027.27 Calculates FV – which equals the
balance in the account if 58 full
deposits were made
–22.73
Calculating the Periodic and Annual Interest Rates
8\4§w
–6,000.00
10,000.00 Stores FV
56 Section 3: Basic Financial Functions
§4}
Calculating the Present Value
19,198.60
20,698.60
58 Section 3: Basic Financial Functions
17,500.00
540,000.00
–369,494.09
Calculating the Payment Amount
243,400.00 Stores PV
243,400.00
–1,363.29
60 Section 3: Basic Financial Functions
–3,200.00
60,000.00
–717.44
Calculating the Future Value
5gA
243400$ 243,400.00
1363.29ÞP –1,363.29
–222,975.98
62 Section 3: Basic Financial Functions
2gA
1,281.34
2Þ¼
–2.00
Odd-PeriodCalculations
64 Section 3: Basic Financial Functions
noninteger n
Page: 64 of
5gC
4,500.00
–135.17
66 Section 3: Basic Financial Functions
z30+
gÒ z30+
§12}
3,950.00
–120.00
68 Section 3: Basic Financial Functions
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
6.Key in the number of payments to be amortized
70 Section 3: Basic Financial Functions
–1,498.12
–13,006.53
–4,970.91
245,029.09
1f
–1,093.75
–404.37
–1,091.98
–406.14
Additional Financial
Page
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
88 Section 5: Additional Operating Features
Standard Display Format
Scientific Notation Display Format
Mantissa Display Format
90 Section 5: Additional Operating Features
Special Displays
Running
Overflow and Underflow
The Key in RPN Mode
Arithmetic Calculations With Constants
1,095.00
92 Section 5: Additional Operating Features
Recovering From Errors in Digit Entry
429,000.00
9,987
9,987.00
Statistics Functions
94 Section 6: Statistics Functions
Register
Statistic
Correcting Accumulated Statistics
Mean
Section 6: Statistics Functions
Salesperson
Hours/Week
Sales/Month
21,714.29
Standard Deviation
x-value
after gv is pressed; to display the standard deviation of the y-values,press
4,820.59
Standard deviation of sales
Linear Estimation
28,818.93
98 Section 6: Statistics Functions
gR~d
gR~d-~}
0gR
1 gR~d
Weighted Mean
Mathematics and
Number-AlterationFunctions
Section 7: Mathematics and Number-AlterationFunctions
Integer
Fractional
102 Section 7: Mathematics and Number-AlterationFunctions
The Power Function in RPN Mode
To Calculate
2Þ\3q
–8.00
2\3yq
Programming
Programming Basics
Section 8: Programming Basics
000
106 Section 8: Programming Basics
001
002
Running a Program
Page
108 Section 8: Programming Basics
Program Memory
Identifying Instructions in Program Lines
Instruction
Keycode
nnn
?=0
nnn,44
110 Section 8: Programming Basics
008,43,33,000
112 Section 8: Programming Basics
The 000 Instruction and Program Line
Expanding Program Memory
Page
114 Section 8: Programming Basics
Setting the Calculator to a Particular Program Line
gi
gi.000
Executing a Program One Line at a Time
Page
116 Section 8: Programming Basics
Interrupting Program Execution
Pausing During Program Execution
118 Section 8: Programming Basics
Section 8: Programming Basics
?+1
:0 b ?+2
?+3
:0 b
120 Section 8: Programming Basics
gu ?+1 :0 b gu ?+2
gu ?+1
:0 b gu ?+2
003,44
012,44 40
1,312.20
1,400.77
2,040.00
2,177.70
122 Section 8: Programming Basics
6,370.52
Stopping Program Execution
012,44
t t t
124 Section 8: Programming Basics
Branching and Looping
126 Section 9: Branching and Looping
Looping
f! gu
Section 9: Branching and Looping
007,43,33,002
150,000.00
–782.47
128 Section 9: Branching and Looping
–593.75
–188.72
–593.00
–189.47
Conditional Branching
130 Section 9: Branching and Looping
RPN program notes:
f] fs
132 Section 9: Branching and Looping
004,43,33,007
006,43,33,008
ALG program notes:
f[ fs
:1 b
006,43,33,009
008,43,33,010
010
20,000.00
134 Section 9: Branching and Looping
15,000.00
3,000.00
20,000
25,000
25,000.00
006,43,33,008 Line 006: gi008
6,250.00
136 Section 9: Branching and Looping
012,43,33,000 Line 012: gi000
005, 43 34 Line 005: go
138 Section 9: Branching and Looping
Program Editing
140 Section 10: Program Editing
:2?6
fs gi.006
Adding Instructions at the End of a Program
Section 10: Program Editing
fs gi.008
fs gi.011
12,000.00
012
Adding Instructions within a Program
Adding Instructions by Replacement
Page
144 Section 10: Program Editing
016
Adding Instructions by Branching
~gogi
fs gi.000
gi.010
001,43,33,012
011,43,33,000
146 Section 10: Program Editing
015,43,33,000
017,43,33,002
6,500.00
gi.016
go gi000 ?9
001,43,33,018
017,43,33,000
018
148 Section 10: Program Editing
Multiple Programs
150 Section 11: Multiple Programs
gi.017
018,43,33,000
021
023
Section 11: Multiple Programs
027
028
029
030
152 Section 11: Multiple Programs
?0 :0 f! gu
gi.033
033
034,43,33,029
Running Another Program
Page
Solutions
Real Estate and Lending
Section 12: Real Estate and Lending
ALG Mode:
RPN:
ALG:
160,000.00
158 Section 12: Real Estate and Lending
:$750
:$-750
159,250.00
156,050.00
Price of a Mortgage Traded at a Discount or Premium
160 Section 12: Real Estate and Lending
9gC
9gC
Discount rate (into i)
137.17P
Yield of a Mortgage Traded at a Discount or Premium
–300,000.00
162 Section 12: Real Estate and Lending
2,096.57
-42n
–250,000.00
Calculate the remaining balance of the loan after five years
5gA
Number of periods to
be amortized
258,377.24
164 Section 12: Real Estate and Lending
?.1
004,44
017
Page: 164 of
Page
166 Section 12: Real Estate and Lending
046
047
048
049
1.Key in the program
2.Key in the estimated down payment then press ?1
3.Key in the life of the mortgage then press ?2
4.Key in the annual mortgage interest rate then press ?3
5.Key in the estimated monthly taxes then press ?4
168 Section 12: Real Estate and Lending
7,000.00
3,700.00
270,000.00
53,095.65
Deferred Annuities
0gJ
0gK
8ga
15,218.35
170 Section 12: Real Estate and Lending
5ga
6ga
12,831.75
Investment Analysis
Page
Section 13: Investment Analysis
041,43,33
036,44
037,43,33
045,43,33
174 Section 13: Investment Analysis
6.Key in the year desired then press
7.Key in the number of months in the first year and press t.* The display
will show the amount of depreciation for the desired year. If desired, press
~to see the remaining depreciable value then press
125,000.00
1,666.67
123,333.33
5,000.00
118,333.33
176 Section 13: Investment Analysis
6,730.00
Declining-BalanceDepreciation
Page
178 Section 13: Investment Analysis
7.Key in the year desired then press
Key in the number of months in first year
7.Key in the year desired then press ³
Key in the number of months in first year* and press
10.For a new case press gi000 and return to step
180 Section 13: Investment Analysis
11,458.33
Sum-of-the-Years-DigitsDepreciation
Page
182 Section 13: Investment Analysis
7.Key in the number of months in first year* then press t.† The display
Key in the number of months in first year* then press
9.For a new case press gi000 and return to step
12000$
Page: 183 of
Full- and Partial-YearDepreciation with Crossover
Page
Page
Page
Page
R1: Dep
R3: Used
R4: Used
R5: Used
R6: Used
190 Section 13: Investment Analysis
First year depreciation
desired
1,375.00
9,125.00
Excess Depreciation
-gØ
10,500.00
1,312.50
8,531.25
Modified Internal Rate of Return
Group
# of Months
Cash Flow ($)
0gK5ga
0gK9ga
Black-ScholesFormula for Valuing European Options
Reference:
Page
Page
Page
Page
113
114,44
115
116
117
200 Section 13: Investment Analysis
:gAn
:gC¼
:P§
12gr§P
Page
Leasing
Section 14: Leasing
3?0-n
1ÞP
–1.00
$:0+
204 Section 14: Leasing
?2t
Þ$P
206 Section 14: Leasing
Solving for Yield
:P§+$
?0n
§:P³+
015,45,43
208 Section 14: Leasing
:gC 017,45,43
? t
Advance Payments With Residual
210 Section 14: Leasing
22,000.00
§30b³?3
6,600.00
?1t
212 Section 14: Leasing
–4,710.00
1,500.00
fL12§
fL§12³
Savings
214 Section 15: Savings
Section 15: Savings
Effective Rate Converted to Nominal Rate
+ÞM¼
:n§
³ÞM¼
§:n³
Continuous Rate Converted to Effective Rate
g>à
Bonds
Page
Section 16: Bonds
040,43,33
220 Section 16: Bonds
Page
222 Section 16: Bonds
Annual Coupon Bonds
Page
224 Section 16: Bonds
–4.58
–94.75
Page
Appendices
RPN and the Stack
Appendix A: RPN and the Stack
Getting Numbers Into the Stack: The Key
230 Appendix A: RPN and the 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
roll down
One-NumberFunctions and the Stack
Two-NumberFunctions and the Stack
Mathematics Functions
232 Appendix A: RPN and the Stack
Percentage Functions
Calendar and Financial Functions
Register
234 Appendix A: RPN and the Stack
The LAST X Register and the Key
LAST
Arithmetic Calculations with Constants
2
236 Appendix A: RPN and the Stack
84,000
Enters base amount into displayed
X-register
168,000.00
Algebraic Mode (ALG)
238 Appendix B: Algebraic Mode (ALG)
Keying in Negative Numbers ()
–75
–532.50
The Key in ALG Mode
not
new
digit entry
executed
240 Appendix B: Algebraic Mode (ALG)
+d}
Page
242 Appendix B: Algebraic Mode (ALG)
Percent of Total
The Power Function
To Calculate
Display
More About L
244 Appendix C: More About L
Searching for IRR
:gt
Error Conditions
246 Appendix D: Error Conditions
Error 1: Storage Register Overflow
Error 2: Statistics
Error 3: IRR
Error 4: Memory
Appendix D: Error Conditions
Error 5: Compound Interest
OperationCondition
248 Appendix D: Error Conditions
Error 6: Storage Registers
Error 7: IRR
Error 8: Calendar
Error 9: Service
Refer to Appendix F
Pr Error
Improper date format or illegal date
Formulas Used
I360 = 360n ⋅ PV ⋅
I365 = 365n ⋅ PV ⋅
0 = PV + (1+ iS) ⋅ PMT ⋅ ⎢
PMT
∑ INT = ∑ INTj = INT1 + INT2 + ... + INTn
∑ PRN = ∑ PRNj = PRN1 + PRN2 + ... + PRNn
PVn = PV0 + ∑ PRN
NPV = CF
CF2
CPN
DSM
Depreciation
DPNJ
SBV − SAL
DPN
SOYD
DPNJ = (L − j + 1) ⋅ (SBV − SAL)
NOM ⎞C
EFF = ⎜1+
EFF = (eNOM − 1)
yˆ = A + Bx
− Bx
sx = n∑ x2 − (∑ x )2
258 Appendix E: Formulas Used
Battery, Warranty, and
Service Information
260 Appendix F: Battery, Warranty, and Service Information
Installing a New Battery
Appendix F: Battery, Warranty, and Service Information
Verifying Proper Operation (Self-Tests)
For a calculator that does not respond to keystrokes:
The display will show
For a calculator that does respond to keystrokes:
1.With the calculator off, hold down the ;key and press §
262Appendix F: Battery, Warranty, and Service Information
Page: 262 of
Warranty
264 Appendix F: Battery, Warranty, and Service Information
Service
Regulatory Information
USA
266 Appendix F: Battery, Warranty, and Service Information
Canada
Japan
Temperature Specifications
Noise Declaration
Disposal of Waste Equipment by Users in Private Household in the European Union
United Kingdom Calculations
268 Appendix G: United Kingdom Calculations
Annual Percentage Rate (APR) Calculations
Function Key Index
270 Function Key Index
Financial
CLEAR GClears contents of financial registers (page 42)
(page 46)
Sets payment mode to End for compound interest calculations involving payments
Function Key Index
(page 99)
(page 96)
(page 97)
Modes
Programming Key Index
Programming Key Index
(page 114)
(page 109)
(page 113)
Pressed from
Subject Index
with
Constants, arithmetic calculations with
47, 86, 88, 112 Continuous rate
, 37–40
, 84
276 Subject Index
Page
278 Subject Index