HP 12C Financial 12C ∑ INT = ∑ INTj = INT1 + INT2 + ... + INTn, ∑ PRN = ∑ PRNj = PRN1 + PRN2 + ... + PRNn, PVn = PV0 + ∑ PRN, PMT, 0 = PV + (1+ iS) ⋅ PMT ⋅ ⎢, + FV (1+ i)−n

Appendix E: Formulas Used 251

Compound Interest

Without an odd period:
⎡		− (1+ i)	−n ⎤
0 = PV + (1+ iS) ⋅ PMT ⋅ ⎢	1			⎥	+ FV (1+ i)−n
		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 pt_user's guide_English_HDPMF123E27	Page: 251 of 275
Printed Date: 2005/8/1	Dimension: 14.8 cm x 21 cm