HP 12C Financial 12C NFV, MIRR, − NPV, PMT, PV − FV (1+ i)−n, NOM ⎞C, EFF = (eNOM − 1), EFF = ⎜1+

256 Appendix E: Formulas Used

DPN	j	= RBV −	⋅	FACT	for j ≠ 1
				100L
		j 1

Modified Internal Rate of Return

n= number of compounding periods.

NFVP	= Net future value of the positive cash flows.
NPVN	= Net present value of the negative cash flows.
		⎡			1	⎤
		⎢⎛	NFV	⎞n		⎥
MIRR = 100		⎜	P	⎟		−1
			− NPV
		⎢⎜		⎟		⎥
		⎢⎝	N ⎠			⎥
		⎣				⎦

Advance Payments

	A = number of payments made in advance.
PMT =		PV − FV (1+ i)−n
	⎡		+ i)	−(n−A)		⎤
	⎢	1− (1			+	A⎥
			i
	⎣⎢					⎦⎥

Interest Rate Conversions

C= number of compounding periods per year.

EFF = the effective annual interest rate as a decimal.

NOM = the nominal annual interest rate as a decimal.

Finite Compounding

⎛	NOM ⎞C
EFF = ⎜1+		⎟	− 1
⎝	C ⎠

Continuous Compounding

EFF = (eNOM − 1)

File name: hp 12c pt_user's guide_English_HDPMF123E27	Page: 256 of 275
Printed Date: 2005/8/1	Dimension: 14.8 cm x 21 cm