Section 3: Basic Financial Functions

55

Keystrokes

Display

 

 

(ALG mode)

 

 

 

 

 

4000}

–22.73

Calculates final, fractional, 58th

 

 

 

deposit required to reach $4,000.

 

Calculating the Periodic and Annual Interest Rates

1.Press fCLEARGto clear the financial registers.

2.Enter the number of payments or periods, using nor gA.

3. Enter at least two of the following values: z Present value, using $. z Payment amount, using P. z Future value, using M.

Note: Remember to observe the cash flow sign convention.

4.If a PMT was entered, press or to set the payment mode.

5.Press ¼to calculate the periodic interest rate.

6.To calculate the annual interest rate in RPN mode, key in the number of periods per year, then press §. To calculate the annual interest rate in ALG mode, press §, key in the number of periods per year, then press }.

Example: What annual interest rate must be obtained to accumulate $10,000 in 8 years on an investment of $6,000 with quarterly compounding?

Keystrokes (RPN mode)

fCLEARG

8\4§w

6000Þ$

10000M

Display

32.00Calculates and stores n.

–6,000.00Stores PV (with minus sign for cash paid out).

10,000.00 Stores FV.

File name: hp 12c pt_user's guide_English_HDPMF123E27

Page: 55 of 275

Printed Date: 2005/8/1

Dimension: 14.8 cm x 21 cm