HP 12c Owners Manual
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Section 3: Basic Financial Functions 41 File name: hp 12c_users guide_English_HDPMBF12E44 Page: 41 of 209 Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm Keystrokes Display 12z 27.33 Twenty-seven years and four months. Because the calculator rounds the calculated value of n up to the next higher integer, in the preceding example it is likely that — while 328 payments will be required to pay off the loan — only 327 full payments of $325 will be required, the next and final...
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42 Section 3: Basic Financial Functions File name: hp 12c_users guide_English_HDPMBF12E44 Page: 42 of 209 Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm Example 2: You’re opening a savings account today (the middle of the month) with a $775 deposit. The account pays 61/4% interest compounded semimonthly. If you make semimonthly deposits of $50 beginning next month, how long will it take for your account to reach $4000? Keystrokes Display fCLEARG 6.25\24z¼ 0.26...
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Section 3: Basic Financial Functions 43 File name: hp 12c_users guide_English_HDPMBF12E44 Page: 43 of 209 Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm Keystrokes Display MM 4,027.27 Calculates FV – which equals the balance in the account if 58 full deposits were made. * :P –50.00 Recalls amount of deposits. + 3,977.27 Calculates the balance in the account if 57 full deposits were made and interest accrued during the 58 th month.† 4000- –22.73 Calculates final,...
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44 Section 3: Basic Financial Functions File name: hp 12c_users guide_English_HDPMBF12E44 Page: 44 of 209 Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm Example: What annual interest rate must be obtained to accumulate $10,000 in 8 years on an investment of $6,000 with quarterly compounding? Keystrokes Display fCLEARG 8\4§w 32.00 Calculates and stores n. 6000Þ$ –6,000.00Stores PV (with minus sign for cash paid out). 10000M 10,000.00Stores FV. ¼ 1.61 Periodic...
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Section 3: Basic Financial Functions 45 File name: hp 12c_users guide_English_HDPMBF12E44 Page: 45 of 209 Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm Example 1: You’re financing a new car purchase with a loan from an institution that requires 15% interest compounded monthly over the 4-year term of the loan. If you can make payments of $150 at the end of each month and your down payment will be $1,500, what is the maximum price you can pay for the car? (Assume the purchase...
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46 Section 3: Basic Financial Functions File name: hp 12c_users guide_English_HDPMBF12E44 Page: 46 of 209 Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm Keystrokes Display fCLEARG 5n 5.00 Stores n. 12¼ 12.00 Stores i. 17500P 17,500.00 Stores PMT. Unlike in the previous problem, here PMT is positive since it represents cash received. 540000M 540,000.00 Stores FV. g 540,000.00 Sets payment mode to End. $ –369,494.09 The maximum purchase price to provide a 12%...
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Section 3: Basic Financial Functions 47 File name: hp 12c_users guide_English_HDPMBF12E44 Page: 47 of 209 Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm Keystrokes Display fCLEARG 29gA 348.00 Calculates and stores n. 14.25gC 1.19 Calculates and stores i. 43400$ 43,400.00 Stores PV. g 43,400.00 Sets payment mode to End. P –523.99 Monthly payment (with minus sign for cash paid out). Example 2: Looking forward to retirement, you wish to accumulate $60,000 after...
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48 Section 3: Basic Financial Functions File name: hp 12c_users guide_English_HDPMBF12E44 Page: 48 of 209 Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm Calculating the Future Value 1. Press fCLEARG to clear the financial registers. 2. Enter the number of payments or periods, using n or A. 3. Enter the periodic interest rate, using ¼ or C. 4. Enter either or both of the following: z Present value, using $. z Payment amount, using P. Note: Remember to observe the cash flow...
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Section 3: Basic Financial Functions 49 File name: hp 12c_users guide_English_HDPMBF12E44 Page: 49 of 209 Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm Example 2: If you deposit $50 a month (at the beginning of each month) into a new account that pays 61/4% annual interest compounded monthly, how much will you have in the account after 2 years? Keystrokes Display fCLEARG 2gA 24.00 Calculates and stores n. 6.25gC 0.52 Calculates and stores i. 50ÞP –50.00 Stores...
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50 Section 3: Basic Financial Functions File name: hp 12c_users guide_English_HDPMBF12E44 Page: 50 of 209 Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm Keystrokes Display 2Þ¼ –2.00 Stores i (with minus sign for a “negative interest rate”). 32000Þ $ –32,000.00 Stores PV (with minus sign for cash paid out). M 28,346.96 Property value after 6 years. Odd-Period Calculations The cash flow diagrams and examples presented so far have dealt with financial transactions in which...