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12 Making Financial Calculations Easy
File name: hp 12c_user's guide_English_HDPMBF12E44 Page: 12 of 209
Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm
Note: A battery symbol (¼) shown in the lower-left corner of the display
when the calculator is on signifies that the available battery power is nearly
exhausted. To install new batteries, refer to Appendix E.
The calendar functions and nearly all of the financial functions take some
time to produce an answer. (This is typically just a few seconds, but the ¼,
!, L, and S functions could require a half-minute or more.) During
these calculations, the word running flashes in the display to let you know
that the calculator is running.
Keystrokes Display
fCLEARHf2
0.00
Clears previous data inside the
calculator and sets display to show
two decimal places.
4gA
48.00
Calculates and stores the number of
compounding periods.
6gC
0.50
Calculates and stores the periodic
interest rate.
500P
500.00
Stores periodic payment amount.
500.00
Sets payment mode to Begin.
$
-21,396.61
Amount required to be deposited.
*
Example 2:
We now need to determine how to accumulate the required deposit
by the time your daughter enters college 14 years from now. Lets say that she has
a paid-up $5,000 insurance policy that pays 5.35% annually, compounded
semiannually. How much would it be worth by the time she enters college
?
In this example, we need to calculate FV, the future value.
Keystrokes Display
fCLEARG
-21,396.61
Clears previous financial data inside
the calculator.
14\2µn
28.00
Calculates and stores the number of
compounding periods.
5.35\2
2.68
Calculates and stores the periodic
interest rate.
5000Þ$
-5,000.00
Stores the present value of the
policy.
M
10,470.85
Value of policy in 14 years.
*
Don’t be concerned now about the minus sign in the display. That and other details will be
explained in Section 3.
12


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