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HP 12c - F2230A Manual

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Section 3: Basic Financial Functions 43
File name: hp 12c_user's 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, fractional, 58
th
deposit required to reach $4,000.
Calculating the Periodic and Annual Interest Rates
1. Press fCLEARG to clear the financial registers.
2. Enter the number of payments or periods, using n or A.
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 si
g
n
convention.
4. If a PMT was entered, press g× or g to set the payment mode.
5. Press ¼ to calculate the periodic interest rate.
6. To calculate the annual interest rate, key in the number of periods per year,
then press §.
*
In this example, M must be pressed twice, since the preceding key pressed was z. If we
had stored the number of deposits in n (as we did following Example 1), we would have to
press M only once here, since the preceding key pressed would have been w (as it was
following Example 1). Remember that it is not necessary to store the number of payments in n
before calculating the amount of the final, fractional payment. (Refer to the preceding
footnote.)
†
You might think that we could calculate the balance in the account after 57 full deposits were
made simply by storing that number in n and then calculating FV, as we did using the second
method following Example 1. However, this balance would not include the interest accrued
during the 58th month.
… 43 …


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