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HP HP-12c Manual

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Section 3: Basic Financial Functions 39
payments in advance yield different results than calculations involving payments
in arrears. Illustrated below are portions of cash flow diagrams showing
payments in advance (Begin) and payments in arrears (End). In the problem
illustrated in the cash flow diagram above, payments are made in arrears.
Regardless of whether payments are made in advance or in arrears, the number
of payments must be the same as the number of compounding periods.
To specify the payment mode:
z Press g× if payments are made at the beginning of the compounding
periods.
z Press g if payments are made at the end of the compounding
periods.
The BEGIN status indicator is lit when the payment mode is set to Begin. If
BEGIN is not lit, the payment mode is set to End.
The payment mode remains set to what you last specified until you change it; it
is not reset each time the calculator is turned on. However, if Continuous
Memory is reset, the payment mode will be set to End.
Generalized Cash Flow Diagrams
Examples of various kinds of financial calculations, together with the applicable
cash flow diagrams, appear under Compound Interest Calculations later in this
section. If your particular problem does not match any of those shown, you can
solve it nevertheless by first drawing a cash flow diagram, then keying the
quantities identified in the diagram into the corresponding registers. Remember
always to observe the sign convention when keying in PV, PMT, and FV.
The terminology used for describing financial problems varies among the
different segments of the business and financial communities. Nevertheless,
most problems involving compound interest can be solved by drawing a cash
flow diagram in one of the following basic forms. Listed below each form are
some of the problems to which that diagram applies.
… 39 …


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