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HP HP-12c Manual

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Section 3: Basic Financial Functions 51
Example 3: Property values in an unattractive area are depreciating at the rate of
2% per year. Assuming this trend continues, calculate the value in 6 years of
property presently appraised at $32,000.
Odd-Period Calculations
The cash flow diagrams and examples presented so far have dealt with financial
transactions in which interest begins to accrue at the beginning of the first
regular payment period. However, interest often begins to accrue prior to the
beginning of the first regular payment period. The period from the date interest
begins accruing to the date of the first payment, being not equal to the regular
payment periods is sometimes referred to as an “odd first period”. For simplicity,
in using the HP 12C Platinum we will always regard the first period as equal to
the remaining periods, and we will refer to the period between the date interest
begins accruing and the beginning of the first payment period as simply the “odd
Keystrokes Display
fCLEARG
2gA
24.00
Calculates and stores n.
6.25gC
0.52
Calculates and stores i.
50ÞP
–50.00
Stores PMT (with minus sign for
cash paid out).
g×
–50.00
Sets payment mode to Begin.
M
1,281.34
Balance after 2 years.
Keystrokes Display
fCLEARG
6n
6.00
Stores n.
2Þ¼
–2.00
Stores i (with minus sign for a
“negative interest rate”).
32000Þ$
–32,000.00
Stores PV (with minus sign for cash
paid out).
M
28,346.96
Property value after 6 years.
… 51 …


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