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54 Section 3: Basic Financial Functions
File name: hp 12c_user's guide_English_HDPMBF12E44 Page: 54 of 209
Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm
Amortization
The hp 12c enables you to calculate the amounts applied toward principal and
toward interest from a single loan payment or from several payments, and also
tells you the remaining balance of the loan after the payments are made.
*
To obtain an amortization schedule:
1. Press fCLEARG to clear the financial registers.
2. Enter the periodic interest rate, using ¼ or C.
3. Enter the amount of the loan (the principal), using $.
4. Key in the periodic payment, then press ÞP (the sign of PMT must be
negative, in accordance with the cash flow sign convention).
5. Press g× or (for most direct reduction loans) g to set the payment
mode.
6. Key in the number of payments to be amortized.
7. Press
f!
to display the amount from those payments applied toward
interest.
8. Press ~ to display the amount from those payments applied toward the
principal.
9. To display the number of payments just amortized, press dd.
10. To display the remaining balance of the loan, press :$.
11.To display the total number of payments amortized, press :n.
Example:
For a house you’re about to buy, you can obtain a 25-year mortgage
for $50,000 at 13
1
/
4
% annual interest. This requires payments of $573.35 (at the
end of each month). Find the amounts that would be applied to interest and to the
principal from the first year’s payments.
Keystrokes Display
fCLEARG
13.25gC
1.10
Enters i.
50000$
50,000.00
Enters PV.
*
All amounts calculated when f! is pressed are automatically rounded to the number of
decimal places specified by the display format. (The display format is described in Section 5.)
This rounding affects the number inside the calculator as well as how the number appears in
the display. The amounts calculated on your hp 12c may differ from those on the statements
of lending institutions by a few cents, since different rounding techniques are sometimes used.
To calculate answers rounded to a different number of decimal places, press f followed by
the number of decimal places desired before you press f!.