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216 Section 15: Savings
File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 216 of 275
Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm
Example:
Find the nominal rate compounded quarterly if the effective annual rate
is 5.35%.
Keystrokes
(RPN mode)
Keystrokes
(ALG mode)
Display
f]
f[
f
CLEAR
G
f
CLEAR
G
4
n
100
$
4
n
100
$
100.00
5.35
+Þ
+
5.35
³Þ
–105.35
M¼
M¼
1.31
:n§
§:n³
5.25
Percent nominal interest
rate.
Continuous Rate Converted to Effective Rate
This procedure converts a continuous annual interest rate to the effective rate.
1. RPN: Press 1\.
1. ALG: Press 1³.
2. Key in the continuous rate as a percentage then press b.
3. Press g>à.
Example:
What is the effective rate resulting from a 5.25% passbook rate with
continuous compounding
?
Keystrokes
(RPN mode)
Keystrokes
(ALG mode)
Display
f]
f[
1
\
5.25
b
1
³
5.25
b
0.05
g>
g>
1.05
à
à
5.39
Effective rate.