HP (Hewlett-Packard) 12C#ABA Calculator User Manual


 
160
File name: hp 12c_user's guide_English_HDPMBF12E44 Page: 160 of 209
Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm
Section 15
Savings
Nominal Rate Converted to Effective Rate
Given a nominal interest rate and the number of compounding periods per year,
this keystroke procedure computes the effective annual interest rate.
1. Press and fCLEARG.
2. Key in the annual nominal rate as a percentage, then press \.
3. Key in the number of compounding periods per year, then press nz¼.
4. Key in 100 then press Þ\$.
5. Press M+ to obtain the effective annual interest rate.
Example 1:
What is the effective annual interest rate if the annual nominal rate
of 5
1
/
4
% is compounded quarterly
?
Keystrokes Display
fCLEARG
5.25\
5.25
Nominal rate.
4nz¼
1.31
Percent quarterly interest rate.
100Þ\
$M+
5.35
Percent effective interest rate.
For repeated calculations, the following hp 12c program can be used:
KEYSTROKES DISPLAY KEYSTROKES DISPLAY
fs
0
07- 0
f
CLEAR
Î
00-
0
08- 0
01- 43 8
Þ
09- 16
f
CLEAR
G
02- 42 34
\
10- 36
n
03- 11
$
11- 13
z
04- 10
M
12- 15
¼
05- 12
+
13- 40
1
06- 1
fs