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


 
Section 3: Basic Financial Functions 43
File name: hp 12c_user's guide_English_HDPMBF12E44 Page: 43 of 209
Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm
Keystrokes Display
MM
4,027.27
Calculates FV which equals the
balance in the account if 58 full
deposits were made.
*
:P
–50.00
Recalls amount of deposits.
+
3,977.27
Calculates the balance in the account
if 57 full deposits were made and
interest accrued during the 58
th
month.
4000-
–22.73
Calculates final, fractional, 58
th
deposit required to reach $4,000.
Calculating the Periodic and Annual Interest Rates
1. Press fCLEARG to clear the financial registers.
2. Enter the number of payments or periods, using n or A.
3. Enter at least two of the following values:
z Present value, using $.
z Payment amount, using P.
z Future value, using M.
Note:
Remember to
observe the cash flow si
g
n
convention.
4. If a PMT was entered, press or to set the payment mode.
5. Press ¼ to calculate the periodic interest rate.
6. To calculate the annual interest rate, key in the number of periods per year,
then press §.
*
In this example, M must be pressed twice, since the preceding key pressed was z. If we
had stored the number of deposits in n (as we did following Example 1), we would have to
press M only once here, since the preceding key pressed would have been w (as it was
following Example 1). Remember that it is not necessary to store the number of payments in n
before calculating the amount of the final, fractional payment. (Refer to the preceding
footnote.)
You might think that we could calculate the balance in the account after 57 full deposits were
made simply by storing that number in n and then calculating FV, as we did using the second
method following Example 1. However, this balance would not include the interest accrued
during the 58th month.