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Section 3: Basic Financial Functions 33
File name: hp 12c_user's guide_English_HDPMBF12E44 Page: 33 of 209
Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm
Clearing the Financial Registers
Every financial function uses numbers stored in several of the financial registers.
Before beginning a new financial calculation, it is good practice to clear all of the
financial registers by pressing
f
CLEAR
G
. Frequently, however, you may want
to repeat a calculation after changing a number in only one of the financial
registers. To do so, do not press
f
CLEAR
G
; instead, simply store the new
number in the register. The numbers in the other financial registers remain
unchanged.
The financial registers are also cleared when you press
f
CLEAR
H
and when
Continuous Memory is reset (as described on page 70).
Simple Interest Calculations
The hp 12c simultaneously calculates simple interest on both a 360-day basis and
a 365-day basis. You can display either one, as described below. Furthermore,
with the accrued interest in the display, you can calculate the total amount
(principal plus accrued interest) by pressing
+
.
1. Key in or calculate the number of days, then press n.
2. Key in the annual interest rate, then press ¼.
3. Key in the principal amount, then press Þ$.
*
4. Press fÏ to calculate and display the interest accrued on a 360-day
basis.
5. If you want to display the interest accrued on a 365-day basis, press
d~.
6. Press + to calculate the total of the principal and the accrued interest now
in the display.
The quantities n, i, and PV can be entered in any order.
Example 1:
Your good friend needs a loan to start his latest enterprise and has
requested that you lend him $450 for 60 days. You lend him the money at 7%
simple interest, to be calculated on a 360-day basis. What is the amount of
accrued interest he will owe you in 60 days, and what is the total amount owed
?
Keystrokes Display
60n
60.00
Stores the number of days.
*
Pressing the $ key stores the principal amount in the PV register, which then contains the
present value of the amount on which interest will accrue. The Þ key is pressed first to
change the sign of the principal amount before storing it in the PV register. This is required by
the cash flow sign convention, which is applicable primarily to compound interest
calculations.