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HP 0012C-90001, User Manual

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HP 0012C-90001 User Manual Download Page 133

 

Section 12: 

Section 12: 

Section 12: 

Section 12: Real Estate and Lending

Real Estate and Lending

Real Estate and Lending

Real Estate and Lending

 

133

133

133

133

    

 

File name: HP 12c+_user's guide_English_E_HDP0F12AE03_062608 - Modified.doc 

Page: 133 of 213   

Printed Date: 2021/6/16   

Dimension: 14.8 cm x 21 cm 

 

 

16. Press 

t

 to compute the yield on your investment in the house.

*

 

17. Press 

t

 to compute the value of a savings account or other investment. 

18. Compare the value of the hypothetical savings account to the net proceeds of 

the sale of the house. Examine the sign and magnitude of the yield to arrive 
at your decision. 

19. To change data and repeat the calculations, store the changed values in the 

appropriate registers and go to step 12. 

Example:

Example:

Example:

Example: You are being transferred for 4 years to a distant city and are faced with 
the decision of whether to rent or to buy a house. A quick survey of the housing 
market indicates that you can purchase an acceptable house for $70,000 with a 
$7,000 down payment on a 30 year mortgage at 12% interest. The closing costs 
would  be  about  $1200.  Selling  costs  include  a  6%  commission  for  resale  and 
miscellaneous other fees that amount to another 2% of the sale price. Housing in 
the area is appreciating 10% per year. Property taxes would be about $110 per 
month,  and  you  estimate  that  maintenance  would  cost  an  additional  $65  per 
month. 

An alternative would be to rent a similar dwelling at $400 per month and to invest 
the difference between the purchase cost and rent at 6

1

/

4

% interest. Your personal 

income  tax  rate  (marginal)  is  25%  Federal  and  5%  State.  Which  alternative  is 
more financially attractive

?

 

Keystrokes

Keystrokes

Keystrokes

Keystrokes    

Display

Display

Display

Display    

    

f

CLEAR

H

 

0.00 

 

7000

?

1 

7,000.00 

Down payment. 

30

?

2 

30.00 

Life of mortgage. 

12

?

3 

12.00 

Interest rate. 

110

?

4 

110.00 

Property taxes. 

65

?

5 

65.00 

Monthly expenses. 

1200

?

6 

1,200.00 

Closing costs. 

8

?

7 

8.00 

Resale costs (as a percentage). 

400

?

8 

400.00 

Rent. 

6.25

?

9 

6.25 

Savings interest rate. 

30

?.

0 

30.00 

Tax bracket. 

f

CLEAR

G

 

30.00 

Clear financial registers. 

                                                 

*

 If  the  calculator  displays  a  negative  result  or  Error  5

Error  5

Error  5

Error  5  when  solving  for  yield  then  your 

investment has resulted in a loss. The amount of interest earned on the alternative investment 
is not taken into account in this calculation. 

Summary of Contents for 0012C-90001

Page 1: ...hp 12c financial calculator user s guide H Edition 5 HP Part Number 0012C 90001 ...

Page 2: ... A PARTICULAR INFRINGEMENT AND FITNESS FOR A PARTICULAR INFRINGEMENT AND FITNESS FOR A PARTICULAR INFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE PURPOSE PURPOSE PURPOSE HEWLETT HEWLETT HEWLETT HEWLETT PACKARD CO SHALL NOT BE LIABLE FOR ANY ERRORS OR FOR PACKARD CO SHALL NOT BE LIABLE FOR ANY ERRORS OR FOR PACKARD CO SHALL NOT BE LIABLE FOR ANY ERRORS OR FOR PACKARD CO SHALL NOT BE LIABLE FOR AN...

Page 3: ...ions and chain calculations and how to use the storage registers memories Section 2 tells you how to use the percentage and calendar functions Section 3 tells you how to use the simple interest compound interest and amortization functions Section 4 tells you how to do discounted cash flow analysis bond and depreciation calculations Section 5 tells you about miscellaneous operating features such as...

Page 4: ...tions for those problems in the United States which are described in this handbook Certain problems however require different calculation methods in the United Kingdom than in the United States Refer to Appendix F for more information For For For For More Solutions to Financial Problems More Solutions to Financial Problems More Solutions to Financial Problems More Solutions to Financial Problems I...

Page 5: ...EAR Keys 18 Simple Arithmetic Calculations 19 Chain Calculations 20 Storage Registers 23 Storing and Recalling Numbers 23 Clearing Storage Registers 24 Storage Register Arithmetic 24 Section 2 Section 2 Section 2 Section 2 Percentage and Calendar Functions Percentage and Calendar Functions Percentage and Calendar Functions Percentage and Calendar Functions 26 26 26 26 Percentage Functions 26 Perce...

Page 6: ... 54 Section 4 Section 4 Section 4 Section 4 Additional Financial Functions Additional Financial Functions Additional Financial Functions Additional Financial Functions 57 57 57 57 Discounted Cash Flow Analysis NPV and IRR 57 Calculating Net Present Value NPV 58 Calculating Internal Rate of Return IRR 63 Reviewing Cash Flow Entries 64 Changing Cash Flow Entries 65 Bond Calculations 66 Bond Price 67...

Page 7: ...Basics 88 88 88 88 Why Use Programs 88 Creating a Program 88 Running a Program 89 Program Memory 90 Identifying Instructions in Program Lines 91 Displaying Program Lines 92 The 00 Instruction and Program Line 00 93 Expanding Program Memory 94 Setting the Calculator to a Particular Program Line 95 Executing a Program One Line at a Time 96 Interrupting Program Execution 97 Pausing During Program Exe...

Page 8: ...alysis Investment Analysis Investment Analysis Investment Analysis 136 136 136 136 Partial Year Depreciation 136 Straight Line Depreciation 136 Declining Balance Depreciation 139 Sum of the Years Digits Depreciation 141 Full and Partial Year Depreciation with Crossover 144 Excess Depreciation 148 Modified Internal Rate of Return 148 Section 14 Section 14 Section 14 Section 14 Leasing Leasing Leasi...

Page 9: ...metic Calculations with Constants 177 Appendix B Appendix B Appendix B Appendix B More About More About More About More About L L L L 179 179 179 179 Appendix C Appendix C Appendix C Appendix C Error Conditions Error Conditions Error Conditions Error Conditions 181 181 181 181 Error 0 Mathematics 181 Error 1 Storage Register Overflow 182 Error 2 Statistics 182 Error 3 IRR 182 Error 4 Memory 182 Er...

Page 10: ... 193 Batteries 193 Low Power Indication 193 Installing New Batteries 193 Verifying Proper Operation Self Tests 194 Perchlorate Material special handling may apply 195 HP Limited Hardware Warranty and Customer Care 196 Customer Care 197 Regulatory Information 200 Disposal of Waste Equipment by Users in Private Household in the European Union 202 Appendix F Appendix F Appendix F Appendix F United Ki...

Page 11: ...unt when she enters college if the account pays 6 annual interest compounded monthly This is an example of a compound interest calculation All such problems involve at least three of the following quantities n the number of compounding periods i the interest rate per compounding period PV the present value of a compounded amount PMT the periodic payment amount FV the future value of a compounded a...

Page 12: ...culates and stores the number of compounding periods 6gC 0 50 Calculates and stores the periodic interest rate 500P 500 00 Stores periodic payment amount g 500 00 Sets payment mode to Begin 21 396 61 Amount required to be deposited Example 2 Example 2 Example 2 Example 2 We now need to determine how to accumulate the required deposit by the time your daughter enters college 14 years from now Let s...

Page 13: ...number of compounding periods 6gC 0 50 Calculates and stores the periodic interest rate 10925 76M 10 925 76 Stores the future value required g 10 925 76 Sets payment mode to End P 41 65 Monthly payment required Example 4 Example 4 Example 4 Example 4 Suppose you cannot find a bank that currently offers an account with 6 annual interest compounded monthly but you can afford to make 45 00 monthly p...

Page 14: ......

Page 15: ...Part I Part I Part I Part I Problem Solving Problem Solving Problem Solving Problem Solving ...

Page 16: ...eyboard Many keys on the hp 12c perform two or even three functions The primary function of a key is indicated by the characters printed in white on the upper face of the key The alternate function s of a key are indicated by the characters printed in gold above the key and the characters printed in blue on the lower face of the key These alternate functions are specified by pressing the appropria...

Page 17: ...t key another prefix key or fCLEARX Keying in Numbers Keying in Numbers Keying in Numbers Keying in Numbers To key a number into the calculator press the digit keys in sequence just as if you were writing the number on paper A decimal point must be keyed in using the decimal point key if it is part of the number unless it appears to the right of the last digit Digit Separators Digit Separators Dig...

Page 18: ...than one the exponent is negative To key the number into the display simply key in the mantissa press Æ enter exponent then key in the exponent If the exponent is negative press Þ after pressing Æ For example to key in 1 781 400 000 000 we move the decimal point 12 places to the left giving a mantissa of 1 7814 and an exponent of 12 Keystrokes Keystrokes Keystrokes Keystrokes Display Display Displ...

Page 19: ...y in the first number 2 Press to separate the second number from the first 3 Key in the second number 4 Press µ or z to perform the desired operation For example to calculate 13 2 proceed as follows Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 13 13 Keys the first number into the calculator 13 00 Pressing separates the second number from the first 2 2 Keys the second...

Page 20: ... operation then not later so that you see the results of all intermediate calculations as well as the bottom line Example Example Example Example Suppose you ve written three checks without updating your checkbook and you ve just deposited your paycheck for 1 053 00 into your checking account If your latest balance was 58 33 and the checks were written for 22 95 13 70 and 10 14 what is the new bal...

Page 21: ...number the paycheck deposited and adds it to the previous balance The new current balance appears in the display The preceding example demonstrates how the hp 12c calculates just as you would using pencil and paper except a lot faster Let s see this happening in a different type of calculation one that involves multiplying groups of two numbers and then adding the results This is the type of calcu...

Page 22: ...mber for you just as you would have them written on paper and then calculates with them at the proper time just as you would yourself But with the hp 12c you don t need to write down the results of an intermediate calculation and you don t even need to manually store it and recall it later By the way notice that in step 2 you needed to press again This is simply because you were again keying in tw...

Page 23: ...culations Storing and Recalling Numbers Storing and Recalling Numbers Storing and Recalling Numbers Storing and Recalling Numbers To store the number from the display into a data storage register 1 Press store 2 Key in the register number 0 through 9 for registers R0 through R9 or 0 through 9 for registers R 0 through R 9 Similarly to recall a number from a storage register into the display press ...

Page 24: ... storing operation automatically clears the register before the data is stored To clear all storage registers at once including the financial registers the stack registers and the LAST X register press fCLEARH This also clears the display All storage registers are also cleared when Continuous Memory is reset as described on page 70 Storage Register Arithmetic Storage Register Arithmetic Storage Re...

Page 25: ...checking account balance in the calculator You could use storage register arithmetic to quickly update the balance after depositing or writing checks Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 58 33 0 58 33 Stores the current balance in register R0 22 95 0 22 95 Subtracts the first check from the balance in R0 Note that the display continues to show the amount subt...

Page 26: ...ou see and say it 4b Percentages Percentages Percentages Percentages To find the amount corresponding to a percentage of a number 1 Key in the base number 2 Press 3 Key in the percentage 4 Press b For example to find 14 of 300 Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 300 300 Keys in the base number 300 00 Pressing separates the next number entered from the first ...

Page 27: ... 00 Amount of discount 12 190 00 Base amount less discount 6b 731 40 Amount of tax on 12 190 12 921 40 Total cost base amount less discount plus tax Percent Difference Percent Difference Percent Difference Percent Difference To find the percent difference between two numbers 1 Key in the base number 2 Press to separate the other number from the base number 3 Key in the other number 4 Press à If th...

Page 28: ...ast month your company posted sales of 3 92 million in the U S 2 36 million in Europe and 1 67 million in the rest of the world What percentage of the total sales occurred in Europe Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 3 92 3 92 Keys in the first number and separates it from the second 2 36 6 28 Adds the second number 1 67 7 95 Adds the third number to get th...

Page 29: ...mber in the display Z 29 69 Europe had nearly 30 of the total sales Calendar Functions Calendar Functions Calendar Functions Calendar Functions The calendar functions provided by the hp 12c D and Ò can handle dates from October 15 1582 through November 25 4046 Da Da Da Date te te te Format Format Format Format For each of the calendar functions and also for bond calculations E and S the calculator...

Page 30: ...ates To determine the date and day that is a given number of days from a given date 1 Key in the given date and press 2 Key in the number of days 3 If the other date is in the past press Þ 4 Press gD The answer calculated by the D function is displayed in a special format The numbers of the month day and year or day month and year are separated by digit separators and the digit at the right of the...

Page 31: ...ays between the two dates including leap days the extra days occurring in leap years if any In addition the hp 12c also calculates the number of days between the two dates on the basis of a 30 day month This answer is held inside the calculator to display it press Pressing again will return the original answer to the display Example Example Example Example Simple interest calculations can be done ...

Page 32: ...en press the corresponding key w P or M Displaying Numbers in the Financial Register Displaying Numbers in the Financial Register Displaying Numbers in the Financial Register Displaying Numbers in the Financial Registers s s s To display a number stored in a financial register press followed by the corresponding key Which operation is performed when one of these keys is pressed depends upon the la...

Page 33: ...he 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 w 2 Key in the annual interest rate then press 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 pre...

Page 34: ...iagram Financial Calculations and the Cash Flow Diagram Financial Calculations and the Cash Flow Diagram The concepts and examples presented in this section are representative of a wide range of financial calculations If your specific problem does not appear to be illustrated in the pages that follow don t assume that the calculator is not capable of solving it Every financial calculation involves...

Page 35: ... The cash flow diagram describing the problem would look like this The arrow pointing up at the right of the diagram indicates that money is received at the end of the transaction Every completed cash flow diagram must include at least one cash flow in each direction Note that cash flows corresponding to the accrual of interest are not represented by arrows in the cash flow diagram The quantities ...

Page 36: ... balance in a savings account after a series of irregular and or unequal deposits are included in the hp 12c Solutions Handbook FV the future value is the final cash flow or the compounded value of a series of prior cash flows In the particular problem illustrated above FV is unknown but can be calculated Solving the problem is now basically a matter of keying in the quantities identified in the c...

Page 37: ...of the compounding periods The BEGIN BEGIN BEGIN BEGIN status indicator is lit when the payment mode is set to Begin If BEGIN BEGIN BEGIN BEGIN is not lit the payment mode is set to End The payment mode remains set to what you last specified until you change it it is not reset each time the calculator is turned on However if Continuous Memory is reset the payment mode will be set to End Generalize...

Page 38: ...38 38 38 38 Section 3 Section 3 Section 3 Section 3 Basic Financial Functions Basic Financial Functions Basic Financial Functions Basic Financial Functions ...

Page 39: ...the calculator to multiply the number of years by the number of compounding periods per year pressing w then stores the result into n n n n The same is true for i i i i Values of n and i are calculated and stored like this in Example 2 on page 47 If interest is compounded monthly you can use a shortcut provided on the calculator to calculate and store n and i To calculate and store n key the numbe...

Page 40: ... to know the value of the final payment with which you can calculate a balloon payment or desire to know the payment value for n equal payments you will need to press one of the other financial keys as shown in the following two examples Example 1 Example 1 Example 1 Example 1 You re planning to build a log cabin on your vacation property Your rich uncle offers you a 35 000 loan at 10 5 interest I...

Page 41: ...smaller total of all payments since you will not have to pay interest during the 328th payment period You can calculate this final larger 327th payment essentially a balloon payment as follows Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 327w 327 00 Stores number of full payments M 141 87 Calculates FV which is the balance remaining after 327 full payments P 325 00 R...

Page 42: ...okes Keystrokes Keystrokes Display Display Display Display fCLEARG 6 25 24z 0 26 Calculates and stores i 775Þ 775 00 Stores PV with minus sign for cash paid out 50ÞP 50 00 Stores PMT with minus sign for cash paid out 4000M 4 000 00 Stores FV g 4 000 00 Sets the payment mode to End w 58 00 Number of semimonthly deposits 2z 29 00 Number of months As in Example 1 it is likely that only 57 full depos...

Page 43: ... of the following values Present value using Payment amount using P Future value using M Note Note Note Note Remember to observe the cash flow sign convention 4 If a PMT was entered press g or g to set the payment mode 5 Press to calculate the periodic interest rate 6 To calculate the annual interest rate key in the number of periods per year then press µ In this example M must be pressed twice s...

Page 44: ...es PV with minus sign for cash paid out 10000M 10 000 00 Stores FV 1 61 Periodic quarterly interest rate 4µ 6 44 Annual interest rate Calculating the Present Value Calculating the Present Value Calculating the Present Value Calculating the Present Value 1 Press fCLEARG to clear the financial registers 2 Enter the number of payments or periods using w or A 3 Enter the periodic interest rate using o...

Page 45: ...e month prior to the date of the first payment Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display fCLEARG 4gA 48 00 Calculates and stores n 15gC 1 25 Calculates and stores i 150ÞP 150 00 Stores PMT with minus sign for cash paid out g 150 00 Sets payment mode to End 5 389 72 Maximum amount of loan 1500 6 889 72 Maximum purchase price Example 2 Example 2 Example 2 Example 2...

Page 46: ... annual yield PV is displayed with a minus sign since it represents cash paid out Calculating the Payment Amount Calculating the Payment Amount Calculating the Payment Amount Calculating the Payment Amount 1 Press fCLEARG to clear the financial registers 2 Enter the number of payments or periods using w or A 3 Enter the periodic interest rate using or C 4 Enter either or both of the following Pres...

Page 47: ... forward to retirement you wish to accumulate 60 000 after 15 years by making deposits in an account that pays 93 4 interest compounded semiannually You open the account with a deposit of 3 200 and intend to make semiannual deposits beginning six months later from your profit sharing bonus paychecks Calculate how much these deposits should be Keystrokes Keystrokes Keystrokes Keystrokes Display Dis...

Page 48: ...mber to observe the cash flow sign convention 5 If a PMT was entered press g or g to set the payment mode 6 Press M to calculate the future value Example 1 Example 1 Example 1 Example 1 In Example 1 on page 46 we calculated that the payment amount on a 29 year 43 400 mortgage at 141 4 annual interest is 523 99 If the seller requests a balloon payment at the end of 5 years what would be the amount...

Page 49: ...kes Keystrokes Keystrokes Keystrokes Display Display Display Display fCLEARG 2gA 24 00 Calculates and stores n 6 25gC 0 52 Calculates and stores i 50ÞP 50 00 Stores PMT with minus sign for cash paid out g 50 00 Sets payment mode to Begin M 1 281 34 Balance after 2 years Example 3 Example 3 Example 3 Example 3 Property values in an unattractive area are depreciating at the rate of 2 per year Assumi...

Page 50: ...ginning of the first regular payment period However interest often begins to accrue prior to the beginning of the first regular payment period The period from the date interest begins accruing to the date of the first payment being not equal to the regular payment periods is sometimes referred to as an odd first period For simplicity in using the hp 12c we will always regard the first period as eq...

Page 51: ...riod is taken to be 30 days long At your option the calculations of i PV PMT and FV can be performed with either simple interest or compound interest accruing during the odd period If the C C C C status indicator in the display is not lit simple interest is used To specify compound interest turn the C C C C indicator on by pressing Æ Pressing Æ again turns the C C C C indicator off and calculation...

Page 52: ... Keystrokes Display Display Display Display fCLEARG Clears financial registers gÕ Sets date format to month day year g Sets payment mode to End Æ Turns on the C C C C indicator in the display so that compound interest will be used for the odd period 2 152004 2 15 Keys in the date interest begins accruing and separates it from the next date entered 3 012004 3 012004 Keys in the date of the beginni...

Page 53: ... Display Display Display Display fCLEARG Clears financial registers Æ Turns off the C C C C indicator in the display so that simple interest will be used for the odd period 7 192004 7 19 Keys in the date interest begins accruing and separates it from the next date entered 8 012004 8 012004 Keys in the date of the beginning of the first period gÒ 13 00 Actual number of odd days 30z 0 43 Divides by ...

Page 54: ...incipal 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 w Example Example Example Example For a house you re about to buy you can obtain a 25 year mortgage for 50 000 at 131 4 annual interest This requires payments of 573 35 at the end of each month Find the amounts that wou...

Page 55: ...months Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 12f 6 570 72 Portion of second year s payments applied to interest 309 48 Portion of second year s payments applied to principal dd 12 00 Number of payments just amortized 49 419 21 Balance remaining after 2 years w 24 00 Total number of payments amortized Pressing or w displays the number in the PV or n register Wh...

Page 56: ...o 3 Proceed with the amortization procedure listed on page 54 beginning with step 6 Example Example Example Example Suppose you obtained a 30 year mortgage instead of a 25 year mortgage for the same principal 50 000 and at the same interest rate 131 4 as in the preceding example Calculate the monthly payment then calculate the amounts applied to interest and to the principal from the first month s...

Page 57: ...or an investment that requires an initial cash outlay CF0 and generates a cash flow CF1 at the end of the first year and so on up to the final cash flow CF6 at the end of the sixth year In the following diagram the initial investment is denoted by CF0 and is depicted as an arrow pointing down from the time line since it is cash paid out Cash flows CF1 and CF4 also point down from the time line bec...

Page 58: ...e investor is indifferent toward the investment If IRR is less than the desired rate of return the investment is not financially attractive Calculating Net Present Value NPV Calculating Net Present Value NPV Calculating Net Present Value NPV Calculating Net Present Value NPV Calculating NPV for Ungrouped Cash Flows Calculating NPV for Ungrouped Cash Flows Calculating NPV for Ungrouped Cash Flows C...

Page 59: ...amount of the initial investment press Þ if that cash flow is negative then press gJ If there is no initial investment press 0gJ 3 Key in the amount of the next cash flow press Þ if the cash flow is negative then press gK If the cash flow amount is zero in the next period press 0 gK 4 Repeat step 3 for each cash flow until all have been entered With the amounts of the cash flows stored in the calc...

Page 60: ...though a cash flow amount 4 500 occurs twice these cash flows are not consecutive Therefore these cash flows must be entered using the method described above Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display fCLEARH 0 00 Clears financial and storage registers 80000ÞgJ 80 000 00 Stores CF0 with minus sign for a negative cash flow 500ÞgK 500 00 Stores CF1 with minus sign fo...

Page 61: ...ge registers required Note Note Note Note When entering cash flow amounts including the initial investment CF0 remember to observe the cash flow sign convention by pressing Þ after keying in the amount for a negative cash flow In summary to enter the amounts of the cash flows and the number of times they occur consecutively 1 Press fCLEARH to clear the financial and storage registers 2 Key in the ...

Page 62: ...we can minimize the number of storage registers required by using the method just described Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display fCLEARH 0 00 Clears financial and storage registers 79000ÞgJ 79 000 00 Initial investment with minus sign for a negative cash flow 14000gK 14 000 00 First cash flow amount 11000gK 11 000 00 Next cash flow amount 10000gK 10 000 00 Ne...

Page 63: ...n years for example months or quarters you can calculate the nominal annual rate of return by multiplying the periodic IRR by the number of periods per year As noted above the calculator may take several seconds or even minutes to produce an answer for IRR This is because the mathematical calculations for finding IRR are extremely complex involving a series of iterations that is a series of succes...

Page 64: ...to display the Nj for a CFj store the number of that cash flow amount that is the value of j in the n n n n register then press ga To review all the cash flow amounts together with the number of times each cash flow amount occurs consecutively that is to review each CFj and Nj pair press ga gK repeatedly This displays Nj followed by CFj beginning with the final cash flow amount and proceeding to N...

Page 65: ...F7 ga 1 00 N6 gK 4 500 00 CF6 ga 2 00 N5 gK 9 000 00 CF5 ga 1 00 N1 gK 14 000 00 CF1 ga 1 00 N0 gK 79 000 00 CF0 7w 7 00 Resets the number in the n n n n register to its original value Changing Changing Changing Changing Cash Flow Entries Cash Flow Entries Cash Flow Entries Cash Flow Entries To change a cash flow amount 1 Key the amount into the display 2 Press 3 Key in the number of the register ...

Page 66: ... from 2 to 4 then calculate the new NPV Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 5w 5 00 Stores j in the n n n n register 4ga 4 00 Stores the new N5 7w 7 00 Resets the number in the n n n n register to its original value fl 1 857 21 The new NPV Bond Calculations Bond Calculations Bond Calculations Bond Calculations The hp 12c enables you to solve for bond price a...

Page 67: ...the interest to the price press Exam Exam Exam Example ple ple ple What price should you pay on April 28 2004 for a 63 4 U S Treasury bond that matures on June 4 2018 if you want a yield of 81 4 Assume that you normally express dates in the month day year format Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 8 25 8 25 Enters yield to maturity 6 75P 6 75 Enters coupon r...

Page 68: ...ook value minus salvage value using the straight line sum of the years digits and declining balance methods To do so with any of these methods 1 Enter the original cost of the asset using 2 Enter the salvage value of the asset using M If the salvage value is zero press 0M 3 Enter the expected useful life of the asset in years using w 4 If the declining balance method is being used enter the declin...

Page 69: ...rs original cost 500M 500 00 Enters salvage value 5w 5 00 Enters expected useful life 200 200 00 Enters declining balance factor 1f 4 000 00 Depreciation in first year 5 500 00 Remaining depreciable value after first year 2f 2 400 00 Depreciation in second year 3 100 00 Remaining depreciable value after second year 3f 1 440 00 Depreciation in third year 1 660 00 Remaining depreciable value after t...

Page 70: ...s dropped or otherwise traumatized or if power is interrupted You can also manually reset Continuous Memory as follows 1 Turn the calculator off 2 Hold down the key and press When Continuous Memory is reset All registers are cleared Program memory consists of eight program lines each containing the instruction g 00 Display format is set to the standard format with two decimal places Date format is...

Page 71: ... is 0 through 4 the second digit is not affected Rounding occurs regardless of how many decimal places are displayed Several options are provided for controlling how numbers appear in the display But regardless of which display format or how many displayed decimal places you specify the number inside the calculator which appears altered in the display is not altered unless you use the B V Ý or fun...

Page 72: ...an be displayed in that format Scientif Scientif Scientif Scientific Notation Display Format ic Notation Display Format ic Notation Display Format ic Notation Display Format In scientific notation a number is displayed with its mantissa at the left and a two digit exponent at the right The mantissa is simply the first seven digits in the number and has a single nonzero digit to the left of the dec...

Page 73: ...l 10 digits of the number as long as you hold down the X key after you release the key the number will again be displayed in the current display format For instance if the display still contains the result from the preceding example Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display fCLEARX 1487456320 All 10 digits of the number inside the calculator 1 487456 01 Display re...

Page 74: ...then key in 144 25 But then you realize that when written down on paper the desired calculation reads 144 25 25 83 so that you have unfortunately keyed in the second number first To correct this mistake merely exchange the first and second numbers by pressing the exchange key Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 25 83 144 25 144 25 Oops You mistakenly keyed i...

Page 75: ...Keys third quantity into display gF 4 38 Recalls unit cost into display again µ 1 095 00 Cost of a package of 250 Another method for doing arithmetic calculations with constants is described on page 177 Recovering From Errors in Digit Entry Recovering From Errors in Digit Entry Recovering From Errors in Digit Entry Recovering From Errors in Digit Entry Example Example Example Example Suppose you w...

Page 76: ... registers by pressing fclear In one variable statistical calculations to enter each data point referred to as an x value key the x value into the display then press _ In two variable statistical calculations to enter each data pair referred to as the x and y values 1 Key the y value into the display 2 Press 3 Key the x value into the display 4 Press _ Each time you press _ the calculator does the...

Page 77: ... be corrected If the incorrect data point or data pair has just been entered and _ has been pressed press gFg If the incorrect data point or data pair is not the most recent one entered key in the incorrect data point or data pair again as if it were new but press g instead of _ These operations cancel the effect of the incorrect data point or data pair You can then enter the data correctly using ...

Page 78: ...1 000 6 50 28 000 7 35 15 000 To find the average workweek and sales of this sample Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display fCLEAR 0 00 Clears statistics registers 32 17000_ 32 00 1 00 First entry 40 25000_ 40 00 2 00 Second entry 45 26000_ 45 00 3 00 Third entry 40 20000_ 40 00 4 00 Fourth entry 38 21000_ 38 00 5 00 Fifth entry 50 28000_ 50 00 6 00 Sixth entry ...

Page 79: ...culating sx and sy give best estimates of the population standard deviation based on a sample of the population Thus current statistical convention calls them sample standard deviations So we have assumed that the seven salespersons are a sample of the population of all salespersons and our formulas derive best estimates of the population from the sample What if the seven salespersons constituted ...

Page 80: ...ow closely the data pairs would if plotted on a graph lie in a straight line The usual measure of this reliability is the correlation coefficient r This quantity is automatically calculated whenever y or x is calculated to display it press A correlation coefficient close to 1 or 1 indicates that the data pairs lie very close to a straight line On the other hand a correlation coefficient close to 0...

Page 81: ...he second weight and press _ Continue until you have entered all the values of the items and their corresponding weights The rule for entering the data is item weight _ 3 Press gh to calculate the weighted mean of the items Example Example Example Example Suppose that you stop during a vacation drive to purchase gasoline at four stations as follows 15 gallons at 1 16 per gallon 7 gallons at 1 24 p...

Page 82: ...Functions Statistics Functions Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display gh 1 19 Weighted mean cost per gallon A procedure for calculating the standard deviation and standard error as well as the mean of weighted or grouped data is included in the hp 12c Solutions Handbook ...

Page 83: ...late the common logarithm that is the logarithm to the base 10 of the number in the display calculate the natural logarithm then press 10g z Exponential Exponential Exponential Exponential Pressing g calculates the exponential of the number in the display that is it raises the base e to the number in the display Factorial Factorial Factorial Factorial Pressing ge calculates the factorial of the nu...

Page 84: ...splay Display Display Display 258 0 258 Keys the number into the display y 3 88 The reciprocal of 0 258 the original number Any of the above functions can be done with a number in the display resulting from a previous calculation as well as with a number you have just keyed in Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display fCLEARX 3875968992 Displays all 10 digits of t...

Page 85: ...lates a power of a number that is yx Like the arithmetic function q requires two numbers 1 Key in the base number which is designated by the y on the key 2 Press to separate the second number the exponent from the first the base 3 Key in the exponent which is designated by the x on the key 4 Press q to calculate the power To Calculate To Calculate To Calculate To Calculate Keystrokes Keystrokes Ke...

Page 86: ......

Page 87: ...Part II Part II Part II Part II Programming Programming Programming Programming ...

Page 88: ...functions are not executed when they are keyed in but instead are stored inside the calculator The PRGM PRGM PRGM PRGM status indicator in the display is lit when the calculator is in Program mode 3 Press fCLEARÎ to erase any previous programs that may be stored inside the calculator If you want to create a new program without erasing a program already stored skip this step and proceed as describe...

Page 89: ...is number will vary each time the program is used Don t be concerned right now about what appears in the display as you press the keys we ll discuss that later in this section Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 01 36 2 02 2 5 03 5 b 04 25 05 30 5 06 5 07 40 Running a Program Running a Program Running a Program Running a Program To run sometimes called execu...

Page 90: ... Program mode and when they are executed in Run mode Program Memory Program Memory Program Memory Program Memory Keystrokes entered into the calculator in Program mode are stored in program memory Each digit decimal point or function key is called an instruction and is stored in one line of program memory usually referred to simply as a program line Keystroke sequences beginning with the f g and p...

Page 91: ...w The keycode for each digit key is simply the digit on the key Thus when you keyed the instruction b into program memory the calculator displayed 04 25 This indicates that the key for the instruction in program line 04 is in the second row on the keyboard and is the fifth key in that row the b key When you keyed the instruction into program memory the calculator displayed 07 40 This indicates tha...

Page 92: ...ep while the calculator is in Program mode sets the calculator back to the previous line in program memory then displays that line number and the keycode of the instruction stored there For example to display the first two lines of the program now stored in program memory set the calculator to Program mode and press Ê twice Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Displa...

Page 93: ...oes contain a hidden instruction that tells the calculator to halt program execution Thus after each time the program is run the calculator automatically goes to program line 00 and halts ready for you to key in new data and run the program again The calculator is also automatically set to program line 00 when you press fs to set the calculator from Program mode to Run mode The 00 instruction was ...

Page 94: ...into program memory if Continuous Memory has been reset or if fCLEARÎ has been pressed in Program mode program memory consists of 8 program lines and there are 20 storage registers available for storage of data As you key in a ninth instruction storage register R 9 is automatically converted into seven new lines of program memory The instruction you key in is stored in program line 09 and the inst...

Page 95: ...necessarily since program memory is limited to 99 program lines One way to minimize program length is to replace numbers consisting of more than just one digit like the number 25 in lines 02 and 03 of the program keyed in above by a instruction and then storing the number in the designated storage register before running the program In this case this would save one program line since the instructi...

Page 96: ...m you wrote that is to verify that you have keyed the instructions in correctly However this does not ensure that the program you wrote calculates the desired results correctly even programs created by the most experienced programmers often do not work correctly when they are first written To help you verify that your program works correctly you can execute the program one line at a time using the...

Page 97: ...rogram mode In Run mode however when the Ü key is released the display again shows the same number as it did before gÜ was pressed no instruction in program memory is executed Interrupting Program Execution Interrupting Program Execution Interrupting Program Execution Interrupting Program Execution Occasionally you ll want a program to stop executing so that you can see an intermediate result or e...

Page 98: ... tax rate before the b instruction we ll store it in register R0 and recall it before the b instruction Before storing the program in program memory we ll calculate the required amounts for the first item on the invoice manually The keystroke sequence will use storage register arithmetic described on page 24 in registers R1 R2 and R3 to calculate the column sums Since these registers are cleared w...

Page 99: ...registers in R1 through R6 13 13 Keys in quantity of item 13 00 Separates quantity of item from cost of item to be keyed in next 68 5 68 5 Keys in cost of item µ 890 50 AMOUNT 1 890 50 Adds AMOUNT to sum of AMOUNT entries in register R1 0 6 75 Recalls tax rate to display b 60 11 TAX 2 60 11 Adds TAX to sum of TAX entries in register R2 950 61 TOTAL 3 950 61 Adds TOTAL to sum of TOTAL entries in re...

Page 100: ...Enters quantity and price of first item on invoice t 890 50 AMOUNT for first item 60 11 TAX for first item 950 61 TOTAL for first item 18 72 9 72 9 Enters quantity and price of second item on invoice t 1 312 20 AMOUNT for second item 88 57 TAX for second item 1 400 77 TOTAL for second item 24 85 85 Enters quantity and price of third item on invoice t 2 040 00 AMOUNT for third item 137 70 TAX for t...

Page 101: ...ecutes a t instruction To resume executing the program from the program line at which execution was halted press t Example Example Example Example Replace the program above by one containing t instructions instead of u instructions Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display fs 00 Sets calculator to Program mode fCLEARÎ 00 Clears program memory µ 01 20 t 02 31 Stops...

Page 102: ...o Program mode and display that program line You may also want to display the current program line by pressing fs if your program has halted at one of several t instructions in your program and you want to determine which one that is To continue executing the program afterward 1 Press fs to set the calculator back to Run mode 2 If you want to resume execution from the program line at which executi...

Page 103: ...tion to any program line The program line desired is specified by keying its two digit line number into the program line containing the instruction When the instruction is executed program execution branches or goes to the program line specified and then continues sequentially as usual You have already seen a common use of branching the 00 instruction that is stored in program memory after the pro...

Page 104: ...ing you to press f for each payment It will amortize one month s payments each time or one year s payments each time the loop is executed depending on whether the number 1 or 12 is in the display when you start running the program Before running the program we ll initialize it by storing the required data in the financial registers just as we would do if we were amortizing a single payment manuall...

Page 105: ...to interest 05 34 Brings amount of payment s applied to principal into display gu 06 43 31 Pauses to display amount of payment s applied to principal g 02 07 43 33 02 Transfers program execution to line 02 so that the number of payments to be amortized can be recalled to the display before the instruction in line 03 is executed fs 0 00 Sets calculator to Run mode Display shown assumes no results r...

Page 106: ...applied to interest Ê 04 43 31 Line 04 gu 531 25 Ê 05 34 Line 05 12 10 Portion of first month s payment applied to principal Ê 06 43 31 Line 06 gu 12 10 Ê 07 43 33 02 Line 07 g 02 This is the end of the first pass through the loop 12 10 Ê 02 45 0 Line 02 0 Program execution has branched to the beginning of the loop for the second pass through it 1 00 Ê 03 42 11 Line 03 f 531 12 Portion of second m...

Page 107: ...sed in programs for conditional branching o tests whether the number in the X register represented by the x in the key symbol is less than or equal to the number in the Y register represented by the y in the key symbol As discussed in Appendix A the number in the X register is simply the number that would if the calculator were in Run mode be currently in the display and the number in the Y regist...

Page 108: ...t line in program memory if the condition is false Example Example Example Example The following program calculates income tax at a rate of 20 on incomes of 20 000 or less and 25 on incomes of more than 20 000 To conserve program lines the program assumes that the test value 20 000 has been stored in register R0 and the tax rates 20 and 25 have been stored in registers R1 and R2 respectively Note ...

Page 109: ...alue into the Y register This is necessary because when either the 2 instruction in line 05 or the 1 instruction in line 07 is executed the number in the X register is moved into the Y register if the instruction were not included the test value 20 000 rather than the income would be in the Y register when the b instruction in line 08 is executed Keystrokes Keystrokes Keystrokes Keystrokes Display...

Page 110: ...the branching occurs properly It s good practice with programs containing conditional test instructions to check that the program branches correctly for all possible conditions in this case if the income is less than equal to or greater than the test value Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 20000 0 20 000 00 Stores test value in register R0 20 1 20 00 Store...

Page 111: ... 0 Line 01 0 20 000 00 Test value has been recalled to X register moving income to Y register Ê 02 34 Line 02 20 000 00 Income has been placed in X register and test value has been placed in Y register Ê 03 43 34 Line 03 go 20 000 00 Ê 04 43 33 07 Condition tested by o was true so program execution continued with line 04 g 07 20 000 00 Ê 07 45 1 Line 07 1 20 00 20 tax rate has been recalled to X r...

Page 112: ...Display Ê 02 34 Line 02 25 000 00 Income has been placed in X register and test value has been placed in Y register Ê 03 43 34 Line 03 go 25 000 00 Ê 05 45 2 Condition tested by o was false so program execution skipped the next line and continued at line 05 2 25 00 25 tax rate has been recalled to X register moving income to Y register Ê 06 43 33 08 Line 06 g 08 25 00 Ê 08 25 Line 08 b 6 250 00 25...

Page 113: ... to the program line preceding the line containing the instruction to be changed 3 Key in the new instruction For example to change the instruction stored in program line 05 press g 04 then key in the new instruction that is to be stored in program line 05 The instruction previously stored in line 05 will be replaced it is not automatically bumped into line 06 Example Example Example Example With ...

Page 114: ... keyed into program memory that is the highest numbered line not necessarily the line most recently keyed in 3 Key in the new instruction or instructions Note Note Note Note To add one or more instructions at the end of a program that is not the last program stored in program memory use the procedure described below under Adding Instructions Within a Program Example Example Example Example With th...

Page 115: ...m which you branched out Adding instructions by branching is not so simple as adding instructions by replacement however it generally will require fewer keystrokes whenever there are more than four program lines between and including the first line to be executed after the new instruction s and the last line you keyed into program memory Furthermore if program memory includes branches to program l...

Page 116: ...hing Adding Instructions by Branching Adding Instructions by Branching Adding Instructions by Branching 1 Press fs to set the calculator to Program mode 2 Press g followed by two digits that specify the program line immediately preceding the point at which the new instruction s are being added usually the last program line to be executed before the added instruction s This sets the calculator to t...

Page 117: ...e suppose incomes less than or equal to 7 500 were not to be taxed You could modify the program to check for this condition and stop at line 00 displaying the original income keyed in by storing 7 500 in register R3 and adding the following instructions between lines 00 and 01 3 gog 00 Since there are more than four instructions between and including the first line to be executed after the added i...

Page 118: ...3 33 02 Branches back to second line line 02 following point at which new instructions are being added fs 12 000 00 Sets calculator back to Run mode 7500 3 7 500 00 Stores test value in register R3 6500t 6 500 00 Runs program for income less than 7 500 Display shows original income keyed in indicating that tax is zero 15000t 3 000 00 Tax on 15 000 income t 12 000 00 Net income after tax This shows...

Page 119: ...Section 10 Section 10 Section 10 Section 10 Program Editing Program Editing Program Editing Program Editing 119 119 119 119 ...

Page 120: ...ms stored in program memory skip step 3 and proceed with step 4 3 Press g 00 This automatically converts a data storage register into seven additional lines of program memory if there was not already a 00 instruction remaining at the end of program memory and it ensures that program execution will branch to line 00 after the first program is run 4 Key the program into program memory If you are sto...

Page 121: ...tes it from the first program by doing step 3 in the procedure above Furthermore since this program does not end with a loop we ll do steps 5 and 6 too Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display fs 00 Sets calculator to Program mode g 17 17 43 33 02 Sets calculator to last line keyed into program memory g 00 18 43 33 00 Ensures that second program is separated from...

Page 122: ...kes Keystrokes Keystrokes Keystrokes Display Display Display Display fs 00 Sets calculator to Program mode g 27 27 43 33 19 Sets calculator to last line keyed into program memory 0 28 44 0 Keys in program 0 29 45 0 f 30 42 11 gu 31 43 31 32 34 gu 33 43 31 g 29 34 43 33 29 Running Another Program Running Another Program Running Another Program Running Another Program To run a program that does not ...

Page 123: ...Part III Part III Part III Part III Solutions Solutions Solutions Solutions ...

Page 124: ...Press g and fCLEARG 2 Calculate and enter the periodic payment amount of the loan a Key in the total number of payment periods press w b Key in the periodic interest rate as a percentage press c Key in the mortgage amount press d To obtain the periodic payment amount press P 3 Calculate and key in the actual net amount disbursed If fees are stated as a percentage of the mortgage amount points rec...

Page 125: ...n n 11 5gC 0 96 Percent monthly interest rate into i i i i 60000 60 000 00 Loan amount into PV P 594 17 Monthly payment calculated 2b 58 800 00 Actual amount received by borrower into PV 0 98 Percent monthly interest rate calculated 12µ 11 76 Annual percentage rate Example 2 Example 2 Example 2 Example 2 Using the same information as given in example 1 calculate the APR if the mortgage fee is 150 ...

Page 126: ...Price of a Mortgage Traded at a Discount or Premium Mortgages may be bought and or sold at prices lower discounted or higher at a premium than the remaining balance of the loan at the time of purchase Given the amount of the mortgage the periodic payment the timing and amount of the balloon or prepayment and the desired yield rate the price of the mortgage may be found It should be noted that the ...

Page 127: ...ly payments into PMT 2000M 8 777 61 Amount necessary to prepay the note Example 2 Example 2 Example 2 Example 2 A 91 2 mortgage with 26 years remaining and a remaining balance of 49 350 is available for purchase Determine the price to pay for this mortgage if the desired yield is 12 Since the payment amount is not given it must be calculated Keystrokes Keystrokes Keystrokes Keystrokes Display Disp...

Page 128: ...periodic payment amount then press P 4 Key in the purchase price of the mortgage then press 5 Key in the balloon payment amount then press M If there is no balloon payment go to step 6 6 Press to obtain the yield per period 7 Key in the number of periods per year and press µ to obtain the nominal annual yield Example 1 Example 1 Example 1 Example 1 An investor wishes to purchase a 100 000 mortgage...

Page 129: ...e loan is to be paid in full at the end of the fifth year from original issuance In this case both the payment amount and the balloon must be calculated since they are not given Keyst Keyst Keyst Keystrokes rokes rokes rokes Display Display Display Display g fCLEARG 21gA 252 00 Input the number of periods into n 9gC 0 75 Monthly interest rate into PV 100000Þ 100 000 00 Mortgage amount into PV P 8...

Page 130: ...ome owner on property taxes and mortgage interest First the program computes the Net Cash Proceeds upon Resale NCPR next the yield on the investment in the house and then the value of the hypothetical savings account at the end of the investment period A comparison of the NCPR and the final balance of the savings account and a comparison of the yields should aid in determining whether to rent or b...

Page 131: ... KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DISPLAY DISPLAY DISPLAY 1 10 45 1 44 30 11 30 5 45 45 5 12 13 46 30 3 13 45 3 8 47 45 8 gC 14 43 12 48 40 2 15 45 2 49 30 gA 16 43 11 Þ 50 16 P 17 14 P 51 14 d 18 33 0 52 45 0 d 19 33 gA 53 43 11 0 20 0 1 54 45 1 w 21 11 6 55 45 6 0 22 45 0 56 40 1 23 1 Þ 57 16 2 24 2 58 13 µ 25 20 59 12 f 26 42 11 gC 60 45 43 12 d 27 33 t 61 31 d 28 33 9 62 45 9 d 29 33 g...

Page 132: ...les commission escrow fees etc then press 7 9 Key in the monthly rent for the alternative housing then press 8 10 Key in the savings or alternative investment annual interest rate as a percentage then press 9 11 Key in the combined State and Federal marginal tax rate as a percentage then press 0 12 Press fCLEARG then key in the number of years involved in the investment press w 13 Key in the estim...

Page 133: ...ion for resale and miscellaneous other fees that amount to another 2 of the sale price Housing in the area is appreciating 10 per year Property taxes would be about 110 per month and you estimate that maintenance would cost an additional 65 per month An alternative would be to rent a similar dwelling at 400 per month and to invest the difference between the purchase cost and rent at 61 4 interest ...

Page 134: ...ber of periods the payments are deferred The technique for calculating NPV may be applied assuming zero for the first cash flow Refer to pages 58 through 62 Example 1 Example 1 Example 1 Example 1 You have just inherited 20 000 and wish to put some of it aside for your daughter s college education You estimate that when she is of college age 9 years from now she will need 7 000 at the beginning of...

Page 135: ...nuities as they start at some time in the future The cash flow diagram from the investor s viewpoint looks like this To find today s present value of the cash flows assuming a desired yield the NPV technique may be used Refer to pages 58 thru 62 Example 2 Example 2 Example 2 Example 2 A 2 year lease calls for monthly payments at the beginning of the month of 500 per month for the first 6 months 60...

Page 136: ... computed as fractions of a full year s depreciation Straight Straight Straight Straight Line Depreciation Line Depreciation Line Depreciation Line Depreciation The following hp 12c program calculates the straight line depreciation for the year desired with the acquisition date occurring at any time during the year KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DISPLAY DISPLAY DISPLAY KEYSTRO...

Page 137: ...er R3 1st Yr Dep R4 R 4 Unused 1 Key in the program 2 Press fCLEARG 3 Key in the book value then press 4 Key in the salvage value then press M 5 Key in the life in years an integer then press w 6 Key in the year desired then press 7 Key in the number of months in the first year and press t The display will show the amount of depreciation for the desired year If desired press to see the remaining d...

Page 138: ... 25 000 for land and 125 000 for improvements building The remaining useful life of the building is agreed to be 25 years There is no salvage value forecasted at the end of the useful life of the building Thus the depreciable value and book value is 125 000 The building was acquired 4 months before the end of the year Using straight line depreciation find the amount of depreciation and remaining d...

Page 139: ...hat is the amount of depreciation in the first year Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display g 00 fCLEARG 6730 6 730 00 Book value 5w 5 00 Life 1 1 00 4 5t 1 00 504 75 First year depreciation Declining Declining Declining Declining Balance Depreciation Balance Depreciation Balance Depreciation Balance Depreciation The following hp 12c program calculates the decli...

Page 140: ...5 13 35 30 16 34 3 36 45 3 17 30 g 26 37 43 33 26 18 13 fs REGISTERS REGISTERS REGISTERS REGISTERS n Life i Factor PV Dep Value PMT Unused FV Salvage R0 Used R1 Mos 12 R2 Counter R3 1st Yr Dep R4 R 4 Unused 1 Key in the program 2 Press fCLEARG 3 Key in the book value then press 4 Key in the salvage value then press M 5 Key in the declining balance factor as a percentage then press 6 Key in the lif...

Page 141: ...depreciation method The declining balance factor is 150 Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display fCLEARG 50000 50 000 00 Book value 8000M 8 000 00 Salvage value 150 150 00 Declining balance factor 6w 6 00 Life 2 2 00 Year desired 4t 2 00 11 458 33 Second year depreciation Sum Sum Sum Sum of of of of the the the the Years Years Years Years Digits Depreciation Digi...

Page 142: ...9 42 24 08 30 t 30 31 0 09 44 0 1 31 1 1 10 1 0 32 44 40 0 fÝ 11 42 24 2 33 44 40 2 1 12 45 1 g 26 34 43 33 26 µ 13 20 2 35 45 2 3 14 44 3 gu 36 43 31 15 45 13 37 45 13 16 34 M 38 45 15 17 30 39 30 18 13 3 40 45 3 w 19 45 11 g 30 41 43 33 30 1 20 45 1 fs REGISTERS REGISTERS REGISTERS REGISTERS n Life i Unused PV Dep Value PMT Unused FV Salvage R0 Used R1 Mos 12 R2 Counter R3 1st Yr Dep R4 R 4 Unus...

Page 143: ...Example Example A commercial movie camera is purchased for 12 000 If maintained properly the camera has a useful life expectancy of 25 years with 500 salvage value Using the sum of the years digits method what is the amount of depreciation and the remaining depreciable value for the 4th and 5th years Assume the first depreciation year is 11 months long Keystrokes Keystrokes Keystrokes Keystrokes D...

Page 144: ...ance depreciation last exceeds or equals the amount of straight line depreciation The straight line depreciation is determined by dividing the remaining depreciable value by the remaining useful life Given the desired year and the number of months in the first year this program calculates the depreciation for the desired year the remaining depreciable value and the total depreciation through the c...

Page 145: ...66 11 1 18 44 1 0 67 0 19 45 13 6 68 44 6 20 34 1 69 1 21 30 2 70 44 30 2 22 13 0 71 44 40 0 23 36 5 72 45 5 gF 24 43 36 1 73 44 30 1 25 34 3 74 45 3 M 26 45 15 fV 75 42 23 27 30 1 76 44 40 1 28 34 1 77 1 0 29 45 0 0 78 44 30 0 1 30 1 2 79 44 40 2 go 31 43 34 3 80 44 40 3 g 39 32 43 33 39 d 81 33 d 33 33 0 82 45 0 d 34 33 1 83 1 1 35 1 go 84 43 34 gu 36 43 31 g 74 85 43 33 74 d 37 33 d 86 33 t 38 ...

Page 146: ...book value then press 4 Key in the salvage value then press M 5 Key in the life in years an integer then press w 6 Key in the declining balance factor as a percentage then press 7 Key in the desired year and press 8 Key in the number of months in the first year then press t to calculate the amount of depreciation for the desired year 9 If desired press to see the remaining depreciable value 10 If ...

Page 147: ...ystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display fCLEARH 0 00 11000 11 000 00 Book value 500M 500 00 Salvage value 8w 8 00 Life 200 200 00 Declining balance factor 1 1 00 First year depreciation desired 6t 1 00 1 375 00 9 125 00 First year depreciation remaining depreciable value t 2 00 2 406 25 Second year depreciation t 3 00 1 804 69 Third year depreciation t 4 00 1 353 ...

Page 148: ...h seventh year 10500 10 500 00 Depreciable amount 8z 1 312 50 Yearly straight line depreciation 6 5µ 8 531 25 Total straight line depreciation 898 31 Excess depreciation Modified Internal Rate of Return Modified Internal Rate of Return Modified Internal Rate of Return Modified Internal Rate of Return The traditional Internal Rate of Return IRR technique has several drawbacks which hamper its usefu...

Page 149: ...nt of comparable risk An average return rate on recent market investments might be used The steps in the procedure are 1 Calculate the future value of the positive cash flows NFV at the reinvestment rate 2 Calculate the present value of the negative cash flows NPV at the safe rate 3 Knowing n PV and FV solve for i Example Example Example Example An investor has the following unconventional investm...

Page 150: ... Analysis Investment Analysis Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 10gCfl 657 152 37 NPV of positive cash flows Þ 20wM 775 797 83 NFV of positive cash flows 180000ÞgJ 0gK5ga 100000ÞK 5ga 6gCfl 660 454 55 NPV of negative cash flows 20w 0 81 Monthly MIRR 12µ 9 70 Annual MIRR ...

Page 151: ...ss g and fCLEARG 2 Key in the total number of payments in the lease then press 3 Key in the total number of payments made in advance then press 0 w 4 Key in or calculate the periodic interest rate as a percentage then press 5 Press 1Þ 0 6 Key in the initial loan amount then press z to obtain the periodic payment to be received by the lessor Example 1 Example 1 Example 1 Example 1 Equipment worth ...

Page 152: ...4 45 1 14 40 05 30 3 15 45 3 w 06 11 16 34 2 07 45 2 z 17 10 08 12 fs REGISTERS REGISTERS REGISTERS REGISTERS n n Adv Pmt i i PV Used PMT 1 FV 0 R0 n R1 Adv Pmt R2 i R3 Loan R4 R 7 Unused 1 Key in the program 2 Key in the total number of payments in the lease then press 0 3 Key in the total number of payments made in advance then press 1 4 Key in the periodic interest rate as a percentage then pre...

Page 153: ...43 Monthly payment to achieve a 15 yield Example 3 Example 3 Example 3 Example 3 Using the information from example 1 what monthly payment is necessary to yield the lessor 15 annually if one payment is due at the time of closing Assuming that the previous example was just solved the keystrokes are as follows Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 1 1t 66 86 Mon...

Page 154: ...then press P 5 Key in the total amount of the loan then press Þ 0 Pµ 6 Press to obtain the periodic yield Example 1 Example 1 Example 1 Example 1 A lease has been written to run for 60 months The leased equipment has a value of 25 000 with a 600 monthly payment The lessee has agreed to make 3 payments at the time of closing 1800 What is the annual yield to the lessor Keystrokes Keystrokes Keystrok...

Page 155: ...n R1 Adv Pmts R2 Pmt R3 Loan R4 R 7 Unused 1 Key in the program 2 Key in the total number of payments in the lease then press 0 3 Key in the total number of payments made in advance then press 1 4 Key in the periodic payment to be received then press 2 5 Key in the total amount of the loan then press 3 then press t to obtain the periodic yield 6 For a new case return to step 2 The values changed f...

Page 156: ...ction has advance payments and a residual value salvage value at the end of the normal term Solving for Payment Solving for Payment Solving for Payment Solving for Payment The following program solves for the periodic payment amount necessary to achieve a desired yield KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DISPLAY DISPLAY DISPLAY KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DI...

Page 157: ...n advance then press 4 Then press t to obtain the payment amount received by the lessor 7 For a new case return to step 2 The values changed from the previous case are the only values which need to be re entered Ex Ex Ex Example 1 ample 1 ample 1 ample 1 A copier worth 22 000 is to be leased for 48 months The lessee has agreed to make 4 payments in advance with a purchase option at the end of 48 m...

Page 158: ...n press gJ This initial amount is the difference between the initial loan amount and any payments received at closing time Observe the sign convention positive for cash received and negative for cash paid out 3 Key in the amount of the first cash flow then press gK Then key in the number of times that cash flow occurs then press ga 4 Key in 0gK then the number of advance payments minus one Then pr...

Page 159: ...59 159 159 Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display µ gJ 4 710 00 Net amount of cash advanced 145gK34ga 34 00 Thirty four cash flows of 145 00 0gK 0 00 Thirty fifth cash flow 1500gK 1 500 00 Thirty sixth cash flow fL12µ 18 10 Annual yield to lessor ...

Page 160: ...hen press Þ 5 Press M to obtain the effective annual interest rate Example 1 Example 1 Example 1 Example 1 What is the effective annual interest rate if the annual nominal rate of 51 4 is compounded quarterly Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display g fCLEARG 5 25 5 25 Nominal rate 4wz 1 31 Percent quarterly interest rate 100Þ M 5 35 Percent effective interest r...

Page 161: ...nal rate of 51 4 is compounded monthly Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 5 25 12t 5 38 Percent effective interest rate Effective Rate Converted to Nominal Rate Effective Rate Converted to Nominal Rate Effective Rate Converted to Nominal Rate Effective Rate Converted to Nominal Rate Given an effective interest rate and the number of compounding periods per ...

Page 162: ...te Nominal Rate Converted to Continuous Effective Rate Nominal Rate Converted to Continuous Effective Rate This procedure converts a nominal annual interest rate to the continuous effective rate 1 Press 1 2 Key in the nominal rate as a percentage then press b 3 Press g à Example Example Example Example What is the effective rate resulting from a 51 4 passbook rate with continuous compounding Keyst...

Page 163: ...ar The following program solves for the price given the yield or for the yield given the price of a semiannual coupon bond which is calculated on a 30 360 day basis and is held for more than six months KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DISPLAY DISPLAY DISPLAY KEYSTROKE KEYSTROKE KEYSTROKE KEYSTROKES S S S DISPLAY DISPLAY DISPLAY DISPLAY fs 6 24 45 6 fCLEARÎ 00 µ 25 20 fCLEARG 01 ...

Page 164: ... Red Cpn 2 R0 Yield R1 Price R2 Coupon R3 Dset R4 Dmat R5 Redemption R6 Coupon 2 R7 R 3 Unused 1 Key in the program 2 If the C C C C status indicator is not displayed press Æ 3 Key in the annual coupon interest rate as a percentage then press 2 4 Key in the settlement date MM DDYYYY then press 3 5 Key in the maturity date MM DDYYYY then press 4 6 Key in the redemption value as a percentage of par ...

Page 165: ... a redemption value of 100 Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display Æ Set compound interest mode if the C C C C indicator is not on 5 5 2 5 50 Coupon into register 2 8 282004 3 8 28 Settlement date into register 3 6 012008 4 6 01 Maturity date into register 4 100 5 100 00 Redemption value into register 5 7 75 0 7 75 Yield into register 0 t 92 77 Price calculated ...

Page 166: ...ual day basis This program may be modified for annual coupon bonds to be calculated on a 30 360 day basis KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DISPLAY DISPLAY DISPLAY KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DISPLAY DISPLAY DISPLAY fs gÒ 19 43 26 fCLEARÎ 00 7 20 44 7 fCLEARG 01 42 34 6 21 45 6 g 02 43 8 4 22 45 4 0 03 45 0 gÒ 23 43 26 w 04 11 7 24 45 7 2 05 45 2 z 25 10 ...

Page 167: ... press 3 6 Key in the settlement purchase date then press 4 7 Key in the date of the next coupon then press 5 8 Press t to obtain the amount of accrued interest 9 Press t to determine the price of the bond 10 For a new case return to step 2 Example Example Example Example What is the price and accrued interest of a 20 year Eurobond with annual coupons of 6 5 purchased on August 15 2004 to yield 7 ...

Page 168: ...168 168 168 168 Section 16 Bonds Section 16 Bonds Section 16 Bonds Section 16 Bonds Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display t 94 75 Purchase price ...

Page 169: ...Appendi Appendi Appendi Appendixes xes xes xes ...

Page 170: ...e number in the Y register are the number s used in calculations The Z and T registers are used primarily for the automatic retention of intermediate results during chain calculations as described in section 1 Before we discuss the details of the stack operation let s take a quick look at how the stack is used in a simple arithmetic calculation and in a chain calculation For each key pressed in th...

Page 171: ...Into the Stack The Key Key Key Key As discussed in earlier sections if two numbers are being keyed in for a two number function such as you press between the numbers to separate them The following diagram illustrates what happens in the stack when you enter the numbers 10 and 3 to calculate for example 10 3 Assume that the stack registers have been already loaded with the numbers shown as the resu...

Page 172: ...tered was one of the following O _ A or C If one of these keys was the last key pressed the number in the displayed X register is replaced when a new number is entered Rearranging Numbers in the Stack Rearranging Numbers in the Stack Rearranging Numbers in the Stack Rearranging Numbers in the Stack The The The The key key key key Pressing exchanges the numbers in the X and Y registers Certain func...

Page 173: ...y in the X register does not get copied into the Y register but this number is copied into the LAST X register The numbers in the Y Z and T registers are not affected when a one number function is performed Two Two Two Two Number Functions and the Stack Number Functions and the Stack Number Functions and the Stack Number Functions and the Stack Two number functions µ z q b à and Z use the numbers ...

Page 174: ...ter is copied into the Z register but also remains in the T register The diagram on the next page illustrates the stack operation when 8 2 is calculated Assume that the stack and LAST X registers have already been loaded with the numbers shown as the result of previous calculations Percentage Functions Percentage Functions Percentage Functions Percentage Functions When any of the three percentage ...

Page 175: ...s x y z and t represent the number that was in the corresponding register X Y Z or T respectively at the time the function key was pressed Register D Ò Ï w P M l L T t t x t y Z t z INT365 z x number of payments Y z DYS30 day PV y PMTPRIN X DATE DYSactual INT360 n i PV PMT FV NPV IRR PMTINT Register E S V Ý T y settlement date z y Z x maturity date y settlement date x number of year Y INT x maturi...

Page 176: ...Calculations Chain Calculations Chain Calculations Chain Calculations The automatic stack lift and stack drop make it possible to do chain calculations without the necessity for keying in parentheses or storing intermediate results as are required on some other calculators An intermediate result in the displayed X register is automatically copied into the Y register when a number is keyed in after...

Page 177: ...begin with the calculation in the innermost pair of parentheses again 6 7 Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 6 7 13 00 Intermediate result of 6 7 5µ 65 00 Intermediate result of 5 6 7 4 69 00 Intermediate result of 4 5 6 7 3µ 207 00 Final result 3 4 5 6 7 Arithmetic Calculations with Constants Arithmetic Calculations with Constants Arithmetic Calculations w...

Page 178: ...or key If this were not done the stack would lift when you keyed in a new number after pressing the operator key and the Y register would no longer contain the constant Recall from page 172 that the stack does not lift when a number is keyed into the displayed X register after O is pressed Example Example Example Example At Permex Pipes a certain pipe fitting is packaged in quantities of 15 75 and...

Page 179: ...ry complex possibly involving multiple answers and cannot be continued until you give the calculator an estimate of IRR The procedure for doing so is described below Case 4 Case 4 Case 4 Case 4 The calculator displays Error 7 Error 7 Error 7 Error 7 This indicates that there is no answer to the computation of IRR with the cash flow amounts you have entered This situation is probably the result of ...

Page 180: ...od guess Remember that a correct IRR solution will make the calculated NPV very small So continue to guess interest rates and solve for NPV until the answer you obtain is reasonably close to zero Then press gt to calculate the IRR answer near your guess How would this work in case 2 above The calculator displays a negative answer and you wish to check for a unique positive IRR Key in successively ...

Page 181: ...llowed by a digit 0 0 0 0 through 9 9 9 9 Listed below are operations that cannot be performed under the conditions specified The symbols x and y represent the number in the X and Y registers respectively when the operation key is pressed Error 0 Mathematics Error 0 Mathematics Error 0 Mathematics Error 0 Mathematics Operation Operation Operation Operation Condition Condition Condition Condition z...

Page 182: ...result is greater than 9 999999999 1099 Error 2 Statistics Error 2 Statistics Error 2 Statistics Error 2 Statistics Operation Operation Operation Operation Condition Condition Condition Condition Ö n number in R1 0 h x 0 v n 0 n 1 n x2 x 2 0 n y2 y 2 0 R n 0 n x2 x 2 0 Q n 0 n y2 y 2 0 R Q n x2 x 2 n y2 y 2 0 Error 3 IRR Error 3 IRR Error 3 IRR Error 3 IRR Refer to Appendix B Error 4 Memory Error ...

Page 183: ...ion exists for n PMT 0 and n 0 Cash flows all have same sign i 100 P n 0 i 0 i 100 M i 100 x 0 x is noninteger l i 100 V Ý n 0 n 1010 x 0 x is noninteger Error 6 Storage Registers Error 6 Storage Registers Error 6 Storage Registers Error 6 Storage Registers Operation Operation Operation Operation Condition Condition Condition Condition Storage register specified does not exist or has been converte...

Page 184: ...ice Error 9 Service Error 9 Service Error 9 Service Refer to Appendix E Pr Error Pr Error Pr Error Pr Error Continuous Memory has been reset Refer to Continuous Memory page 70 You have reset the calculator using the reset hole see page 194 This is the case for the 31st of March May August October and December plus August 29 except in a leap year and 30 For example there is no September 31 so March...

Page 185: ...rest Interest n number of compounding periods i periodic interest rate expressed as a decimal PV present value FV future value or balance PMT periodic payment S payment mode factor 0 or 1 indicating treatment of PMT 0 corresponds to End 1 to Begin I interest amount INTG n integer portion of n FRAC n fractional portion of n Simple Simple Simple Simple Interest Interest Interest Interest i PV n I 36...

Page 186: ...d period INTG INTG FRAC 1 1 1 1 1 0 n n n i FV i i PMT iS i PV Amortization Amortization Amortization Amortization n number of payment periods to be amortized INTj amount of PMT applied to interest in period j PRNj amount of PMT applied to principal in period j PVj present value balance of loan after payment in period j j period number INT1 0 if n 0 and payment mode is set to Begin PV0 i RND sign ...

Page 187: ...s CFj cash flow at period j IRR Internal Rate of Return 0 1 1 1 1 0 CF IRR IRR IRR CF j q j nq k j n j Calendar Calendar Calendar Calendar Actual Day Basis Actual Day Basis Actual Day Basis Actual Day Basis DYS f DT2 f DT1 where f DT 365 yyyy 31 mm 1 dd INTG z 4 x and for mm 2 x 0 z yyyy 1 for mm 2 x INTG 0 4mm 2 3 z yyyy INTG Integer portion Note Note Note Note Additional tests are performed in o...

Page 188: ... period and settlement date E number of days in coupon period where settlement occurs DSC E DCS days from settlement date to next 6 month coupon date N number of semiannual coupons payable between settlement date and maturity date CPN annual coupon rate as a percentage YIELD annual yield as a percentage PRICE dollar price per 100 par value RDV redemption value For semiannual coupon with 6 months o...

Page 189: ...RBVj remaining book value RBVj 1 DPNj where RBV0 SBV Y1 number of months in partial first year Straight Straight Straight Straight Line Depreciation Line Depreciation Line Depreciation Line Depreciation Keyboard function L SAL SBV DPNJ for j 1 2 L Program for partial first year 12 1 1 Y L SAL SBV DPN L SAL SBV DPNJ for j 2 3 L DPNL 1 RDVL Sum Sum Sum Sum of of of of the the the the Years Years Yea...

Page 190: ...rd function L FACT RBV DPN j j 100 1 for j 1 2 L Program for partial first year 12 100 1 1 Y L FACT SBV DPN L FACT RBV DPN j j 100 1 for j 1 Modified Internal Rate of Return Modified Internal Rate of Return Modified Internal Rate of Return Modified Internal Rate of Return n number of compounding periods NFVP Net future value of the positive cash flows NPVN Net present value of the negative cash fl...

Page 191: ...nominal annual interest rate as a decimal Finite Compounding Finite Compounding Finite Compounding Finite Compounding 1 1 C C NOM EFF Continuous Compounding Continuous Compounding Continuous Compounding Continuous Compounding 1 NOM e EFF Statistics Statistics Statistics Statistics Mean Mean Mean Mean n x x n y y Weighted Mean Weighted Mean Weighted Mean Weighted Mean w wx xw Linear Estimation Line...

Page 192: ... i i n 1 The Rent or Buy Decision The Rent or Buy Decision The Rent or Buy Decision The Rent or Buy Decision Market Value PRICE 1 I n where I appreciation per year as decimal n number of years Net Cash Proceeds on Resale Market Value Mortgage Balance Commission The interest rate is obtained by solving the financial compound interest equation for i using n number of years house is owned PV down pay...

Page 193: ... the same or equivalen replaced Replace only with the same or equivalent type t type t type t type recommended by the manufacturer Dispose of used batteries recommended by the manufacturer Dispose of used batteries recommended by the manufacturer Dispose of used batteries recommended by the manufacturer Dispose of used batteries according to the manufacturer s instructions Do not mutilate accordin...

Page 194: ...ay not respond to keystrokes 6 Press to turn on the power If for any reason Continuous Memory has been reset that is if its contents have been lost the display will show Pr Pr Pr Pr Error Error Error Error Pressing any key will clear this message Verifying Proper Operation Self Verifying Proper Operation Self Verifying Proper Operation Self Verifying Proper Operation Self Tests Tests Tests Tests I...

Page 195: ...rnia The status indicators turned on at the end of this test include some that normally are not displayed on the hp 12c If the calculator displays Error 9 Error 9 Error 9 Error 9 as a result of the µ test or the test but you wish to continue using your calculator you should reset Continuous Memory as described on page 70 The combination initiates a test that is similar to that described above but ...

Page 196: ...eriod HP will at its option either repair or replace products which prove to be defective Replacement products may be either new or like new HP warrants to you that HP software will not fail to execute its programming instructions after the date of purchase for the period specified above due to defects in material and workmanship when properly installed and used If HP receives notice of such defec...

Page 197: ...xclusion may not apply to you The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services HP shall not be liable for technical or editorial errors or omissions contained herein FOR CONSUMER TRANSACTIONS IN AUSTRALIA AND NEW ZEALAND THE WARRANTY TERMS CONTAINED IN THIS STATEMENT EXCEPT TO THE EXTENT LAWFULLY PERMITTED DO ...

Page 198: ...01 8000 51 4746 8368 Russia 495 228 3050 Costa Rica 0 800 011 0524 Singapore 6100 6682 Czech Republic 296 335 612 South Africa 0800980410 Denmark 82 33 28 44 South Korea 2 561 2700 Ecuador 800 711 2884 Spain 913753382 El Salvador 800 6160 Sweden 08 5199 2065 Finland 09 8171 0281 Switzerland French 022 827 8780 France 01 4993 9006 Switzerland German 01 439 5358 Germany 069 9530 7103 Switzerland Ita...

Page 199: ...E Appendix E Batter Batter Batter Batteries ies ies ies Warranty and Warranty and Warranty and Warranty and Customer Care Customer Care Customer Care Customer Care 199 199 199 199 Korea www hp com support korea Malaysia 65 6100 6682 ...

Page 200: ...ate the receiving antenna Increase the separation between the equipment and the receiver Connect the equipment into an outlet on a circuit different from that to which the receiver is connected Consult the dealer or an experienced radio or television technician for help Modifications Modifications Modifications Modifications The FCC requires the user to be notified that any changes or modification...

Page 201: ...lement sur le matériel brouilleur du Canada European Union Regulatory Notice European Union Regulatory Notice European Union Regulatory Notice European Union Regulatory Notice This product complies with the following EU Directives Low Voltage Directive 2006 95 EC EMC Directive 2004 108 EC Compliance with these directives implies conformity to applicable harmonized European standards European Norms...

Page 202: ...ection and recycling of your waste equipment at the time of disposal will help to conserve natural resources and ensure that it is recycled in a manner that protects human health and the environment For more information about where you can drop off your waste equipment for recycling please contact your local city office your household waste disposal service or the shop where you purchased the prod...

Page 203: ...tions for which the conventional practice differs significantly between the United Kingdom and the United States Mortgages Mortgages Mortgages Mortgages The amount of the repayments on home loans and mortgages offered by banks in the United Kingdom can usually be calculated as described under Calculating the Payment Amount page 46 Building Societies in the United Kingdom however calculate the amou...

Page 204: ... is calculated by converting the periodic interest rate to the effective annual rate then truncating the result to one decimal place With the periodic interest rate in the display and in the i i i i register the effective annual rate can be calculated by keying in the number of compounding periods per year pressing w then proceeding with step 4 of the procedure given on page 160 for converting a n...

Page 205: ...rithmetic operators page page page page 19 19 19 19 Storage Registers Storage Registers Storage Registers Storage Registers Store Followed by number key decimal point and number key or top row financial key stores displayed number in storage register specified page page page page 23 23 23 23 Also used to perform storage register arithmetic page page page page 24 24 24 24 Recall Followed by number ...

Page 206: ...ows and initial investment using values stored with J K and a page page page page 58 58 58 58 L Calculates the internal rate of return yield for up to 20 uneven cash flows and initial investment using values stored with J K and a page page page page 63 63 63 63 J Initial cash flow Stores contents of displayed X register in R0 initializes n to zero sets N0 to 1 Used at the beginning of a discounted...

Page 207: ...in Y register to power of number in X register page page page page 85 85 85 85 y Computes reciprocal of number in displayed X register page page page page 83 83 83 83 e Computes factorial n n 1 3 2 1 of number in displayed X register page page page page 83 83 83 83 Natural antilogarithm Raises e approximately 2 718281828 to power of number in displayed X register page page page page 83 83 83 83 Co...

Page 208: ...w of the function key In Run mode function keys may be executed as part of a recorded program or individually by pressing from the keyboard Active Keys Active Keys Active Keys Active Keys In Program mode only the following keys are active they cannot be recorded in program memory CLEARÎ Clear program Clears program memory to all 00 instructions and resets calculator so operations begin at line 00 ...

Page 209: ...ed page page page page 103 103 103 103 Ê Single step Displays line number and keycode of current program memory line when pressed executes instruction displays result and moves to next line when released page page page page Error Bookmark not defined Ü Back step Displays line number and keycode of previous program memory line when pressed displays original contents of X register when released No i...

Page 210: ...3 94 BEGIN status indicator 37 Bonds 66 68 163 67 188 204 Bonds 30 360 day basis 163 65 Bonds annual coupon 166 Bonds corporate 67 Bonds municipal 67 Bonds state and local government 67 Bonds U S Treasury 66 Branching 103 12 116 Branching adding instructions by 116 19 Branching conditional 107 8 Branching simple 103 C C C C 61 59 61 64 17 19 33 59 18 28 172 172 C status indicator 51 Calendar funct...

Page 211: ... 136 48 189 90 Depreciation declining balance 139 Depreciation excess 148 Depreciation partial year 136 48 Depreciation sum of the years digits 141 Depreciation with crossover 144 48 Digit entry recovering from errors in 75 Digit entry termination of 19 171 Discounted cashflow analysis 57 Display 71 Display format mantissa 73 Display format standard 71 Display formats number 71 Display scientific ...

Page 212: ...culating 58 Nominal interest rate converting 160 Nominal rate 162 NPV 57 Number display formats 71 Numbers keying in 17 Numbers large 18 Numbers negative 17 Numbers recalling 23 Numbers storing 23 O O O O Odd period calculations 50 Odd period mode 36 One number functions 83 One variable statistics 76 Overflow 73 P P P P 97 172 Partial year depreciation 136 Payment 36 156 Payment amount calculating...

Page 213: ...und 83 Rounding 71 Running message 12 63 S S S S 172 172 172 23 Samples 79 Savings 160 Scientific notation 18 72 Simple branching 103 Simple interest 33 Square Root 83 Stack 170 Standard deviation 79 Statistics 76 Status indicators 71 Storage register arithmetic 24 Storage registers clearing 24 Storing numbers 32 Storing programs 120 Straight line depreciation 136 Sum of the years digits depreciat...

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