HP 113394 - 12C Platinum Calculator User Manual Download | Manualshive

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Section 12: Real Estate and Lending

169

File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 169 of 275
Printed Date: 2005/8/1

Dimension: 14.8 cm x 21 cm

Keystrokes
(RPN mode)

Keystrokes
(ALG mode)

Display

t

t

8.57

Yield.

t

t

46,048.61

Balance in savings.

By purchasing a house, you would gain $7,047.04 (53,095.65 – 46,048.61)
over an alternate investment at 3% interest.

Deferred Annuities

Sometimes transactions are established where payments do not begin for a
specified number of periods; the payments are deferred. The technique for
calculating

NPV

may be applied assuming zero for the first cash flow. Refer to

pages 73 through 77.

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 each year for 4 years
for college tuition and expenses. You wish to establish a fund which earns 6%
annually. How much do you need to deposit in the fund today to meet your
daughter’s educational expenses

?

Keystrokes
(RPN mode)

Keystrokes
(ALG mode)

Display

f]

f[

f

CLEAR

H

f

CLEAR

H

0.00

Initialize.

0

gJ

0

gJ

0.00

First cash flow.

0

gK

8

ga

0

gK

8

ga

0.00
8.00

Second through ninth
cash flows.

7000

gK

4

ga

7000

gK

4

ga

7,000.00
4.00

Tenth through thirteenth
cash flows.

6

¼

6

¼

6.00

Interest.

fl

fl

15,218.35

NPV.

Leases often call for periodic contractual adjustments of rental payments. For
example, a 2-year lease calls for monthly payments (at the beginning of the month)
of $500 per month for the first 6 months, $600 per month for the next 12 months,
and $750 per month for the last 6 months. This situation illustrates what is called a
“step-up” lease. A “step-down” lease is similar, except that rental payments are
decreased periodically according to the lease contract. Lease payments are made
at the beginning of the period.

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Summary of Contents for 113394 - 12C Platinum Calculator

Page 1: ...ile name hp 12c pt_user s guide_English_HDPMF123E27 Page 1 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm hp 12c platinum financial calculator user s guide H Edition 4 HP part number F2232 90001 ...

Page 2: ...ABILITY NON INFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE HEWLETT PACKARD CO SHALL NOT BE LIABLE FOR ANY ERRORS OR FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES IN CONNECTION WITH THE FURNISHING PERFORMANCE OR USE OF THIS MANUAL OR THE EXAMPLES CONTAINED HEREIN Copyright 1981 1982 1999 2002 2005 Hewlett Packard Development Company L P Reproduction adaptation or translation of this manual is prohibit...

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

Page 4: ...s handbook Certain problems however require different calculation methods in the United Kingdom than in the United States Refer to Appendix G for more information For More Solutions to Financial Problems In addition to the specialized solutions found in Sections 12 through 16 of this handbook many more are available in the optional hp 12c platinum Solutions Handbook Included are solutions to probl...

Page 5: ...ive Numbers 17 Keying in Large Numbers 18 Backspacing 18 The CLEAR Keys 19 Undo Operation 20 The RPN and ALG Keys 20 Simple Arithmetic Calculations in RPN Mode 21 Simple Arithmetic Calculations in ALG Mode 22 Chain Calculations in RPN Mode 23 Chain Calculations in ALG Mode 26 Parentheses Calculations 26 Storage Registers 27 Storing and Recalling Numbers 27 Clearing Storage Registers 29 Storage Reg...

Page 6: ...eneralized Cash Flow Diagrams 47 Compound Interest Calculations 49 Specifying the Number of Compounding Periods and the Periodic Interest Rate 49 Calculating the Number of Payments or Compounding Periods 49 Calculating the Periodic and Annual Interest Rates 55 Calculating the Present Value 56 Calculating the Payment Amount 58 Calculating the Future Value 60 Odd Period Calculations 63 Amortization ...

Page 7: ...hted Mean 99 Section 7 Mathematics and Number Alteration Functions 100 One Number Functions 100 The Power Function in RPN Mode 102 The Power Function in ALG Mode 102 Part II Programming 103 Section 8 Programming Basics 104 Why Use Programs 104 Creating a Program 104 Running a Program 106 Program Memory 108 Identifying Instructions in Program Lines 108 Displaying Program Lines 109 The 000 Instructi...

Page 8: ... and Lending 156 Annual Percentage Rate Calculations With Fees 156 Price of a Mortgage Traded at a Discount or Premium 159 Yield of a Mortgage Traded at a Discount or Premium 161 The Rent or Buy Decision 163 Deferred Annuities 169 Section 13 Investment Analysis 171 Partial Year Depreciation 171 Straight Line Depreciation 171 Declining Balance Depreciation 176 Sum of the Years Digits Depreciation 1...

Page 9: ...230 The Key 230 One Number Functions and the Stack 231 Two Number Functions and the Stack 231 Mathematics Functions 231 Percentage Functions 232 Calendar and Financial Functions 233 The LAST X Register and the Key 234 Chain Calculations in RPN Mode 234 Arithmetic Calculations with Constants 235 Appendix B Algebraic Mode ALG 237 Simple Arithmetic Calculations in ALG Mode 237 Keying in Negative Numb...

Page 10: ... Flow Analysis 252 Net Present Value 252 Internal Rate of Return 252 Calendar 252 Actual Day Basis 252 30 360 Day Basis 252 Bonds 253 Black Scholes Formula for Valuing European Options 254 Depreciation 254 Straight Line Depreciation 255 Sum of the Years Digits Depreciation 255 Declining Balance Depreciation 255 Modified Internal Rate of Return 256 Advance Payments 256 Interest Rate Conversions 256...

Page 11: ...peration Self Tests 261 Warranty 263 Service 264 Regulatory Information 265 Temperature Specifications 266 Noise Declaration 266 Disposal of Waste Equipment by Users in Private Household in the European Union 266 Appendix G United Kingdom Calculations 267 Mortgages 267 Annual Percentage Rate APR Calculations 268 Bond Calculations 268 Function Key Index 269 Programming Key Index 272 Subject Index 2...

Page 12: ...t 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 z n the number of compounding periods z i the interest rate per compounding period z PV the present value of a compounded amount z PMT the periodic payment amount z FV the future value of a comp...

Page 13: ... to show two decimal places 4gA 48 00 Calculates 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 We now need to determine how to accumulate the required deposit by the time your daughter enters college 14 years fro...

Page 14: ...0 Calculates and stores the number of compounding periods 6gC 0 50 Calculates and stores the periodic interest rate 11024 82M 11 024 82 Stores the future value required gÂ 11 024 82 Sets payment mode to End P 42 03 Monthly payment required 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 monthly paymen...

Page 15: ...File name hp 12c pt_user s guide_English_HDPMF123E27 Page 15 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Part I Problem Solving ...

Page 16: ...ast by holding down the f key and pressing or The Keyboard Many keys on the hp 12c platinum 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...

Page 17: ...ying 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 As a number is keyed in each group of three digits to the left of the decimal point is automatically separated i...

Page 18: ... you moved the decimal point to the left the exponent is positive if you moved the decimal point to the right this would occur for numbers less 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...

Page 19: ...gisters R1 through R6 stack registers and display fCLEARÎ Program memory only when pressed in Program mode fCLEARG Financial registers fCLEARH Data storage registers financial registers stack and LAST X registers and display Note In ALG mode it is a good idea to begin calculations by pressing OO This will ensure that there are no pending arithmetic calculations that might interfere with the soluti...

Page 20: ... addition subtraction multiplication and division in the traditional way using parentheses if needed To select RPN mode Press f to set the calculator to RPN mode When the calculator is in RPN mode the RPN status indicator is lit To select ALG mode Press f to set the calculator to ALG mode When the calculator is in ALG mode the ALG status indicator is lit Example Suppose you want to calculate 1 2 3...

Page 21: ...on 1 Key in the first number 2 Press to separate the second number from the first 3 Key in the second number 4 Press or z to perform the desired operation For example to calculate 13 2 proceed as follows Keystrokes RPN mode 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 number into the calculator z 6 50 Pressing...

Page 22: ...O 0 00 Clears any pending operations 21 1 21 10 Keys in the first number and prepares to add the second 23 8 23 8 Keys the second number 44 90 completes the calculation Once a calculation has been completed z pressing another digit key starts a new calculation or z pressing an operator key continues the calculation Keystrokes ALG mode Display OO 0 00 Clears any pending operations 77 35 77 35 90 89...

Page 23: ...tion key in RPN mode the calculator performs the operation then not later so that you see the results of all intermediate calculations as well as the bottom line Example Suppose you ve written three checks without updating your checkbook and you ve just deposited your paycheck for 1 053 into your checking account If your latest balance was 58 33 and the checks were written for 22 95 13 70 and 10 1...

Page 24: ...check deposited and adds it to the previous balance The new current balance appears in the display The preceding example demonstrates how the hp 12c platinum 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 calculatio...

Page 25: ...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 platinum 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 26: ...tions 456 75z 381 00 Subtracts 75 from 456 18 5 20 59 Divides 381 by 18 5 68z 1 400 43 Multiplies by 68 1 9 737 07 Divides by 1 9 and displays the result Parentheses Calculations In ALG mode parentheses can be used in calculations to change the order in which operations are evaluated When there are pending open parentheses the status indicator will be shown in the display As open parentheses are c...

Page 27: ...n RPN mode In addition to these registers into which numbers are stored automatically up to 20 data storage registers are available for manual storage of numbers These data storage registers are designated R0 through R9 and R 0 through R 9 Still other storage registers referred to as the financial registers are reserved for numbers used in financial calculations Storing and Recalling Numbers To st...

Page 28: ...l invoice Keystrokes Display 1250 0 1 250 00 Stores the cost of the computer in R0 500 2 500 00 Stores the cost of the printer in R2 Turns the calculator off Later that same day Keystrokes RPN mode Display 500 00 Turns the calculator back on 0 1 250 00 Recalls the cost of the computer to the display 6 7 500 00 Multiplies the quantity ordered to get the cost of the computers 2 500 00 Recalls the co...

Page 29: ...ation with the number in the display and the number in a storage register then store the result back into the same register without altering the number in the display The hp 12c platinum enables you to do all this in a single operation 1 Press 2 Press or z to specify the desired operation 3 Key in the register number When storage register arithmetic is performed the new number in the register is d...

Page 30: ...eystrokes Display 22 95 0 22 95 Subtracts the first check from the balance in R0 Note that the display continues to show the amount subtracted the answer is placed only in R0 13 7 0 13 70 Subtracts the second check 10 14 0 10 14 Subtracts the third check 1053 0 1 053 00 Adds the deposit 0 1 064 54 Recalls the number in R0 to check the new balance ...

Page 31: ...ay you see and say it 4b Percentages in RPN Mode In RPN mode 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 RPN mode Display 300 300 Keys in the base number 300 00 Pressing separates the next number entered from the first number just as when an ordinary arithmetic calculation i...

Page 32: ...lay OO 0 00 Clears any pending operations 300 300 Keys in the base number 300 00 Tells the calculator to multiply the 300 by the percentage entered next 14 14 Keys in the percentage b 0 14 Divides the percentage by 100 42 00 Calculates the amount In most cases b divides a number by 100 The one exception is when a plus or minus sign precedes the number For instance 25 b results in 0 25 To find 25 o...

Page 33: ... base amount and separates it from the percentage 8b 1 860 00 Amount of discount 21 390 00 Base amount less discount 6b 1 283 40 Amount of tax on 21 390 22 673 40 Total cost base amount less discount plus tax Net Amount in ALG Mode In ALG mode you can calculate a net amount all in one calculation For example to decrease 200 by 25 just enter 200 25b Result is 150 Example You borrow 1 250 from a rel...

Page 34: ...rence will be negative Therefore a positive answer indicates an increase while a negative answer indicates a decrease If you are calculating a percent difference over time the base number is typically the amount occurring first Example Yesterday your stock fell from 58 50 to 53 25 per share What is the percent change Note that the key is the same as the key in ALG mode Keystrokes Display 58 5 58 5...

Page 35: ...RPN mode 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 the total 2 36 2 36 Keys in 2 36 to find what percentage it is of the number in the display Z 29 69 Europe had nearly 30 of the total sales In RPN mode the hp 12c platinum holds the total amount inside after a percent of total is calculated Th...

Page 36: ...2 36 2 36 Keys in 2 36 to find what it is of the number in the display Z 29 69 Europe had nearly 30 of the total sales Percent of Total in ALG Mode In ALG mode to calculate what percentage one number is of another 1 Calculate the total amount by adding the individual amounts just as in a chain arithmetic calculation 2 Key in the number whose percentage equivalent you wish to find 3 Press Z Example...

Page 37: ... 36 2 36 Keys in 2 36 to find what percentage it is of the number in the display Z 29 69 Europe had nearly 30 of the total sales Calendar Functions The calendar functions provided by the hp 12c platinum gD and gÒ can handle dates from October 15 1582 through November 25 4046 These calendar functions work the same in both RPN and ALG modes Date Format For each of the calendar functions and also for...

Page 38: ...l you change it it is not reset each time the calculator is turned on However if Continuous Memory is reset the date format is set to month day year Future or Past Dates 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 gD fun...

Page 39: ...es Display gÔ 7 04 Sets date format to day month year Display shown assumes date remains from preceding example The full date is not now displayed because the display format is set to show only two decimal places as described in Section 5 14 052004 14 05 Keys in the date and separates it from the number of days to be entered 120gD 11 09 2004 6 The expiration date is 11 September 2004 a Saturday Wh...

Page 40: ...s held inside the calculator to display it press Pressing again will return the original answer to the display Example Simple interest calculations can be done using either the actual number of days or the number of days counted on the basis of a 30 day month What would be the number of days counted each way to be used in calculating the simple interest accruing from June 3 2004 to October 14 2005...

Page 41: ...rresponding key n P or M Displaying Numbers in the Financial Registers 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 last preceding operation performed If a number was just stored into a financial register using n P M gA or gC pressing one of these five keys calculates the c...

Page 42: ...0 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 in RPN mode or in ALG mode 1 Key in or calculate the number of days then press n 2 Key in the annual interest rate then press 3 Key in the principal amount then press Þ 4 Press fÏ to calcula...

Page 43: ...mode perform the steps in the RPN listing above except replace the last step with the step below Keystrokes ALG mode Display 455 25 Total amount principal plus accrued interest Example 2 Your friend agrees to the 7 interest on the loan from the preceding example but asks that you compute it on a 365 day basis rather than a 360 day basis What is the amount of accrued interest he will owe you in 60 ...

Page 44: ...antity you want to solve for An invaluable aid for using your calculator in a financial calculation is the cash flow diagram This is simply a pictorial representation of the timing and direction of financial transactions labeled in terms that correspond to keys on the calculator The diagram begins with a horizontal line called a time line It represents the duration of a financial problem and is di...

Page 45: ...lations in Odd Period mode as described on pages 63 through 67 If n is a noninteger that is there is at least one nonzero digit to the right of the decimal point calculations of i PV PMT and FV are performed in Odd Period mode z i is the interest rate per compounding period The interest rate shown in the cash flow diagram and entered into the calculator is determined by dividing the annual interes...

Page 46: ...MT and FV cash flows the quantities must be keyed into the calculator with the proper sign plus or minus in accordance with The Cash Flow Sign Convention Money received arrow pointing up is entered or displayed as a positive value Money paid out arrow pointing down is entered or displayed as a negative value The Payment Mode One more bit of information must be specified before you can solve a prob...

Page 47: ...lations together with the applicable cash flow diagrams appear under Compound Interest Calculations later in this section If your particular problem does not match any of those shown you can solve it nevertheless by first drawing a cash flow diagram then keying the quantities identified in the diagram into the corresponding registers Remember always to observe the sign convention when keying in PV...

Page 48: ...48 Section 3 Basic Financial Functions File name hp 12c pt_user s guide_English_HDPMF123E27 Page 48 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm ...

Page 49: ...unding periods per year pressing n then stores the result into n The same is true for i Values of n and i are calculated and stored like this in Example 2 on page 59 If interest is compounded monthly you can use a shortcut provided on the calculator to calculate and store n and i z To calculate and store n key the number of years into the display then press gA z To calculate and store i key the an...

Page 50: ... of the values to adjust Therefore if you want 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 You re planning to build a log cabin on your vacation property Your rich uncle offers you a 35 000 loan at...

Page 51: ...follows Keystrokes RPN mode Display 328n 328 00 Stores total number of payments M 181 89 Calculates FV which equals the overpayment if 328 full payments were made P 325 00 Recalls payment amount 143 11 Final fractional payment Keystrokes ALG mode Display 328n 328 00 Stores total number of payments M 181 89 Calculates FV which equals the overpayment if 328 full payments were made You could skip thi...

Page 52: ...larger 327th payment essentially a balloon payment as follows Keystrokes RPN mode Display 327n 327 00 Stores number of full payments M 141 87 Calculates FV which is the balance remaining after 327 full payments P 325 00 Recalls payment amount 466 87 Final balloon payment Keystrokes ALG mode Display 327n 327 00 Stores number of full payments M 141 87 Calculates FV which is the balance remaining aft...

Page 53: ...will it take for your account to reach 4 000 Keystrokes RPN mode 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 gÂ 4 000 00 Sets the payment mode to End n 58 00 Number of semimonthly deposits 2z 29 00 Number of months Keystrokes ALG mode Display fCLEARG 6 ...

Page 54: ...culates final fractional 58th deposit required to reach 4 000 Keystrokes ALG mode 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 58th month In this example M must be pressed twice since the preceding...

Page 55: ...nt using P z Future value using M Note Remember to observe the cash flow sign convention 4 If a PMT was entered press g or gÂ to set the payment mode 5 Press to calculate the periodic interest rate 6 To calculate the annual interest rate in RPN mode key in the number of periods per year then press To calculate the annual interest rate in ALG mode press key in the number of periods per year then pr...

Page 56: ...th minus sign for cash paid out 10000M 10 000 00 Stores FV 1 61 Periodic quarterly interest rate 4 6 44 Annual interest rate Calculating the Present Value 1 Press fCLEARG to clear the financial registers 2 Enter the number of payments or periods using n or gA 3 Enter the periodic interest rate using or gC 4 Enter either or both of the following z Payment amount using P z Future value using M Note ...

Page 57: ... payment will be 1 500 what is the maximum price you can pay for the car Assume the purchase date is one month prior to the date of the first payment Keystrokes RPN mode Display fCLEARG 4gA 48 00 Calculates and stores n 5 9gC 0 49 Calculates and stores i 450ÞP 450 00 Stores PMT with minus sign for cash paid out gÂ 450 00 Sets payment mode to End 19 198 60 Maximum amount of loan 1500 20 698 60 Maxi...

Page 58: ...kes Display fCLEARG 5n 5 00 Stores n 12 12 00 Stores i 17500P 17 500 00 Stores PMT Unlike in the previous problem here PMT is positive since it represents cash received 540000M 540 000 00 Stores FV gÂ 540 000 00 Sets payment mode to End 369 494 09 The maximum purchase price to provide a 12 annual yield PV is displayed with a minus sign since it represents cash paid out Calculating the Payment Amou...

Page 59: ...fCLEARG 29gA 348 00 Calculates and stores n 5 25gC 0 44 Calculates and stores i 243400 243 400 00 Stores PV gÂ 243 400 00 Sets payment mode to End P 1 363 29 Monthly payment with minus sign for cash paid out Example 2 Looking forward to retirement you wish to accumulate 60 000 after 15 years by making deposits in an account that pays 9 75 interest compounded semiannually You open the account with ...

Page 60: ...ARG 15µ2w 30 00 Calculates and stores n 9 75z2 4 88 Calculates and stores i 3200Þ 3 200 00 Stores PV with minus sign for cash paid out 60000M 60 000 00 Stores FV gÂ 60 000 00 Sets payment mode to End P 717 44 Semiannual payment with minus sign for cash paid out Calculating the Future Value 1 Press fCLEARG to clear the financial registers 2 Enter the number of payments or periods using n or gA 3 En...

Page 61: ...s a balloon payment at the end of 5 years what would be the amount of the balloon Keystrokes Display fCLEARG 5gA 60 00 Calculates and stores n 5 25gC 0 44 Calculates and stores i 243400 243 400 00 Stores PV 1363 29ÞP 1 363 29 Stores PMT with minus sign for cash paid out gÂ 1 363 29 Sets payment mode to End M 222 975 98 Amount of balloon payment Example 2 If you deposit 50 a month at the beginning ...

Page 62: ... for cash paid out g 50 00 Sets payment mode to Begin M 1 281 34 Balance after 2 years Example 3 Property values in an unattractive area are depreciating at the rate of 2 per year Assuming this trend continues calculate the value in 6 years of property presently appraised at 32 000 Keystrokes Display fCLEARG 6n 6 00 Stores n 2Þ 2 00 Stores i with minus sign for a negative interest rate 32000Þ 32 0...

Page 63: ... 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 platinum we will always regard the first period as equal to the remaining periods and we will refer to the period between the date interest begins accruing and the beginning of the first payment period as simply...

Page 64: ...thly period 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 status indicator in the display is not lit simple interest is used To specify compound interest turn the C indicator on by pressing Æ Pressing Æ again turns the C indicator off and calculations will then...

Page 65: ... month day year gÂ Sets payment mode to End Æ Turns on the 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 beginning of the first period gÒ 15 00 Actual number of odd days 16 00 Number of odd days counted on the basis of ...

Page 66: ... in n 5gC 0 42 Calculates and stores i 4500 4 500 00 Stores PV P 135 17 Monthly payment Example 2 A 42 month loan of 3 950 for a used car began accruing interest on July 19 2004 so that the first period began on August 1 2004 Payments of 120 are made at the end of each month Calculate the annual percentage rate APR using the actual number of odd days and simple interest for the odd period Keystrok...

Page 67: ...RG Clears financial registers Æ Turns off the 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 z30 0 43 Divides by the length of a monthly period to get the fr...

Page 68: ...is Odd Period mode example you may now press Æ to turn the C annunciator off if needed Note that when the calculator is not in Odd Period mode the status of the C annunciator actually has no effect on calculator operation You will find another use of Odd Period mode and Æ in Section 16 of this manual where the C must be set before the two Bond programs will work correctly ...

Page 69: ...applied toward the principal 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 n Example For a house you re about to buy you can obtain a 25 year mortgage for 250 000 at 5 25 annual interest This requires payments of 1 498 12 at the end of each month Find the amounts that woul...

Page 70: ...payments that is the second 12 months Keystrokes Display 12f 12 739 18 Portion of second year s payments applied to interest 5 238 26 Portion of second year s payments applied to principal dd 12 00 Number of payments just amortized 239 790 83 Balance remaining after 2 years n 24 00 Total number of payments amortized Pressing or n displays the number in the PV or n register When you did so after ea...

Page 71: ...et n to zero 3 Proceed with the amortization procedure listed on page 69 beginning with step 6 Example Suppose you obtained a 30 year mortgage instead of a 25 year mortgage for the same principal 250 000 and at the same interest rate 5 25 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 payment Sinc...

Page 72: ...ow diagram for 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 t...

Page 73: ...eturn the investment is not financially attractive Calculating Net Present Value NPV Calculating NPV for Ungrouped Cash Flows If there are no equal consecutive cash flows use the procedure described and then summarized below With this procedure NPV and IRR problems involving up to 80 cash flows in addition to the initial investment CF0 can be solved If two or more consecutive cash flows are equal ...

Page 74: ...ulator s registers you can calculate NPV as follows 1 Enter the interest rate using or gC 2 Press fl The calculated value of NPV appears in the display and also is automatically stored in the PV register Example An investor has an opportunity to buy a duplex for 80 000 and would like a return of at least 13 He expects to keep the duplex 5 years and then sell it for 130 000 and he anticipates the c...

Page 75: ... with the amounts of the cash flows the number of times up to 99 each amount occurs consecutively This number is designated Nj corresponding to cash flow amount CFj and is entered using the ga keys Each Nj is stored in a special register inside the calculator This method can of course be used for problems involving fewer than 80 cash flows and it will require fewer storage registers than the metho...

Page 76: ...p 4 occurs more than once consecutively key in the number of times that cash flow amount occurs consecutively then press ga If ga is not pressed the calculator assumes that Nj is 1 for the CFj just entered 6 Repeat steps 4 and 5 for each CFj and Nj until all cash flows have been entered With the amounts of the cash flows and the number of times they occur consecutively stored in the calculator NPV...

Page 77: ... 000 00 Next cash flow amount 10000gK 10 000 00 Next cash flow amount 3ga 3 00 Number of times this cash flow amount occurs consecutively 9100gK 9 100 00 Next cash flow amount 9000gK 9 000 00 Next cash flow amount 2ga 2 00 Number of times this cash flow amount occurs consecutively 4500gK 4 500 00 Next cash flow amount 100000gK 100 000 00 Final cash flow amount n 7 00 Seven different cash flow amou...

Page 78: ...ate 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 successive calculations In each iteration the calculator uses an estimate of IRR as...

Page 79: ... 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 N0 and CF0 Note Neither fL nor fl changes the number in the n register However each time gK is pressed the number in the n register is decreased by 1 If this is done or if you manually ...

Page 80: ...14 000 00 CF1 ga 1 00 N0 gK 79 000 00 CF0 7n 7 00 Resets the number in the n register to its original value Changing Cash Flow Entries z To change a cash flow amount 1 Key the amount into the display 2 Press 3 Key in the number of the register containing the cash flow amount to be changed z To change the number of times a cash flow amount occurs consecutively that is to change the Nj for a CFj 1 S...

Page 81: ... change CF2 from 11 000 to 9 000 then calculate the new NPV for a 13 5 return Keystrokes Display 9000 2 9 000 00 Stores the new CF2 in R2 13 5 13 50 Stores i fl 644 75 The new NPV Since this NPV is negative the investment would decrease the financial value of the investor s assets Example 2 Change N5 from 2 to 4 then calculate the new NPV Keystrokes Display 5n 5 00 Stores j in the n register 4ga 4...

Page 82: ... in the settlement purchase date as described on page 37 then press 4 Key in the maturity redemption date 5 Press fE The price is shown in the display and also is stored in the PV register The interest accrued since the last interest date is held inside the calculator to display the interest press to add the interest to the price press in RPN mode and in ALG mode Example What price should you pay ...

Page 83: ...e display and also is stored in the i register Note Remember that the fS function may take a significant amount of time to produce an answer during which the calculator displays running Example The market is quoting 122 125 for the bond described in the preceding example What yield will that provide Keystrokes Display 122 125 122 13 Enters quoted price 6 75P 6 75 Enters coupon rate 4 282004 4 28 E...

Page 84: ...of the year for which depreciation is to be calculated 6 Press z fV for depreciation using the straight line method z fÝfor depreciation using the sum of the years digits method z f for depreciation using the declining balance method fV fÝ and f each place the amount of depreciation in the display To display the remaining depreciable value the book value less the salvage value after the depreciati...

Page 85: ...ird year 1 660 00 Remaining depreciable value after third year To calculate depreciation and the remaining depreciable value when the acquisition date of the asset does not coincide with the beginning of the fiscal accounting year refer to the procedures in Section 13 That section also includes a procedure for depreciation calculations when changing from the declining balance method to the straigh...

Page 86: ...ies are removed so that you can change the batteries without losing your data and programs Continuous Memory may be reset if the calculator is 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 z All registers are cleared z Program memory consist...

Page 87: ...r is first turned on after coming from the factory or after Continuous Memory has been reset answers are displayed with two decimal places Keystrokes RPN mode Display 19 8745632 19 87 5 14 87 Keystrokes ALG mode Display 19 8745632 19 87 5 14 87 Although you see only two decimal places all calculations in your hp 12c platinum are performed with full 10 digit numbers When only two decimal places are...

Page 88: ... Keystrokes Display f4 14 8746 f1 14 9 f0 15 f9 14 87456320 Although nine decimal places were specified after f only eight are displayed since the display can show a total of only 10 digits The standard display format plus the specified number of decimal places remain in effect until you change them they are not reset each time the calculator is turned on However if Continuous Memory is reset when...

Page 89: ...of the number previously in the display To set the display back to standard display format press f followed by the desired number of decimal places Scientific notation display format remains in effect until you change to the standard display format it is not reset each time the calculator is turned on However if Continuous Memory is reset when the calculator is next turned on the standard display ...

Page 90: ... 0 through 9 To clear the Error display press any key This does not execute that key s function but does restore the calculator to its condition before the improper operation was attempted Refer to Appendix D for a list of error conditions Pr Error If power to the calculator is interrupted the calculator will display Pr Error when next turned on This indicates that Continuous Memory which contains...

Page 91: ...ithmetic calculations with constants and for recovering from errors in keying in numbers To do so press gF LAST X This section describes how to use gF in RPN mode Arithmetic Calculations With Constants Example At Permex Pipes a certain pipe fitting is packaged in quantities of 15 75 and 250 If the cost per fitting is 4 38 calculate the cost of each package Keystrokes RPN mode Display 15 15 00 Keys...

Page 92: ...utlets 987 in order to calculate the average number distributed by each outlet Unfortunately you mistakenly key in the number of outlets as 9987 rather than as 987 It s easy to correct Keystrokes RPN mode Display 429000 429 000 00 9987 9 987 You haven t noticed your mistake yet z 42 96 About 43 products per outlet but that seems too low gF 9 987 00 Recalls to the display the number that was there ...

Page 93: ...essing 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 following z The...

Page 94: ...over you have entered data incorrectly the accumulated statistics can easily be corrected Simply key in the incorrect data point or data pair again as if it were new but press g instead of _ Then enter the correct data point or data pair and press _ Mean Pressing gÖ calculates the means arithmetic averages of the x values x and of the y values y The mean of the x values appears in the display afte...

Page 95: ... 7 35 15 000 To find the average workweek and sales of this sample Keystrokes 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 35 15000_ 35 00 7 00 Total number of entries in the sample gÖ 21 714 29 Me...

Page 96: ...alculating 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 constitute...

Page 97: ...o the calculation of the average Linear Estimation With two variable statistical data accumulated in the statistics registers you can estimate a new y value y given a new x value and estimate a new x value x given a new y value To calculate y and Q 1 Key in a new x value 2 Press gR To calculate x 1 Key in a new y value 2 Press gQ Example Using the accumulated statistics from the preceding problem ...

Page 98: ...mpute the y intercept A 2 To compute the slope of the line B in RPN mode press 1gR d To compute the slope of the line B in ALG mode press these keys 1gR d Example Compute the slope and intercept of the regression line in the preceding example Keystrokes RPN mode Display 0gR 15 55 y intercept A projected value for x 0 1 gR d 0 001 Slope of the line B indicates the change in the projected values cau...

Page 99: ...oline at four stations as follows 15 gallons at 1 16 per gallon 7 gallons at 1 24 per gallon 10 gallons at 1 20 per gallon and 17 gallons at 1 18 per gallon You want to find the average cost per gallon of gasoline purchased If you purchased the same quantity at each station you could determine the simple arithmetic average or mean using the gÖ keys But since you know the value of the item gasoline...

Page 100: ...ogarithm Pressing g calculates the natural logarithm that is the logarithm to the base e of the number in the display To calculate 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 in RPN mode and z10g in ALG mode Exponential Pressing g calculates the exponential of the number in the display that is it raises the...

Page 101: ...in the same way For example to find the reciprocal of 0 258 Keystrokes 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 The examples below indicate how gF can recall the original number for fur...

Page 102: ...nent 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 Keystrokes RPN mode Display 21 4 2 1 4q 2 64 2 1 4 2 1 4Þq 0 38 2 3 2Þ 3q 8 00 3 2 or 21 3 2 3yq 1 26 The Power Function in ALG Mode To calculate a power of a number that is yx in ALG mode do the following 1 Key in the base number which is designated by the y on ...

Page 103: ...File name hp 12c pt_user s guide_English_HDPMF123E27 Page 103 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Part II Programming ...

Page 104: ... you want to use by pressing f or f Note Programs or steps created and saved in RPN mode should only be executed in RPN mode and programs or steps created and saved in ALG mode should only be executed in ALG mode You can also create steps in your program to switch to the appropriate mode 3 Press fs to set the calculator to Program mode When the calculator is in Program mode functions are not execu...

Page 105: ...ice less discount 5 5 Handling charge 155 00 Net cost price less discount plus handling charge Keystrokes ALG mode Display 200 200 Keys in cost of item 200 00 Separates cost of item from percentage to be keyed in next 25b 50 00 Amount of discount 150 00 Price less discount 5 5 Handling charge 155 00 Net cost price less discount plus handling charge Next set the calculator to Program mode and erase...

Page 106: ...004 25 005 40 5 006 5 007 36 Running a Program To run sometimes called execute a program 1 Press fs to set the calculator back to Run mode If the calculator is already in Run mode that is the PRGM status indicator in the display is not lit skip this step 2 Key any required data into the calculator just as if you were calculating manually When a program is run it uses the data already keyed into th...

Page 107: ...ts calculator to Run mode Display shows number previously calculated f 155 00 Sets ALG mode 625 625 Keys in price of typewriter t 473 75 Net cost of typewriter 159 159 Keys in list price of chair t 124 25 Net cost of chair That s all there is to creating and running simple programs But if you want to use programs frequently you ll want to know more about programming such as how to check what keyst...

Page 108: ...g digits in the display comprise a code that indicates what instruction has been stored in that program line No code is shown for program line 000 since no regular instruction is stored there Identifying Instructions in Program Lines Each key on the hp 12c platinum keyboard except for the digit keys 0 through 9 is identified by a two digit keycode that corresponds to the key s position on the keyb...

Page 109: ...ine number and keycode for the program line to which the calculator is currently set Occasionally you ll want to check several or all of the instructions stored in program memory The hp 12c platinum enables you to review program instructions either forward or backward through program memory z Pressing Ê single step while the calculator is in Program mode advances the calculator to the next line in...

Page 110: ...de Display fs 000 Sets calculator to Program mode and displays current line of program memory Ê 001 36 Program line 001 Ê 002 2 Program line 002 digit 2 Keystrokes ALG mode Display fs 000 Sets calculator to Program mode and displays current line of program memory Ê 001 30 Program line 001 Ê 002 2 Program line 002 digit 2 Pressing gÜ does the reverse Keystrokes RPN mode Display gÜ 001 36 Program li...

Page 111: ...7 is displayed Keystrokes RPN mode Display Ê 001 36 Program line 001 Release Ê 007 40 Program line 007 Keystrokes ALG mode Display Ê 001 30 Program line 001 Release Ê 007 36 Program line 007 Program line 007 contains the last instruction you keyed into program memory However if you press Ê again you ll see that this is not the last line stored in program memory Keystrokes Display Ê 008 43 33 000 P...

Page 112: ...pressed in run mode The i000 instruction was already stored in line 008 in fact in all program lines before you keyed in the program If no instructions have been keyed into program memory if Continuous Memory is reset or if fCLEARÎ is pressed in Program mode the instruction i000 is automatically stored in program lines 001 through 008 As you key each instruction into program memory it replaces the...

Page 113: ...ram memory is limited to 400 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 002 and 003 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 instruction requires only on...

Page 114: ... necessary if the calculator is in Program mode For example assuming the calculator is still in Program mode you can set it to program line 000 as follows Keystrokes Display gi 000 000 Program line 000 Executing a Program One Line at a Time Pressing Ç repeatedly with the calculator in Program mode as described earlier enables you to verify that the program you have stored is identical to the progr...

Page 115: ... price of typewriter Ç 001 36 Program line 001 625 00 Result of executing program line 001 Ç 002 2 Program line 002 2 2 Result of executing program line 002 Ç 003 5 Program line 003 5 25 Result of executing program line 003 Ç 004 25 Program line 004 b 156 25 Result of executing program line 004 Ç 005 30 Program line 005 468 75 Result of executing program line 005 Ç 006 5 Program line 006 5 5 Resul...

Page 116: ...esult of executing program line 003 Ç 004 25 Program line 004 b 156 25 Result of executing program line 004 Ç 005 40 Program line 005 468 75 Result of executing program line 005 Ç 006 5 Program line 006 5 5 Result of executing program line 006 Ç 007 36 Program line 007 473 75 Result of executing program line 007 the last line of the program Pressing gÜ while the calculator is in Run mode sets the ...

Page 117: ...e a program that calculates the entries in the AMOUNT TAX and TOTAL columns for each item on the jewelry distributor s invoice shown on the next page and also calculates the total in each of these columns for all items on the invoice Assume the sales tax is 6 75 To conserve lines of program memory instead of keying in the tax rate before the b instruction we ll store it in register R0 and recall i...

Page 118: ... every intermediate calculation is displayed automatically but we ll include gu instructions in the program so that the intermediate results AMOUNT and TAX are automatically displayed when the program is executed Keystrokes RPN mode Display 6 75 0 6 75 Stores tax rate in R0 fCLEAR 0 00 Clears the registers in R1 through R6 13 13 Keys in quantity of item 13 00 Separates quantity of item from cost o...

Page 119: ... 61 Adds TOTAL to sum of TOTAL entries in register R3 Keystrokes ALG mode Display 6 75 0 6 75 Stores tax rate in R0 fCLEAR 0 00 Clears the 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 890 50 AMOUNT 1 890 50 Adds AMOUNT to sum of AMOUNT entries in register R1 890 50 Prepares to add tax...

Page 120: ... Keystrokes RPN mode Display fs Sets calculator to Program mode fCLEARÎ 000 Clears program memory 001 20 gu 002 43 31 Pauses to display AMOUNT 1 003 44 40 1 0 004 45 0 b 005 25 gu 006 43 31 Pauses to display TAX 2 007 44 40 2 008 40 3 009 44 40 3 Keystrokes ALG mode Display fs Sets calculator to Program mode fCLEARÎ 000 Clears program memory 001 20 002 34 003 36 gu 004 43 31 Pauses to display AMOU...

Page 121: ...1 Sets calculator to Run mode fCLEAR 0 00 Clears registers R1 R6 6 75 0 Stores tax rate 13 68 5 68 5 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...

Page 122: ...ping Program Execution Automatically Program execution is automatically halted when the program executes a t instruction To resume executing the program from the program line at which execution was halted press t Example Replace the program above by one containing t instructions instead of gu instructions Keystrokes RPN mode Display fs Sets calculator to Program mode fCLEARÎ 000 Clears program mem...

Page 123: ...splay TAX 2 010 44 40 2 011 36 3 012 44 40 3 Now to run the program first set the appropriate mode by pressing f or f and then do the following Keystrokes Display fs 6 370 52 Sets calculator to Run mode fCLEAR 0 00 Clears registers R1 through R6 13 68 5 68 5 First item t 890 50 AMOUNT for first item t 60 11 TAX for first item t 950 61 TOTAL for first item 18 72 9 72 9 Second item t 1 312 20 AMOUNT...

Page 124: ...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 execution...

Page 125: ...rogram line The program line desired is specified by keying its three digit line number into the program line containing the i instruction When the i 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 gi000 instruction that is stored in program memory after the program...

Page 126: ...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 manually We ll run the program for a 150 000 mortgage at 4 75 for 30 years and we ll key 1 into the display just before running it in order to am...

Page 127: ...m execution to line 002 so that the number of payments to be amortized can be recalled to the display before the f instruction in line 003 is executed fs 0 00 Sets calculator to Run mode Display shown assumes no results remain from previous calculations fCLEARG 0 00 Clears financial registers 30gA 360 00 Enters n 4 75gC 0 40 Enters i 150000 150 000 00 Enters PV gÂ 150 000 00 Sets payment to End P ...

Page 128: ... 43 31 Line 006 gu 188 72 Ê 007 43 33 002 Line 007 gi002 This is the end of the first pass through the loop 188 72 Ê 002 45 0 Line 002 0 Program execution has branched to the beginning of the loop for the second pass through it 1 00 Ê 003 42 11 Line 003 f 593 00 Portion of second month s payment applied to interest Ê 004 43 31 Line 004 gu 593 00 Ê 005 34 Line 005 189 47 Portion of second month s p...

Page 129: ...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 register is the number that would if the calculator were in Run mode have been in ...

Page 130: ...the next line in program memory if the condition is false 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 If a program requ...

Page 131: ...ndix A that is it will place the income back into the X register and place the test value into the Y register This is necessary because when either the 2 instruction in line 005 or the 1 instruction in line 007 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...

Page 132: ... income into the display before running the program we ensure that it will be in the X register when the 0 instruction in program line 002 is executed This instruction will place the test value 20 000 in the X register and move the income into the Y register The instruction in program line 003 will exchange the numbers in the X and Y registers that is it will place the income back into the X regis...

Page 133: ...line 010 1 009 45 1 Recalls 20 tax rate to X register b 010 25 Divides tax rate by 100 011 36 Calculates tax fs 190 22 Sets calculator to Run mode Display shows results of running of previous program Now we ll store the required numbers in registers R0 R1 and R2 then we ll run the program using Ç so that we can check that the branching occurs properly It s good practice with programs containing co...

Page 134: ...03 go 15 000 00 Ê 004 43 33 007 Condition tested by o was true so program execution continued with line 004 gi007 15 000 00 Ê 007 45 1 Line 007 1 20 00 20 tax rate has been recalled to X register moving income to Y register Ê 008 25 Line 008 b 3 000 00 20 of 15 000 3 000 20000 20 000 Keys income equal to test value into display and X register Ê 001 45 0 Line 001 0 20 000 00 Test value has been rec...

Page 135: ...20 of 20 000 4 000 25000 25 000 Keys income greater than test value into display and X register Ê 001 45 0 Line 001 0 20 000 00 Test value has been recalled to X register moving income to Y register Ê 002 34 Line 002 25 000 00 Income has been placed in X register and test value has been placed in Y register Ê 003 43 34 Line 003 go 25 000 00 Ê 005 45 2 Condition tested by o was false so program exe...

Page 136: ... 15 000 00 Stores income into register R9 Ê 002 45 0 Line 002 0 20 000 00 Test value has been recalled to X register moving income to Y register Ê 003 34 Line 003 15 000 00 Income has been placed in X register and test value has been placed in Y register Ê 004 20 Line 004 15 000 00 Ê 005 43 34 Line 005 go 15 000 00 Ê 006 43 33 009 Condition tested by o was true so program execution continued with ...

Page 137: ...00 Test value has been recalled to X register moving income to Y register Ê 003 34 Line 003 20 000 00 Income has been placed in X register and test value has been placed in Y register Ê 004 20 Line 004 20 000 00 Ê 005 43 34 Line 005 go 20 000 00 Ê 006 43 33 009 Condition tested by o was true so program execution continued with line 006 gi009 20 000 00 Ê 009 45 1 Line 009 1 20 00 20 tax rate has be...

Page 138: ...alue has been recalled to X register moving income to Y register Ê 003 34 Line 003 25 000 00 Income has been placed in X register and test value has been placed in Y register Ê 004 20 Line 004 25 000 00 Ê 005 43 34 Line 005 go 25 000 00 Ê 007 45 2 Condition tested by o was false so program execution skipped the next line and continued at line 007 2 25 00 25 tax rate has been recalled to X register...

Page 139: ... calculator 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 005 press gi 004 then key in the new instruction that is to be stored in program line 005 The instruction previously stored in line 005 will be replaced it is not automatically bumped into line 006 Example With the las...

Page 140: ...nstruction to be changed 6 007 45 6 Keys new instruction into program line 007 replacing the 2 instruction previously there Ê 008 43 33 010 Shows that instruction in program line 008 has not been changed fs 6 250 00 Sets calculator back to Run mode Display shown assumes results remain from last example in preceding section 2 6 25 00 Copies tax rate from R2 into R6 Adding Instructions at the End of...

Page 141: ...from the income previously stored in R9 and this will be done by changing the sign of the tax to make it negative and then adding it to the income You could do this as follows Keystrokes RPN mode Display fs Sets calculator to Program mode gi 008 008 25 Sets calculator to last line keyed into program memory 009 30 Keys new instruction into program line 009 fs 25 00 Sets calculator back to Run mode ...

Page 142: ...icant amount of time in such situations you may prefer to use the method described below under Adding Instructions by Branching That method basically involves branching to the new instructions which are stored at the end of program memory then branching back to the program line immediately following the line from which you branched out Adding instructions by branching is not so simple as adding in...

Page 143: ...ions as in the preceding example suppose you now wanted to insert a t instruction before the program calculates net income after tax so that the program will display the amount of the tax before displaying the net income after tax The program should be modified by making the changes below Keystrokes RPN mode Display fs Sets calculator to Program mode gi 008 008 25 Sets calculator to last program l...

Page 144: ...oper program line for inserting a i instruction in the next step This i instruction will replace whatever instruction was already stored there but that instruction will be keyed back into program memory to be executed just after the new instructions in step 7 3 Press gi followed by three digits that specify the second line after the last line you keyed into program memory Branching to the second l...

Page 145: ... and stop at line 000 displaying the original income keyed in by storing 7 500 in register R3 and adding the following instructions between lines 000 and 001 the added lines are the same in RPN and ALG modes 3 gogi000 Since there are more than four instructions between and including the first line to be executed after the added instructions line 001 and the last line you keyed into program memory ...

Page 146: ... 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 program still works for an income greater than 7 500 and less than 20 00...

Page 147: ... 020 43 34 gi000 021 43 33 000 Added instructions 9 022 44 9 Keys in instruction immediately following point at which new instructions are being added This instruction was replaced in line 001 by gi018 instruction gi002 023 43 33 002 Branches back to second line line 002 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 t...

Page 148: ...nted Date 2005 8 1 Dimension 14 8 cm x 21 cm The following illustration of the edited RPN program shows how program execution branches to the instructions added at the end of program memory then branches back While the actual program in ALG mode is different the illustration does indicate the method used ...

Page 149: ...n program memory skip step 3 and proceed with step 4 3 Press gi000 This automatically converts a data storage register into seven additional lines of program memory if there was not already a i000 instruction remaining at the end of program memory and it ensures that program execution will branch to line 000 after the first program is run 4 Key the program into program memory If you are storing a ...

Page 150: ...ore since this program does not end with a loop we ll do steps 5 and 6 too Keystrokes RPN mode Display fs Sets calculator to Program mode gi 017 017 43 33 002 Sets calculator to last line keyed into program memory gi000 018 43 33 000 Ensures that second program is separated from first by i000 019 36 2 020 2 5 021 5 b 022 25 023 30 5 024 5 025 40 Keys in program t 026 31 Halts program execution gi0...

Page 151: ...G mode store the amortization program from Section 9 page 125 Since there are already two programs stored in program memory we ll skip step 3 in the procedure above Furthermore since the amortization program ends with a loop we ll skip steps 5 and 6 When the amortization program was stored at the beginning of program memory the i instruction at the end of the program branched to the 0 instruction ...

Page 152: ... RPN mode Display 0 028 44 0 0 029 45 0 f 030 42 11 gu 031 43 31 032 34 gu 033 43 31 gi029 034 43 33 029 Keys in program Keystrokes ALG mode Display fs Sets calculator to Program mode gi 033 033 43 33 025 Sets calculator to last line keyed into program memory 0 034 44 0 0 035 45 0 f 036 42 11 gu 037 43 31 038 34 gu 039 43 31 gi035 040 43 33 035 Keys in program ...

Page 153: ...pecify the first line of the program 3 Press t Example Run the office supplies program now stored in the calculator beginning at program line 019 in RPN mode and line 025 in ALG mode for the typewriter listing for 625 Keystrokes RPN mode Display fs 12 000 00 Sets calculator to Program mode gi019 12 000 00 Sets calculator to first line of program to be executed 625t 473 75 Net cost of typewriter Ke...

Page 154: ......

Page 155: ...File name hp 12c pt_user s guide_English_HDPMF123E27 Page 155 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Part III Solutions ...

Page 156: ...ered as follows 1 Press gÂ and fCLEARG 2 Calculate and enter the periodic payment amount of the loan a Key in the total number of payment periods press n 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 RPN Mode z If fees are stated as a percentage of t...

Page 157: ...iod 5 RPN To obtain the annual nominal percentage rate key in the number of periods per year then press µ 5 ALG To obtain the annual nominal percentage rate press µ Key in the number of periods per year then press Example 1 A borrower is charged 2 points for the issuance of his mortgage If the mortgage amount is 160 000 for 30 years and the interest rate is 5 5 per year with monthly payments what ...

Page 158: ...nto i 160000 160000 160 000 00 Loan amount into PV P P 908 46 Monthly payment calculated 750 750 159 250 00 Effective mortgage amount into PV 0 46 Monthly interest rate calculated 12 12 5 54 Annual percentage rate Example 3 Again using the information given in example 1 what is the APR if the mortgage fee is stated as 2 points plus 750 Keystrokes RPN mode Keystrokes ALG mode Display f f gÂ gÂ fCLE...

Page 159: ...riodic payment amount Information is entered as follows 1 Press gÂ and fCLEARG 2 Key in the total number of periods until the balloon payment or prepayment occurs press n If there is no balloon payment key in total number of payments and press n 3 Key in the desired periodic interest rate yield and press 4 Key in the periodic payment amount press P 5 Key in the balloon payment amount and press M I...

Page 160: ...ermine 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 RPN mode Keystrokes ALG mode Display f f gÂ fCLEARG 26gA gÂ fCLEARG 26gA 312 00 Months into n 6 5gC 6 5gC 0 54 Percent monthly interest rate into i 249350Þ P 249350Þ P 1 657 97 Monthly payment to be received calculated 12gC 12gC 1 00 Desired monthly interest r...

Page 161: ...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 RPN Key in the number of periods per year and press to obtain the nominal annual yield 7 ALG Press Key in the number of periods per year and press to obtain the nominal annual yield Example 1 An investor wishes to...

Page 162: ...gative to indicate money paid out 0 60 Yield per month calculated 12 12 7 20 Percent annual yield Example 2 Using the same information given in example 1 calculate the annual yield if the 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 Keystrokes RPN mode Keystrokes ALG m...

Page 163: ...aching a decision Essentially it calculates a yield or rate of return on the proposed investment This yield may be compared with the yield obtained by renting a residence and investing the down payment and monthly payment differences in a savings account or other investment opportunity This program takes into account the tax advantages obtained by a home owner on property taxes and mortgage intere...

Page 164: ...03 16 Þ 003 16 1 004 44 48 1 1 004 44 48 1 n 005 45 11 n 005 45 11 0 006 44 0 0 006 44 0 007 45 13 007 45 13 fCLEARG 008 42 34 fCLEARG 008 42 34 1 009 45 1 009 30 010 30 1 010 45 1 011 13 011 13 2 012 45 2 2 012 45 2 gA 013 43 11 gA 013 43 11 3 014 45 3 3 014 45 3 gC 015 43 12 gC 015 43 12 P 016 14 P 016 14 0 017 0 0 017 0 n 018 11 n 018 11 0 019 45 0 0 019 45 0 1 020 1 020 20 2 021 2 1 021 1 FV i...

Page 165: ...2 11 f 023 42 11 Þ 024 16 Þ 024 16 n 025 45 11 z 025 10 z 026 10 n 026 45 11 4 027 45 4 027 40 028 40 4 028 45 4 0 029 45 48 0 029 20 b 030 25 0 030 45 48 0 4 031 45 4 b 031 25 032 30 032 30 5 033 45 5 4 033 45 4 034 30 034 30 8 035 45 8 5 035 45 5 036 40 036 40 P 037 45 14 8 037 45 8 038 40 038 40 P 039 14 P 039 45 14 1 040 45 48 1 P 040 14 7 041 45 7 1 041 45 48 1 b 042 25 042 30 043 30 7 043 45...

Page 166: ...7 31 M 047 15 1 048 45 1 t 048 31 6 049 45 6 1 049 45 1 050 40 Þ 050 16 Þ 051 16 051 30 052 13 6 052 45 6 053 12 053 13 gC 054 45 43 12 054 12 t 055 31 gC 055 45 43 12 9 056 45 9 t 056 31 gC 057 43 12 9 057 45 9 M 058 15 gC 058 43 12 fs M 059 15 fs REGISTERS n Period i Apprec PV Price PMT Used FV Used R0 Period R1 Dwn Pmt R2 Life R3 i Mtg R4 Taxes Mo R5 Improve mo R6 Closing C R7 Comm R8 Rent R9 S...

Page 167: ...on as a percentage then press 14 Key in the price of the house under consideration then press 15 Press t to compute the net proceeds from the sale of the house A negative value indicates money lost 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 n...

Page 168: ...timate that maintenance would cost an additional 165 per month An alternative would be to rent a similar dwelling at 900 per month and to invest the difference between the purchase cost and rent at 3 interest Your personal income tax rate marginal is 25 Federal and 5 State Which alternative is more financially attractive Keystrokes RPN mode Keystrokes ALG mode Display f f gÂ gÂ fCLEARH fCLEARH 0 0...

Page 169: ...7 000 at the beginning of each year for 4 years for college tuition and expenses You wish to establish a fund which earns 6 annually How much do you need to deposit in the fund today to meet your daughter s educational expenses Keystrokes RPN mode Keystrokes ALG mode Display f f fCLEARH fCLEARH 0 00 Initialize 0gJ 0gJ 0 00 First cash flow 0gK 8ga 0gK 8ga 0 00 8 00 Second through ninth cash flows 7...

Page 170: ...le 2 A 2 year lease calls for monthly payments at the beginning of the month of 500 per month for the first 6 months 600 per month for the next 12 months and 750 per month for the last 6 months If you wish to earn 13 5 annually on these cash flows how much should you invest what is the present value of the lease Keystrokes RPN mode Keystrokes ALG mode Display f f fCLEARH fCLEARH 0 00 Initialize 50...

Page 171: ...rule rather than the exception the amounts of depreciation in the first and last years are computed as fractions of a full year s depreciation Straight Line Depreciation The following hp 12c platinum program calculates the straight line depreciation for the year desired with the acquisition date occurring at any time during the year KEYSTROKES RPN mode DISPLAY KEYSTROKES ALG mode DISPLAY fs fs fCL...

Page 172: ... 20 015 45 13 1 015 45 1 016 34 016 36 017 30 3 017 44 3 018 13 018 45 13 n 019 45 11 019 30 1 020 45 1 020 34 021 30 021 13 n 022 11 n 022 45 11 0 023 45 0 023 30 gm 024 43 35 1 024 45 1 gi035 025 43 33 035 n 025 11 2 026 45 2 0 026 45 0 gu 027 43 31 gm 027 43 35 0 028 45 0 gi038 028 43 33 038 fV 029 42 23 2 029 45 2 t 030 31 gu 030 43 31 1 031 1 0 031 45 0 0 032 44 40 0 fV 032 42 23 2 033 44 40 ...

Page 173: ...i029 037 43 33 029 M 038 45 15 2 038 45 2 039 30 gu 039 43 31 3 040 45 3 040 45 13 gi030 041 43 33 030 041 30 fs M 042 45 15 043 36 3 044 45 3 gi033 045 43 33 033 fs REGISTERS n Life i Unused PV Dep Value PMT Unused FV Salvage R0 Used R1 Mos 12 R2 Counter R3 1 st 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 K...

Page 174: ...ase press gi000 and return to step 2 Note If the number of months in the first calendar year is less than 12 the amount of depreciation in the 1st year will be less than a full year s depreciation The actual number of years that depreciation will occur is equal to the life 1 For example a drill has a life of 3 years and is purchased 3 months before the year end The following time diagram shows tha...

Page 175: ...4t 1 00 1 666 67 123 333 33 First year depreciation remaining depreciable value t t 2 00 5 000 00 118 333 33 Second year depreciation remaining depreciable value t t 3 00 5 000 00 Third year depreciation 3 gi000 3 gi000 11 666 67 Total depreciation through third year fCLEARG fCLEARG 11 666 67 125000 125000 125 000 00 Book value 25n 25n 25 00 Life 25 25 25 00 Year desired 4t 4t 25 00 5 000 00 3 333...

Page 176: ...ay f f gi000 fCLEARG gi000 fCLEARG 6730 6730 6 730 00 Book value 5n 5n 5 00 Life 1 1 1 00 4 5t 4 5t 1 00 504 75 First year depreciation Declining Balance Depreciation The following hp 12c platinum program calculates the declining balance depreciation for the year desired with the acquisition date occurring at any time during the year KEYSTROKES RPN mode DISPLAY KEYSTROKES ALG mode DISPLAY fs fs fC...

Page 177: ... 20 f 013 42 25 3 014 44 3 014 20 015 45 13 1 015 45 1 016 34 016 36 017 30 3 017 44 3 018 13 018 45 13 0 019 45 0 019 30 gm 020 43 35 020 34 gi031 021 43 33 031 021 13 2 022 45 2 0 022 45 0 gu 023 43 31 gm 023 43 35 0 024 45 0 gi034 024 43 33 034 f 025 42 25 2 025 45 2 t 026 31 gu 026 43 31 1 027 1 0 027 45 0 0 028 44 40 0 f 028 42 25 2 029 44 40 2 t 029 31 gi022 030 43 33 022 1 030 1 2 031 45 2 ...

Page 178: ...1 3 036 45 3 036 45 13 gi026 037 43 33 026 037 30 fs M 038 45 15 039 36 3 040 45 3 gi029 041 43 33 029 fs 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...

Page 179: ... the amount of depreciation then if desired press for the remaining depreciable value for the next year Repeat this step for the following years 10 For a new case press gi000 and return to step 2 Example An electron beam welder which costs 50 000 is purchased 4 months before the end of the accounting year What will the depreciation be during the first full accounting year year 2 if the welder has ...

Page 180: ... sum of the years digits depreciation for the year desired with the acquisition date occurring at any time during the year KEYSTROKES RPN mode DISPLAY KEYSTROKES ALG mode DISPLAY fs fs fCLEARÎ 000 fCLEARÎ 000 1 001 1 z 001 10 2 002 2 1 002 1 z 003 10 2 003 2 1 004 44 1 004 36 005 34 1 005 44 1 2 006 44 2 006 34 1 007 1 2 007 44 2 008 30 008 30 0 009 44 0 1 009 1 1 010 1 010 36 fÝ 011 42 24 0 011 4...

Page 181: ...2 11 n 022 45 11 0 023 45 0 023 30 gm 024 43 35 1 024 45 1 gi035 025 43 33 035 n 025 11 2 026 45 2 0 026 45 0 gu 027 43 31 gm 027 43 35 0 028 45 0 gi038 028 43 33 038 fÝ 029 42 24 2 029 45 2 t 030 31 gu 030 43 31 1 031 1 0 031 45 0 0 032 44 40 0 fÝ 032 42 24 2 033 44 40 2 t 033 31 gi026 034 43 33 026 1 034 1 2 035 45 2 0 035 44 40 0 gu 036 43 31 2 036 44 40 2 037 45 13 gi029 037 43 33 029 M 038 45...

Page 182: ... DISPLAY KEYSTROKES ALG mode DISPLAY fs M 042 45 15 043 36 3 044 45 3 gi033 045 43 33 033 fs 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 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 n ...

Page 183: ...ation through the current year 8 Press t for the amount of depreciation then if desired press for the remaining depreciable value for the next year Repeat this step for the following years 9 For a new case press gi000 and return to step 2 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...

Page 184: ...lculates the optimum crossover point and automatically switches to straight line depreciation at the appropriate time The crossover point is the end of the year in which the declining balance 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 des...

Page 185: ... 33 009 36 0 010 44 0 4 010 44 4 1 011 1 d 011 33 0 012 44 30 0 d 012 33 2 013 44 2 0 013 44 0 3 014 44 3 1 014 1 f 015 42 25 0 015 44 30 0 6 016 45 6 2 016 44 2 017 20 3 017 44 3 1 018 44 1 f 018 42 25 019 45 13 019 20 020 34 6 020 45 6 021 30 021 36 022 13 1 022 44 1 023 36 023 45 13 gF 024 43 40 024 30 025 34 025 34 M 026 45 15 026 13 027 30 1 027 45 1 028 34 028 45 13 0 029 45 0 029 30 1 030 1...

Page 186: ...1 035 1 go 035 43 34 gu 036 43 31 gi043 036 43 33 043 d 037 33 d 037 33 t 038 31 d 038 33 1 039 1 1 039 1 2 040 44 40 2 gu 040 43 31 0 041 44 30 0 d 041 33 f 042 42 25 t 042 31 1 043 44 40 1 1 043 1 5 044 44 5 2 044 44 40 2 045 45 13 0 045 44 30 0 M 046 45 15 f 046 42 25 047 30 1 047 44 40 1 4 048 45 4 5 048 44 5 z 049 10 049 45 13 go 050 43 34 050 30 gi053 051 43 33 053 M 051 45 15 gi065 052 43 3...

Page 187: ...3 d 058 33 5 059 45 5 0 059 0 060 30 0 060 45 0 061 13 go 061 43 34 1 062 1 gi091 062 43 33 091 4 063 44 30 4 063 45 13 gi040 064 43 33 040 064 30 4 065 45 4 5 065 45 5 n 066 11 066 13 0 067 0 1 067 1 6 068 44 6 4 068 44 30 4 1 069 1 gi044 069 43 33 044 2 070 44 30 2 4 070 45 4 0 071 44 40 0 n 071 11 5 072 45 5 0 072 0 1 073 44 30 1 6 073 44 6 3 074 45 3 1 074 1 fV 075 42 23 2 075 44 30 2 1 076 44...

Page 188: ... 081 33 1 081 44 40 1 0 082 45 0 1 082 1 1 083 1 0 083 44 30 0 go 084 43 34 2 084 44 40 2 gi074 085 43 33 074 3 085 44 40 3 d 086 33 d 086 33 d 087 33 0 087 45 0 2 088 45 2 1 088 1 gu 089 43 31 go 089 43 34 d 090 33 gi079 090 43 33 079 t 091 31 d 091 33 6 092 45 6 d 092 33 gm 093 43 35 2 093 45 2 gi074 094 43 33 074 gu 094 43 31 gi058 095 43 33 058 d 095 33 fs t 096 31 6 097 45 6 gm 098 43 35 gi07...

Page 189: ... depreciable value 10 If desired press 1 to see the total depreciation through the current year 11 Continue pressing t to find the amount of depreciation for the successive years Steps 9 and 10 may be repeated for each year 12 For a new case press gi000 and return to step 2 Example An electronic instrument is purchased for 11 000 with 6 months remaining in the current fiscal year The instrument s ...

Page 190: ...375 00 9 125 00 First year depreciation remaining depreciable value t t 2 00 2 406 25 Second year depreciation t t 3 00 1 804 69 Third year depreciation t t 4 00 1 353 51 Fourth year depreciation t t 5 00 1 015 14 Fifth year depreciation t t 6 00 761 35 Sixth year depreciation t t 7 00 713 62 Seventh year depreciation 1 1 9 429 56 Total depreciation through the seventh year t t 8 00 713 63 Eight y...

Page 191: ...total straight line depreciation charge 3 Press to get the excess depreciation ALG Mode 1 Calculate the total depreciation then press gØ 2 Key in the depreciable amount cost less salvage then press z Key in the useful life of the asset in years then press Key in the number of years in the income projection period then press gÙ to get the total straight line depreciation charge 3 Press to get the e...

Page 192: ...ws has three sign changes and hence up to three potential internal rates of return This particular example has three positive real answers 1 86 14 35 and 29 Although mathematically sound multiple answers probably are meaningless as an investment measure This Modified Internal Rate of Return procedure MIRR is one of several IRR alternatives which avoids the drawbacks of the traditional IRR techniqu...

Page 193: ...isk rate of 10 Keystrokes RPN mode Keystrokes ALG mode Display f f fCLEARH fCLEARH 0 00 0gJ 0gJ 0 00 First cash flow 100000gK 100000gK 100 000 00 5ga 5ga 5 00 Second through sixth cash flows 0gK5ga 0gK5ga 5 00 Next five cash flows 0gK9ga 0gK9ga 9 00 Next nine cash flows 200000gK 200000gK 200 000 00 Last cash flow 10gCfl 10gCfl 657 152 37 NPV of positive cash flows Þ Þ 657 152 37 20nM 20nM 775 797 ...

Page 194: ...n value and shows the put option value The option values produced are accurate to at least the nearest cent for asset and strike prices under 100 Reference Tony Hutchins 2003 Black Scholes takes over the HP12C HPCC www hpcc org Datafile V22 N3 pp13 21 KEYSTROKES RPN mode DISPLAY KEYSTROKES ALG mode DISPLAY fs fs fCLEARÎ 000 fCLEARÎ 000 n 001 45 11 n 001 45 11 002 45 12 002 20 b 003 25 003 45 12 Þ ...

Page 195: ...36 018 34 3 018 44 3 z 019 10 019 45 13 gF 020 43 40 z 020 10 2 021 2 4 021 45 4 5 022 44 5 022 36 z 023 10 g 023 43 23 024 40 z 024 10 6 025 44 6 025 34 3 026 45 3 026 36 027 30 3 027 45 3 3 028 44 3 z 028 10 029 36 2 029 2 030 20 5 030 44 5 gr 031 43 21 031 40 gF 032 43 40 032 34 2 033 2 033 30 z 034 10 6 034 44 6 Þ 035 16 3 035 45 3 g 036 43 22 036 36 037 34 3 037 44 3 3 038 3 g 038 43 20 039 4...

Page 196: ...LAY 0 041 0 041 36 6 042 6 Þ 042 16 z 043 10 g 043 43 22 1 044 1 3 044 45 3 045 40 g 045 43 20 y 046 22 gr 046 43 21 047 20 z 047 10 gF 048 43 40 3 048 3 gF 049 43 40 049 48 1 050 1 0 050 0 8 051 8 0 051 0 7 052 7 6 052 6 053 20 053 40 2 054 2 1 054 1 4 055 4 055 36 056 30 y 056 22 057 20 2 057 44 2 8 058 8 058 20 7 059 7 059 34 060 40 060 36 061 20 1 061 1 062 48 8 062 8 2 063 2 7 063 7 b 064 25 ...

Page 197: ... 067 44 3 2 067 2 O 068 35 4 068 4 069 34 069 20 go 070 43 34 2 070 45 2 g 077 071 43 33 077 071 40 1 072 1 8 072 8 3 073 44 30 3 7 073 7 Þ 074 16 074 20 3 075 44 20 3 075 34 076 34 076 20 5 077 45 5 077 48 gm 078 43 35 2 078 2 g 089 079 43 33 089 b 079 25 6 080 45 6 080 36 3 081 45 3 3 081 45 3 4 082 45 4 082 34 083 20 3 083 44 3 6 084 44 6 O 084 35 O 085 35 085 34 5 086 44 5 go 086 43 34 087 34 ...

Page 198: ...S ALG mode DISPLAY 089 34 3 089 44 30 3 3 090 45 3 Þ 090 16 091 45 13 3 091 44 20 3 4 092 44 30 4 092 34 093 20 5 093 45 5 6 094 45 6 gm 094 43 35 095 30 g 106 095 43 33 106 4 096 44 40 4 6 096 45 6 4 097 45 4 3 097 45 3 098 34 098 20 5 099 44 5 4 099 45 4 fs 100 36 6 101 44 6 O 102 35 5 103 44 5 104 34 g 037 105 43 33 037 106 34 107 45 13 4 108 44 30 4 109 20 3 110 45 3 111 30 6 112 45 6 ...

Page 199: ...d i and PMT are rates per year or per month i is a continuous percentage rate PMT is the standard deviation of the continuous percentage stock return as observed over the time unit For sensible output all inputs should be positive The PMT 0 case can be simulated by using a PMT arbitrarily close to 0 Program Instructions 1 Key in the program 2 Enter the five inputs into the five financial registers...

Page 200: ...d annual values Keystrokes RPN mode Keystrokes ALG mode Display f f 6n 6n 6 00 Time to expiry months 5 5 0 50 Interest rate per month 52 52 52 00 Stock price 20 54P 20 54P 20 54 Volatility per month 45M 45M 45 00 Strike price t t 14 22 Call value 5 89 Put value gAn gAn 0 50 Years to expiry gC gC 6 00 Yearly interest rate P 12gr P P 12grP 71 15 Yearly volatility t t 14 22 Call value unchanged ngA n...

Page 201: ...tion of an option is 42 the exercise price of the option is 40 the risk free interest rate is 10 per annum and the volatility is 20 per annum Find Call and Put values Keystrokes RPN mode Keystrokes ALG mode Display f f 5n 5n 0 50 Time to expiry years 10 10 10 00 Interest rate per year 42 42 42 00 Stock price 20P 20P 20 00 Volatility per year 40M 40M 40 00 Strike price t t 4 76 Call value 0 81 Put ...

Page 202: ...or Payment To calculate the payment information is entered as follows 1 Press gÂ and fCLEARG RPN Mode 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 n 4 Key in or calculate the periodic interest rate as a percentage then press 5 Press 1ÞP 0 6 Key in the initial loan amount then press z to obtain the periodic payment ...

Page 203: ...0 annually Keystrokes RPN mode Keystrokes ALG mode Display f f gÂ gÂ fCLEARG fCLEARG 12 12 12 00 Duration of lease 3 0 n 3 0n 9 00 Number of periodic payments 10gC 10gC 0 83 1ÞP 1ÞP 1 00 0 0 11 64 750 z 750z 64 45 Monthly payment to be received If solving for the payment amount will be done repetitively key in the following hp 12c platinum program KEYSTROKES RPN mode DISPLAY KEYSTROKES ALG mode DI...

Page 204: ...17 10 fs 018 34 019 36 fs 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 press 2 5 Key in the loan amount and press 3 then press t to obtain the perio...

Page 205: ... received 15 12z 15z12 1 25 2t 2t 65 43 Monthly payment to achieve a 15 yield 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 RPN mode Keystrokes ALG mode Display 1 1t 1 1t 66 86 Monthly payment to ...

Page 206: ...ield ALG Mode 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 0n 4 Key in the periodic payment to be received then press P 5 Press 0 P Then key in the total amount of the loan and press Þ 6 Press to obtain the periodic yield Example 1 A lease has been written to run for 60 months The leased equipment has a value of 25 0...

Page 207: ...ield will be done repetitively key in the following hp 12c platinum program KEYSTROKES RPN mode DISPLAY KEYSTROKES ALG mode DISPLAY fs fs fCLEARÎ 000 fCLEARÎ 000 gÂ 001 43 8 gÂ 001 43 8 fCLEARG 002 42 34 fCLEARG 002 42 34 0 003 45 0 0 003 45 0 1 004 45 1 004 30 005 30 1 005 45 1 n 006 11 n 006 11 2 007 45 2 2 007 45 2 P 008 14 P 008 14 3 009 45 3 009 20 Þ 010 16 1 010 45 1 1 011 45 1 011 30 P 012 ...

Page 208: ...ayment 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 from the previous case are the only values which need to be re entered Example 2 Using the program solve for yield using the same information given in example 1 Then change the payment to 625 and solve for the yield Key...

Page 209: ...he following program solves for the periodic payment amount necessary to achieve a desired yield KEYSTROKES RPN mode DISPLAY KEYSTROKES ALG mode DISPLAY fs fs fCLEARÎ 000 fCLEARÎ 000 gÂ 001 43 8 gÂ 001 43 8 fCLEARG 002 42 34 fCLEARG 002 42 34 0 003 45 0 0 003 45 0 n 004 11 n 004 11 1 005 45 1 1 005 45 1 006 12 006 12 3 007 45 3 3 007 45 3 M 008 15 M 008 15 009 13 009 13 2 010 45 2 010 40 011 40 2 ...

Page 210: ...4 026 34 026 36 z 027 10 5 027 45 5 fs z 028 10 029 34 030 36 fs REGISTERS n Used i Interest PV Used PMT 1 FV Residual R0 Pmts n R1 Interest R2 Loan R3 Residual R4 Adv Pmt R5 Used R6 R 6 Unused 1 Key in the program 2 Key in the total number of payments then press 0 3 Key in or calculate the periodic interest rate then press 1 4 Key in the loan amount then press 2 5 Key in the residual value then p...

Page 211: ...to buy the copier for 30 of the purchase price What monthly payment is necessary to yield the lessor 15 annually Keystrokes RPN mode Keystrokes ALG mode Display f f 48 0 48 0 48 00 Duration of lease 15 15z 15 00 12z 1 12 1 1 25 Monthly interest rate 22000 2 22000 2 22 000 00 30b 3 30b 3 6 600 00 4 4t 4 4t 487 29 Monthly payment received by lessor Example 2 Using the information from example 1 what...

Page 212: ...y 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 press ga 5 Key in the residual then press gK Then press fL to solve for periodic yield Example Equipment worth 5 000 is leased for 36 months at 145 per month The lessee has agreed to pay the first and last month s payments in advance At the end of the lease the equipment may...

Page 213: ...ding periods per year then press nz 4 Press ÞPM to obtain the effective annual interest rate ALG Mode 2 Key in the annual nominal rate as a percentage 3 Press z Key in the number of compounding periods per year then press ÞP Then key in the number of compounding periods per year and press n 4 Press M to obtain the effective annual interest rate Example 1 What is the effective annual interest rate ...

Page 214: ...g hp 12c platinum program can be used KEYSTROKES RPN mode DISPLAY KEYSTROKES ALG mode DISPLAY fs fs fCLEARÎ 000 fCLEARÎ 000 gÂ 001 43 8 gÂ 001 43 8 fCLEARG 002 42 34 fCLEARG 002 42 34 n 003 11 n 003 11 z 004 10 004 34 005 12 z 005 10 Þ 006 16 006 34 P 007 14 007 12 M 008 15 Þ 008 16 fs P 009 14 M 010 15 fs REGISTERS n Periods i Nom Rate n PV 0 PMT Used FV Eff Rate R0 R 9 Unused ...

Page 215: ... interest if the annual nominal rate of 5 25 is compounded monthly Keystrokes RPN mode Keystrokes ALG mode Display 5 25 5 25 5 25 12t 12t 5 38 Percent effective interest rate Effective Rate Converted to Nominal Rate Given an effective interest rate and the number of compounding periods per year this routine calculates the nominal interest rate 1 Press fCLEARG 2 Key in the number of periods per yea...

Page 216: ...100 100 00 5 35 Þ 5 35 Þ 105 35 M M 1 31 n n 5 25 Percent nominal interest rate Continuous Rate Converted to Effective Rate This procedure converts a continuous annual interest rate to the effective rate 1 RPN Press 1 1 ALG Press 1 2 Key in the continuous rate as a percentage then press b 3 Press g à Example What is the effective rate resulting from a 5 25 passbook rate with continuous compounding...

Page 217: ... using 30 days in a month and 360 days in a year 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 RPN mode DISPLAY KEYSTROKES ALG mode DISPLAY fs fs fCLEARÎ 000 fCLEARÎ 000 fCLEARG 001 42 34 fCLEARG 001 42 34 g 002 43 7 g 002 43 7 2 003 45...

Page 218: ... 016 8 z 017 10 0 017 0 n 018 11 n 018 11 gT 019 43 24 gT 019 43 24 1 020 1 1 020 1 021 34 021 30 022 30 022 34 P 023 45 14 023 20 024 20 P 024 45 14 6 025 44 6 025 36 0 026 45 0 6 026 44 6 gm 027 43 35 0 027 45 0 g 039 028 43 33 039 gm 028 43 35 2 029 2 g 041 029 43 33 041 z 030 10 z 030 10 031 12 2 031 2 032 13 032 12 6 033 45 6 033 13 034 34 6 034 45 6 Þ 035 16 035 34 6 036 45 6 Þ 036 16 037 30...

Page 219: ... 047 20 2 048 2 049 36 fs REGISTERS n days 180 i Yield 2 PV Price PMT Coupon 2 FV Red Cpn 2 R0 Yield R1 Price R2 Coupon R3 Dset R4 Dmat R5 Redemption R6 Accrued Int R7 R 3 Unused 1 Key in the program 2 If the C status indicator is not displayed press É 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 dat...

Page 220: ...entage of par value and press 1 c Press t to compute annual yield to maturity For a new case return to step 3 Note that only those values which have been changed need to be reentered and stored Example 1 What price should you pay on August 28 2004 for a 5 5 bond computed with a 30 360 basis that matures on June 1 2008 if you want a yield of 4 75 What price should you pay for a yield of 4 5 This pr...

Page 221: ...4 5 calculated 1 33 Accrued interest calculated 104 74 Total price paid Example 2 The market is quoting 105 for the bond described in example 1 What yield will that provide What would be the yield to maturity if 104 were the quoted price Keystrokes RPN mode Keystrokes ALG mode Display 104 74 From previous example 0 0 0 0 0 00 105 1t 105 1t 4 05 Yield at 105 calculated 104 1t 104 1t 4 33 Yield at 1...

Page 222: ...ay be modified for annual coupon bonds to be calculated on a 30 360 day basis KEYSTROKES RPN mode DISPLAY KEYSTROKES ALG mode DISPLAY fs fs fCLEARÎ 000 fCLEARÎ 000 fCLEARG 001 42 34 fCLEARG 001 42 34 gÂ 002 43 8 gÂ 002 43 8 0 003 45 0 0 003 45 0 n 004 11 n 004 11 2 005 45 2 2 005 45 2 P 006 14 P 006 14 1 007 45 1 1 007 45 1 008 12 008 12 3 009 45 3 3 009 45 3 M 010 15 M 010 15 011 13 011 13 5 012 ...

Page 223: ...PLAY gÒ 019 43 26 5 019 45 5 7 020 44 7 gÒ 020 43 26 6 021 45 6 7 021 44 7 4 022 45 4 6 022 45 6 gÒ 023 43 26 4 023 45 4 7 024 45 7 gÒ 024 43 26 z 025 10 z 025 10 n 026 11 7 026 45 7 0 027 0 n 027 11 P 028 14 0 028 0 M 029 15 P 029 14 Þ 030 16 M 030 15 n 031 45 11 n 031 45 11 2 032 45 2 032 20 Þ 033 16 2 033 45 2 034 20 Þ 034 16 t 035 31 035 40 036 30 t 036 31 fs 037 34 038 36 Þ 039 16 fs ...

Page 224: ...nual yield as a percentage then press 1 4 Key in the amount of the annual coupon then press 2 5 Key in the redemption value then 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 What is the price and a...

Page 225: ...25 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Keystrokes RPN mode Keystrokes ALG mode Display 100 3 100 3 100 00 Redemption value 8 152004 4 8 152004 4 8 15 Settlement date 12 012004 5 12 012004 5 12 01 Next coupon date t t 4 58 Accrued interest t t 94 75 Purchase price ...

Page 226: ......

Page 227: ...File name hp 12c pt_user s guide_English_HDPMF123E27 Page 227 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendices ...

Page 228: ...umber functions the 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...

Page 229: ...r 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 result of previous calculations When a digit is keyed into th...

Page 230: ...tack usually lifts first The stack does not lift if the last key pressed before a number is entered was one of the following O _ or 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 The Key Pressing exchanges the numbers in the X and Y registers Certain functions Ò Ï E V Ý Ö v R and Q retur...

Page 231: ... 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 Number Functions and the Stack Two number functions z q b à and Z use the numbers in both the X and the Y registers Mathematics Functions To perform an arithmetic operation the numbers are positioned in the X and Y registers just as ...

Page 232: ...e number in the T register 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 When any of the three percentage functions is performed the answer is pla...

Page 233: ...l function key is pressed The symbols 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 n P M l L T t t x z y Z t z INT365 y x number of payments Y z DYS30 day PV x 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 ...

Page 234: ...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 a function key is pressed Therefore when a two number function key is then pressed that function is performed using the number keyed...

Page 235: ...eft to right However it can easily be done if you begin with the calculation in the innermost pair of parentheses again 6 7 Keystrokes RPN mode Display 6 7 13 00 Intermediate result of 6 7 5 65 00 Intermediate result of 5 6 7 4 69 00 Intermediate result of 4 5 6 7 3 207 00 Final result 3 4 5 6 7 Arithmetic Calculations with Constants Because the number in the T register remains there when the stac...

Page 236: ...ator 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 230 that the stack does not lift when a number is keyed into the displayed X register after O is pressed Example At Permex Pipes a certain pipe fitting is packaged in quantities of 15 75 and 250 If the cost per f...

Page 237: ...ssing it the first time clears the display and X register only allowing you to correct an erroneous entry by keying in a correct number The second press of O will clear any pending operations as well Pressing the key is another way to ensure that there are no pending operations before beginning a new calculation Simple Arithmetic Calculations in ALG Mode To calculate 21 1 23 8 Keystrokes ALG mode ...

Page 238: ...f a number z To key in a negative number type that number and then press Þ z To change the sign of an already displayed number press Þ Keystrokes ALG mode Display OO 0 00 Clears any pending operations 75Þ 75 Changes the sign of 75 7 1 532 50 Multiplies 75 by 7 1 Chain Calculations in ALG Mode To do a chain calculation you don t need to press after each operation but only at the very end For instan...

Page 239: ...n LAST X Therefore in ALG mode it never lifts the stack and in general it changes the value in LAST X However in RPN mode gF always lifts the stack and leaves the value in LAST X unchanged In general LAST X in ALG mode is only useful in programs where it can often be used instead of a numbered storage register as it persists unchanged at least until digit entry or gF There is an example of its use...

Page 240: ...at the original PRICE would then be in the T register Parentheses Calculations In ALG mode parentheses can be used in calculations to change the order in which operations are evaluated When there are pending open parentheses the status indicator will be shown in the display As open parentheses are closed the expression contained within the parentheses is evaluated The final result of a calculation...

Page 241: ... agree to repay the loan in a year with 7 simple interest How much money will you owe Keystrokes ALG mode Display OO 0 00 Clears any pending operations 1250 7b 87 50 Interest on the loan is 87 50 1 337 50 You owe this amount at the end of one year 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...

Page 242: ...lay OO 0 00 Clears any pending operations 3 92 3 92 Keys in the first number 2 36 6 28 Adds the second number 1 67 7 95 Adds the third number to get the total 2 36 2 36 Keys in 2 36 to find out what percentage it is of the number in the display Z 29 69 Europe had nearly 30 of the total sales The Power Function Pressing q calculates a power of a number that is yx Like the arithmetic function q requ...

Page 243: ...or positive exist they can be calculated using the procedure described below Case 3 The calculator displays Error 3 This indicates that the computation is very 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 The calculator displays Error 7 This indicates that there is no answer...

Page 244: ...one to search for IRR solutions You can hasten this process by using the l function to help you make a good 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 c...

Page 245: ...ch an operation under these conditions the calculator will display the word Error followed by a digit 0 through 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 Operation Condition z x 0 y x 0 r x 0 x 0 q y 0 and x 0 y 0 and x is ...

Page 246: ...ude of result is greater than 9 999999999 1099 Error 2 Statistics Operation Condition Ö n number in R1 0 Σx 0 v n 0 n 1 nΣx2 Σx 2 0 nΣy2 Σy 2 0 R n 0 nΣx2 Σx 2 0 Q n 0 nΣy2 Σy 2 0 R Q nΣx2 Σx 2 nΣy2 Σy 2 0 Error 3 IRR Refer to Appendix C Error 4 Memory z Attempting to enter more than 400 program lines z Attempting to i to a program line that does not exist z Attempting storage register arithmetic ...

Page 247: ...m x 21 cm Error 5 Compound Interest Operation Condition n i 0 and PMT 0 PMT is between FV d and PV d inclusive where d 100 1 100 S i i where S 0 for END mode and 1 for BEG mode i 100 n 0 n 1010 or n 0 i 100 Cash flows all have same sign i 100 P n 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 E PMT 0 S PMT 0 ...

Page 248: ...21 cm Error 6 Storage Registers Operation Condition Storage register specified does not exist or has been converted to program lines K a n specifies a storage register that does not exist or has been converted to program lines l L n 80 n 0 n is noninteger a x 99 x 0 x is noninteger Attempted to input Nj for CF0 Error 7 IRR Refer to Appendix C ...

Page 249: ...s Memory has been reset Refer to Continuous Memory page 86 z You have reset the calculator using the reset hole see page 261 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 31 has no corresponding coupon date 6 months earlier To correct this problem for all maturity dates except August ...

Page 250: ... y y x Total Amount 100 T y x 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 Interest i PV n I 360 360 i PV n I 365 365 ...

Page 251: ...r an odd period INTG INTG FRAC 1 1 1 1 1 0 n n n i FV i i PMT iS i PV 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 of PMT PRN1 PMT INT1 PV1 PV0 PRN...

Page 252: ...riod 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 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 Additional tests are performed in order to ensure that the century but not millennium years are not considered leap years 30 360 Day Basis DAYS f DT2...

Page 253: ...f current coupon 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...

Page 254: ...of option N z probability that a unit normal random variable is less than z Call Value P N d1 Q N d2 Put Value Call Value Q P where d1 LN P Q v v 2 d2 d1 v Q Xe T r 1 0 0 v s 100 T Depreciation L asset s useful life expectancy SBV starting book value SAL salvage value FACT declining balance factor expressed as a percentage j period number DPNj depreciation expense during period j RDVj remaining de...

Page 255: ...BV DPNJ for j 2 3 L DPNL 1 RDVL Sum of the Years Digits Depreciation 2 2 1 F W W SOYDk where W integer part of k F fractional part of k i e for k 12 25 years W 12 and F 0 25 Keyboard function 1 SAL SBV SOYD j L DPN L J Program for partial year 12 1 1 SAL SBV Y SOYD L DPN 2 1 SAL D SBV SOYD j LADJ DPN LADJ j for j 1 where 12 1 Y L LADJ Declining Balance Depreciation Keyboard function L FACT RBV DPN...

Page 256: ...FVP Net future value of the positive cash flows NPVN Net present value of the negative cash flows 1 100 1 n N P NPV NFV MIRR Advance Payments A number of payments made in advance A i i i FV PV PMT A n n 1 1 1 Interest Rate Conversions C number of compounding periods per year EFF the effective annual interest rate as a decimal NOM the nominal annual interest rate as a decimal Finite Compounding 1 1...

Page 257: ... 8 1 Dimension 14 8 cm x 21 cm Statistics Mean n x x n y y Weighted Mean w wx xw Linear Estimation n number of data pairs Bx A y ˆ B A y x ˆ where n x x n y x xy B 2 2 x B y A n y y n x x n y x xy r 2 2 2 2 Standard Deviation 1 2 2 n n x x n sx 1 2 2 n n y y n sy Factorial 0 1 For n 1 where n is an integer n i i n 1 ...

Page 258: ...re 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 payment closing costs PMT mortgage payment taxes maintenance rent tax interest taxes FV net cash proceeds on resale Annual interest rate 12 ...

Page 259: ... corner of the display when the calculator is on signifies that the available battery power is running low When the battery symbol begins flashing replace the battery as soon as possible to avoid losing data Use only a fresh battery Do not use rechargeable batteries Warning There is the danger of explosion if the battery is incorrectly replaced Replace only with the same or equivalent type recomme...

Page 260: ...eriod the contents of Continuous Memory may be lost To install a new battery use the following procedure 1 With the calculator turned off slide the battery cover off 2 Remove the old battery 3 Insert a new battery with positive polarity facing outward 4 Replace the battery cover Note Be careful not to press any keys while the battery is out of the calculator If you do so the contents of Continuous...

Page 261: ...alculator does not turn on install a fresh battery If there is still no response the calculator requires service For a calculator that does respond to keystrokes 1 With the calculator off hold down the key and press 2 Release the key then release the key This initiates a complete test of the calculator s electronic circuitry If everything is working correctly within about 25 seconds during which t...

Page 262: ...bove but continues indefinitely The test can be terminated by pressing any key which will halt the test within 25 seconds The z combination initiates a test of the keyboard and the display When the key is released certain segments in the display will be lit To run the test the keys are pressed in order from left to right along each row from the top row to the bottom row As each key is pressed diff...

Page 263: ... refund of the purchase price upon prompt return of the product 4 HP products may contain remanufactured parts equivalent to new in performance or may have been subject to incidental use 5 Warranty does not apply to defects resulting from a improper or inadequate maintenance or calibration b software interfacing parts or supplies not supplied by HP c unauthorized modification or misuse d operation...

Page 264: ...ER TRANSACTIONS IN AUSTRALIA AND NEW ZEALAND THE WARRANTY TERMS CONTAINED IN THIS STATEMENT EXCEPT TO THE EXTENT LAWFULLY PERMITTED DO NOT EXCLUDE RESTRICT OR MODIFY AND ARE IN ADDITION TO THE MANDATORY STATUTORY RIGHTS APPLICABLE TO THE SALE OF THIS PRODUCT TO YOU Service Europe Country Telephone numbers Austria 43 1 3602771203 Belgium 32 2 7126219 Denmark 45 8 2332844 Eastern Europe countries 42...

Page 265: ...ada 905 206 4663 or 800 HP INVENT ROTC Rest of the country Please logon to http www hp com for the latest service and support information Regulatory Information This section contains information that shows how the hp 12c platinum financial calculator complies with regulations in certain regions Any modifications to the calculator not expressly approved by Hewlett Packard could void the authority t...

Page 266: ...従って正しい取り扱いをしてください Temperature Specifications z Operating 0º to 55º C 32º to 131º F z Storage 40º to 65º C 40º to 149º F Noise Declaration In the operator position under normal operation per ISO 7779 LpA 70dB Disposal of Waste Equipment by Users in Private Household in the European Union This symbol on the product or on its packaging indicates that this product must not be disposed of with your oth...

Page 267: ...pes of financial calculations for which the conventional practice differs significantly between the United Kingdom and the United States 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 58 Building Societies in the United Kingdom however calculate the amount of ...

Page 268: ...the periodic interest rate to the effective annual rate then rounding the result to one decimal place With the periodic interest rate in the display and in the i register and the payment mode set to End the effective annual rate can be calculated by pressing ÞP then keying in the number of compounding periods per year and pressing w0 M Pressing f1 will then display the rounded APR Bond Calculation...

Page 269: ... Clears contents of displayed X register to zero page 19 Arithmetic z Arithm etic operators page 21 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 27 Also used to perform storage register arithmetic page 29 Recall Followed by number key decimal point and number key or top row financial ...

Page 270: ...resent value of up to 80 uneven cash flows and initial investment using values stored with J K and a page 73 L Calculates the internal rate of return yield for up to 80 uneven cash flows and initial investment using values stored with J K and a page 78 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 cash flo...

Page 271: ...lator to algebraic ALG mode page 19 Mathematics r Computes square root of number in displayed X register page 100 q Raises number in Y register to power of number in X register page 102 y Computes reciprocal of number in displayed X register page 100 e Computes factorial n n 1 3 2 1 of number in displayed X register page 100 Natural antilogarithm Raises e approximately 2 718281828 to power of numb...

Page 272: ...ram memory Display shows program memory line number and the keycode keyboard row and location in row 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 In Program mode only the following keys are active they cannot be recorded in program memory CLEARÎ Clear program Clears program memory to all i000 i...

Page 273: ...culator to that line in program memory No instructions are executed page 125 Ç 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 114 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 274: ... low 13 16 259 Battery installing 260 BEGIN status indicator 47 Black Scholes formula for valuing European options 194 254 Bonds 82 83 217 25 253 268 Bonds 30 360 day basis 217 21 Bonds annual coupon 222 Bonds corporate 82 Bonds municipal 82 Bonds U S Treasury 82 Branching 125 38 144 Branching adding instructions by 144 48 Branching conditional 129 30 Branching simple 125 C 74 76 73 74 76 79 17 21...

Page 275: ...reciation 84 171 91 254 56 Depreciation declining balance 176 Depreciation excess 191 Depreciation partial year 171 91 Depreciation sum of the years digits 180 Depreciation with crossover 184 91 Digit entry recovering from errors in 92 Digit entry termination of 21 229 Discounted cashflow analysis 72 Display 87 Display format mantissa 89 Display format standard 88 Display formats number 87 Display...

Page 276: ... 97 Logarithm 100 Looping 125 Low power indicator 16 M 37 113 Mantissa 18 89 Mantissa Display Format 89 Mean 94 Mean weighted 99 memory 27 Memory program 112 Modes alegebraic 20 RPN 20 Modified internal rate of return 192 Mortgage price of 159 Mortgage yield of 161 Multiple programs 149 N 41 49 100 231 75 79 80 72 73 Negative numbers 17 238 Net amount 33 Net present value 72 Net present value calc...

Page 277: ...Program interrupting 117 Program running 106 153 Program running one line at a time 112 Program stopping 117 122 Program storing 149 Programming 104 Programs multiple 149 PV 45 R 42 69 230 106 117 122 17 21 27 41 108 230 19 42 88 100 231 Reciprocal 100 registers 27 Registers financial 41 Registers statistics 93 Renting versus Buying 163 Residual 209 Round 100 Rounding 87 RPN mode 20 23 228 Running...

Page 278: ... name hp 12c pt_user s guide_English_HDPMF123E27 Page 278 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm X 40 42 69 82 90 94 96 125 129 230 100 231 94 230 97 230 99 125 129 Y 13 82 83 97 230 102 231 230 Yield 206 212 ...

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