HP 113394 User Guide - Page 13

Making Financial Calculations Easy 13 Note: A battery symbol ( ) shown in the upper-left corner of the display when the calculator is on signifies that the available battery power is nearly exhausted. To install new batteries, refer to Appendix F. The calendar functions and nearly all of the financial functions take some time to produce an answer. (This is typically just a few seconds, but the¼, !, L, and S functions could require a half-minute or more.) During these calculations, the word running flashes in the display to let you know that the calculator is running. Keystrokes fCLEARHf2 Display 0.00 Clears previous data inside the calculator and sets display 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 from now. Let's say that she has a paid-up $5,000 insurance policy that pays 5.35%, compounded annually. How much would it be worth by the time she enters college? In this example, we need to calculate FV, the future value. Keystrokes Display fCLEARG -21,396.61 Clears previous financial data inside the calculator. 14n 14.00 Stores the number of compounding periods. 5.35¼ 5.35 Stores the periodic interest rate. 5000Þ$ -5,000.00 Stores the present value of the policy. * Don't be concerned now about the minus sign in the display. That and other details will be explained in Section 3. File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 13 of 275 Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm