HP 113394 User Guide - Page 202

Section 14 Leasing Advance Payments Situations may exist where payments are made in advance (leasing is a good example). These agreements call for extra payments to be made when the transaction is closed. This first procedure finds the periodic payment amount necessary to achieve a desired yield when a number of payments are made in advance. And, given the periodic payment, the second procedure calculates the periodic yield. Solving for Payment To calculate the payment, information is entered as follows: 1. Press g 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 ¼. 5. Press 1ÞP$:0+. 6. Key in the initial loan amount then press ~z, to obtain the periodic payment to be received by the lessor. ALG Mode: 2. Key in the total number of payments in the lease. 3. Key in the total number of payments made in advance then press -?0n. 4. Key in or calculate the periodic interest rate as a percentage then press ¼. 5. Press 1ÞP$+:0³. 6. Key in the initial loan amount then press z~³, to obtain the periodic payment to be received by the lessor. 202 File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 202 of 275 Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm