HP 113394 User Guide - Page 215

Section 15: Savings 215 1. Key in the program. 2. RPN: Key in the annual nominal rate as a percentage then press \. 2. ALG: Key in the annual nominal rate as a percentage then press ³. 3. Key in the number of compounding periods per year then press t to obtain the effective annual interest rate. 4. For a new case return to step 2. Example 2: What is the effective annual rate of interest if the annual nominal rate of 5.25% is compounded monthly? Keystrokes (RPN mode) 5.25\ 12t Keystrokes (ALG mode) 5.25³ 12t Display 5.25 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 year then press n. 3. Key in 100 then press $. RPN Mode: 4. Key in the effective annual rate as a percentage then press +ÞM¼. 5. Press :n§ to obtain the annual nominal rate. ALG Mode: 4. Press +. Key in the effective annual rate as a percentage then press ³ÞM¼. 5. Press §:n³ to obtain the annual nominal rate. File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 215 of 275 Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm