HP 113394 User Guide - Page 268

268 Appendix G: United Kingdom Calculations Annual Percentage Rate (APR) Calculations In the United Kingdom, the calculation of the Annual Percentage Rate of Charge (APR) in accordance with the United Kingdom Consumer Credit Act (1974) differs from the calculation of the APR in the United States. Unlike the practice in the United States, where the APR can be calculated by multiplying the periodic interest rate by the number of periods per year, in the United Kingdom the APR is calculated by converting 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 Calculations Solutions for the price and yield to maturity of United Kingdom bonds are not included in this handbook. Actual practice differs according to the type of bond; variations such as cumulative and ex-dividend pricing, simple or compound interest discounting, etc., may be encountered. Application Notes covering such situations may be available in the United Kingdom; check with your local authorized Hewlett-Packard dealer. File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 268 of 275 Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm