HP 113394 User Guide - Page 43

Section 3: Basic Financial Functions 43 Example 1: Your good friend needs a loan to start his latest enterprise and has requested that you lend him $450 for 60 days. You lend him the money at 7% simple interest, to be calculated on a 360-day basis. What is the amount of accrued interest he will owe you in 60 days, and what is the total amount owed? Keystrokes (RPN mode) Display 60n 60.00 Stores the number of days. 7¼ 7.00 Stores the annual interest rate. 450Þ$ fÏ + -450.00 5.25 455.25 Stores the principal. Accrued interest, 360-day basis. Total amount: principal plus accrued interest. In ALG 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 days, and what is the total amount owed? Keystrokes (RPN mode) Display 60n 7¼ 450Þ$ fÏd~ + 60.00 7.00 -450.00 5.18 455.18 If you have not altered the numbers in the n, i, and PV registers since the preceding example, you may skip these keystrokes. Accrued interest, 365-day basis. Total amount: principal plus accrued interest. In ALG mode, perform the steps in the RPN listing above, except replace the last step with the step below. Keystrokes (ALG mode) Display +~} 455.18 Total amount: principal plus accrued interest. File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 43 of 275 Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm