HP HP12C hp 12c_user's guide_English_E_HDPMBF12E44.pdf - Page 13

Making Financial Calculations Easy 13 Example 3: The preceding example showed that the insurance policy will provide about half the required amount. An additional amount must be set aside to provide the balance (21,396.61 - 10,470.85 = 10,925.76). Suppose you make monthly payments, beginning at the end of next month, into an account that pays 6% annually, compounded monthly. What payment amount would be required in order to accumulate $10,925.75 in the 14 years remaining? Keystrokes Display fCLEARG 10,470.85 Clears previous financial data inside the calculator. 14gA 168.00 Calculates and stores the number of compounding periods. 6gC 0.50 Calculates and stores the periodic interest rate. 10925.76M 10.925.76 Stores the future value required. g 10.925.76 Sets payment mode to End. P -41.65 Monthly payment required. Example 4: Suppose you cannot find a bank that currently offers an account with 6% annual interest compounded monthly, but you can afford to make $45.00 monthly payments. What is the minimum interest rate that will enable you to accumulate the required amount? In this problem, we do not need to clear the previous financial data inside the calculator, since most of it is unchanged from the preceding example. Keystrokes Display 45ÞP -45.00 Stores payment amount. ¼ 0.42 Periodic interest rate. 12§ 5.01 Annual interest rate. This is only a small sampling of the many financial calculations that can now be done easily with your hp 12c. To begin learning about this powerful financial tool, just turn the page. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 13 of 209 Dimension: 14.8 cm x 21 cm