HP HP12C hp 12c_user's guide_English_E_HDPMBF12E44.pdf - Page 160

Section 15 Savings Nominal Rate Converted to Effective Rate Given a nominal interest rate and the number of compounding periods per year, this keystroke procedure computes the effective annual interest rate. 1. Press g and fCLEARG. 2. Key in the annual nominal rate as a percentage, then press \. 3. Key in the number of compounding periods per year, then press nz¼. 4. Key in 100 then press Þ\$. 5. Press M+ to obtain the effective annual interest rate. Example 1: What is the effective annual interest rate if the annual nominal rate of 51/4% is compounded quarterly? Keystrokes Display g fCLEARG 5.25\ 5.25 Nominal rate. 4nz¼ 1.31 Percent quarterly interest rate. 100Þ\ $M+ 5.35 Percent effective interest rate. For repeated calculations, the following hp 12c program can be used: KEYSTROKES DISPLAY KEYSTROKES DISPLAY fs 0 07- 0 fCLEARÎ 00- 0 08- 0 g 01- 43 8 Þ 09- 16 fCLEARG 02- 42 34 \ 10- 36 n 03- 11 $ 11- 13 z 04- 10 M 12- 15 ¼ 05- 12 + 13- 40 1 06- 1 fs 160 File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 160 of 209 Dimension: 14.8 cm x 21 cm