HP HP12C hp 12c_user's guide_English_E_HDPMBF12E44.pdf - Page 161

Section 15: Savings 161 n: # Periods. FV: Eff. Rate REGISTERS i: Nom. Rate/n PV: 0 R0-R.9: Unused PMT: Used. 1. Key in the program. 2. Key in the annual nominal rate as a percentage then press \. 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 51/4% is compounded monthly? Keystrokes Display 5.25\ 12t 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 \$. 4. Key in the effective annual rate as a percentage then press +ÞM¼. 5. Press :n§ to obtain the annual nominal rate. Example: Find the nominal rate if the effective annual rate is 5.35% compounded quarterly. Keystrokes Display fCLEARG 4n100\$ 5.35+Þ M¼ :n§ 100.00 -105.35 1.31 5.25 Percent nominal interest rate. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 161 of 209 Dimension: 14.8 cm x 21 cm