HP HP12C hp 12c_user's guide_English_E_HDPMBF12E44.pdf - Page 151
Leasing
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Section 14 Leasing Advance Payments Situations may exist where payments are made in advance (leasing is a good example). These agreements call for extra payments to be made when the transaction is closed. This first procedure finds the periodic payment amount necessary to achieve a desired yield when a number of payments are made in advance. And, given the periodic payment, the second procedure calculates the periodic yield. Solving For Payment To calculate the payment, information is entered as follows: 1. Press g and fCLEARG. 2. Key in the total number of payments in the lease then press \. 3. Key in the total number of payments made in advance then press ?0-n. 4. Key in or calculate the periodic interest rate as a percentage then press ¼. 5. Press 1Þ$:0+. 6. Key in the initial loan amount then press ~z, to obtain the periodic payment to be received by the lessor. Example 1: Equipment worth $750 is leased for 12 months. The equipment is assumed to have no salvage value at the end of the lease. The lessee has agreed to make three payments at the time of closing. What monthly payment is necessary to yield the lessor 10% annually? Keystrokes g fCLEARG 12\ 3?0-n 10gC 1ÞP $:0+ 750~z Display 12.00 9.00 0.83 -1.00 11.64 64.45 Duration of lease. Number of periodic payments. Monthly payment to be received. 151 File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 151 of 209 Dimension: 14.8 cm x 21 cm