HP 12C Platinum Owner's Handbook Manual page 11
And problem-solving guide
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Also See for 12C Platinum:
- User manual (288 pages) ,
- Reference manual (168 pages) ,
- Solutions handbook (166 pages)
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12
Making Financial Calculations Easy
The calendar functions and nearly all of the financial functions take some
time to produce an answer. (This is typically just a few seconds, but the
¼, !, L, and S functions could require a half-minute or more.)
During these calculations, the word running flashes in the display to let
you know that the calculator is running.
Keystrokes
fCLEARHf2
4gA
6gC
500P
g×
$
a
Don't be concerned now about the minus sign in the display. That and other details will
be explained in Section 3.
Example 2: We now need to determine how to accumulate the required deposit
by the time your daughter enters college 14 years from now. Let's say that she
has a paid-up $5,000 insurance policy that pays 5.35% annually, compounded
semiannually. How much would it be worth by the time she enters college?
In this example, we need to calculate FV, the future value.
Keystrokes (RPN mode) Display
fCLEARG
14\2§w
5.35\2z¼
5000Þ$
M
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
Display
Clears previous data inside the
0.00
calculator and sets display to show
two decimal places.
Calculates and stores the number of
48.00
compounding periods.
Calculates and stores the periodic
0.50
interest rate.
Stores periodic payment amount.
500.00
Sets payment mode to Begin.
500.00
Amount required to be deposited.
–21,396.61
Clears previous financial data
–21,396.61
inside the calculator.
Calculates and stores the number of
28.00
compounding periods.
Calculates and stores the periodic
2.68
interest rate.
Stores the present value of the
–5000.00
policy.
Value of policy in 14 years.
10,470.85
a
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