Advance Payments With Residual; Solving For Payment - HP 12C Platinum Owner's Handbook Manual

n: n–#Adv. i: i
Pmts.
FV: 0 R : n
0
R : Loan R
–
3 4
1. Key in the program.
2. Key in the total number of payments in the lease then press ?0.
3. Key in the total number of payments made in advance then press ?1.
4. Key in the periodic payment to be received then press ?2.
5. Key in the total amount of the loan, then press ?3; then press t to
obtain the periodic yield.
6. For a new case, return to step 2. The values changed from the previous
case are the only values which need to be re-entered.
Example 2: Using the program, solve for yield using the same information given
in example 1. Then change the payment to $625 and solve for the yield.
Keystrokes (RPN mode)
60?0
3?1
600?2
25000?3t
625?2t

Advance Payments With Residual

Situations may arise where a transaction has advance payments and a residual
value (salvage value) at the end of the normal term.

Solving for Payment

The following program solves for the periodic payment amount necessary to
achieve a desired yield.
REGISTERS
PV: Used
R : Adv. Pmts.
1
R : Unused
.7
Display
Number of payments.
60.00
Number of advance payments.
3.00
Periodic payment.
600.00
Annual yield (as a percentage).
17.33
Annual yield (as a percentage)
19.48
when PMT is increased $25.
Section 14: Leasing 153
PMT: Pmt.
R : Pmt.
2