HP 12c Solutions Handbook page 154

Compounding Periods Different From Payment Periods
• C = number of compounding periods per year.
• P = number of payments periods per year.
• i = periodic interest rate, expressed as a percentage.
• r = i / 100, periodic interest rate expressed as a decimal.
• i = ((1 + r / C)
PMT
Investment Analysis
Lease vs. Purchase
• PMT = loan payment for purchase.
p
• PMT = lease payment.
L
• I = interest portion of PMT
n
• D = depreciation for period n.
n
• M = maintenance for period n.
n
• T = marginal tax rate.
•
Net purchasing advantage =
• Cost of owning(n) = PMT
Break-Even Analysis and Operating Leverage
• GP = Gross Profit.
• P = Price per unit.
• V = Variable costs per unit.
• F = Fixed costs.
• U = number of Units.
• OL = Operating Leverage.
• GP = U(P - V) - F
•
U P V
OL = -------------------------------- -
U P V
C/P
- 1)100
p
k
∑
cos
---------------------------------------------------------------------------------------------------------- -
n = 1
- T(I
p
–
F
– –
for period n.
cost of leasing (n) - cost of owning (n)
tjfdisafsdakflsafsa f xk
1
+ D ) + (1 - T)M
n n
153
F DSAFF
,
n
+ i
n