Interest Rate Conversion - HP 10bII+ Quick Start Manual

Interest Rate Conversion

To convert between nominal and effective interest rates, enter the known rate and
the number of periods per year, then solve for the unknown rate.
Table 1- 1 9 Keys for interest rate conversion
Keys
\Ó
\Ð
\Í
Find the annual effective interest rate of 10% nominal interest compounded
monthly.
Table 1-20 Calculating the interest rate
Keys
J:\Ó
JG\Í
\Ð
For more information on interest rate conversions, refer to the section titled,
Interest Rate Conversions in chapter 6, Time Value of Money Calculations in the
HP 10bII+ Financial Calculator User's Guide.
Description
Nominal interest percent.
Effective interest percent.
Periods per year.
Display Description
10.00 Enters nominal rate.
12.00 Enters payments per
year.
10.47 Calculates annual
effective interest.
Getting Started 17