Interest Rate Conversions; Cash Flow Calculations - HP -18C Owner's Manual

Interest Rate Conversions
Periodic compounding
EFF%
=
[(1
+
NOM%)P - 1] x 100
100 x
P
Continuous compounding
lOa
(
NOM% )
EFF%
=
e - 1 x 100
Cash Flow Calculations
j
=
the group number of the cash flow.
CF
j
=
amount of the cash flow for group j.
nj
=
#TIMES the cash flow occurs for group j.
k
=
the group number of the last group of cash flows.
N
=
J
L
n[
=
total number of cash flows prior to group j
1,,;; I
<j
k
NPV
=
CFo
+
L
(CFj
x USPV
(i%:n
j )
x SPPV
(i%:N
j ))
j
~ 1
When NPV
=
0, the solution for
i%
is IRR%.
NFV
=
NPV x SPFV
(i%:N)
where N
NUS
TOTAL
NPV
USPV
(i%:N)
k
L
(nj
x
CF j )
j~O
k
L
n
j
~
1
J
B: More About HP-18C Calculations 181