Solving For Yield - HP 12C Platinum Owner's Handbook Manual

Example 1: A copier worth $22,000 is to be leased for 48 months. The lessee
has agreed to make 4 payments in advance, with a purchase option at the end of
48 months enabling him to buy the copier for 30% of the purchase price. What
monthly payment is necessary to yield the lessor 15% annually:
Keystrokes (RPN mode)
48?0
15\
12z?1
22000?2
30b?3
4?4t
Example 2: Using the information from example 1, what would the monthly
payments be if the lessor desired a yield of 18% annually?
Keystrokes (RPN mode)
18\12z
?1t

Solving For Yield

Solving for yield is essentially the same as solving for Internal Rate of Return
(IRR). The keystrokes are as follows:
1. Press fCLEARH.
2. Key in the amount of the first cash flow then press gJ. This initial
amount is the difference between the initial loan amount and any payments
received at closing time. Observe the sign convention: positive for cash
received and negative for cash paid out.
3. Key in the amount of the first cash flow then press gK. Then key in
the number of times that cash flow occurs then press ga.
Section 14: Leasing
Display
Monthly interest rate.
1.25
Monthly payment received by
487.29
lessor.
Display
From previous example.
487.29
Monthly interest rate.
1.50
Monthly payment received by
520.81
lessor.
155