Effective Rate Converted To Nominal Rate - HP 12C Platinum Owner's Handbook Manual

158 Section 15: Savings
KEYSTROKES
(RPN mode)
¼
005,
1
006,
n: # Periods. i: Nom. Rate/n
FV: Eff. Rate R –R.
0
1. Key in the program.
2. Key in the annual nominal rate as a percentage then press \.
3. Key in the number of compounding periods per year then press t to
obtain the effective annual interest rate.
4. For a new case return to step 2.
Example 2: What is the effective annual rate of interest if the annual nominal
rate of 5¼% is compounded monthly?
Keystrokes (RPN mode)
5.25\
12t

Effective Rate Converted to Nominal Rate

Given an effective interest rate and the number of compounding periods per year,
this routine calculates the nominal interest rate.
1. Press fCLEARG.
2. Key in the number of periods per year then press n.
3. Key in 100 then press \$.
4. Key in the effective annual rate as a percentage then press +ÞM¼.
5. Press :n§ to obtain the annual nominal rate.
Example: Find the nominal rate if the effective annual rate is 5.35%
compounded quarterly.
Keystrokes (RPN mode)
fCLEARG
4n100\$
5.35+Þ
KEYSTROKES
DISPLAY
(RPN mode)
fs
12
1
REGISTERS
PV: 0
: Unused
9
Display
Percent effective interest rate.
5.38
Display
100.00
–105.35
DISPLAY
PMT: Used.