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HP -22S Owner's Manual Page 133

Scientific calculator.
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There are two compounding methods and two corresponding
equations:
• Periodic compounding; for example, quarterly, monthly, or daily
compounding.
E=«1+N~(100xP))AP-l)X100
• Continuous compounding.
where
E
N
P
E=(EXP(N~100)-1)x100
the effective percentage interest rate.
the nominal percentage interest rate.
the number of compounding periods per year.
Entering the Equations. Press
.1
EQUATIONS I,
then
W
(if
necessary)
until the HP-22S displays
TYPE NEW EQN.
Type the periodic com-
pounding equation and press
1
INPUT I.
Press
W,
type the continuous
compounding equation
(~types
A,
0
types
EXP<),
and press
1
INPUT I.
Example: Interest Rate Conversions. You are considering opening
a savings account in one of three banks. Which bank has the most
favorable interest rate to you?
Bank #1
6.7% annual interest, compounded quarterly
Bank #2
6.66% annual interest, compounded monthly
Bank #3
6.65% annual interest, compounded continuously
Press
.1
EQUATIONS I
and display the periodic compounding equation.
Then:
Keys:
Display:
Description:
1
EVALI
N?value
Prompts for N.
6.7
1
INPUT I
P?value
Stores N, prompts for
P.
41
INPUT I
E=6.8702
Calculates E for bank
#1.
1
EVALI
N?6.7000
Prompts for N.
8: Additional Examples
133

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