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HP 12C Platinum User Manual

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HP 12c Platinum Financial Calculator
User's guide
H
Edition 5
HP part number F2231AA-90001

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Table of Contents

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  • Page 1 HP 12c Platinum Financial Calculator User's guide Edition 5 HP part number F2231AA-90001...
  • Page 2 Notice REGISTER YOUR PRODUCT AT: www.register.hp.com THIS MANUAL AND ANY EXAMPLES CONTAINED HEREIN ARE PROVIDED “AS IS” AND ARE SUBJECT TO CHANGE WITHOUT NOTICE. HEWLETT-PACKARD COMPANY MAKES NO WARRANTY OF ANY KIND WITH REGARD TO THIS MANUAL, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE.
  • Page 3: Introduction

    Introduction About This Handbook This HP 12c Platinum user's guide is intended to help you get the most out of your investment in your HP 12c Platinum Programmable Financial Calculator. Although the excitement of acquiring this powerful financial tool may prompt you to set this handbook aside and immediately begin “pressing buttons,”...
  • Page 4: Financial Calculations In The United Kingdom

    For More Solutions to Financial Problems In addition to the specialized solutions found in Sections 12 through 16 of this handbook, many more are available in the optional HP 12c Platinum Solutions Handbook. Included are solutions to problems in lending, forecasting, pricing, statistics, savings, investment analysis, personal finance, securities, Canadian mortgages, learning curves in manufacturing, options pricing, and queuing theory.
  • Page 5: Table Of Contents

    Contents Introduction................3 About This Handbook ..............3 Financial Calculations in the United Kingdom........4 For More Solutions to Financial Problems...........4 Problem Solving..........15 Part I: Section 1: Getting Started............16 Power On and Off................ 16 Low-Power Indication.............. 16 Adjusting the Display Contrast..........16 The Keyboard ................
  • Page 6 Contents Percent of Total in ALG Mode ..........36 Calendar Functions ..............37 Date Format ................. 37 Future or Past Dates............... 38 Number of Days Between Dates ..........40 Section 3: Basic Financial Functions..........41 The Financial Registers ..............41 Storing Numbers into the Financial Registers ......41 Displaying Numbers in the Financial Registers ......41 Clearing the Financial Registers ..........
  • Page 7 Contents Status Indicators ..............86 Number Display Formats ............87 Scientific Notation Display Format ...........88 Special Displays ..............89 Key in RPN Mode............90 Key in RPN Mode ............90 Arithmetic Calculations With Constants ........91 Recovering From Errors in Digit Entry........91 Section 6: Statistics Functions .............
  • Page 8 Contents Looping..................128 Conditional Branching ..............131 Section 10: Program Editing ............141 Changing the Instruction in a Program Line ........141 Adding Instructions at the End of a Program........142 Adding Instructions within a Program ..........144 Adding Instructions by Replacement ........144 Adding Instructions by Branching ...........146 Section 11: Multiple Programs............
  • Page 9 Contents Section 15: Savings..............217 Nominal Rate Converted to Effective Rate ........217 Effective Rate Converted to Nominal Rate ........219 Continuous Rate Converted to Effective Rate........220 Section 16: Bonds ..............221 30/360 Day Basis Bonds ............221 Annual Coupon Bonds ..............226 Appendices ...............
  • Page 10 Contents Error 2: Statistics................. 251 Error 3: IRR................251 Error 4: Memory ................ 251 Error 5: Compound Interest ............252 Error 6: Storage Registers ............253 Error 7: IRR ................253 Error 8: Calendar ..............254 Error 9: Service ................. 254 Pr Error ..................254 Appendix E: Formulas Used..........255 Percentage.................255 Interest ..................255...
  • Page 11 Installing a New Batteries .............264 Verifying Proper Operation (Self-Tests)...........266 Perchlorate Material – special handling may apply......267 HP Limited Hardware Warranty and Customer Care .......268 Customer Care................269 Regulatory Information ..............272 Disposal of Waste Equipment by Users in Private Household in the European Union .................
  • Page 12 To begin, turn the calculator on by pressing the ; key. Then, press the keys shown in the Keystrokes column below. If you are not familiar with the use of an hp calculator keyboard, refer to the description on pages 16 and 17.
  • Page 13 Making Financial Calculations Easy Note: A battery symbol ( ) shown in the upper-left corner of the display when the calculator is on signifies that the available battery power is nearly exhausted. To install new batteries, refer to Appendix F. The calendar functions and nearly all of the financial functions take some time to produce an answer.
  • Page 14 ¼ 0.43 Annual interest rate. 5.13 This is only a small sampling of the many financial calculations that can now be done easily with your hp 12c platinum. To begin learning about this powerful financial tool, just turn the page.
  • Page 15: Part I: Problem Solving

    Part I Problem Solving...
  • Page 16: Getting Started

    + or -. The Keyboard Many keys on the hp 12c platinum perform two or even three functions. The primary function of a key is indicated by the characters printed in white on the upper face of the key. The alternate function(s) of a key are indicated by the characters printed in gold above the key and the characters printed in blue on the lower face of the key.
  • Page 17: Keying In Numbers

    Section 1: Getting Started Throughout this handbook, references to the functions shown on the keyboard in gold under the bracket labeled “ CLEAR” appear throughout this handbook preceded by the word “CLEAR” (for example, “The CLEARH function …” or “Pressing fCLEARH …”).
  • Page 18: Keying In Large Numbers

    Section 1: Getting Started Keying in Large Numbers Since the display cannot show more than 10 digits of a number, numbers greater than 9,999,999,999 cannot be entered into the display by keying in all the digits in the number. However, such numbers can be easily entered into the display if the number is expressed in a mathematical shorthand called “scientific notation.”...
  • Page 19: The Clear Keys

    Clearing a register or the display replaces the number in it with zero. Clearing program memory replaces the instructions there with gi000. There are several clearing operations on the hp 12c platinum, as shown in the table below: Key(s) Clears: Display and X-register.
  • Page 20: Undo Operation

    Section 1: Getting Started Undo Operation Every time press gÚ, fCLEARH, fCLEAR² fCLEARG key to clear data, the status indicator appears in the display. This means you can press gß to undo the last operation (i.e., to recover the data.) Note: the Undo function is only available immediately after data has been cleared.
  • Page 21: Simple Arithmetic Calculations In Rpn Mode

    In RPN mode, any simple arithmetic calculation involves two numbers and an operation — addition, subtraction, multiplication, or division. To do such a calculation on your hp 12c platinum, you first tell the calculator the two numbers, then tell the calculator the operation to be performed. The answer is calculated when the operation key (+,-,§, or z) is pressed.
  • Page 22: Simple Arithmetic Calculations In Alg Mode

    In ALG mode, any simple arithmetic calculation involves two numbers and an operation — addition, subtraction, multiplication, or division. To do such a calculation on your hp 12c platinum, you tell the calculator the first number, then the operation to be performed, and then tell the calculator the second number. The answer is calculated when the equals key (}) is pressed.
  • Page 23: Chain Calculations In Rpn Mode

    The hp 12c platinum is designed so that each time you press a function key in RPN mode, the calculator performs the operation then — not later — so that you see the results of all intermediate calculations, as well as the “bottom line.”...
  • Page 24 The preceding example demonstrates how the hp 12c platinum calculates just as you would using pencil and paper (except a lot faster!): Let’s see this happening in a different type of calculation — one that involves multiplying groups of two numbers and then adding the results.
  • Page 25 5 and the 6 in step 2, the calculator was holding two numbers (12 and 5) inside for you, in addition to the 6 in the display. (The hp 12c platinum can hold a total of three numbers inside, in addition to the number in the display.) After step 2, the calculator was still holding the 12 inside for you, in addition to the 30 in the display.
  • Page 26: Chain Calculations In Alg Mode

    Section 1: Getting Started Chain Calculations in ALG Mode To do a chain calculation, you don’t need to press } after each operation, but only at the very end. For instance, to calculate you can enter either: 750 § 12 } z 360 } or 750 §...
  • Page 27: Storage Registers

    − Storage Registers Numbers (data) in the hp 12c platinum are stored in memories called “storage registers” or simply “registers.” (The singular term “ memory” is sometimes used in this handbook to refer to the entire collection of storage registers.) Four special registers are used for storing numbers during calculations (these “stack registers”...
  • Page 28 Section 1: Getting Started Example: Before you leave to call on a customer interested in your personal computer, you store the cost of the computer ($1,250) and also the cost of a printer ($500) in data storage registers. Later, the customer decides to buy six computers and one printer.
  • Page 29: Clearing Storage Registers

    Suppose you wanted to perform an arithmetic operation with the number in the display and the number in a storage register, then store the result back into the same register without altering the number in the display. The hp 12c platinum enables you to do all this in a single operation: 1.
  • Page 30 Section 1: Getting Started Keystrokes Display 22.95?-0 Subtracts the first check from the 22.95 balance in R . Note that the display continues to show the amount subtracted; the answer is placed only in R 13.7?-0 Subtracts the second check. 13.70 10.14?-0 Subtracts the third check.
  • Page 31: Percentage And Calendar Functions

    Functions Percentage Functions The hp 12c platinum includes three keys for solving percentage problems: b, à, and Z. You don’t need to convert percentages to their decimal equivalents; this is done automatically when you press any of these keys. Thus, 4% need not be changed to 0.04;...
  • Page 32: Percentages In Alg Mode

    Section 2: Percentage and Calendar Functions Percentages in ALG Mode In ALG mode, to find the amount corresponding to a percentage of a number: 1. Key in the base number. 2. Press §. 3. Key in the percentage. 4. Press b. 5.
  • Page 33: Net Amount In Rpn Mode

    A net amount — that is, the base amount plus or minus the percentage amount — can be calculated easily with your hp 12c platinum, since the calculator holds the base amount inside after you calculate a percentage amount. To calculate a net amount, simply calculate the percentage amount, then press = or -.
  • Page 34: Percent Difference

    If the base number entered is the wholesale cost, the percent difference is called the markup; if the base number entered is the retail cost, the percent difference is called the margin. Examples of markup and margin calculations are included in the hp 12c platinum Solutions Handbook.
  • Page 35: Percent Of Total In Rpn Mode

    Europe had nearly 30% of the total 29.69 sales. In RPN mode, the hp 12c platinum holds the total amount inside after a percent of total is calculated. Therefore, to calculate what percentage another amount is of the total: 1. Clear the display by pressing O.
  • Page 36: Percent Of Total In Alg Mode

    Section 2: Percentage and Calendar Functions To find what percentage a number is of a total, when you already know the total number: 1. Key in the total number. 2. Press \ to separate the other number from the total number. 3.
  • Page 37: Calendar Functions

    Calendar Functions The calendar functions provided by the hp 12c platinum — gD and gÒ — can handle dates from October 15, 1582 through November 25, 4046. These calendar functions work the same in both RPN and ALG modes.
  • Page 38: Future Or Past Dates

    Section 2: Percentage and Calendar Functions Dates are displayed in the same format. For example, to key in April 7, 2004: Keystrokes Display 4.072004 4.072004 Day-Month-Year. To set the date format to day-month-year, press gÔ. To key in a date with this format in effect: 1.
  • Page 39 Section 2: Percentage and Calendar Functions Example: If you purchased a 120-day option on a piece of land on 14 May 2004, what would be the expiration date ? Assume that you normally express dates in the day-month-year format. Keystrokes Display Sets date format to gÔ...
  • Page 40: Number Of Days Between Dates

    (the extra days occurring in leap years), if any. In addition, the hp 12c platinum also calculates the number of days between the two dates on the basis of a 30-day month. This answer is held inside the calculator; to display it, press ~.
  • Page 41: Basic Financial Functions

    Basic Financial Functions The Financial Registers In addition to the data storage registers discussed on page 27, the hp 12c platinum has five special registers in which numbers are stored for financial calculations. These registers are designated n, i, PV, PMT, and FV. The first five...
  • Page 42: Clearing The Financial Registers

    Continuous Memory is reset (as described on page 86). Simple Interest Calculations The hp 12c platinum simultaneously calculates simple interest on both a 360-day basis and a 365-day basis. You can display either one, as described below. Furthermore, with the accrued interest in the display, you can calculate the total amount (principal plus accrued interest) by pressing + in RPN mode or +~} in ALG mode.
  • Page 43 Section 3: Basic Financial Functions Example 1: Your good friend needs a loan to start his latest enterprise and has requested that you lend him $450 for 60 days. You lend him the money at 7% simple interest, to be calculated on a 360-day basis. What is the amount of accrued interest he will owe you in 60 days, and what is the total amount owed ? Keystrokes Display...
  • Page 44: Financial Calculations And The Cash Flow Diagram

    Section 3: Basic Financial Functions Financial Calculations and the Cash Flow Diagram The concepts and examples presented in this section are representative of a wide range of financial calculations. If your specific problem does not appear to be illustrated in the pages that follow, don’t assume that the calculator is not capable of solving it.
  • Page 45 Discounted Cash Flow Analysis: NPV and IRR. Procedures for calculating the balance in a savings account after a series of irregular and/or unequal deposits are included in the hp 12c platinum Solutions Handbook.)
  • Page 46: The Cash Flow Sign Convention

    Section 3: Basic Financial Functions FV — the future value — is the final cash flow or the compounded value of a series of prior cash flows. In the particular problem illustrated above, FV is unknown (but can be calculated). Solving the problem is now basically a matter of keying in the quantities identified in the cash flow diagram using the corresponding keys, and then calculating the unknown quantity by pressing the corresponding key.
  • Page 47: Generalized Cash Flow Diagrams

    Section 3: Basic Financial Functions The BEGIN status indicator is lit when the payment mode is set to Begin. If BEGIN is not lit, the payment mode is set to End. The payment mode remains set to what you last specified until you change it; it is not reset each time the calculator is turned on.
  • Page 48 Section 3: Basic Financial Functions...
  • Page 49: Compound Interest Calculations

    Section 3: Basic Financial Functions Compound Interest Calculations Specifying the Number of Compounding Periods and the Periodic Interest Rate Interest rates are usually quoted at the annual rate (also called the nominal rate): that is, the interest rate per year. However, in compound interest problems, the interest rate entered into i must always be expressed in terms of the basic compounding period, which may be years, months, days, or any other time unit.
  • Page 50 Section 3: Basic Financial Functions If the answer calculated is not an integer (that is, there would be nonzero digits to the right of the decimal point), the calculator rounds the answer up to the next higher integer before storing it in the n register and displaying it. For example, if n were calculated as 318.15, 319.00 would be the displayed answer.
  • Page 51 Section 3: Basic Financial Functions Keystrokes Display (RPN mode) Number of payments required. 328.00 Twenty-seven years and four months. 27.33 In ALG mode, perform the RPN steps but replace the last step with the step below. Keystrokes Display (ALG mode) Twenty-seven years and four months.
  • Page 52 Section 3: Basic Financial Functions Keystrokes Display (ALG mode) Recalls payment amount. –325.00 Final, fractional payment. –143.11 Alternatively, you could make the fractional payment together with the 327th payment. (Doing so will result in a somewhat smaller total of all payments, since you will not have to pay interest during the 328th payment period.) You can calculate this final, larger, 327th payment (essentially a balloon payment) as follows:...
  • Page 53 Section 3: Basic Financial Functions Example 2: You’re opening a savings account today (the middle of the month) with a $775 deposit. The account pays 6.25% interest compounded semimonthly. If you make semimonthly deposits of $50 beginning next month, how long will it take for your account to reach $4,000 ? Keystrokes Display...
  • Page 54 Section 3: Basic Financial Functions Keystrokes Display (ALG mode) Sets the payment mode to End. g 4,000.00 Number of semimonthly deposits. 58.00 Number of months. 29.00 As in Example 1, it is likely that only 57 full deposits will be required, the next and final deposit being less than $50.
  • Page 55: Calculating The Periodic And Annual Interest Rates

    Section 3: Basic Financial Functions Keystrokes Display (ALG mode) Calculates final, fractional, 58 4000} –22.73 deposit required to reach $4,000. Calculating the Periodic and Annual Interest Rates 1. Press fCLEARG to clear the financial registers. 2. Enter the number of payments or periods, using n or gA. 3.
  • Page 56: Calculating The Present Value

    Section 3: Basic Financial Functions Keystrokes Display (RPN mode) Periodic (quarterly) interest rate. ¼ 1.61 4§ Annual interest rate. 6.44 Keystrokes Display (ALG mode) fCLEARG 8§4w Calculates and stores n. 32.00 6000Þ$ Stores PV (with minus sign for cash –6,000.00 paid out).
  • Page 57 Section 3: Basic Financial Functions Example 1: You’re financing a new car purchase with a loan from an institution that requires 5.9% interest compounded monthly over the 4-year term of the loan. If you can make payments of $450 at the end of each month and your down payment will be $1,500, what is the maximum price you can pay for the car ? (Assume the purchase date is one month prior to the date of the first payment.) Keystrokes...
  • Page 58 Section 3: Basic Financial Functions Example 2: A development company would like to purchase a group of condominiums with an annual net cash flow of $17,500. The expected holding period is 5 years, and the estimated selling price at that time is $540,000. Calculate the maximum amount the company can pay for the condominiums in order to realize at least a 12% annual yield.
  • Page 59: Calculating The Payment Amount

    Section 3: Basic Financial Functions Calculating the Payment Amount 1. Press fCLEARG to clear the financial registers. 2. Enter the number of payments or periods, using n or gA. 3. Enter the periodic interest rate, using ¼ or gC. 4. Enter either or both of the following: Present value, using $.
  • Page 60 Section 3: Basic Financial Functions Example 2: Looking forward to retirement, you wish to accumulate $60,000 after 15 years by making deposits in an account that pays 9.75% interest compounded semiannually. You open the account with a deposit of $3,200 and intend to make semiannual deposits, beginning six months later, from your profit-sharing bonus paychecks.
  • Page 61: Calculating The Future Value

    Section 3: Basic Financial Functions Keystrokes Display (ALG mode) Semiannual payment (with minus –717.44 sign for cash paid out). Calculating the Future Value 1. Press fCLEARG to clear the financial registers. 2. Enter the number of payments or periods, using n or gA. 3.
  • Page 62 Section 3: Basic Financial Functions Keystrokes Display Sets payment mode to End. g –1,363.29 Amount of balloon payment. –222,975.98 Example 2: If you deposit $50 a month (at the beginning of each month) into a new account that pays 6.25% annual interest compounded monthly, how much will you have in the account after 2 years ? Keystrokes Display...
  • Page 63: Odd-period Calculations

    “odd first period”. For simplicity, in using the hp 12c platinum we will always regard the first period as equal to the remaining periods, and we will refer to the period between the date interest begins accruing and the beginning of the first payment period as simply the “odd period”...
  • Page 64 Section 3: Basic Financial Functions You can calculate i, PV, PMT, and FV for transactions involving an odd period simply by entering a noninteger n. (A noninteger is a number with at least one nonzero digit to the right of the decimal point.) This places the calculator in Odd-Period mode.
  • Page 65 Section 3: Basic Financial Functions The fractional part of n can be determined using either the actual number of odd days or the number of odd days counted on the basis of a 30-day month. gÒ function can be used to calculate the number of odd days either way. The fractional part of n is a fraction of a payment period, so the number of odd days must be divided by the number of days in a period.
  • Page 66 Section 3: Basic Financial Functions Keystrokes Display (RPN mode) Actual number of odd days. gÒ 15.00 Number of odd days counted on the 16.00 basis of a 30-day month. Divides by the length of a monthly 0.53 period to get the fractional part of n. 36+n Adds the fractional part of n to the 36.53...
  • Page 67 Section 3: Basic Financial Functions Example 2: A 42-month loan of $3,950 for a used car began accruing interest on July 19, 2004, so that the first period began on August 1, 2004. Payments of $120 are made at the end of each month. Calculate the annual percentage rate (APR), using the actual number of odd days and simple interest for the odd period.
  • Page 68 Section 3: Basic Financial Functions Keystrokes Display (ALG mode) 8.012004 Keys in the date of the beginning of 8.012004 the first period. gÒ Actual number of odd days. 13.00 Divides by the length of a monthly z30+ 0.43 period to get the fractional part of n. Adds the fractional part of n to the 42.43 number of complete payment...
  • Page 69: Amortization

    This rounding affects the number inside the calculator as well as how the number appears in the display. The amounts calculated on your hp 12c platinum may differ from those on the statements of lending institutions by a few cents, since different rounding techniques are sometimes used.
  • Page 70 Thus, if you now press 12f!, your hp 12c platinum will calculate the amounts applied to interest and to the principal from the second year’s payments (that is, the second 12 months):...
  • Page 71 Section 3: Basic Financial Functions Keystrokes Display Portion of first payment applied to –1,093.75 interest. Portion of first payment applied to –404.37 principal. Portion of second payment applied to –1,091.98 interest. Portion of second payment applied to –406.14 principal. Total number of payments amortized. 2.00 If you want to generate an amortization schedule but do not already know the monthly payment:...
  • Page 72: Additional Financial Functions

    Additional Financial Functions Discounted Cash Flow Analysis: NPV and IRR The hp 12c platinum provides functions for the two most widely-used methods of discounted cash flow analysis: fl (net present value) and fL (internal rate of return). These functions enable you to analyze financial problems involving cash flows (money paid out or received) occurring at regular intervals.
  • Page 73: Calculating Net Present Value (npv)

    Section 4: Additional Financial Functions If NPV is zero, the financial value of the investor’s assets would not change: the investor is indifferent toward the investment. If NPV is negative, the financial value of the investor’s assets would be decreased: the investment is not financially attractive. A comparison of the NPV’s of alternative investment possibilities indicates which of them is most desirable: the greater the NPV, the greater the increase in the financial value of the investor’s assets.
  • Page 74 Section 4: Additional Financial Functions In summary, to enter the cash flow amounts: 1. Press fCLEARH to clear the financial and storage registers. 2. Key in the amount of the initial investment, press Þ if that cash flow is negative, then press gJ. 3.
  • Page 75 Calculating for Grouped Cash Flows. A maximum of 80 cash flow amounts (in addition to the initial investment CF ) can be stored in the hp 12c platinum. However, problems involving more than 80 cash flows can be handled if among the cash flows there are equal consecutive cash flows. For such problems, you merely enter along with the amounts of the cash flows the number of times —...
  • Page 76 Section 4: Additional Financial Functions In summary, to enter the amounts of the cash flows and the number of times they occur consecutively: 1. Press fCLEARH to clear the financial and storage registers. 2. Key in the amount of the initial investment, press Þ if that cash flow is negative, then press gJ.
  • Page 77 Section 4: Additional Financial Functions Keystrokes Display Clears financial and storage fCLEARH 0.00 registers. 79000ÞgJ Initial investment (with minus sign –79,000.00 for a negative cash flow). 14000gK First cash flow amount. 14,000.00 11000gK Next cash flow amount. 11,000.00 10000gK Next cash flow amount. 10,000.00 Number of times this cash flow 3.00...
  • Page 78: Calculating Internal Rate Of Return (irr)

    Section 4: Additional Financial Functions Calculating Internal Rate of Return (IRR) 1. Enter the cash flows using either of the methods described above under Calculating Net Present Value. 2. Press fL. The calculated value of IRR appears in the display and also is automatically stored in the i register.
  • Page 79: Reviewing Cash Flow Entries

    Section 4: Additional Financial Functions Reviewing Cash Flow Entries To display a single cash flow amount, press :, then key in the number of the register containing the cash flow amount to be displayed. Alternatively, store the number of that cash flow amount (that is, the value of j for the CF desired) in the n register, then press :gK.
  • Page 80: Changing Cash Flow Entries

    Section 4: Additional Financial Functions To display all the cash flow amounts and the number of times they occur consecutively: Keystrokes Display 1.00 100,000.00 1.00 4,500.00 2.00 9,000.00 1.00 14,000.00 1.00 –79,000.00 Resets the number in the n register 7.00 to its original value.
  • Page 81 Section 4: Additional Financial Functions Note: If you change the number in the n register in order to change an N be sure to reset the number in the n register to the total number of cash flow amounts originally entered (not including the amount of the initial investment ).
  • Page 82: Bond Calculations

    Section 4: Additional Financial Functions Bond Calculations The hp 12c platinum enables you to solve for bond price (and the interest accrued since the last interest date) and the yield to maturity. The fE and fS calculations are done assuming a semiannual coupon payment and using an actual/actual basis (such as for U.S.
  • Page 83: Bond Yield

    Section 4: Additional Financial Functions In ALG mode, perform the steps listed for RPN mode above but replace the last step with the step below. Keystrokes Display (ALG mode) Total price, including accrued 123.07 interest. Bond Yield 1. Enter the quoted price (as a percent of par), using $. 2.
  • Page 84: Depreciation Calculations

    Section 4: Additional Financial Functions Depreciation Calculations The hp 12c platinum enables you to calculate depreciation and the remaining depreciable value (book value minus salvage value) using the straight-line, sum-of-the-years-digits, and declining-balance methods. To do so with any of these methods: 1.
  • Page 85 Section 4: Additional Financial Functions Keystrokes Display Remaining depreciable value after 3,100.00 second year. Depreciation in third year. 1,440.00 Remaining depreciable value after 1,660.00 third year. To calculate depreciation and the remaining depreciable value when the acquisition date of the asset does not coincide with the beginning of the fiscal accounting year, refer to the procedures in Section 13.
  • Page 86: Additional Operating Features

    Section 5 Additional Operating Features Continuous Memory The calculator’s Continuous Memory contains the data storage registers, the financial registers, the stack and LAST X registers, program memory, and status information such as display format, date format, and payment mode. All information in Continuous Memory is preserved even while the calculator is turned off.
  • Page 87: Number Display Formats

    19.8745632- 19.87 14.87 Although you see only two decimal places, all calculations in your hp 12c platinum are performed with full 10-digit numbers. When only two decimal places are displayed, numbers are rounded to two decimal places: if the third digit is 5 through 9, the second digit is increased by one;...
  • Page 88: Scientific Notation Display Format

    Section 5: Additional Operating Features Keystrokes Display 14.8746 14.9 Although nine decimal places were 14.87456320 specified after f, only eight are displayed since the display can show a total of only 10 digits. The standard display format, plus the specified number of decimal places, remain in effect until you change them;...
  • Page 89: Special Displays

    Section 5: Additional Operating Features Keystrokes Display 1.487456 01 The exponent in this example indicates that the decimal point should be moved one decimal place to the right, giving the number 14.87456, which is the first seven digits of the number previously in the display. To set the display back to standard display format, press f followed by the desired number of decimal places.
  • Page 90: The Key In Rpn Mode

    Section 5: Additional Operating Features Errors. If you attempt an improper operation — such as division by zero — the calculator will display the word Error followed by a digit (0 through 9). To clear the Error display, press any key. This does not execute that key’s function, but does restore the calculator to its condition before the improper operation was attempted.
  • Page 91: Arithmetic Calculations With Constants

    Section 5: Additional Operating Features Arithmetic Calculations With Constants Example: At Permex Pipes a certain pipe fitting is packaged in quantities of 15, 75, and 250. If the cost per fitting is $4.38, calculate the cost of each package. Keystrokes Display (RPN mode) Keys first quantity into calculator.
  • Page 92 Section 5: Additional Operating Features Keystrokes Display (RPN mode) 987z The correct answer. 434.65...
  • Page 93: Statistics Functions

    Section 6 Statistics Functions Accumulating Statistics The hp 12c platinum can perform one- or two-variable statistical calculations. The data is entered into the calculator using the _ key, which automatically calculates and stores statistics of the data into storage registers R , through R .
  • Page 94: Correcting Accumulated Statistics

    Section 6: Statistics Functions The table below shows where the accumulated statistics are stored. Register Statistic (and display) n: number of data pairs accumulated. Σx: summation of x-values. : summation of squares of x-values. Σx Σy: summation of y-values. summation of squares of y-values. Σy Σxy: summation of products of x-values and y-values.
  • Page 95 Section 6: Statistics Functions Salesperson Hours/Week Sales/Month $17,000 $25,000 $26,000 $20,000 $21,000 $28,000 $15,000 To find the average workweek and sales of this sample: Keystrokes Display Clears statistics registers. fCLEAR² 0.00 32.00 17000_ 1.00 First entry. 40.00 25000_ 2.00 Second entry. 45.00 26000_ 3.00...
  • Page 96: Standard Deviation

    4,820.59 Standard deviation of hours 6.03 worked. The formulas used in the hp 12c platinum for calculating s and s give best estimates of the population standard deviation based on a sample of the population. Thus, current statistical convention calls them sample standard deviations.
  • Page 97: Linear Estimation

    For instance, while the standard deviation of the values 1,999,999; 2,000,000 and 2,000,001 is 1; the standard deviation returned by the hp 12c platinum is 0 due to the effect of roundoff. This will not happen, however, if you normalize the data by keying only the difference between each value and the mean or approximate mean of the values.
  • Page 98 Section 6: Statistics Functions Example: Check the reliability of the linear estimate in the preceding example by displaying the correlation coefficient. Keystrokes Display The correlation coefficient is close 0.90 to 1, so the sales calculated in the preceding example is a good estimate.
  • Page 99: Weighted Mean

    Fourth item and weight. 4.00 Weighted mean cost per gallon. g 1.19 A procedure for calculating the standard deviation and standard error (as well as the mean) of weighted or grouped data is included in the hp 12c platinum Solutions Handbook.
  • Page 100: Mathematics And Number-alteration Functions

    Section 7 Mathematics and Number-Alteration Functions The hp 12c platinum provides several keys for mathematical functions and for altering numbers. These functions are useful for specialized financial calculations as well as for general mathematics calculations. One-Number Functions Most of the mathematics functions require that only one number be in the calculator (that is, the number in the display) before the function key is pressed.
  • Page 101 Section 7: Mathematics and Number-Alteration Functions Integer. Pressing gÑ replaces the number in the display by its integer portion — that is, it replaces each digit to the right of the decimal point by 0. The number is changed inside the calculator as well as in the display. In RPN mode, the original number can be recalled to the display by pressing gF.
  • Page 102: The Power Function In Rpn Mode

    102 Section 7: Mathematics and Number-Alteration Functions Keystrokes Display (RPN mode) The fractional portion of the number 0.88 previously displayed. The Power Function in RPN Mode Pressing q calculates a power of a number — that is, y . Like the arithmetic function +, q requires two numbers: 1.
  • Page 103 Section 7: Mathematics and Number-Alteration Functions Keystrokes To Calculate Display (ALG mode) or 2 2q3y} 1.26...
  • Page 105: Part Ii: Programming

    Part II Programming...
  • Page 106: Programming Basics

    Section 8 Programming Basics Why Use Programs ? A program is simply a sequence of keystrokes that is stored in the calculator. Whenever you have to calculate with the same sequence of keystrokes several times, you can save a great deal of time by incorporating these keystrokes in a program.
  • Page 107 Section 8: Programming Basics Example: Your office supplies dealer is selling selected stock at 25% off. Create a program that calculates the net cost of an item after the discount is subtracted and the $5 handling charge is added. First, we’ll manually calculate the net cost of an item listing for $200. Keystrokes Display (RPN mode)
  • Page 108: Running A Program

    108 Section 8: Programming Basics Keystrokes Display (RPN mode) 001, 002, 003, 004, 005, 006, 007, Keystrokes Display (ALG mode) 001, 002, 003, 004, 005, 006, 007, Running a Program To run (sometimes called “execute”) a program: 1. Press fs to set the calculator back to Run mode. If the calculator is already in Run mode (that is, the PRGM status indicator in the display is not lit), skip this step.
  • Page 109 Section 8: Programming Basics Example: Run the program created above to calculate the net cost of a typewriter listing for $625 and an executive chair listing for $159. Keystrokes Display (RPN mode) Sets calculator to Run mode. Display 155.00 shows number previously calculated. Sets RPN mode.
  • Page 110: Program Memory

    000, since no regular instruction is stored there. Identifying Instructions in Program Lines Each key on the hp 12c platinum keyboard — except for the digit keys 0 through 9 — is identified by a two-digit “keycode” that corresponds to the key’s position on the keyboard.
  • Page 111: Displaying Program Lines

    Occasionally you’ll want to check several or all of the instructions stored in program memory. The hp 12c platinum enables you to review program instructions either forward or backward through program memory: Pressing Ê (single step) while the calculator is in Program mode advances the calculator to the next line in program memory, then displays that line number and the keycode of the instruction stored there.
  • Page 112 112 Section 8: Programming Basics For example, to display the first two lines of the program now stored in program memory, set the calculator to Program mode and press Ê twice: Keystrokes Display (RPN mode) Sets calculator to Program 000, mode and displays current line of program memory Ê...
  • Page 113 Section 8: Programming Basics If either the Ê key or the Ü key is held down, the calculator displays all of the lines in program memory. Press Ê again now, but this time hold it down until program line 007 is displayed. Keystrokes Display (RPN mode)
  • Page 114: The 000 Instruction And Program Line 000

    114 Section 8: Programming Basics 000 Instruction and Program Line 000 Whenever you run the program now stored in program memory, the calculator executes the instruction in line 008 after executing the seven instructions you keyed in. This i000 instruction — as its name implies — tells the calculator to “go to” program line 000 and execute the instruction in that line.
  • Page 115 Section 8: Programming Basics To determine at any time how many program lines (including those containing gi000) are currently in program memory, press gN (memory). The calculator will respond with a display like the following: If you find yourself creating long programs, you should create your programs so that they don’t use up program lines unnecessarily, since program memory is limited to 400 program lines.
  • Page 116: Setting The Calculator To A Particular Program Line

    116 Section 8: Programming Basics Setting the Calculator to a Particular Program Line There will be occasions when you’ll want to set the calculator directly to a particular program line — such as when you’re storing a second program in program memory or when you’re modifying an existing program.
  • Page 117 Section 8: Programming Basics Keystrokes Display (RPN mode) Sets calculator to Run mode 124.25 and to line 000 in program memory. (Display shown assumes results remain from previous calculation.) Keys in price of typewriter. 625. Program line 001: \ Ç 001, Result of executing program 625.00...
  • Page 118 118 Section 8: Programming Basics Keystrokes Display (ALG mode) Sets calculator to Run mode 124.25 and to line 000 in program memory. (Display shown assumes results remain from previous calculation.) Keys in price of typewriter. 625. Program line 001: - Ç...
  • Page 119: Interrupting Program Execution

    Interrupting Program Execution Occasionally you’ll want a program to stop executing so that you can see an intermediate result or enter new data. The hp 12c platinum provides two functions for doing so: gu (pause) and t (run/stop). Pausing During Program Execution When a running program executes a gu instruction, program execution halts for about 1 second, then resumes.
  • Page 120 120 Section 8: Programming Basics Pressing the gu keys is not necessary when we do the calculations manually, since in Run mode the result of every intermediate calculation is displayed automatically; but we’ll include gu instructions in the program so that the intermediate results AMOUNT and TAX are automatically displayed when the program is executed.
  • Page 121 Section 8: Programming Basics Keystrokes Display (RPN mode) AMOUNT. § 890.50 Adds AMOUNT to sum of 890.50 AMOUNT entries in register R Recalls tax rate to display. 6.75 TAX. 60.11 Adds TAX to sum of TAX entries 60.11 in register R TOTAL.
  • Page 122 122 Section 8: Programming Basics Now, we’ll store the program in program memory. Do not key in the quantity and cost of each item; these numbers will vary each time the program is run. Keystrokes Display (RPN mode) Sets calculator to Program mode.
  • Page 123 Section 8: Programming Basics Keystrokes Display (ALG mode) 012, 44 40 Note: The procedure used in the ALG program in steps 1 through 3 allows the algebraic program to run in the same manner as the RPN version. In the instructions below, the \ key is the same as the } key in ALG mode.
  • Page 124: Stopping Program Execution

    124 Section 8: Programming Basics Keystrokes Display Sum of TAX column. 402.82 Sum of TOTAL column. 6,370.52 If the duration of the pause is not long enough to write down the number displayed, you can prolong it by using more than one gu instruction. Alternatively, you can have the program automatically stop as described next.
  • Page 125 Section 8: Programming Basics Keystrokes Display (ALG mode) § 001, 002, 003, Stops program execution to display 004, AMOUNT. 005, 44 40 006, 007, 008, Stops program execution to display 009, TAX. 010, 44 40 011, 012, 44 40 Now, to run the program, first set the appropriate mode by pressing f] or f[ and then do the following: Keystrokes Display...
  • Page 126 126 Section 8: Programming Basics Keystrokes Display TAX for third item. 137.70 TOTAL for third item. 2,177.70 5\345 Fourth item. 345. AMOUNT for fourth item. 1,725.00 TAX for fourth item. 116.44 TOTAL for fourth item. 1,841.44 Sum of AMOUNT column. 5,967.70 Sum of TAX column.
  • Page 127: Branching And Looping

    Section 9 Branching and Looping Although the instructions in a program normally are executed in order of their program line numbers, in some situations it is desirable to have program execution transfer or “branch” to a program line that is not the next line in program memory. Branching also makes it possible to automatically execute portions of a program more than once —...
  • Page 128: Looping

    128 Section 9: Branching and Looping Looping If a i instruction specifies a lower-numbered line in program memory, the instructions in the program lines between the specified line and the i instruction will be executed repeatedly. As can be seen in the illustration above under Simple Branching, once the program begins executing the “loop”...
  • Page 129 Section 9: Branching and Looping Keystrokes Display Amortizes payment(s). 003, Pauses to display amount of 004, payment(s) applied to interest. Brings amount of payment(s) 005, applied to principal into “display.”* Pauses to display amount of 006, payment(s) applied to principal. Transfers program execution to line gi002 007,43,33,002...
  • Page 130 130 Section 9: Branching and Looping Keystrokes Display Portion of first month’s payment –593.75 applied to interest. Ê Line 004: gu. 004, –593.75 Line 005: ~. Ê 005, Portion of first month’s payment –188.72 applied to principal. Line 006: gu. Ê...
  • Page 131: Conditional Branching

    The hp 12c platinum provides two conditional test instructions that are used in programs for conditional branching: go tests whether the number in the X-register (represented by the x in the key symbol) is less than or equal to the number in the Y-register (represented by the y in the key symbol).
  • Page 132 132 Section 9: Branching and Looping These rules can be summarized as “DO if TRUE”. The program line immediately following that containing the conditional test instruction can contain any instruction; however, the most commonly used instruction there is i. If a i instruction follows a conditional test instruction, program execution branches elsewhere in program memory if the condition is true and continues with the next line in program memory if the condition is false.
  • Page 133 Section 9: Branching and Looping RPN program notes: We’ll key the income into the display before running the program so that it will be in the X-register when the :0 instruction in program line 001 is executed. This instruction will place the test value 20,000 in the X-register and (as explained in Appendix A) move the income into the Y-register.
  • Page 134 134 Section 9: Branching and Looping Keystrokes Display (RPN mode) Tests whether number in X-register 003, (income) is less than or equal to number in Y-register (20,000). If condition is true, branches to gi007 004,43, 33, 007 program line 007. If condition is false, recalls 25% 005, tax rate to X-register.
  • Page 135 Section 9: Branching and Looping Keystrokes Display (ALG mode) Recalls test value into X-register 002, and places income in Y-register. Places income in X-register and 003, test value in Y-register. Prepares for multiplication. § 004, Tests whether number in X-register 005, (income) is less than or equal to number in Y-register (20,000).
  • Page 136 136 Section 9: Branching and Looping Keystrokes Display (RPN mode) Test value has been recalled to 20,000.00 X-register, moving income to Y-register. Line 002: ~ Ê 002, Income has been placed in 15,000.00 X-register and test value has been placed in Y-register. Line 003: go Ê...
  • Page 137 Section 9: Branching and Looping Keystrokes Display (RPN mode) Condition tested by o was true, Ê 004,43, 33, 007 so program execution continued with line 004: gi007. 20,000.00 Line 007: :1. Ê 007, 20% tax rate has been recalled to 20.00 X-register, moving income to Y-register.
  • Page 138 138 Section 9: Branching and Looping Keystrokes Display (ALG mode) 20000?0 Stores test value in register R 20,000.00 20?1 Stores 20% tax rate in register R 20.00 25?2 Stores 25% tax rate in register R 25.00 15000 Keys income less than test value 15,000.
  • Page 139 Section 9: Branching and Looping Keystrokes Display (ALG mode) Line 012: gi000. Ê 012,43,33,000 3,000.00 20000 Keys income equal to test value 20,000. into display and X-register. Line 001: ?9. Ê 001, Stores income into register R 20,000.00 Line 002: :0. Ê...
  • Page 140 140 Section 9: Branching and Looping Keystrokes Display (ALG mode) 25000 Keys income greater than test value 25,000. into display and X-register. Ê Line 001: ?9. 001, Stores income into register R 25,000.00 Line 002: :0. Ê 002, Test value has been recalled to 20,000.00 X-register, moving income to Y-register.
  • Page 141: Program Editing

    Section 10 Program Editing There are various reasons why you might want to modify a program you have stored in Program memory: to correct a program that turns out to have errors; to insert new instructions such as ? to store intermediate results or u to display intermediate results;...
  • Page 142: Adding Instructions At The End Of A Program

    142 Section 10: Program Editing Keystrokes Display (RPN mode) Shows that instruction in program Ê 006,43, 33, 008 line 006 has not been changed. Sets calculator back to Run mode. 6,250.00 (Display shown assumes results remain from last example in preceding section.) Copies tax rate from R into R...
  • Page 143 Section 10: Program Editing Note: To add one or more instructions at the end of a program that is not the last program stored in program memory, use the procedure described below under Adding Instructions within a Program. Example: With the last program from the preceding section stored in the calculator, suppose you wanted to calculate the net income after taxes.
  • Page 144: Adding Instructions Within A Program

    144 Section 10: Program Editing Keystrokes Display (ALG mode) 15000t Net income after 20% tax is 12,000.00 subtracted from $15,000 income. Adding Instructions within a Program If an instruction is to be added within a program, simply keying it in will replace the instruction previously stored in that program line, as described above;...
  • Page 145 Section 10: Program Editing 4. Key in the original instruction or instructions, beginning with the first instruction to be executed after the added instruction(s), and continuing through the last instruction you keyed into program memory. Note: If program memory includes branches to program lines following that at which the first new instruction is being added, remember to change the line number(s) specified in the i instruction(s) —...
  • Page 146: Adding Instructions By Branching

    146 Section 10: Program Editing Keystrokes Display (ALG mode) Keys new instruction into Þ 013, program line 013. Keys new instruction into 014, program line 014. Keys new instruction into 015, program line 015. Keys new instruction into 016, program line 016. Sets calculator back to Run mode.
  • Page 147 Section 10: Program Editing ensures that program execution will branch to line 000 after the program is run. 6. Key in the instruction(s) being added. 7. Key in the instruction that originally immediately followed the point at which the new instruction(s) are being added — that is, the first instruction to be executed after the added instruction(s).
  • Page 148 148 Section 10: Program Editing Keystrokes Display (RPN mode) Ends the current program with a gi000 011,43, 33, 000 gi000. 012, 013, Added instructions. 014, gi000 015,43, 33, 000 Keys in instruction immediately 016, following point at which new instructions are being added. (This instruction was replaced in line 001 by gi012 instruction.) Branches back to second line (line...
  • Page 149 Section 10: Program Editing Keystrokes Display (ALG mode) Sets calculator to Program mode. Sets calculator to program line gi.000 000, immediately preceding point at which new instructions are being added. (In this particular example, this step could have been skipped since calculator was already set at the proper program line.) Branches to program line 018, the...
  • Page 150 150 Section 10: Program Editing Keystrokes Display (ALG mode) 15000t Tax on $15,000 income. 3,000.00 Net income after tax. This shows 12,000.00 program still works for an income greater than $7,500 and less than $20,000. The following illustration of the edited RPN program shows how program execution branches to the instructions added at the end of program memory, then branches back.
  • Page 151: Multiple Programs

    Section 1 1 Multiple Programs You can store multiple programs in program memory, provided that you separate them by instructions that will halt program execution after each program is run and return to the beginning of the program if it is run again. You can run programs after the first one stored in program memory by setting the calculator to the first line of the program using i before pressing t.
  • Page 152 152 Section 11: Multiple Programs 6. Press gi followed by three digit keys that specify the first line number of your new program. This transfers program execution to the beginning of the new program when the program is run again. Example 1: Assuming that program memory still contains the last program from the preceding section (which consisted of 17 program lines in RPN mode and 23 program lines in ALG mode), store after that program the office-supplies program...
  • Page 153 Section 11: Multiple Programs Keystrokes Display (ALG mode) Ensures that second program is gi000 024,43, 33, 000 separated from first by i000. 025, 026, 027, Keys in program. 028, 029, 030, 031, Halts program execution. 032, Branches to beginning of program. gi025 033,43, 33, 025 Sets calculator back to Run mode.
  • Page 154 154 Section 11: Multiple Programs Keystrokes Display (RPN mode) 028, 029, 030, Keys in program 031, 032, 033, gi029 034,43, 33, 029 Keystrokes Display (ALG mode) Sets calculator to Program mode. Sets calculator to last line gi.033 033,43, 33, 025 keyed into program memory.
  • Page 155: Running Another Program

    Section 11: Multiple Programs Running Another Program To run a program that does not begin with program line 001: 1. Press fs to set the calculator to Run mode. If the calculator is already in Run mode, skip this step. 2.
  • Page 157: Part Iii: Solutions

    Part III Solutions...
  • Page 158: Real Estate And Lending

    Section 12 Real Estate and Lending Annual Percentage Rate Calculations With Fees Borrowers are usually charged fees in connection with the issuance of a mortgage, which effectively raises the interest rate. The actual amount received by the borrower (PV) is reduced, while the periodic payments remain the same. Given the life or term of the mortgage, the interest rate, the mortgage amount, and the basis of the fee charge (how the fee is calculated), the true Annual Percentage Rate (APR) may be calculated.
  • Page 159 Section 12: Real Estate and Lending ALG Mode: If fees are stated as a percentage of the mortgage amount (points), recall the mortgage amount (:$); press -; key in the fee (percentage) rate; press b$. If fees are stated as a flat charge, recall the mortgage amount (:$);...
  • Page 160 160 Section 12: Real Estate and Lending Example 2: Using the same information as given in example 1, calculate the APR if the mortgage fee is $750 instead of a percentage. Keystrokes Keystrokes Display (RPN mode) (ALG mode) g g fCLEARG fCLEARG 30gA...
  • Page 161: Price Of A Mortgage Traded At A Discount Or Premium

    Section 12: Real Estate and Lending Keystrokes Keystrokes Display (RPN mode) (ALG mode) Monthly interest rate ¼ ¼ 0.48 (calculated). 12§ Annual percentage rate. §12³ 5.73 Price of a Mortgage Traded at a Discount or Premium Mortgages may be bought and/or sold at prices lower (discounted) or higher (at a premium) than the remaining balance of the loan at the time of purchase.
  • Page 162 162 Section 12: Real Estate and Lending Keystrokes Keystrokes Display (RPN mode) (ALG mode) Discount rate (into i). 0.75 137.17P Monthly payments (into 137.17 137.17 PMT). 2000M$ Amount necessary to 2000 –8,777.61 prepay the note. Example 2: A 6.5% mortgage with 26 years remaining and a remaining balance of $249,350 is available for purchase.
  • Page 163: Yield Of A Mortgage Traded At A Discount Or Premium

    Section 12: Real Estate and Lending Yield of a Mortgage Traded at a Discount or Premium The annual yield of a mortgage bought at a discount or premium can be calculated given the original mortgage amount, interest rate, and periodic payment, as well as the number of payment periods per year, the price paid for the mortgage, and the balloon payment amount (if it exists).
  • Page 164 164 Section 12: Real Estate and Lending Keystrokes Keystrokes Display (RPN mode) (ALG mode) money paid out). Payment received 2,096.57 (calculated). Recall number of 252.00 periods. 42-n Number of periods left -42n 210.00 after mortgage is bought (into n). 250000Þ$ 250000Þ$ Input price of mortgage –250,000.00 (into PV;...
  • Page 165: The Rent Or Buy Decision

    Section 12: Real Estate and Lending Calculate the remaining balance of the loan after five years. Keystrokes Keystrokes Display (RPN mode) (ALG mode) Number of periods to 60.00 be amortized. Remaining balance of 258,377.24 the loan after five years. 60.00 42-n New life of loan.
  • Page 166 166 Section 12: Real Estate and Lending KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 000, 000, fCLEARÎ fCLEARÎ 001, 001, 002, 002, 003, 003, Þ Þ 004,44 48 004,44 48 005, 005, 006, 006, 007, 007, 008, 008, fCLEARG fCLEARG 009, 009,...
  • Page 167 Section 12: Real Estate and Lending KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 022, 022, § 023, 023, 024, 024, Þ Þ 025, 025, 026, 026, 027, 027, 028, 028, 029,45 48 029, § 030, 030,45 48 031, 031, 032, 032, 033,...
  • Page 168 168 Section 12: Real Estate and Lending KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 045, 045, 046, 046, 047, 047, 048, 048, 049, 049, 050, 050, Þ 051, 051, Þ 052, 052, 053, 053, ¼ 054,45, 43 054, ¼ 055, 055,45, 43 056,...
  • Page 169 Section 12: Real Estate and Lending 1. Key in the program. 2. Key in the estimated down payment then press ?1. 3. Key in the life of the mortgage then press ?2. 4. Key in the annual mortgage interest rate then press ?3. 5.
  • Page 170 170 Section 12: Real Estate and Lending Example: You are being transferred for 4 years to a distant city and are faced with the decision of whether to rent or to buy a house. A quick survey of the housing market indicates that you can purchase an acceptable house for $270,000 with a $7,000 down payment on a 30-year mortgage at 6% interest.
  • Page 171: Deferred Annuities

    Section 12: Real Estate and Lending Keystrokes Keystrokes Display (RPN mode) (ALG mode) Yield. 8.57 Balance in savings. 46,048.61 By purchasing a house, you would gain $7,047.04 (53,095.65 – 46,048.61) over an alternate investment at 3% interest. Deferred Annuities Sometimes transactions are established where payments do not begin for a specified number of periods;...
  • Page 172 172 Section 12: Real Estate and Lending Leases often call for periodic contractual adjustments of rental payments. For example, a 2-year lease calls for monthly payments (at the beginning of the month) of $500 per month for the first 6 months, $600 per month for the next 12 months, and $750 per month for the last 6 months.
  • Page 173 Section 12: Real Estate and Lending Keystrokes Keystrokes Display (RPN mode) (ALG mode) 13.5gC 13.5gC Monthly interest rate. 1.13 Amount to invest to 12,831.75 achieve a 13.5% yield.
  • Page 174: Investment Analysis

    — the amounts of depreciation in the first and last years are computed as fractions of a full year’s depreciation. Straight-Line Depreciation The following hp 12c platinum program calculates the straight-line depreciation for the year desired with the acquisition date occurring at any time during the year. KEYSTROKES...
  • Page 175 Section 13: Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 012, 012, § 013, 013, § 014, 014, 015, 015, ³ 016, 016, 017, 017, 018, 018, 019, 019, 020, 020, 021, 021, 022, 022, 023, 023, 024, 024, 025,43, 33, 035 025,...
  • Page 176 176 Section 13: Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 036, 036,44 40 037, gi029 037,43,33, 029 038, 038, 039, 039, 040, 040, 041,43,33, 030 041, gi030 042, ³ 043, 044, gi033 045,43,33, 033 REGISTERS n: Life i: Unused PV: Dep.
  • Page 177 Section 13: Investment Analysis RPN Mode: 6. Key in the year desired then press \. 7. Key in the number of months in the first year and press t. The display will show the amount of depreciation for the desired year. If desired, press ~ to see the remaining depreciable value then press :$:3=~-:M- to find the total depreciation from the first year through the current year.
  • Page 178 178 Section 13: Investment Analysis Keystrokes Keystrokes Display (RPN mode) (ALG mode) Salvage value = 0 so FV fCLEARG fCLEARG = 0; set to 0 by CLEARG. 125000$ 125000$ Book value. 125,000.00 Life. 25.00 1³ Year desired. 1.00 First year: 1.00 depreciation, 1,666.67...
  • Page 179: Declining-balance Depreciation

    4.5t 4.5t First year: 1.00 depreciation. 504.75 Declining-Balance Depreciation The following hp 12c platinum program calculates the declining-balance depreciation for the year desired with the acquisition date occurring at any time during the year. KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode)
  • Page 180 180 Section 13: Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) ³ 010, 010, 011, 011, 012, 012, § 013, 013, § 014, 014, 015, 015, ³ 016, 016, 017, 017, 018, 018, 019, 019, 020, 020, gi031 021,43, 33, 031 021, 022,...
  • Page 181 Section 13: Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 034, 034, 035, 035, 036, 036, gi026 037,43,33, 026 037, 038, ³ 039, 040, gi029 041,43,33, 029 REGISTERS n: Life i: Factor PV: Dep. Value PMT: Unused FV: Salvage : Used : #Mos./12 : Counter...
  • Page 182 182 Section 13: Investment Analysis RPN Mode: 7. Key in the year desired then press \. 8. Key in the number of months in first year and press t. The display † will show the amount of depreciation for the desired year. Press ~ to see the remaining depreciable value.
  • Page 183: Sum-of-the-years-digits Depreciation

    (RPN mode) (ALG mode) Second year: 2.00 11,458.33 depreciation. Sum-of-the-Years-Digits Depreciation The following hp 12c platinum program calculates the sum-of-the-years-digits depreciation for the year desired with the acquisition date occurring at any time during the year. KEYSTROKES KEYSTROKES DISPLAY DISPLAY...
  • Page 184 184 Section 13: Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 017, 017, 018, 018, 019, 019, 020, 020, 021, 021, 022, 022, 023, 023, 024, 024, 025,43,33, 035 025, gi035 026, 026, 027, 027, 028, gi038 028,43,33, 038 fÝ...
  • Page 185 Section 13: Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 041,43,33, 030 041, gi030 042, ³ 043, 044, gi033 045,43,33, 033 REGISTERS n: Life i: Unused PV: Dep. Value PMT: Unused FV: Salvage : Used : #Mos./12 : Counter Yr.
  • Page 186 186 Section 13: Investment Analysis RPN Mode: 6. Key in the year desired then press \. 7. Key in the number of months in first year then press t. The display † will show the amount of depreciation for the desired year. If desired, press ~ to see the remaining depreciable value, then press :$:3=~-:M- to find the total depreciation through the current year.
  • Page 187: Full- And Partial-year Depreciation With Crossover

    When calculating declining-balance depreciation it is often advantageous for tax purposes to switch from declining balance to straight-line depreciation at some point. This hp 12c platinum program calculates the optimum crossover point and automatically switches to straight-line depreciation at the appropriate time. The crossover point is the end of the year in which the declining-balance depreciation last exceeds or equals the amount of straight-line depreciation.
  • Page 188 188 Section 13: Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 007, 007, 008, 008, ³ 009, 009, 010, 010, 011, 011, 012,44 30 012, 013, 013, 014, 014, 015, 015,44 30 016, 016, § 017, 017, 018, 018, 019, §...
  • Page 189 Section 13: Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) ³ 031, 031, gi039 032,43,33, 039 032, 033, 033, 034, 034, 035, 035, 036, gi043 036,43,33, 043 037, 037, 038, 038, 039, 039, 040,44 40 040, 041,44 30 041, 042, 042,...
  • Page 190 190 Section 13: Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 055, 055, 056, 056,43,33, 058 gi058 gi086 057,43,33, 086 gi070 057,43,33, 070 058, 058, 059, 059, 060, 060, 061, 061, 062, 062,43,33, 091 gi091 063,44 30 063, 064,43,33, 040 064, gi040...
  • Page 191 Section 13: Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 079,44 40 079, 080,44 40 080, 081, 081,44 40 082, 082, 083, 083,44 30 084, 084,44 40 gi074 085,43,33, 074 085,44 40 086, 086, 087, 087, 088, 088, 089, 089, 090,...
  • Page 192 192 Section 13: Investment Analysis REGISTERS n: Life i: Factor PV: Dep. Value PMT: Unused FV: Salvage : Used : Dep. : Counter : Used Used Used Used 1. Key in the program. 2. Press fCLEARH. 3. Key in the book value then press $. 4.
  • Page 193 Section 13: Investment Analysis Keystrokes Keystrokes Display (RPN mode) (ALG mode) 11000$ 11000$ Book value. 11,000.00 500M 500M Salvage value. 500.00 Life. 8.00 200¼ 200¼ Declining-balance factor. 200.00 1³ First year depreciation 1.00 desired. First year: 1.00 depreciation, 1,375.00 remaining depreciable 9,125.00 value.
  • Page 194: Excess Depreciation

    194 Section 13: Investment Analysis Excess Depreciation When accelerated depreciation is used, the difference between total depreciation charged over a given period of time and the total amount that would have been charged under straight-line depreciation is called excess depreciation. To obtain excess depreciation: RPN Mode: 1.
  • Page 195: Modified Internal Rate Of Return

    Section 13: Investment Analysis Modified Internal Rate of Return The traditional Internal Rate of Return (IRR) technique has several drawbacks which hamper its usefulness in some investment applications. The technique implicitly assumes that all cash flows are either reinvested or discounted at the computed yield rate.
  • Page 196 196 Section 13: Investment Analysis Example: An investor has the following unconventional investment opportunity. The cash flows are: Group # of Months Cash Flow ($) –180,000 100,000 –100,000 200,000 Calculate the MIRR using a safe rate of 6% and a reinvestment (risk) rate of 10%. Keystrokes Keystrokes Display...
  • Page 197: Black-scholes Formula For Valuing European Options

    Section 13: Investment Analysis Black-Scholes Formula for Valuing European Options This program implements the Black-Scholes formula which has been used extensively in option markets worldwide since its publication in the early 1970’s. The five inputs are simply keyed into the five financial variables and then t displays the call option value, and ~ shows the put option value.
  • Page 198 198 Section 13: Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) g° 017, 017, 018, 018, 019, 019, 020, 020, 021, 021, 022, 022, g° 023, 023, 024, 024, 025, 025, 026, 026, 027, 027, 028, 028, 029, 029, §...
  • Page 199 Section 13: Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 041, 041, Þ 042, 042, g> 043, 043, 044, 044, g¡ 045, 045, 046, 046, § 047, 047, 048, 048, 049, 049, 050, 050, 051, 051, 052, 052, §...
  • Page 200 200 Section 13: Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 065, 065, 066, 066, 067, 067, 068, 068, § 069, 069, 070, 070, g(077 071,43,33,077 071, 072, 072, 073,44 30 073, Þ § 074, 074, 075,44 20 075, ?§3 §...
  • Page 201 Section 13: Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 089, 089,44 30 Þ 090, 090, 091, ?§3 091,44 20 092,44 30 092, § 093, 093, 094, 094, 095, g(106 095,43, 33, 106 096, 096,44 40 097, 097, §...
  • Page 202 202 Section 13: Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 113, 114,44 40 115, 116, 117, 118,43,33, 000 g(000 REGISTERS n: Term to expiry i: Interest rate (%) PV: Stock price PMT: Volatility (%) FV: Strike price Unused : Unused : Unused...
  • Page 203 Section 13: Investment Analysis Example 1: An option has 6 months to run and a strike price of $45. Find Call and Put values assuming a spot price of $52, return volatility of 20.54% per month and a risk-free interest rate of 0.5% per month. Show how to change the time scale of the inputs between monthly and annual values.
  • Page 204 204 Section 13: Investment Analysis Example 2: The stock price six months from the expiration of an option is $42, the exercise price of the option is $40, the risk-free interest rate is 10% per annum, and the volatility is 20% per annum. Find Call and Put values. Keystrokes Keystrokes Display...
  • Page 205: Leasing

    Section 14 Leasing Advance Payments Situations may exist where payments are made in advance (leasing is a good example). These agreements call for extra payments to be made when the transaction is closed. This first procedure finds the periodic payment amount necessary to achieve a desired yield when a number of payments are made in advance.
  • Page 206 –1.00 $:0+ $+:0³ 11.64 750~z 750z~³ Monthly payment to be 64.45 received. If solving for the payment amount will be done repetitively, key in the following hp 12c platinum program. KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) fCLEARÎ 000, fCLEARÎ...
  • Page 207 Section 14: Leasing KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) ¼ ¼ 008, 008, 009, 009, Þ Þ 010, 010, 011, 011, 012, 012, 013, 013, 014, 014, ³ 015, 015, 016, 016, 017, 017, 018, ³ 019, REGISTERS n: n–#Adv.
  • Page 208 208 Section 14: Leasing Example 2: Using the preceding program, solve for the monthly payment using the information given in example 1. Then change the yearly interest to 15% and solve for the new payment amount. Keystrokes Keystrokes Display (RPN mode) (ALG mode) 12?0 12?0...
  • Page 209: Solving For Yield

    Section 14: Leasing Solving for Yield To calculate the periodic yield, information is entered as follows: 1. Press g and fCLEARG. RPN Mode: 2. Key in the total number of payments in the lease then press \. 3. Key in the total number of payments made in advance then press ?0-n.
  • Page 210 Monthly yield ¼ ¼ 1.44 (calculated). 12§ Annual yield (as a §12³ 17.33 percentage). If solving for yield will be done repetitively, key in the following hp 12c platinum program: KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 000, 000, fCLEARÎ...
  • Page 211 Section 14: Leasing KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 017,45,43 REGISTERS n: n–#Adv. Pmts. i: i PV: Used PMT: Pmt. FV: 0 : Adv. Pmts. : Pmt. : Loan –R : Unused 1. Key in the program. 2. Key in the total number of payments in the lease then press ?0. 3.
  • Page 212: Advance Payments With Residual

    212 Section 14: Leasing Advance Payments With Residual Situations may arise where a transaction has advance payments and a residual value (salvage value) at the end of the normal term. Solving for Payment The following program solves for the periodic payment amount necessary to achieve a desired yield.
  • Page 213 Section 14: Leasing KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 018, 018, 019, 019, Þ 020, 020, Þ 021, 021, 022, 022, 023, 023, 024, 024, 025, 025, ³ 026, 026, 027, 027, 028, 029, ³ 030, REGISTERS n: Used. i: Interest PV: Used PMT: –1.
  • Page 214 214 Section 14: Leasing 7. For a new case, return to step 2. The values changed from the previous case are the only values which need to be re-entered. 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.
  • Page 215: Solving For Yield

    Section 14: Leasing 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.
  • Page 216 216 Section 14: Leasing Keystrokes Keystrokes Display (RPN mode) (ALG mode) Annual yield to lessor. fL12§ fL§12³ 18.10...
  • Page 217: Savings

    Section 15 Savings Nominal Rate Converted to Effective Rate Given a nominal interest rate and the number of compounding periods per year, this keystroke procedure computes the effective annual interest rate. 1. Press g and fCLEARG. RPN Mode: 2. Key in the annual nominal rate as a percentage, then press \. 3.
  • Page 218 218 Section 15: Savings For repeated calculations, the following hp 12c platinum program can be used: KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 000, 000, fCLEARÎ fCLEARÎ g g 001, 001, 002, 002, fCLEARG fCLEARG 003, 003, 004, 004, ¼...
  • Page 219: Effective Rate Converted To Nominal Rate

    Section 15: Savings 1. Key in the program. 2. RPN: Key in the annual nominal rate as a percentage then press \. 2. ALG: Key in the annual nominal rate as a percentage then press ³. 3. Key in the number of compounding periods per year then press t to obtain the effective annual interest rate.
  • Page 220: Continuous Rate Converted To Effective Rate

    220 Section 15: Savings Example: Find the nominal rate compounded quarterly if the effective annual rate is 5.35%. Keystrokes Keystrokes Display (RPN mode) (ALG mode) fCLEARG fCLEARG 4n100$ 4n100$ 100.00 5.35+Þ +5.35³Þ –105.35 M¼ M¼ 1.31 Percent nominal interest :n§ §:n³...
  • Page 221: Bonds

    Section 16 Bonds 30/360 Day Basis Bonds A bond is a contract to pay interest, usually semiannually, at a given rate (coupon) and to pay the principal of the bond at some specified future date. A bond which is calculated on a 30/360 day basis is one in which the day count basis is computed using 30 days in a month and 360 days in a year.
  • Page 222 222 Section 16: Bonds KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 014, 014, 015, 015, 016, 016, 017, 017, 018, 018, 019, 019, 020, 020, 021, 021, 022, 022, 023, 023, § 024, 024, § 025, 025, 026, 026, 027, 027, 028,43, 33, 039...
  • Page 223 Section 16: Bonds KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) 039, 039, 040, 040,43, 33, 000 g(000 041, 041, 042, 042, Þ Þ 043, 043, 044, 044, ¼ 045, 045, 046, 046, § ¼ 047, § 048, 049, REGISTERS n: Δ...
  • Page 224 224 Section 16: Bonds 7. If price is desired: a. Key in the desired yield to maturity as a percentage then press ?0. b. Press t to calculate price as a percentage of par value. c. RPN: Press ~ to display accrued interest due the seller. Press + to calculate the total price paid.
  • Page 225 Section 16: Bonds Keystrokes Keystrokes Display (RPN mode) (ALG mode) Price to yield 4.5% 103.41 (calculated). Accrued interest 1.33 (calculated). Total price paid. ³ 104.74 Example 2: The market is quoting 105% for the bond described in example 1. What yield will that provide ? What would be the yield to maturity if 104% were the quoted price ? Keystrokes Keystrokes...
  • Page 226: Annual Coupon Bonds

    226 Section 16: Bonds Annual Coupon Bonds For bonds which have annual coupons, use the following hp 12c platinum program to evaluate price and accrued interest on an Actual/Actual day basis. This program may be modified for annual coupon bonds to be calculated on a 30/360 day basis.
  • Page 227 Section 16: Bonds KEYSTROKES KEYSTROKES DISPLAY DISPLAY (RPN mode) (ALG mode) gÒ 019, 019, gÒ 020, 020, 021, 021, 022, 022, gÒ 023, 023, gÒ 024, 024, 025, 025, 026, 026, 027, 027, 028, 028, 029, 029, Þ 030, 030, 031, 031, §...
  • Page 228 228 Section 16: Bonds REGISTERS n: Used i: Yield PV: Used PMT: Cpn. or 0 FV: Used : # Periods (n) : Yield : Coupon : Redemption : Settlement : Next Cpn. : Last Coupon : Used –R : Unused For annual coupon bonds calculated on a 30/360 day basis, insert d after gÒ...
  • Page 229 Section 16: Bonds Keystrokes Keystrokes Display (RPN mode) (ALG mode) 100?3 100?3 Redemption value. 100.00 8.152004?4 8.152004?4 Settlement date. 8.15 12.012004?5 12.012004?5 Next coupon date. 12.01 Accrued interest. –4.58 Purchase price. –94.75...
  • Page 231: Appendices

    Appendices...
  • Page 232: Appendix A: Rpn And The Stack

    Appendix A RPN and the Stack In RPN mode, four special registers in the hp 12c platinum are used for storing numbers during calculations. To understand how these registers are used, they should be visualized as stacked on top of each other.
  • Page 233: Getting Numbers Into The Stack: The Key

    That’s basically how the stack operates. In the rest of this appendix, we’ll take a more detailed look at how numbers are entered into and rearranged within the stack, and the effect of the various hp 12c platinum functions on the numbers in the stack.
  • Page 234: Termination Of Digit Entry

    234 Appendix A: RPN and the Stack 2. It tells the calculator that the number in the displayed X-register is complete: that is, it terminates digit entry. Termination of Digit Entry The first digit keyed in after digit entry has been terminated replaces the number already in the displayed X-register.
  • Page 235: The Key

    Appendix A: RPN and the Stack When d (roll down) is pressed the number in each stack register is copied into the register below, and the number formerly in the X-register is copied into the T-register. Pressing d four times successively displays the numbers in the Y-, Z-, and T-registers and returns the numbers to their original registers.
  • Page 236: Mathematics Functions

    236 Appendix A: RPN and the Stack Mathematics Functions To perform an arithmetic operation, the numbers are positioned in the X- and Y-registers just as you would write them vertically on paper: the number you would write on top goes in the Y-register, and the number you would write on the bottom goes in the X-register.
  • Page 237: Calendar And Financial Functions

    Appendix A: RPN and the Stack Calendar and Financial Functions The following table shows what quantity is in each stack register after the indicated calendar or financial function key is pressed. The symbols x, y, z, and t represent the number that was in the corresponding register (X, Y, Z, or T, respectively) at the time the function key was pressed.
  • Page 238: The Last X Register And The Key

    238 Appendix A: RPN and the Stack Register V, Ý, # y (settlement date) x (maturity date) y (settlement date) x (number of year) RDV (remaining x (maturity date) depreciable value) PRICE The LAST X Register and the The number in the displayed X-register is copied into the LAST X register whenever any of the following function keys is pressed: §...
  • Page 239: Chain Calculations In Rpn Mode

    Appendix A: RPN and the Stack Chain Calculations in RPN Mode The automatic stack lift and stack drop make it possible to do chain calculations without the necessity for keying in parentheses or storing intermediate results, as are required on some other calculators. An intermediate result in the displayed X-register is automatically copied into the Y-register when a number is keyed in after a function key is pressed.
  • Page 240: Arithmetic Calculations With Constants

    240 Appendix A: RPN and the Stack Arithmetic Calculations with Constants Because the number in the T-register remains there when the stack drops, this number can be used as a constant in arithmetic operations. To place the constant into the T-register, key it into the display (that is, into the X-register), then press \ three times.
  • Page 241 Appendix A: RPN and the Stack Example: At Permex Pipes a certain pipe fitting is packaged in quantities of 15, 75, and 250. If the cost per fitting is $4.38, calculate the cost of each package. Keystrokes Display (RPN mode) 4.38\\ Enters constant into Y-, Z-, and 4.38...
  • Page 242: Appendix B: Algebraic Mode (alg)

    Appendix B Algebraic Mode (ALG) Although most of this material is included at the appropriate places throughout this manual, it is collected here for easy reference. To select algebraic mode, press f[. When the calculator is in algebraic mode, the ALG status indicator is lit. Note: In ALG mode, it is a good idea to begin calculations by pressing OO.
  • Page 243: Keying In Negative Numbers

    Appendix B: Algebraic Mode (ALG) Keystrokes Display (ALG mode) 90.89} } completes the calculation. –13.54 65gr§12} 96.75 65 × New calculation: Calculates 96.75 ÷ 3.5 z3.5} 27.64 You can also do long calculations without pressing } after each intermediate calculation: just press it at the end. The operators perform from left to right, in the order you enter them.
  • Page 244: The Key In Alg Mode

    There is an example of its use in the Combinations program in the hp 12c platinum Solutions Handbook. The History Stack in ALG Mode In ALG mode, the stack holds a “history”...
  • Page 245: Parentheses Calculations

    Appendix B: Algebraic Mode (ALG) The stack diagrams showing the output for the Calendar and Financial functions on page 237 are the same for ALG as RPN mode. To add INT and PRICE after executing the bond E function, press +~}. In this case, ~ is used to enter the second argument for the + operation.
  • Page 246: Percentage Functions

    246 Appendix B: Algebraic Mode (ALG) Percentage Functions In most cases, b divides a number by 100. The one exception is when a plus or minus sign precedes the number. For instance, 25 b results in 0.25. To find 25% of 200, press: 200 § 25 b}. (Result is 50.) You can also calculate a net amount all in one calculation: For instance, to decrease 200 by 25%, just enter 200-25b}.
  • Page 247: Percent Of Total

    Appendix B: Algebraic Mode (ALG) Percent of Total To calculate what percentage one number is of another: 1. Calculate the total amount by adding all individual amounts. 2. Key in the number whose percentage equivalent you wish to find. 3. Press Z. Example: Last month, your company posted sales of $3.92 million in the U.S., $2.36 million in Europe, and $1.67 million in the rest of the world.
  • Page 248: Appendix C: More About L

    IRR answer exists, and what that answer is. For the vast majority of cases, your hp 12c platinum will find the unique IRR answer if it exists. But the IRR computation is so complex that if the cash flow sequence does not meet certain criteria, then sometimes the calculator is unable to determine whether or not an answer or answers exist.
  • Page 249 Appendix C: More About L Searching for IRR. You can continue searching for IRR solutions, even after an Error 3 indication, as follows: 1. Make a guess for the interest rate and key it in. 2. Press:gt. Your guess will aid the calculator in its search, and if it finds an IRR answer near your guess, that answer will be displayed.
  • Page 250: Appendix D: Error Conditions

    Appendix D Error Conditions Some calculator operations cannot be performed under certain conditions (for example, z when x = 0). If you attempt such an operation under these conditions, the calculator will display the word Error followed by a digit, 0 through 9. Listed below are operations that cannot be performed under the conditions specified.
  • Page 251: Error 1: Storage Register Overflow

    Appendix D: Error Conditions Error 1: Storage Register Overflow Operation Condition ?+(0 through 4) ?-(0 through 4) Magnitude of result is greater than ?§(0 through 4) 9.999999999×10 ?z(0 through 4) Error 2: Statistics Operation Condition Ö n (number in R ) = 0 Σx = 0 ...
  • Page 252: Error 5: Compound Interest

    252 Appendix D: Error Conditions Error 5: Compound Interest Operation Condition i = 0 and PMT = 0 PMT is between FV × d and –PV × d, inclusive, where d = , where S=0 for END × mode and 1 for BEG mode. i ≤...
  • Page 253: Error 6: Storage Registers

    Appendix D: Error Conditions Error 6: Storage Registers Operation Condition Storage register specified does not exist or has been converted to program lines. n specifies a storage register that does not exist or has been converted to program lines. n > 80 n <...
  • Page 254: Error 8: Calendar

    254 Appendix D: Error Conditions Error 8: Calendar Operation Condition Ò Improper date format or illegal date. Attempting to add days beyond calculator’s date capacity. Improper date format or illegal date. More than 500 years between settlement (purchase) date and maturity (redemption) date. Maturity date earlier than settlement date.
  • Page 255: Appendix E: Formulas Used

    Appendix E Formulas Used Percentage Base( y × Rate( ⎛ ⎞ NewAmount( Base( − ⎜ ⎟ Δ ⎜ ⎟ Base( ⎝ ⎠ ⎛ ⎞ Amount( ⎜ ⎟ ⎜ ⎟ Total( ⎝ ⎠ Interest = number of compounding periods. = periodic interest rate, expressed as a decimal. = present value.
  • Page 256: Compound Interest

    256 Appendix E: Formulas Used Compound Interest Without an odd period: ⎡ − ⎤ − − ⋅ ⋅ ⎢ ⎥ ⎢ ⎥ ⎣ ⎦ With simple interest used for an odd period: INTG( ⎡ − ⎤ − FRAC( ⎢ ⎥ ⎢...
  • Page 257: Discounted Cash Flow Analysis

    Appendix E: Formulas Used Discounted Cash Flow Analysis Net Present Value = net present value of a discounted cash flow. = cash flow at period j. Internal Rate of Return = number of cash flows = cash flow at period j. = Internal Rate of Return ⎡...
  • Page 258: Bonds

    258 Appendix E: Formulas Used Bonds Reference: Jan Mayle, TIPS Inc., Standard Securities Calculation Methods, Volume 1, Third Edition, Securities Industry Association Inc., New York, 1993. = days between issue date and maturity date. = days between settlement date and maturity date. = days between beginning of current coupon period and settlement date.
  • Page 259: Black-scholes Formula For Valuing European Options

    Appendix E: Formulas Used Black-Scholes Formula for Valuing European Options P = current asset price. r% = risk-free rate (continuous, per time unit). s% = volatility (continuous, per time unit). T = term of option (same time unit as r% and s%). X = exercise price of option.
  • Page 260: Straight-line Depreciation

    260 Appendix E: Formulas Used Straight-Line Depreciation Keyboard function: − for j = 1, 2, …, L Program for partial first year: − ⋅ − for j = 2, 3, …, L = RDV L + 1 Sum-of-the-Years-Digits Depreciation )( 1 SOYD where W = integer part of k F = fractional part of k.
  • Page 261: Modified Internal Rate Of Return

    Appendix E: Formulas Used FACT ⋅ for j ≠ 1 − Modified Internal Rate of Return = number of compounding periods. = Net future value of the positive cash flows. = Net present value of the negative cash flows. ⎡ ⎤...
  • Page 262: Statistics

    262 Appendix E: Formulas Used Statistics Mean ∑ ∑ Weighted Mean ∑ ∑ Linear Estimation n = number of data pairs ˆ − ˆ ∑ ∑ ⋅ ∑ − where ∑ ∑ − − ∑ ∑ ⋅ ⎡ ⎤ ∑ −...
  • Page 263: The Rent Or Buy Decision

    Appendix E: Formulas Used The Rent or Buy Decision Market Value = PRICE(1 + I) where: = appreciation per year (as decimal) = number of years Net Cash Proceeds on Resale = Market Value – Mortgage Balance – Commission The interest rate is obtained by solving the financial (compound interest) equation for i using: = number of years house is owned = down payment + closing costs...
  • Page 264: Appendix F: Batteries, Warranty, And Service Information

    Service Information Batteries The hp 12c platinum is shipped with two 3 Volt CR2032 Lithium batteries. Battery life depends on how the calculator is used. If the calculator is being used to perform operations other than running programs, it uses much less power.
  • Page 265 Appendix F: Battery, Warranty, and Service Information To install new batteries, use the following procedure: 1. With the calculator turned off, slide the battery cover off. 2. Remove the old battery. 3. Insert a new CR2032 lithium battery, making sure that the positive sign (+) is facing outward.
  • Page 266: Verifying Proper Operation (self-tests)

    † The status indicators turned on at the end of this test include some that normally are not displayed on the hp 12c platinum. † If the calculator displays Error 9 as a result of the ; / µ test or the ; / + test but you wish to continue using your calculator, you should reset Continuous Memory as described on page 86.
  • Page 267: Perchlorate Material - Special Handling May Apply

    Appendix F: Battery, Warranty, and Service Information Note: Tests of the calculator’s electronics are also performed if the = key or the z key is held down when ; is released. These tests are included in the calculator to be used in verifying that it. is operating properly during manufacturing and service.
  • Page 268: Hp Limited Hardware Warranty And Customer Care

    HP does not warrant that the operation of HP products will be uninterrupted or error free. If HP is unable, within a reasonable time, to repair or replace any product to a condition as warranted, you will be entitled to a refund of the purchase price upon prompt return of the product with proof of purchase.
  • Page 269: Customer Care

    TO THE EXTENT ALLOWED BY LOCAL LAW, THE REMEDIES IN THIS WARRANTY STATEMENT ARE YOUR SOLE AND EXCLUSIVE REMEDIES. EXCEPT AS INDICATED ABOVE, IN NO EVENT WILL HP OR ITS SUPPLIERS BE LIABLE FOR LOSS OF DATA OR FOR DIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL (INCLUDING LOST PROFIT OR DATA), OR OTHER DAMAGE, WHETHER BASED IN CONTRACT, TORT, OR OTHERWISE.
  • Page 270 +65 6100 6682 Honduras 800-711-2884 Turkey www.hp.com/support Hong United 852 2833-1111 0207 458 0161 Kong Kingdom Hungary www.hp.com/support Uruguay 0004-054-177 www.hp.com/support United India 800-HP INVENT /india States Indonesia +65 6100 6682 Venezuela 0-800-474-68368 Ireland 01 605 0356 Vietnam +65 6100 6682...
  • Page 271 Appendix F: Battery, Warranty, and Service Information Italy 02 754 19 782 Japan 81-3-6666-9925 www.hp.com/support Korea /korea Malaysia +65 6100 6682...
  • Page 272: Regulatory Information

    272 Appendix F: Battery, Warranty, and Service Information Regulatory Information Federal Communications Commission Notice This equipment has been tested and found to comply with the limits for a Class B digital device, pursuant to Part 15 of the FCC Rules. These limits are designed to provide reasonable protection against harmful interference in a residential installation.
  • Page 273 Appendix F: Battery, Warranty, and Service Information Hewlett-Packard Company P. O. Box 692000, Mail Stop 510101 Houston, TX 77269-2000 or call HP at 281-514-3333 To identify your product, refer to the part, series, or model number located on the product. Canadian Notice This Class B digital apparatus meets all requirements of the Canadian Interference-Causing Equipment Regulations.
  • Page 274: Disposal Of Waste Equipment By Users In Private Household In The European Union

    California. Chemical substances HP is committed to providing our customers with information about the chemical substances in our products as needed to comply with legal requirements such as REACH (Regulation EC No 1907/2006 of the European Parliament and the Council).
  • Page 275: Appendix G: United Kingdom Calculations

    Appendix G United Kingdom Calculations The calculations for most financial problems in the United Kingdom are identical to the calculations for those problems in the United States — which are described earlier in this handbook. Certain problems, however, require different calculation methods in the United Kingdom than in the United States, even though the terminology describing the problems may be similar.
  • Page 276: Annual Percentage Rate (apr) Calculations

    276 Appendix G: United Kingdom Calculations Annual Percentage Rate (APR) Calculations In the United Kingdom, the calculation of the Annual Percentage Rate of Charge (APR) in accordance with the United Kingdom Consumer Credit Act (1974) differs from the calculation of the APR in the United States. Unlike the practice in the United States, where the APR can be calculated by multiplying the periodic interest rate by the number of periods per year, in the United Kingdom the APR is calculated by converting the periodic interest rate to the “effective annual rate,”...
  • Page 278: Function Key Index

    Function Key Index É Enter exponent. CLEAR H Clears General After pressing, next contents of stack (X,Y,Z ; Power on /off key numbers keyed in are and T), all storage (page 16). exponents of 10 registers, statistical (page 18). registers, and financial f Shift key.
  • Page 279 Function Key Index two dates in the Y and X-registers (page 40). M Stores or computes V Calculates Financial future value (final cash depreciation using CLEAR G Clears flow) of a financial straight-line method.
  • Page 280 280 Function Key Index problem (page 41). (page 83). contents of financial registers (page 42). ! Amortizes x E Calculates bond × Sets payment number of periods price, given desired mode to Begin for using values stored in yield to maturity compound interest PMT, i, PV, and the (page 82).
  • Page 281 Function Key Index Ö Computes mean Modes Number Alteration (average) of x-values and ] sets calculator to B Rounds mantissa of y-values using RPN mode (page 19). 10-digit number in accumulated statistics X-register to match the (page 94). [ sets calculator to display (page 100).
  • Page 282: Programming Key Index

    Programming Key Index s Program/Run. Toggles into and out of Program mode. Automatically sets program to line 000 when returning to Run mode (page 86). N Memory map. Describes the current allocation of memory; the number of lines allotted to program memory and the number of available data registers (page 93).
  • Page 283 Programming Key Index Program Mode Run Mode Active Keys: Pressed from Executed as a keyboard: recorded program instruction: t Run/Stop. Begins execution of a stored t Run/Stop. Stops program. Stops program execution execution if program is (page 124). running (page 108). i Go to.
  • Page 284: Subject Index

    Subject Index European options, 194, 254 Bonds, 82–83, 217–25, 253, 271 Bonds, 30/360 day basis, 217–21 , 13, 69, 230 Bonds, annual coupon, 222 Adding instructions, 140–48 Bonds, corporate, 82 Adjusting the Display Contrast, 16 Bonds, municipal, 82 Advance payments, 202, 209 Bonds, U.S.
  • Page 285 Subject Index Compound growth, 47, 49 Display format, mantissa, 89 Compound interest, 49–68, 251 Display format, standard, 88 Compound interest calculation, 12 Display formats, number, 87 Compounding periods, 44, 49 Display, scientific notation, 88 Conditional branching, 129–30 Displaying numbers, 41 Conditional test instructions, 129 Displays, special, 90 Constants, arithmetic calculations...
  • Page 286 286 Subject Index , 17, 21, 108, 1 14, 125, 130, memory, 27 143, 230 Memory, program, 1 12 , 1 14, 139 Modes 000, 1 12–13 alegebraic, 20 RPN, 20 Modified internal rate of return, 192 Mortgage, price of, 159 , 13, 41, 42 Mortgage, yield of, 161 , 42, 230...
  • Page 287 Subject Index , 82, 230 , 88, 100, 231 , 1 17, 1 18 Reciprocal, 100 , 41, 42, 55 registers, 27 Parentheses Calculations, 26, 240 Registers, financial, 41 Partial-year depreciation, 171 Registers, statistics, 93 Payment, 45, 209 Renting versus Buying, 163 Payment amount, calculating, 59 Residual, 209 Payment mode, 46...
  • Page 288 288 Subject Index , 97, 230 , 99, 125, 129 Weighted mean, 99 , 13, 82, 83 , 40, 42, 69, 82, 90, 94, 96, , 97, 230 125, 129, 230 , 102, 231 , 100, 231 , 230 , 94, 230 Yield, 206, 212...

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