Making Financial Calculations Easy
Example 3: The preceding example showed that the insurance policy will
provide about half the required amount. An additional amount must be set aside to
provide the balance (21,396.61 – 10,371.79 = 11,024.82). Suppose you make
monthly payments, beginning at the end of next month, into an account that pays
6% annually, compounded monthly. What payment amount would be required in
order to accumulate $11,024.82 in the 14 years remaining ?
Example 4: Suppose you cannot find a bank that currently offers an account
with 6% annual interest compounded monthly, but you can afford to make $45
monthly payments. What is the minimum interest rate that will enable you to
accumulate the required amount ?
In this problem, we do not need to clear the previous financial data inside the
calculator, since most of it is unchanged from the preceding example.
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.
Value of policy in 14 years.
Clears previous financial data
inside the calculator.
Calculates and stores the number
of compounding periods.
Calculates and stores the periodic
Stores the future value required.
Sets payment mode to End.
Monthly payment required.
Stores payment amount.
Periodic interest rate.
Annual interest rate.