# HP 0012C-90001 User Manual

12c financial calculator

hp 12c financial calculator
user's guide
H
Edition 5
HP Part Number 0012C-90001

#### Summary of Contents for HP 0012C-90001

• Page 1 12c financial calculator user's guide Edition 5 HP Part Number 0012C-90001...
• Page 2 Notice Notice Notice Notice THIS MANUAL AND ANY EXAMPLES CONTAINED HEREIN ARE PROVIDED “AS THIS MANUAL AND ANY EXAMPLES CONTAINED HEREIN ARE PROVIDED “AS THIS MANUAL AND ANY EXAMPLES CONTAINED HEREIN ARE PROVIDED “AS THIS MANUAL AND ANY EXAMPLES CONTAINED HEREIN ARE PROVIDED “AS IS”...

Following this introduction is a brief section called Making Financial Calculations Easy—which shows you that your hp 12c does just that! The remainder of this handbook is organized basically into three parts: Part I (sections 1 through 7) describes how to use the various financial, ...
• ### Page 4: Financial Calculations In The United Kingdom

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

Contents Contents Contents Contents Introduction Introduction ........ Introduction Introduction ..................................................3 3 3 3 ..About This Handbook ..............3 Financial Calculations in the United Kingdom ........4 For More Solutions to Financial Problems .......... 4 Problem Solving Problem Solving ........
• Page 6 Contents Contents Contents Contents Displaying Numbers in the Financial Registers ......32 Clearing the Financial Registers ..........33 Simple Interest Calculations ............33 Financial Calculations and the Cash Flow Diagram ......34 The Cash Flow Sign Convention ..........36 The Payment Mode ............... 37 Generalized Cash Flow Diagrams ...........
• Page 7 Contents Contents Contents Contents Section 6: Section 6: Section 6: Section 6: Statistics Functions Statistics Functions ........ Statistics Functions Statistics Functions ............................ 76 .... Accumulating Statistics ..............76 Correcting Accumulated Statistics ...........77 Mean ..................77 Standard Deviation ............... 79 Linear Estimation .................
• Page 8 Contents Contents Contents Contents Section 11: Section 11: Section 11: Section 11: Multiple Programs Multiple Programs ........ Multiple Programs Multiple Programs ............................ 120 Storing Another Program ............120 Running Another Program ............122 Solutions ........ Solutions .............
• ### Page 9: Contents

Contents Contents Contents Contents Appendixes Appendixes ........ Appendixes Appendixes ................................................169 ..Appendix A: Appendix A: The Automatic Memory Stack Appendix A: Appendix A: The Automatic Memory Stack The Automatic Memory Stack ....... The Automatic Memory Stack .......
• Page 10 Installing New Batteries ............193 Verifying Proper Operation (Self-Tests) .......... 194 Perchlorate Material – special handling may apply......195 HP Limited Hardware Warranty and Customer Care ...... 196 Customer Care ................197 Regulatory Information ............... 200 Disposal of Waste Equipment by Users in Private Household in the European Union ................
• Page 11 To begin, turn the calculator on by pressing the ; key. Then, press the keys shown in the Keystro Keystro Keystrokes Keystro kes 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 12 Making Financial Calculations Easy Making Financial Calculations Easy Making Financial Making Financial Calculations Easy Calculations Easy Note: Note: Note: Note: A battery symbol ( ) shown in the lower-left corner of the display when the calculator is on signifies that the available battery power is nearly exhausted.
• Page 13 Periodic interest rate. 5.01 Annual interest rate. This is only a small sampling of the many financial calculations that can now be done easily with your hp 12c. To begin learning about this powerful financial tool, just turn the page.
• ### Page 15: Problem Solving

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

The Keyboard The Keyboard Many keys on the hp 12c 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: Gett Section 1: Getti i i i ng Started ng Started Section 1: Gett Section 1: Gett ng Started ng Started operation Throughout this handbook, references to the of an alternate function appear as only the function name in a box (for example, “The L function …”). selection References to the of an alternate function appear preceded by the...
• ### Page 18: Keying In Large Numbers

Clearing a register or the display replaces the number in it with zero. Clearing program memory replaces the instructions there with g(00. There are several clearing operations on the hp 12c, as shown in the table below: Key(s) Key(s) Key(s)
• ### Page 19: Simple Arithmetic Calculations

Any simple arithmetic calculation involves two numbers and an operation — addition, subtraction, multiplication, or division. To do such a calculation on your then hp 12c, you first tell the calculator the two numbers, tell the calculator the operation to be performed. The answer is calculated when the operation key , or z) is pressed.
• ### Page 20: Chain Calculations

The hp 12c is designed so that each time you press a function key in RPN mode, then the calculator performs the operation —...
• Page 21 The preceding example demonstrates how the hp 12c 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 22 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 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 23: Storage Registers

Storage Registers Storage Registers Numbers (data) in the hp 12c 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 24: 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 enables you to do all this in a single operation: 1.
• Page 25 Section 1: Gett Section 1: Getti i i i ng Started ng Started Section 1: Gett Section 1: Gett ng Started ng Started Storage register arithmetic is possible with only registers R through R Example: Example: In the example on page 20, we updated the balance in your checkbook. Example: Example: Let’s suppose that because data is stored indefinitely in your calculator’s...
• ### Page 26: Percentage And Calendar Functions

Functions rcentage Functions The hp 12c 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 27: Net Amount

A net amount — that is, the base amount plus or minus the percentage amount — can be calculated easily with your hp 12c, 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 28: Percent Of Total

29.69 Europe had nearly 30% of the total sales. The hp 12c holds the total amount inside after a percent of total is calculated. another Therefore, to calculate what percentage amount is of the total: 1.
• ### Page 29: Calendar Functions

Calendar Functions Calendar Functions Calendar Functions Calendar Functions The calendar functions provided by the hp 12c — D and Ò — can handle dates from October 15, 1582 through November 25, 4046. Date te te te Format Format Format Format —...
• ### Page 30: Future Or Past Dates

Section 2: Pe Pe Pe Percentage and Calendar Functions Section 2: rcentage and Calendar Functions Section 2: Section 2: rcentage and Calendar Functions rcentage and Calendar Functions Year. To set the date format to day-month-year, press gÔ. To key in Day- - - - Month Month Month...
• ### Page 31: Number Of Days Between Dates

(the extra days occurring in leap years), if any. In addition, the hp 12c 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 32: Basic Financial Functions Basic Financ Ial Functions Ial Functions

The Financial Registers The Financial Registers In addition to the data storage registers discussed on page 23, the hp 12c 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 keys on the top row of...
• ### Page 33: Clearing The Financial Registers

Simple Interest Calculations Simple Interest Calculations The hp 12c 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 +.
• ### Page 34: Financial Calculations And The Cash Flow Diagram

Section 3: Basic Financial Functions Section 3: Basic Financial Functions Section 3: Section 3: Basic Financial Functions Basic Financial Functions Keystrokes strokes Display Display strokes strokes Display Display 7¼ 7.00 Stores the annual interest rate. 450Þ\$ –450.00 Stores the principal. fÏ...
• Page 35 Section 3: Basic Fin Section 3: Basic Financial Functions ancial Functions Section 3: Section 3: Basic Fin Basic Fin ancial Functions ancial Functions The exchange of money in a problem is depicted by vertical arrows. Money you receive is represented by an arrow pointing up from the point in the time line when the transaction occurs;...
• ### Page 36: The Cash Flow Sign Convention

12c Solutions Handbook future value — the — is the final cash flow or the compounded value of a  series of prior cash flows. In the particular problem illustrated above, unknown (but can be calculated).
• ### Page 37: The Payment Mode

Section 3: Basic Fin Section 3: Basic Financial Functions ancial Functions Section 3: Section 3: Basic Fin Basic Fin ancial Functions ancial Functions The Payment Mode The Payment Mode The Payment Mode The Payment Mode One more bit of information must be specified before you can solve a problem involving periodic payments.
• Page 38 Section 3: Basic Financial Functions Section 3: Basic Financial Functions Section 3: Section 3: Basic Financial Functions Basic Financial Functions...
• ### Page 39: Compound Interest Calculations

Section 3: Basic Fin Section 3: Basic Financial Functions ancial Functions Section 3: Section 3: Basic Fin Basic Fin ancial Functions ancial Functions Compound Interest Calculations Compound Interest Calculations Compound Interest Calculations Compound Interest Calculations Specifying the Number of Compounding Periods and the Periodic Specifying the Number of Compounding Periods and the Periodic Specifying the Number of Compounding Periods and the Periodic Specifying the Number of Compounding Periods and the Periodic...
• Page 40 Section 3: Basic Financial Functions Section 3: Basic Financial Functions Section 3: Section 3: Basic Financial Functions 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.
• Page 41 Section 3: Basic Fin Section 3: Basic Financial Functions ancial Functions Section 3: Section 3: Basic Fin Basic Fin ancial Functions ancial Functions Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 27.33 Twenty-seven years and four months. Because the calculator rounds the calculated value of up to the next higher integer, in the preceding example it is likely that —...
• Page 42 Section 3: Basic Financial Functions Section 3: Basic Financial Functions Section 3: Section 3: Basic Financial Functions Basic Financial Functions Example 2: Example 2: You’re opening a savings account today (the middle of the month) with Example 2: Example 2: a \$775 deposit.
• ### Page 43: Calculating The Periodic And Annual Interest Rates

Section 3: Basic Fin Section 3: Basic Financial Functions ancial Functions Section 3: Section 3: Basic Fin Basic Fin ancial Functions ancial Functions Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display 4,027.27 Calculates – which equals the balance in the account if 58 full deposits were made.
• ### Page 44: Calculating The Present Value

Section 3: Basic Financial Functions Section 3: Basic Financial Functions Section 3: Section 3: Basic Financial Functions Basic Financial Functions Example: Example: What annual interest rate must be obtained to accumulate \$10,000 in 8 Example: Example: years on an investment of \$6,000 with quarterly compounding ? Keystrokes Keystrokes Keystrokes...
• Page 45 Section 3: Basic Fin Section 3: Basic Financial Functions ancial Functions Section 3: Section 3: Basic Fin Basic Fin ancial Functions ancial Functions Example 1: Example 1: You’re financing a new car purchase with a loan from an institution Example 1: Example 1: that requires 15% interest compounded monthly over the 4-year term of the loan.
• ### Page 46: Calculating The Payment Amount

Section 3: Basic Financial Functions Section 3: Basic Financial Functions Section 3: Section 3: Basic Financial Functions Basic Financial Functions Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display fCLEARG 5.00 Stores 12¼ 12.00 Stores PMT. 17500P 17,500.00 Stores Unlike in the previous problem, here is positive received...
• Page 47 Section 3: Basic Fin Section 3: Basic Financial Functions ancial Functions Section 3: Section 3: Basic Fin Basic Fin ancial Functions ancial Functions Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display fCLEARG 348.00 29gA Calculates and stores 1.19 14.25gC Calculates and stores 43,400.00 43400\$ Stores...
• ### Page 48: Calculating The Future Value

Section 3: Basic Financial Functions Section 3: Basic Financial Functions Section 3: Section 3: Basic Financial Functions Basic Financial Functions Calculating the Future Value Calculating the Future Value Calculating the Future Value Calculating the Future Value 1. Press fCLEARG to clear the financial registers. 2.
• Page 49 Section 3: Basic Fin Section 3: Basic Financial Functions ancial Functions Section 3: Section 3: Basic Fin Basic Fin ancial Functions ancial Functions Example 2: Example 2: If you deposit \$50 a month (at the beginning of each month) into a Example 2: Example 2: new account that pays 6...
• ### Page 50: Odd-Period Calculations

“odd first period”. For simplicity, in using the hp 12c we will always regard the first period as equal to the remaining periods, and we...
• Page 51 Section 3: Basic Fin Section 3: Basic Financial Functions ancial Functions Section 3: Section 3: Basic Fin Basic Fin ancial Functions ancial Functions You can calculate , and for transactions involving an odd period noninteger n simply by entering a .
• Page 52 Section 3: Basic Financial Functions Section 3: Basic Financial Functions Section 3: Section 3: Basic Financial Functions Basic Financial Functions Example 1: Example 1: A 36-month loan for \$4,500 accrues interest at a 15% annual Example 1: Example 1: percentage rate (APR), with the payments made at the end of each month. If interest begins accruing on this loan on February 15, 2004 (so that the first period begins on March 1, 2004), calculate the monthly payment, with the odd days counted on the basis of a 30-day month and compound interest used for the odd...
• Page 53 Section 3: Basic Fin Section 3: Basic Financial Functions ancial Functions Section 3: Section 3: Basic Fin Basic Fin ancial Functions ancial Functions Example 2: Example 2: A 42-month car loan for \$3,950 began accruing interest on July 19, Example 2: Example 2: 2004, so that the first period began on August 1, 2004.
• ### Page 54: Amortization

The amounts calculated on your hp 12c may differ from those on the statements of lending institutions by a few cents, since different rounding techniques are sometimes used.
• Page 55 The number of payments keyed in just before f! is pressed is taken to be the payments following any that have already been amortized. Thus, if you now press 12f!, your hp 12c will calculate the amounts applied to interest and to the principal from the second year’s payments (that is, the second 12 months):...
• Page 56 Section 3: Basic Financial Functions Section 3: Basic Financial Functions Section 3: Section 3: Basic Financial Functions Basic Financial Functions Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display –552.08 Portion of first payment applied to interest. –21.27 Portion of first payment applied to principal.
• ### Page 57: Additional Financial Functions

Discounted Cash Flow Analysis: NPV and NPV and IRR NPV and The hp 12c provides functions for the two most widely-used methods of discounted cash flow analysis: l ( ) and L ( net present value internal rate of return ).
• ### Page 58: Calculating Net Present Value (Npv)

Section 4: Additional Financial Functions Section 4: Additional Financial Functions Section 4: Section 4: Additional Financial Functions Additional Financial Functions is zero, the financial value of the investor’s assets would not change:  the investor is indifferent toward the investment. is negative, the financial value of the investor’s assets would be ...
• Page 59 Section 4: Section 4: Additional Financial Functions Additional Financial Functions Section 4: Section 4: Additional Financial Functions Additional Financial Functions The amounts of the subsequent cash flows are stored – in the order they occur – in the remaining storage registers: CF thru CF in R thru R...
• Page 60 Section 4: Additional Financial Functions Section 4: Additional Financial Functions Section 4: Section 4: Additional Financial Functions Additional Financial Functions Example: Example: An investor has an opportunity to buy a duplex for \$80,000 and would Example: Example: like a return of at least 13%. He expects to keep the duplex 5 years and then sell it for \$130,000;...
• Page 61 Grouped Cash Flows. A maximum of 20 cash flow for Grouped Cash Flows. for Grouped Cash Flows. (in addition to the initial investment ) can be stored in the hp 12c. However, problems involving more than 20 cash flows be handled if among the cash...
• Page 62 Section 4: Additional Financial Functions Section 4: Additional Financial Functions Section 4: Section 4: Additional Financial Functions Additional Financial Functions Example: Example: An investor has an opportunity to purchase a piece of property for Example: Example: \$79,000; and he would like a 13 % return.
• ### Page 63: Calculating Internal Rate Of Return (Irr)

Section 4: Section 4: Additional Financial Functions Additional Financial Functions Section 4: Section 4: Additional Financial Functions Additional Financial Functions Calculating Internal Rate of Return (IRR) Calculating Internal Rate of Return (IRR) Calculating Calculating Internal Rate of Return (IRR) Internal Rate of Return (IRR) 1.
• ### Page 64: Reviewing Cash Flow Entries

Section 4: Additional Financial Functions Section 4: Additional Financial Functions Section 4: Section 4: Additional Financial Functions Additional Financial Functions The complex mathematical characteristics of the computation have an additional ramification: Depending on the magnitudes and signs of the cash flows, the computation of may have a single answer, multiple answers, a negative answer or no answer.
• ### Page 65: Changing Cash Flow Entries

Section 4: Section 4: Additional Financial Functions Additional Financial Functions Section 4: Section 4: Additional Financial Functions Additional Financial Functions Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 2.00 7.00 Resets the number in the n n n n register to its original value.
• ### Page 66: Bond Calculations

Bond Calculations Bond Calculations Bond Calculations Bond Calculations The hp 12c enables you to solve for bond price (and the interest accrued since the The E and S calculations are last interest date) and the yield to maturity. † done assuming a semiannual coupon payment and using an actual/actual basis (such as for U.S.
• ### Page 67: Bond Price

Section 4: Section 4: Additional Financial Functions Additional Financial Functions Section 4: Section 4: Additional Financial Functions Additional Financial Functions To calculate bond price and yield for a 30/360 bond (that is, using the basis of a 30day month and a 360-day year — such as for municipal bonds, corporate bonds, and state and local government bonds), and to calculate bond price for bonds with an annual coupon payment, refer to Section 16: Bonds.
• ### Page 68: Depreciation Calculations

6.042018 6.042018 Enters maturity (redemption) date. 8.15 Bond yield. Depreciation Calculations Depreciation Calculations Depreciation Calculations Depreciation Calculations The hp 12c enables you to calculate depreciation and the remaining depreciable value (book value minus salvage value) using straight-line, sum-of-the-years-digits, and declining-balance methods. To do so with any of these methods: 1.
• Page 69 Section 4: Section 4: Additional Financial Functions Additional Financial Functions Section 4: Section 4: Additional Financial Functions Additional Financial Functions Example: Example: A metalworking machine, purchased for \$10,000, is depreciated over 5 Example: Example: years. Its salvage value is estimated at \$500. Find the depreciation and remaining depreciable value for the first 3 years of the machine’s life using the declining-balance method at double the straight-line rate (200 percent declining-balance).
• ### Page 70: Additional Operating Features

Section 5 Additional Operating Features Additional Operating Features Additional Operating Features Additional Operating Features Continuous Continuous Memory Continuous Continuous Memory Memory 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.
• ### Page 71: Number Display Formats

Display Display 19.8745632\ 19.87 14.87 Although you see only two decimal places, all calculations in your hp 12c are performed with full 10-digit numbers. rounded When only two decimal places are displayed, numbers are to two decimal places: if the third digit is 5 through 9, the second digit is increased by one;...
• ### Page 72: Scientific Notation Display Format

Section 5: Additional Operating Features Section 5: Additional Operating Features Section 5: Section 5: Additional Operating Features Additional Operating Features Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display 14.87456320 Although nine decimal places were specified after f, only eight are displayed since the display can show a total of only 10 digits.
• ### Page 73: Special Displays

Section 5: Section 5: Addit Additional Operating Features ional Operating Features Section 5: Section 5: Addit Addit ional Operating Features ional Operating Features 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.
• ### Page 74: The Key

Section 5: Additional Operating Features Section 5: Additional Operating Features Section 5: Section 5: Additional Operating Features Additional Operating Features Errors. Errors. If you attempt an improper operation — such as division by zero — the Errors. Errors. calculator will display the word Error Error Error followed by a digit (0 0 0 0 through 9 9 9 9 ).
• ### Page 75: Arithmetic Calculations With Constants

Section 5: Section 5: Addit Additional Operating Features ional Operating Features Section 5: Section 5: Addit Addit ional Operating Features ional Operating Features Arithmetic Calculations With Constants Arithmetic Calculations W ith Constants Arithmetic Calculations W Arithmetic Calculations W ith Constants ith Constants Example: Example: At Permex Pipes a certain pipe fitting is packaged in quantities of 15,...
• ### Page 76: Statistics Functions

Accumulating Statistics Accumulating Statistics Accumulating Statistics The hp 12c 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 77: Correcting Accumulated Statistics

Section 6: Section 6: Statistics Functions Statistics Functions Section 6: Section 6: Statistics Functions Statistics Functions The table below shows where the accumulated statistics are stored. Register Register Statistic Statistic Register Register Statistic Statistic (and display) : number of data pairs accumulated. ...
• Page 78 Section 6: Statistics Functions Section 6: Statistics Functions Section 6: Section 6: Statistics Functions Statistics Functions Salesperson Salesperson Hours/Week Hours/Week Sales/ / / / Month Sales Month Salesperson Salesperson Hours/Week Hours/Week Sales Sales Month 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:...
• ### Page 79: Standard Deviation

4,820.59 Standard deviation of sales. 6.03 Standard deviation of hours worked. best estimates The formulas used in the hp 12c for calculating , and give of the population standard deviation based on a sample of the population. Thus, current sample statistical convention calls them standard deviations.
• ### Page 80: Linear Estimation

Section 6: Statistics Functions Section 6: Statistics Functions Section 6: Section 6: Statistics Functions Statistics Functions Linear Estimation Linear Estimation Linear Estimation Linear Estimation With two-variable statistical data accumulated in the statistics registers, you can y ˆ x ˆ y-value x-value x-value estimate a new...
• ### Page 81: Weighted Mean

Section 6: Section 6: Statistics Functions Statistics Functions Section 6: Section 6: Statistics Functions Statistics Functions Example: Example: Compute the slope and intercept of the regression line in the preceding Example: Example: example. Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display 15.55 y-intercept (A);...
• Page 82 Keystrokes Keystrokes Display Display Display Display 1.19 Weighted mean cost per gallon. A procedure for calculating the standard deviation and standard error (as well as hp 12c Solutions the mean) of weighted or grouped data is included in the Handbook...
• ### Page 83: Mathematics And Number

Number- - - - Alteration Functions Alteration Functions Alteration Functions Alteration Functions hp 12c 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...
• Page 84 Section 7: Mathematics and Number Section 7: Mathematics and Number- - - - Alteration Functions Alteration Functions Section 7: Section 7: Mathematics and Number Mathematics and Number Alteration Functions Alteration Functions Fractional. Pressing gT replaces the number in the display by its fractional Fractional.
• ### Page 85: The Power Function

Section 7: Ma Section 7: Mathematics and Number thematics and Number- - - - Alteration Functions Alteration Functions Section 7: Section 7: thematics and Number thematics and Number Alteration Functions Alteration Functions The Power Function The Power Function The Power Function The Power Function Pressing q calculates a power of a number —...
• ### Page 87: Programming Programming

Part II Part II Part II Part II Programming Programming Programming Programming...
• ### Page 88: Programming Basics

Section 8 Programming Basics gramming Basics gramming Basics gramming Basics Why Use Programs Why Use Programs ? Why Use Programs 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 89: Running A Program

Section 8: Programming Basics Section 8: Programming Basics Section 8: Section 8: Programming Basics Programming Basics Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display 150.00 Price less discount. Handling charge. 155.00 Net cost (price less discount plus handling charge). Next, set the calculator to Program mode and erase any program(s) already stored: Keystrokes ystrokes...
• ### Page 90: Program Memory

Section 8: Programming Basics Section 8: Programming Basics Section 8: Section 8: Programming Basics Programming Basics Example: Example: Run the program created above to calculate the net cost of a typewriter Example: Example: listing for \$625 and an executive chair listing for \$159. Keystrokes Keystrokes Keystrokes...
• ### Page 91: Identifying Instructions In Program Lines

Identifying Instructions in Program Lines Identifying Instructions in Program Lines Each key on the hp 12c 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 92: Displaying Program Lines

Occasionally you’ll want to check several or all of the instructions stored in program memory. The hp 12c enables you to review program instructions either forward or backward through program memory: Pressing Ê (...
• ### Page 93: The 00 Instruction And Program Line 00

Section 8: Programming Basics Section 8: Programming Basics Section 8: Section 8: Programming Basics Programming Basics you keyed Program line 07 contains the last instruction into program memory. However, if you press Ê again, you’ll see that this is stored the last line program memory: Keystrokes...
• ### Page 94: Expanding Program Memory

Section 8: Programming Basics Section 8: Programming Basics Section 8: Section 8: Programming Basics Programming Basics Expanding Program Memory Expanding Program Memory Expanding Program Memory Expanding Program Memory If no instructions have been keyed into program memory, if Continuous Memory has been reset, or if fCLEARÎ...
• ### Page 95: Setting The Calculator To A Particular Program Line

Section 8: Programming Basics Section 8: Programming Basics Section 8: Section 8: Programming Basics Programming Basics Program memory is automatically expanded like this whenever another seven instructions have been keyed into program memory — that is, when you key an instruction into program line 16, 23, 30 etc.
• ### Page 96: Executing A Program One Line At A Time

Section 8: Programming Basics Section 8: Programming Basics Section 8: Section 8: Programming Basics Programming Basics With the calculator in Run mode, pressing g( followed by two digit keys  sets the calculator to the program line specified by the digit keys. Since the calculator is not in Program mode, the line number and keycode are not displayed.
• ### Page 97: Interrupting Program Execution

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 provides two functions for doing so: u ( pause ) and t (...
• Page 98 Section 8: Programming Basics Section 8: Programming Basics Section 8: Section 8: Programming Basics Programming Basics Example: Example: Create a program that calculates the entries in the AMOUNT, TAX, and Example: Example: TOTAL columns for each item on the jewelry distributor’s invoice shown on the next page, and also calculates the total in each of these columns for all items on the invoice.
• Page 99 Section 8: Programming Basics Section 8: Programming Basics Section 8: Section 8: Programming Basics 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;...
• Page 100 100 Section 8: Section 8: Programming Basics Programming Basics Section 8: Section 8: Programming Basics Programming Basics Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display Pauses to display TAX. 07- 44 40 09- 44 40 Now, to run the program: Keystrokes Keystrokes Display...
• ### Page 101: Stopping Program Execution

Section 8: Programming Basics Section 8: Programming Basics Section 8: Section 8: Programming Basics Programming Basics 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 u instruction. Alternatively, you can stop have the program automatically as described next.
• Page 102 102 Section 8: Section 8: Programming Basics Programming Basics Section 8: Section 8: Programming Basics Programming Basics Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display 2,040.00 AMOUNT for third item. 137.70 TAX for third item. 2,177.70 TOTAL for third item. 5\345 345.
• ### Page 103: Branching And Looping Branching And Looping

Section 9 Branching and Looping Branching and Looping Branching and Looping 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”...
• ### Page 104: Looping

104 Section 9: Section 9: Branching and Loopin Branching and Looping g g g Section 9: Section 9: Branching and Loopin Branching and Loopin Looping Looping Looping Looping If a ( instruction specifies a lower-numbered line in program memory, the instructions in the program lines between the specified line and the ( instruction will be executed repeatedly.
• Page 105 Section 9: Branching and Loopin Section 9: Branching and Looping g g g Section 9: Section 9: Branching and Loopin Branching and Loopin Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display Recalls the number of payments to be amortized. This program line is the one to which program execution will later branch.
• Page 106 106 Section 9: Section 9: Branching and Loopin Branching and Looping g g g Section 9: Section 9: Branching and Loopin Branching and Loopin Keystrokes Keystrokes Keystrokes Keystrokes Display Display Display Display Ê Line 02: :0. This is the beginning of the first pass through the loop.
• ### Page 107: Conditional Branching

The hp 12c provides two test instructions that are used in programs for conditional branching: o tests whether the number in the X-register (represented by the in the ...
• Page 108 108 Section 9: Section 9: Branching and Loopin Branching and Looping g g g Section 9: Section 9: Branching and Loopin Branching and Loopin The program line immediately following that containing the conditional test instruction can contain any instruction; however, the most commonly used instruction there is (.
• Page 109 Section 9: Branching and Loopin Section 9: Branching and Looping g g g Section 9: Section 9: Branching and Loopin Branching and Loopin 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 01 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 110 110 Section 9: Section 9: Branching and Loopin Branching and Looping g g g Section 9: Section 9: Branching and Loopin Branching and Loopin Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display g(07 04- 43, 33 If condition is true, branches to program line 07.
• Page 111 Section 9: Branching and Loopin Section 9: Branching and Looping g g g Section 9: Section 9: Branching and Loopin Branching and Loopin Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display 15,000.00 Ê Line 07: :1. 20.00 20% tax rate has been recalled to X-register, moving income to Y-register.
• Page 112 112 Section 9: Section 9: Branching and Loopin Branching and Looping g g g Section 9: Section 9: Branching and Loopin Branching and Loopin Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display Ê Line 02: ~. 25,000.00 Income has been placed in X-register and test value has been placed in Y-register.
• ### Page 113: Program Editing

Section 10 Program Editing Program Editing Program Editing 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 114: Adding Instructions At The End Of A Program

114 Section 10: Section 10: Program Editing Program Editing Section 10: Section 10: Program Editing Program Editing Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display 6,250.00 Sets calculator back to Run mode. (Display shown assumes results remain from last example in preceding section.) :2?6 25.00 Copies tax rate from R...
• ### Page 115: Adding Instructions Within A Program

Section 10: Section 10: Program Editing Program Editing Section 10: Section 10: Program Editing Program Editing Adding Instructions Within a Program Adding Instructions Within a Program Adding Instructions Within a Program 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 116: Adding Instructions By Branching

116 Section 10: Section 10: Program Editing Program Editing Section 10: Section 10: Program Editing Program Editing Example: Assuming you have added a - instruction at the end of program Example: Example: Example: memory as in the preceding example, suppose you now wanted to insert an t instruction before the - instruction so that the program will display the amount of the tax before displaying the net income after tax.
• Page 117 Section 10: Section 10: Program Editing Program Editing Section 10: Section 10: Program Editing Program Editing 5. Press g(00. This automatically converts a data storage register into seven additional lines of program memory (if there was not already a (00 instruction remaining at the end of program memory), and it ensures that program execution will branch to line 00 after the program is run.
• Page 118 118 Section 10: Section 10: Program Editing Program Editing Section 10: Section 10: Program Editing Program Editing Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display Added instructions. g(00 15- 43, 33 Keys in instruction immediately following point at which new instructions are being added.
• Page 119 Section 10: Section 10: Program Editing Program Editing Section 10: Section 10: Program Editing Program Editing...
• ### Page 120: Multiple Programs

Section 11 Multiple Programs Multiple Programs Multiple Programs 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 ( before pressing t.
• Page 121 Section 1 Section 11 1 1 1 : Multiple Programs : Multiple Programs Section 1 Section 1 : Multiple Programs : Multiple Programs Example 1: Example 1: Assuming that program memory still contains the last program from the Example 1: Example 1: preceding section (which consisted of 17 program lines), store after that program the office-supplies program from Section 8 (page 88).
• ### Page 122: Running Another Program

122 Section 1 Section 11 1 1 1 : Multiple Programs : Multiple Programs Section 1 Section 1 : Multiple Programs : Multiple Programs Example 2: Example 2: With the two programs now stored in program memory from the Example 2: Example 2: preceding examples (occupying 27 program lines), store the amortization program from Section 9(page 103).
• ### Page 123: Solutions

Part III Part III Part III Part III Solutions Solutions Solutions Solutions...
• ### Page 124: Real Estate And Lending Real Estate And Lending

Section 12 Real Estate and Lending Real Estate and Lending Real Estate and Lending Real Estate and Lending Annual Percentage Rate Calculations With Fees Annual Percentage Rate Calculations With Fees Annual Percentage Rate Calculations With Fees 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.
• Page 125 Section 12: Real Estate and Lending Section 12: Real Estate and Lending Section 12: Section 12: Real Estate and Lending Real Estate and Lending Example 1: Example 1: A borrower is charged 2 points for the issuance of his mortgage. If the Example 1: Example 1: mortgage amount is \$60,000 for 30 years and the interest rate is 11...
• ### Page 126: Price Of A Mortgage Traded At A Discount Or Premium

126 Section 12: Section 12: Real Estate and Lending Real Estate and Lending Section 12: Section 12: Real Estate and Lending Real Estate and Lending Example 3: Example 3: Again using the information given in example 1, what is the APR if the Example 3: Example 3: mortgage fee is stated as 2 points plus \$150 ?
• Page 127 Section 12: Real Estate and Lending Section 12: Real Estate and Lending Section 12: Section 12: Real Estate and Lending Real Estate and Lending Example 1: Example 1: A lender wishes to induce the borrower to prepay a low interest rate Example 1: Example 1: loan.
• ### Page 128: Yield Of A Mortgage Traded At A Discount Or Premium

128 Section 12: Section 12: Real Estate and Lending Real Estate and Lending Section 12: Section 12: Real Estate and Lending Real Estate and Lending Yield of a Mortgage Traded at a Discount or Premium Yield of a Mortgage Traded at a Discount or Premium Yield of a Mortgage Traded at a Discount or Premium Yield of a Mortgage Traded at a Discount or Premium The annual yield of a mortgage bought at a discount or premium can be...
• Page 129 Section 12: Real Estate and Lending Section 12: Real Estate and Lending Section 12: Section 12: Real Estate and Lending Real Estate and Lending Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display 79000Þ\$ –79,000.00 Input price of mortgage (into PV; negative to indicate money paid out).
• ### Page 130: The Rent Or Buy Decision

130 Section 12: Section 12: Real Estate and Lending Real Estate and Lending Section 12: Section 12: Real Estate and Lending Real Estate and Lending The Rent o The Rent or Buy Decision The Rent o The Rent o r Buy Decision r Buy Decision r Buy Decision The question of whether to rent or purchase a residence is not always easy to...
• Page 131 Section 12: Real Estate and Lending Section 12: Real Estate and Lending Section 12: Section 12: Real Estate and Lending Real Estate and Lending KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DISPLAY DISPLAY DISPLAY KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DISPLAY DISPLAY DISPLAY Þ...
• Page 132 132 Section 12: Section 12: Real Estate and Lending Real Estate and Lending Section 12: Section 12: Real Estate and Lending Real Estate and Lending REGISTERS REGISTERS REGISTERS REGISTERS n: Period i: Apprec. PV: Price PMT: Used FV: Used : Period : Dwn Pmt : Life : i(Mtg)
• Page 133 Section 12: Real Estate and Lending Section 12: Real Estate and Lending Section 12: Section 12: Real Estate and Lending Real Estate and Lending 16. Press t to compute the yield on your investment in the house. 17. Press t to compute the value of a savings account or other investment. 18.
• ### Page 134: Deferred Annuities

134 Section 12: Section 12: Real Estate and Lending Real Estate and Lending Section 12: Section 12: Real Estate and Lending Real Estate and Lending Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display 4.00 Years in investment. 10¼ 10.00 Yearly appreciation rate. 70000\$ 70,000.00 House price.
• Page 135 Section 12: Real Estate and Lending Section 12: Real Estate and Lending Section 12: Section 12: Real Estate and Lending 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 136: Investment Analysis Investment Analysis

Straight- - - - Line Depreciation Straight Straight Line Depreciation Line Depreciation Line Depreciation The following hp 12c program calculates the straight-line depreciation for the year desired with the acquisition date occurring at any time during the year. KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES...
• Page 137 Section 13: Section 13: Investment Analysis Investment Analysis Section 13: Section 13: Investment Analysis Investment Analysis KEYSTROKES KEYSTROKES DISPLAY DISPLAY KEYSTROKES KEYSTROKES DISPLAY DISPLAY KEYSTROKES KEYSTROKES DISPLAY DISPLAY KEYSTROKES KEYSTROKES DISPLAY DISPLAY g(30 41-43, 33 REGISTERS REGISTERS REGISTERS REGISTERS n: Life i: Unused PV: Dep.
• Page 138 138 Section 13: Section 13: Investment Analysis Investment Analysis Section 13: Section 13: Investment Analysis Investment Analysis 9. For a new case, press g(00 and return to step 2. Note: Note: Note: Note: If the number of months in the first calendar year is less than 12, the amount of depreciation in the 1st year will be less than a full year’s depreciation.
• ### Page 139: Declining-Balance Depreciation

Declining- - - - Balance Depreciation Declining Declining Balance Depreciation Balance Depreciation Balance Depreciation The following hp 12c 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...
• Page 140 140 Section 13: Section 13: Investment Analysis Investment Analysis Section 13: Section 13: Investment Analysis Investment Analysis KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DISPLAY DISPLAY DISPLAY KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DISPLAY DISPLAY DISPLAY 28-44 29-44 g(22 30-43, 33 g(26 37-43, 33 REGISTERS REGISTERS REGISTERS...
• ### Page 141: Sum-Of-The-Years-Digits Depreciation

Years- - - - Digits Depreciation Years Digits Depreciation Digits Depreciation Digits Depreciation The following hp 12c 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 KEYSTROKES...
• Page 142 142 Section 13: Section 13: Investment Analysis Investment Analysis Section 13: Section 13: Investment Analysis Investment Analysis KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DISPLAY DISPLAY DISPLAY KEYSTRO KEYSTROKES KEYSTRO KEYSTRO DISPLAY DISPLAY DISPLAY DISPLAY fÝ 32-44 fÝ 33-44 g(26 34-43, 33 g(30 41-43, 33 REGISTERS...
• Page 143 Section 13: Section 13: Investment Analysis Investment Analysis Section 13: Section 13: Investment Analysis Investment Analysis 6. Key in the year desired then press \. then press t. 7. Key in the number of months in first year The display will †...
• ### Page 144: 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 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 145 Section 13: Section 13: Investment Analysis Investment Analysis Section 13: Section 13: Investment Analysis Investment Analysis KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DISPLAY DISPLAY DISPLAY KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DISPLAY DISPLAY DISPLAY 70-44 71-44 73-44 76-44 78-44 79-44 80-44 g(39 32-43, 33 g(74 85-43, 33...
• Page 146 146 Section 13: Section 13: Investment Analysis Investment Analysis Section 13: Section 13: Investment Analysis Investment Analysis KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DISPLAY DISPLAY DISPLAY KEYSTROKES KEYSTROKES KEYSTROKES KEYSTROKES DISPLAY DISPLAY DISPLAY DISPLAY 43-44 g(74 94-43, 33 g(58 95-43, 33 REGISTERS REGISTERS REGISTERS...
• Page 147 Section 13: Section 13: Investment Analysis Investment Analysis Section 13: Section 13: Investment Analysis Investment Analysis Example: Example: An electronic instrument is purchased for \$11,000, with 6 months Example: Example: remaining in the current fiscal year. The instrument’s useful life is 8 years and the salvage value is expected to be \$500.
• ### Page 148: Excess Depreciation

148 Section 13: Section 13: Investment Analysis Investment Analysis Section 13: Section 13: Investment Analysis Investment Analysis Excess Depreciation Excess Depreciation Excess Depreciation 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.
• Page 149 Section 13: Section 13: Investment Analysis Investment Analysis Section 13: Section 13: Investment Analysis Investment Analysis MIRR This Modified Internal Rate of Return procedure ( ) is one of several alternatives which avoids the drawbacks of the traditional technique. The procedure eliminates the sign change problem and the reinvestment (or discounting) assumption by utilizing user stipulated reinvestment and borrowing rates.
• Page 150 150 Section 13: Section 13: Investment Analysis Investment Analysis Section 13: Section 13: Investment Analysis Investment Analysis Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display 657,152.37 10gCfl NPV of positive cash flows. Þ\$ 775,797.83 20wM NFV of positive cash flows. 180000ÞgJ 0gK5ga 100000ÞK...
• ### Page 151: Leasing Leasing

Section 14 Leasing Leasing Leasing Leasing Advance Payments Advance Payments Advance Payments 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 152 152 Section 14: Leasing Section 14: Leasing Section 14: Leasing Section 14: Leasing If solving for the payment amount will be done repetitively, key in the following hp 12c program. KEYSTROKES KEYSTROKES DISPLAY DISPLAY KEYSTROKES KEYSTROKES DISPLAY DISPLAY KEYSTROKES KEYSTROKES...
• Page 153 Section 14: Section 14: Leasing Leasing Section 14: Section 14: Leasing Leasing Example 2: Example 2: Using the preceding program, solve for the monthly payment using the Example 2: Example 2: information given in example 1. Then change the yearly interest to 15% and solve for the new payment amount.
• ### Page 154: Solving For Yield

154 Section 14: Leasing Section 14: Leasing Section 14: Leasing Section 14: Leasing Solving Solving for Yield Solving Solving for Yield for Yield for Yield To calculate the periodic yield, information is entered as follows: 1. Press gÂ and fCLEARG. 2.
• Page 155 Section 14: Section 14: Leasing Leasing Section 14: Section 14: Leasing Leasing If solving for yield will be done repetitively, key in the following hp 12c program: KEYSTROKES KEYSTROKES DISPLAY DISPLAY KEYSTROKES KEYSTROKES DISPLAY DISPLAY KEYSTROKES KEYSTROKES DISPLAY DISPLAY KEYSTROKES...
• ### Page 156: Advance Payments With Residual

156 Section 14: Leasing Section 14: Leasing Section 14: Leasing Section 14: Leasing Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display 600?2 600.00 Periodic payment. 25000?3t 17.33 Annual yield (as a percentage). 625?2t 19.48 Annual yield (as a percentage) when is increased \$25.
• Page 157 Section 14: Section 14: Leasing Leasing Section 14: Section 14: Leasing Leasing REGISTERS REGISTERS REGISTERS REGISTERS n: Used. i: Interest PV: Used PMT: –1. FV: Residual : # Pmts (n) : Interest. : Loan. : Residual : # Adv. Pmt. : Used –R : Unused...
• ### Page 158: Solving For Yield

158 Section 14: Leasing Section 14: Leasing Section 14: Leasing Section 14: Leasing Example 2: Example 2: Using the information from example 1, what would the monthly Example 2: Example 2: payments be if the lessor desired a yield of 18% annually ? Keystrokes Keystrokes Keystrokes...
• Page 159 Section 14: Section 14: Leasing Leasing Section 14: Section 14: Leasing Leasing Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display –4,710.00 Net amount of cash advanced. 34.00 145gK34ga Thirty-four cash flows of \$145.00. 0.00 Thirty-fifth cash flow. 1,500.00 1500gK Thirty-sixth cash flow. fL12 18.10 Annual yield to lessor.
• ### Page 160: Savings Savings

5.25\ 5.25 Nominal rate. 4wz¼ 1.31 Percent quarterly interest rate. 100Þ\ 5.35 Percent effective interest rate. For repeated calculations, the following hp 12c program can be used: KEYSTROKES KEYSTROKES DISPLAY DISPLAY KEYSTROKES KEYSTROKES DISPLAY DISPLAY KEYSTROKES KEYSTROKES DISPLAY...
• ### Page 161: Effective Rate Converted To Nominal Rate

Section 15: Savings Section 15: Savings Section 15: Section 15: Savings Savings KEYSTROKES KEYSTROKES DISPLAY DISPLAY KEYSTROKES KEYSTROKES DISPLAY DISPLAY KEYSTROKES KEYSTROKES DISPLAY DISPLAY KEYSTROKES KEYSTROKES DISPLAY DISPLAY REGISTERS REGISTERS REGISTERS REGISTERS n: # Periods. i: Nom. Rate/n PV: 0 PMT: Used.
• ### Page 162: Nominal Rate Converted To Continuous Effective Rate

162 Section 15: Savings Section 15: Savings Section 15: Savings Section 15: Savings Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display 5.25 Percent nominal interest rate. Nominal Rate Converted to Continuous Effective Rate Nominal Rate Converted to Continuous Effective Rate Nominal Rate Converted to Continuous Effective Rate Nominal Rate Converted to Continuous Effective Rate This procedure converts a nominal annual interest rate to the continuous effective...
• ### Page 163: Bonds Bonds

Section 16 Bonds Bonds Bonds Bonds 30/360 Day Basis Bonds 30/360 Day Basis Bonds 30/360 Day Basis 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 164 164 Section 16: Bonds Section 16: Bonds Section 16: Bonds Section 16: Bonds KEYSTROKES KEYSTROKES DISPLAY DISPLAY KEYSTROKES S S S KEYSTROKE DISPLAY DISPLAY KEYSTROKES KEYSTROKES DISPLAY DISPLAY KEYSTROKE KEYSTROKE DISPLAY DISPLAY Þ ¼ REGISTERS REGISTERS REGISTERS REGISTERS n:  days/180 i: Yield/2 PV: Price PMT: Coupon/2.
• Page 165 Section 16: Bonds Section 16: Bonds Section 16: Bonds Section 16: Bonds For a new case return to step 3. Note that only those values which have been changed need to be reentered and stored. 8. If yield is desired: a.
• ### Page 166: Annual Coupon Bonds

Annual Coupon Bonds Annual Coupon Bonds For bonds which have annual coupons, use the following hp 12c 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 167 Section 16: Bonds Section 16: Bonds Section 16: Bonds Section 16: Bonds REGISTERS REGISTERS REGISTERS REGISTERS n: Used i: Yield PV: Used PMT: Cpn. or 0 FV: Used : # Periods (n) : Yield : Coupon : Redemption : Settlement : Next Cpn.
• Page 168 168 Section 16: Bonds Section 16: Bonds Section 16: Bonds Section 16: Bonds Keystrokes Keystrokes Display Display Keystrokes Keystrokes Display Display –94.75 Purchase price.
• ### Page 169: Appendixes

Appendixes Appendi Appendi Appendi...
• ### Page 170: The Automatic Memory Stack

The Automatic Memory Stack The Automatic Memory Stack The Automatic Memory Stack Four special registers in the hp 12c 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 171: 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 functions on the numbers in the stack. Getting Numbers Into the Stack: The...
• ### Page 172: Appendix A: The Automatic Memory Stack Appendix A: The Automatic Memory Stack

172 Appendix A: Appendix A: The Automatic Memory Stack The Automatic Memory Stack Appendix A: Appendix A: The Automatic Memory Stack The Automatic Memory Stack Termination of Digit Entry Termination of Digit Entry Termination of Digit Entry Termination of Digit Entry replaces The first digit keyed in after digit entry has been terminated the number...
• ### Page 173: One-Number Functions And The Stack

Appendix A: The Automatic Memory Appendix A: The Automatic Memory Stack Stack Appendix A: The Automatic Appendix A: The Automatic Memory Memory Stack Stack Pressing d four times successively displays the numbers in the Y-, Z-, and T-registers and returns the numbers to their original registers. One- - - - Number Functions a Number Functions and the Stack nd the Stack...
• ### Page 174: Percentage Functions

174 Appendix A: Appendix A: The Automatic Memory Stack The Automatic Memory Stack Appendix A: Appendix A: The Automatic Memory Stack The Automatic Memory Stack When an arithmetic operation or q is performed, the answer is placed in the X-register, the number formerly in the X-register is copied into the LAST X register, drops and the stack .
• ### Page 175: Calendar And Financial Functions

Appendix A: The Automatic Memory Appendix A: The Automatic Memory Stack Stack Appendix A: The Automatic Appendix A: The Automatic Memory Memory Stack Stack Calendar and Financial Functions Calendar and Financial Functions Calendar and Financial Functions 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.
• ### Page 176: The Last X Register And The Key

176 Appendix A: Appendix A: The Automatic Memory Stack The Automatic Memory Stack Appendix A: Appendix A: The Automatic Memory Stack The Automatic Memory Stack The LAST X Register and the The LAST X Register and the K K K K ey The LAST X Register and the The LAST X Register and the ey ey...
• ### Page 177: Arithmetic Calculations With Constants

Appendix A: The Automatic Memory Appendix A: The Automatic Memory Stack Stack Appendix A: The Automatic Appendix A: The Automatic Memory Memory Stack Stack The diagram on page 171 illustrates how the automatic stack lift and stack drop make chain calculations quick and error-free. Virtually every chain calculation you are likely to encounter can be done using only the four stack registers.
• Page 178 178 Appendix A: Appendix A: The Automatic Memory Stack The Automatic Memory Stack Appendix A: Appendix A: The Automatic Memory Stack The Automatic Memory Stack Keystrokes Keyst rokes Display Display Keyst Keyst rokes rokes Display Display 84000 84,000. Enters base amount into displayed X-register.
• ### Page 179: More About L

For the vast majority of cases, your hp 12c will find the unique answer if it exists. But the 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 180 More About     180 Appendix B: Appendix B: More About Appendix B: Appendix B: More About More About Your guess will aid the calculator in its search, and if it finds an answer near your guess, that answer will be displayed. Since the calculator cannot tell you the number of solutions that exist when there is more than one mathematically correct answer, you can continue to make guesses, pressing :gt after each one, to search for...
• ### Page 181: Error Conditions

Appendix C Error Conditions Error Conditions Error Conditions Error Conditions Some calculator operations cannot be performed under certain conditions (for example, z when = 0). If you attempt such an operation under these conditions, the calculator will display the word Error Error Error followed by a digit, 0 0 0 0 through 9 9 9 9 .
• ### Page 182: Error 1: Storage Register Overflow

182 Appendix C: Appendix C: Error Conditions Error Conditions Appendix C: Appendix C: Error Conditions Error Conditions Error 1: Storage Register Overflow Error 1: Storage Register Overflow Error 1: Storage Register Overflow Error 1: Storage Register Overflow Operation Operation Condition Condition Operation Operation...
• ### Page 183: Error 5: Compound Interest

Appendix C: Appendix C: Error Conditions Error Conditions Appendix C: Appendix C: Error Conditions Error Conditions Error 5: Compound Interest Error 5: Compound Interest Error 5: Compound Interest Error 5: Compound Interest Operation Operation Condition Condition Operation Operation Condition Condition ...
• ### Page 184: Error 7: Irr

184 Appendix C: Appendix C: Error Conditions Error Conditions Appendix C: Appendix C: Error Conditions Error Conditions Error 7: IRR Error 7: IRR Error 7: IRR Error 7: IRR Refer to Appendix B. Error 8: Calendar Error 8: Calendar Error 8: Calendar Error 8: Calendar Operation Operation...
• ### Page 185: Formulas Used

Appendix D Formulas Used Formulas Used Formulas Used Formulas Used Percentage Percentage Percentage Percentage  Base( Rate(     NewAmount( Base(       Base(     Amount(      Total( ...
• ### Page 186: Compound Interest

186 Appendix D: Appendix D: Formulas Used Formulas Used Appendix D: Appendix D: Formulas Used Formulas Used Compound Interest Compound Interest Compound Interest Compound Interest Without an odd period:            ...
• ### Page 187: Discounted Cash Flow Analysis

Appendix D: Formulas Used Appendix D: Formulas Used Appendix D: Appendix D: Formulas Used Formulas Used Discounted Cash Flow Analysis Discounted Cash Flow Analysis Discounted Cash Flow Analysis Discounted Cash Flow Analysis Net Present Value Net Present Value Net Present Value Net Present Value = net present value of a discounted cash flow.
• ### Page 188: Bonds

188 Appendix D: Appendix D: Formulas Used Formulas Used Appendix D: Appendix D: Formulas Used Formulas Used Bonds Bonds Bonds Bonds Reference: Standard Securities Calculation Methods Spence, Graudenz, and Lynch, Securities Industry Association, New York, 1973. = days between issue date and maturity date. = days between settlement date and maturity date.
• ### Page 189: Depreciation

Appendix D: Formulas Used Appendix D: Formulas Used Appendix D: Appendix D: Formulas Used Formulas Used Depreciation Depreciation Depreciation Depreciation = asset’s useful life expectancy. = starting book value. = salvage value. FACT = declining-balance factor expressed as a percentage. = period number.
• ### Page 190: Declining-Balance Depreciation

190 Appendix D: Appendix D: Formulas Used Formulas Used Appendix D: Appendix D: Formulas Used Formulas Used Program for partial year:             SOYD       ...
• ### Page 191: Interest Rate Conversions

Appendix D: Formulas Used Appendix D: Formulas Used Appendix D: Appendix D: Formulas Used Formulas Used Interest Rat Interest Rate Conversions Interest Rat Interest Rat e Conversions e Conversions e Conversions = number of compounding periods per year. = the effective annual interest rate as a decimal. = the nominal annual interest rate as a decimal.
• ### Page 192: Standard Deviation

192 Appendix D: Appendix D: Formulas Used Formulas Used Appendix D: Appendix D: Formulas Used Formulas Used                        ...
• ### Page 193: Batteries, Warranty, And Customer Care

Batter Batter The hp 12c 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 194: Verifying Proper Operation (Self-Tests)

194 Appendix E: Appendix E: Batter Batteries ies, Warranty, and , Warranty, and Customer Care Customer Care Appendix E: Appendix E: Batter Batter , Warranty, and , Warranty, and Customer Care Customer Care To install new batteries, use the following procedure: 1.
• ### Page 195: Perchlorate Material - Special Handling May Apply

This calculator’s battery may contain perchlorate and may require special handling when recycled or disposed in California. The status indicators turned on at the end of this test include some that normally are not displayed on the hp 12c. † Error 9 as a result of the ;/ test or the ;/+ test but you...
• ### Page 196: 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 197: 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 198 United Hong Kong 852 2833-1111 0207 458 0161 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 Italy 02 754 19 782...
• Page 199 Appendix E: Appendix E: Batter Batteries ies, Warranty, and , Warranty, and Customer Care Customer Care Appendix E: Appendix E: Batter Batter , Warranty, and , Warranty, and Customer Care Customer Care www.hp.com/support Korea /korea Malaysia +65 6100 6682...
• ### Page 200: Regulatory Information

200 Appendix E: Appendix E: Batter Batteries ies, Warranty, and , Warranty, and Customer Care Customer Care Appendix E: Appendix E: Batter Batter , Warranty, and , Warranty, and Customer Care Customer Care Regulatory I I I I nformation Regulatory nformation Regulatory Regulatory...
• Page 201 Customer Care Customer Care 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 Canadian Notice...
• ### Page 202: Disposal Of Waste Equipment By Users In Private Household In The European Union

Chemical substances 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 203: United Kingdom Calculations

Appendix F United Kingdom Calcula United Kingdom Calculations tions United Kingdom Calcula United Kingdom Calcula tions tions 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.
• ### Page 204: Annual Percentage Rate (Apr) Calculations

204 Appendix F: Appendix F: United Kingdom Calculations United Kingdom Calculations Appendix F: Appendix F: United Kingdom Calculations United Kingdom Calculations Annual Percentage Rate (APR) Annual Percentage Rate (APR) Calculations Annual Percentage Rate (APR) Annual Percentage Rate (APR) Calculations Calculations 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...
• ### Page 205: Function Key Index Function Key Index

Function Key Index Function Key Index Function Key Index Function Key Index 0—9 digits. Used CLEAR H Clears General General General General for keying in numbers contents of stack (X,Y,Z ; Power on /off key (page 19) and display and T), all storage (page (page 16 16) ) ) ) .
• Page 206 206 Function Key Index Function Key Index Function Key Index Function Key Index M Stores or computes V Calculates Financial Financial Financial Financial future value (final cash depreciation using CLEAR G Clears flow) of a financial straight-line method. contents of financial problem (page (page 32 32) ) ) ) .
• Page 207 Function Key Index Function Key Index Function Key Index Function Key Index Ö Computes mean Mathematics Mathematics Mathematics Mathematics Number Alteration Number Alteration Number Alteration Number Alteration (average) of x-value s and r Computes square root B Rounds mantissa of y-value s using of number in displayed...
• ### Page 208: Programming Key Index

Programming Key Index Programming Key Index Programming Key Index Programming Key Index s Program/Run. Toggles into and out of Program mode. Automatically sets program to line 00 when returning to Run mode (page 86) (page 86). (page 86) (page 86) N Memory map.
• Page 209 Programming Key Index Programming Key Index Programming Key Index Programming Key Index Program Mode Program Mode Run Mode Run Mode Program Mode Program Mode Run Mode Run Mode Active Keys: Active Ke Pressed from Pressed from Executed as a Executed as a Active Ke Active Ke Pressed from...
• ### Page 210: Subject Index

Subject Index Subject Index Subject Index Subject Index Bonds, municipal, 67 A A A A Bonds, state and local government, , 12, 54, 172 Bonds, U.S. Treasury, 66 Adding instructions, 114–19 Branching, 103–12, 116 Advance payments, 151, 156 Branching, adding instructions by, Amortization, 38, 54–56, 186 116–19 Annual interest rate, 39...
• Page 211 Subject Index Subject Index Subject Index Subject Index Compound interest, 39–53, 186 Display format, mantissa, 73 Compound interest calculation, 11 Display format, standard, 71 Compounding periods, 34, 39 Display formats, number, 71 Conditional branching, 107–8 Display, scientific notation, 72 Conditional test instructions, 107 Displaying numbers, 32 Constants, arithmetic calculations Displays, special, 73...
• Page 212 212 Subject Index Subject Index Subject Index Subject Index Interest, simple, 33 Number display formats, 71 Internal rate of return, 57 Numbers, keying in, 17 Internal rate of return, calculating, Numbers, large, 18 Numbers, negative, 17 Internal rate of return, modified, 148 Numbers, recalling, 23 Interrupting a program, 97 Numbers, storing, 23...
• Page 213 Subject Index Subject Index Subject Index Subject Index Program, running one line at a time, Square Root, 83 Stack, 170 Program, stopping, 97, 101 Standard deviation, 79 Program, storing, 120 Statistics, 76 Programming, 88 Status indicators, 71 Programs, multiple, 120 Storage register arithmetic, 24 PV, 36 Storage registers, clearing, 24...