Effective Rate Converted To Nominal Rate - HP 0012C-90001 User Manual

KEYSTROKES KEYSTROKES
KEYSTROKES KEYSTROKES
1
06-
n: # Periods.
FV: Eff. Rate
1. Key in the program.
2. Key in the annual nominal rate as a percentage then press \.
3. Key in the number of compounding periods per year then press t to
obtain the effective annual interest rate.
4. For a new case return to step 2.
Example 2: What is the effective annual rate of interest if the annual nominal rate Example 2:
Example 2: Example 2:
1
of 5 / % is compounded monthly ?
4
Keystrokes Keystrokes
Keystrokes Keystrokes
5.25\
12t

Effective Rate Converted to Nominal Rate

Effective Rate Converted to Nominal Rate
Effective Rate Converted to Nominal Rate Effective Rate Converted to Nominal Rate
Given an effective interest rate and the number of compounding periods per year,
this routine calculates the nominal interest rate.
1. Press fCLEARG.
2. Key in the number of periods per year then press w.
3. Key in 100 then press \$.
4. Key in the effective annual rate as a percentage then press +ÞM¼.
5. Press :w
Example: Find the nominal rate if the effective annual rate is 5.35% compounded Example: Example: Example:
quarterly.
Keystrokes Keystrokes Keystrokes Keystrokes
fCLEARG
4w100\$
5.35+Þ
M¼
DISPLAY DISPLAY
DISPLAY DISPLAY
fs
1
REGISTERS REGISTERS REGISTERS REGISTERS
i: Nom. Rate/n PV: 0
R –R : Unused
0 .9
Display Display
Display Display
5.38
to obtain the annual nominal rate.
Display Display Display Display
100.00
–105.35
1.31
Section 15: Savings Section 15:
Section 15: Section 15:
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PMT: Used.
Percent effective interest rate.
Savings 161 161
Savings Savings 161 161
DISPLAY DISPLAY
DISPLAY DISPLAY