Calculating The Payment Amount - HP 0012C-90001 User Manual

46 46 Section 3: Basic Financial Functions Section 3: Basic Financial Functions
46 46 Section 3: Section 3: Basic Financial Functions Basic Financial Functions
Keystrokes Keystrokes Keystrokes Keystrokes
fCLEARG
5w
12¼
17500P
540000M
gÂ
$

Calculating the Payment Amount

Calculating the Payment Amount
Calculating the Payment Amount Calculating the Payment Amount
1. Press fCLEARG to clear the financial registers.
2. Enter the number of payments or periods, using w or A.
3. Enter the periodic interest rate, using ¼ or C.
4. Enter either or both of the following:
Present value, using $.

Future value, using M.

5. Press g× or g to set the payment mode.
6. Press P to calculate the payment amount.
Example 1: Example 1: Calculate the payment amount on a 29-year, $43,400 mortgage at Example 1: Example 1:
1
14 / % annual interest.
4
Display Display Display Display
5.00
Stores
12.00 Stores
17,500.00 Stores
problem, here
since it represents cash
540,000.00
Stores
540,000.00
Sets payment mode to End.
–369,494.09
The maximum purchase price to
provide a 12% annual yield.
displayed with a minus sign since
it represents cash
Note: Note:
Note: Note:
observe the cash flow sign
convention.
n.
i.
PMT.
Unlike in the previous
PMT
is positive
received
FV.
paid out .
Remember to
.
PV
is