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68
68
Section 4: Additional Financial Functions
Section 4:
Additional Financial Functions
68
68
Section 4:
Section 4:
Additional Financial Functions
Additional Financial Functions
Example: The market is quoting 88
Example:
Example:
Example:
example. What yield will that provide ?
Keystrokes
Keystrokes
Keystrokes
Keystrokes
3\8z
88+$
6.75P
4.282004\
6.042018
fS
Depreciation Calculations
Depreciation Calculations
Depreciation Calculations
Depreciation Calculations
The hp 12c enables you to calculate depreciation and the remaining depreciable
value
(book
value
sum-of-the-years-digits, and declining-balance methods. To do so with any of these
methods:
1. Enter the original cost of the asset, using $.
2. Enter the salvage value of the asset, using M. If the salvage value is zero,
press 0M.
3. Enter the expected useful life of the asset (in years), using w.
4. If the declining-balance method is being used, enter the declining-balance
factor (as a percentage), using ¼. For example, 1
rate — 125 percent declining-balance — would be entered as 125¼.
5. Key in the number of the year for which depreciation is to be calculated.
6. Press:
fV for depreciation using the straight-line method.
fÝ for depreciation using the sum-of-the-years digits method.
f# for depreciation using the declining-balance method.
V, Ý, and # each place the amount of depreciation in the display. To
display the remaining depreciable value (the book value less the salvage value)
after the depreciation has been calculated, press ~.
3
/
% for the bond described in the preceding
8
Display
Display
Display
Display
0.38
Calculates
88.38
Enters quoted price.
6.75
Enters coupon rate.
4.28
Enters settlement (purchase) date.
6.042018
Enters maturity (redemption) date.
8.15
Bond yield.
minus
salvage
value)
3
/
.
8
using
the
straight-line,
1
/
times the straight-line
4
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