Savings; Nominal Rate Converted To Effective Rate - HP 12C User Manual

Nominal Rate Converted to Effective Rate

Given a nominal interest rate and the number of compounding periods per year,
this keystroke procedure computes the effective annual interest rate.
1. Press g and fCLEARG.
RPN Mode:
2. Key in the annual nominal rate as a percentage, then press \.
3. Key in the number of compounding periods per year, then press nz¼.
4. Press ÞPM to obtain the effective annual interest rate.
ALG Mode:
2. Key in the annual nominal rate as a percentage.
3. Press z. Key in the number of compounding periods per year, then
press ¼ÞP. Then key in the number of compounding periods per
year and press n.
4. Press M to obtain the effective annual interest rate.
Example 1: What is the effective annual interest rate if the annual nominal rate
of 5.25% is compounded quarterly ?
Keystrokes
(RPN mode)
f]
gÂ
fCLEARG
5.25\
4nz¼
ÞPM
File name: hp 12c pt_user's guide_English_HDPMF123E27
Printed Date: 2005/8/1
Section 15

Savings

Keystrokes
Display
(ALG mode)
f[
gÂ
fCLEARG
5.25
5.25z
1.31
4¼
ÞP4nM 5.35
213
Page: 213 of 275
Dimension: 14.8 cm x 21 cm
Nominal rate.
Percent quarterly interest
rate.
Percent effective interest
rate.