HP 12c User Manual page 12

12 Making Financial Calculations Easy
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. To install new batteries, refer to Appendix E.
The calendar functions and nearly all of the financial functions take some
time to produce an answer. (This is typically just a few seconds, but the ¼,
!, L, and S functions could require a half-minute or more.) During
these calculations, the word running flashes in the display to let you know
that the calculator is running.
Keystrokes
fCLEARHf2
4gA
6gC
500P
g×
$
Example 2: We now need to determine how to accumulate the required deposit
by the time your daughter enters college 14 years from now. Let's say that she has
a paid-up $5,000 insurance policy that pays 5.35% annually, compounded
semiannually. How much would it be worth by the time she enters college ?
In this example, we need to calculate FV, the future value.
Keystrokes
fCLEARG
14\2µn
5.35\2z¼
5000Þ$
M
*
Don't be concerned now about the minus sign in the display. That and other details will be
explained in Section 3.
File name: hp 12c_user's guide_English_HDPMBF12E44
Printered Date: 2005/7/29
Display
0.00
Clears previous data inside the
calculator and sets display to show
two decimal places.
48.00
Calculates and stores the number of
compounding periods.
0.50
Calculates and stores the periodic
interest rate.
500.00
Stores periodic payment amount.
500.00
Sets payment mode to Begin.
-21,396.61
Amount required to be deposited.
Display
-21,396.61
Clears previous financial data inside
the calculator.
28.00
Calculates and stores the number of
compounding periods.
2.68
Calculates and stores the periodic
interest rate.
-5,000.00
Stores the present value of the
policy.
10,470.85
Value of policy in 14 years.
Page: 12 of 209
Dimension: 14.8 cm x 21 cm
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