Calculating The Present Value - HP 12c User Manual

44 Section 3: Basic Financial Functions
Example: What annual interest rate must be obtained to accumulate $10,000 in
8 years on an investment of $6,000 with quarterly compounding ?
Keystrokes
fCLEARG
8\4§w
6000Þ$
10000M
¼
4§

Calculating the Present Value

1. Press fCLEARG to clear the financial registers.
2. Enter the number of payments or periods, using n or A.
3. Enter the periodic interest rate, using ¼ or C.
4. Enter either or both of the following:
Payment amount, using P.
Future value, using M.
5. If a PMT was entered, press g× or g to set the payment mode.
6. Press $ to calculate the present value.
File name: hp 12c_user's guide_English_HDPMBF12E44
Printered Date: 2005/7/29
Display
32.00
Calculates and stores n.
–6,000.00
Stores PV (with minus sign for cash
paid out).
10,000.00
Stores FV.
1.61
Periodic (quarterly) interest rate.
6.44
Annual interest rate.
Note: Remember to
observe the cash flow sign
convention.
Page: 44 of 209
Dimension: 14.8 cm x 21 cm