Calculating The Payment Amount - HP 12c User Manual

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

Calculating the Payment Amount

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:
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: Calculate the payment amount on a 29-year, $43,400 mortgage at
1
14 / % annual interest.
4
File name: hp 12c_user's guide_English_HDPMBF12E44
Printered Date: 2005/7/29
Display
5.00
Stores n.
12.00
Stores i.
17,500.00
Stores PMT. Unlike in the previous
problem, here PMT is positive
since it represents cash received.
540,000.00
Stores FV.
540,000.00
Sets payment mode to End.
–369,494.09
The maximum purchase price to
provide a 12% annual yield. PV is
displayed with a minus sign since
it represents cash paid out.
Note: Remember to
observe the cash flow sign
convention.
Page: 46 of 209
Dimension: 14.8 cm x 21 cm