Payment Function; The Special Relationship Between I. And N; Determining Interest Rate: Solving For I; V12 Manual - Victor V12 Owner's Manual

Payment Function

Payments in compounding periods may be made either at the
beginning of a period (such as payments in advance, and
annuities due), or at the end of a period (such as regular
annuities or payments in arrears).
To select payment type:
Touch r END if the payment will be made at the end of the
period.
Touch r BEG if the payment will be made at the beginning of
the period.
Most transactions utilize an End of the period payment. Note:
This manual will only show examples using End of the period
payments.
If the BEGIN icon is not showing on the display, the payment
function is set to END.
The special relationship between i. and
In compound interest problems, the interest rate entered into i
must correlate to the compounding period n in time (as in years,
days, months, etc.)
Determining Interest Rate: Solving for i.
Touch b CLEAR FIN to reset financial registers
Enter the number of payment periods and touch
Enter the present value of the loan and touch PV.
Enter the payment value per period (a negative number)
and touch PMT.
Enter the future value of the amount owed at the end of
the payment periods, touch CHS to make the number
negative, and touch FV. Note: If the amount owed at
the end of the loan period will be zero, this step can be
skipped.
Touch the i key to calculate the interest rate per period.
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V12 Manual

Example
ENTRIES (RPN)
b FIN
360 n.
400000 PV
2398.202 CHS PMT
i.
Example
8 % annual interest, which is compounded quarterly for 3 years:
n.
n is number of quarters (3 * 4=12)
i is interest rate per quarter (8% ÷ 4 = 0.02%)
If interest rate was compounded monthly, n would be 8% ÷ 12
=0.006
Since many financial calculations utilize an annual interest rate
compounded monthly, the V12 has two functions to simplify the
n.
entry of interest rate and periods. The r
divide an annual interest rate by 12 and enter the result as the
monthly interest rate.
Example
24% annual interest which is compounded monthly
24 r 12÷ will enter an interest rate of 2% into the i. register.
DISPLAY
0.00
Clears the financial registers.
360.00
Enters 360 months for a 30 year
loan.
400,000.00
Enters the loan amount of $400,000.
-2,398.20
Displays the monthly payment
------------
The V12 is calculating the value.
0.50
Displays the monthly interest rate.
12÷ function will
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