Nominal Rate Converted To Continuous Effective Rate - HP 12c User Manual

162 Section 15: Savings 162 Section 15: Savings
162 162 Section 15: Savings Section 15: Savings
Keystrokes Keystrokes Keystrokes Keystrokes
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Nominal Rate Converted to Continuous Effective Rate

Nominal Rate Converted to Continuous Effective Rate Nominal Rate Converted to Continuous Effective Rate Nominal Rate Converted to Continuous Effective Rate
This procedure converts a nominal annual interest rate to the continuous effective
rate.
1. Press 1\.
2. Key in the nominal rate as a percentage then press b.
3. Press g>à.
Example: What is the effective rate resulting from a 5 Example:
Example: Example:
continuous compounding ?
Keystrokes Keystrokes
Keystrokes Keystrokes
1\5.25b
g>
à
Display Display Display Display
5.25
Percent nominal interest rate.
Display Display
Display Display
1.05
5.39
Continuous rate.
1
/ % passbook rate with
4