Interest Rate Conversion - HP 10bII+ User Manual

Table 1-18 Calculating the depreciation
Keys
\«
G]{
\«
For more information on depreciation, refer to chapter 7, Depreciation.

Interest Rate Conversion

To convert between nominal and effective interest rates, enter the known rate and the number
of periods per year, then solve for the unknown rate.
Find the annual effective interest rate of 10% nominal interest compounded monthly.
Table 1-20 Calculating the interest rate
Keys
J:\Ó
JG\Í
\Ð
For more information on interest rate conversions, refer to the section titled, Interest Rate
Conversions in chapter 6, Time Value of Money Calculations.
10 At a Glance...
Table 1-19 Keys for interest rate conversion
Keys Description
\Ó
Nominal interest percent.
\Ð
Effective interest percent.
\Í
Periods per year.
Display
10.00
12.00
10.47
Display Description
7,600.00 Remaining depreciable value
after year one.
1,900.00 Depreciation of the asset in year
two.
5,700.00 Remaining depreciable value
after year two.
Description
Enters nominal rate.
Enters payments per year.
Calculates annual effective
interest.