Home

HP Hewlett-Packard HEW12CPT Calculator Financial Pm

1. File name hp 12c pt_user s guide_English_HDPMF123E27 Page 176 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 KEYSTROKES RPN mode DISPLAY 010 019 45 020 43 022 45 023 43 024 45 025 42 028 44 40 029 44 40 031 45 032 43 033 45 Section 13 Investment Analysis 177 35 2 31 0 25 31 1 0 2 030 43 33 022 2 31 13 KEYSTROKES ALG mode DISPLAY sso maw a ar File name hp 12c pt_user s guide_English_HDPMF123E27 Page 177 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 178 Section 13 Investment Analysis KEYSTROKES RPN mode DISPLAY KEYSTROKES ALG mode DISPLAY RCL 2 RCLILEV REGISTERS Li i Factor PV Dep Value PMT Unused FV Salvage R Mos 12 R Counter R 1 Yr Dep R R Unused Ld Key in the program Press f CLEAR FIN Key in the book value then press PV Key in the salvage value then press FV Key in the declining balance factor as a percentage then press i So eS 2 SS Key in the life in years an integer then press n File name hp 12c pt_user s guide_English_HDPMF123E27 Page 178 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 13 Investment Analysis 179 RPN Mode 7 Key in the year desired then press ENTER 8 Key in the number of months in first year and press R S The di
2. ccsssssssssseeeees 156 Annual Percentage Rate Calculations With Fees ccceeeeeees 156 Price of a Mortgage Traded at a Discount or Premium 005 159 Yield of a Mortgage Traded at a Discount or Premium 0064 161 The Rent or Buy Decision cccccseeeeeccceeeeesseeeeeeeeeeeeessaaeeseeeeees 163 Deferred Annuities ccecaccceensccaonnmicternnnecseuntnecnecmenbecannepbatoumotecsaeee 169 Section 13 Investment Anallysis ccssssssssssssssssecees 171 Partial Year Depreciation ccccccececcceceeeesseeeeeeeeeeeesseeeeeeeeeeeeeaas 171 Straight Line Depreciation cccccccccceeesseeeeceeeeeeessaeeeseeeeees 171 Declining Balance Depreciation cccccseeeeccceceeeeeseeeeeeeeees 176 Sum of the Years Digits Depreciation csscccceeeceeeeeeeeeeeees 180 Full and Partial Year Depreciation with Crossover ccccceeeeeeeeees 184 Excess DEOIECIGN ON sesonon E TEES 191 Modified Internal Rate of RetUrn cceeeeeeeeeeeseseteeeeeeeeeeeeeeeeeeees 192 Black Scholes Formula for Valuing European Options 000008 194 SECTION Fa LOGGING ssisnnenestacnsasincissrniniensesseensnnceseersebimeccnsia s 202 Advance Fey UMC RS ceecectc seep eensieece ce oetey ngs genes oacmeceneneecsain area cee 202 Solving for 2 111 een ee 202 DOIG tor Veld seresa eroe 206 Advance Payments With Residual ccccseeeeeeceeeeseseeeeeeeeeeeeaas 209
3. INT i l PRN PRN PRN PRN PRN i l PV PV PRN File name hp 12c pt_user s guide_English_HDPMF123E27 Page 251 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 252 Appendix E Formulas Used Discounted Cash Flow Analysis Net Present Value NPV net present value of a discounted cash flow CF cash flow at period j NPV CF a Ch a i l i 1 i Internal Rate of Return n number of cash flows CF cash flow at period j IRR Internal Rate of Return k _ A ying ofr IM IRR La ee 2 Jace j l IRR Calendar Actual Day Basis ADYS DT DT where La 365 yyyy 31 mm 1 dd INTG z 4 x an for mm lt 2 x 0 z yyyy for mm gt 2 x INTG 0 4mm 2 3 z yyyy INTG Integer portion Note Additional tests are performed in order to ensure that the century but not millennium years are not considered leap years 30 360 Day Basis DAYS DT DT DT 360 yyyy 30mm z for DT it dd 31 then z 30 it dd 31 then z dd for DT it dd 31 and dd 30 or 31 then z 30 it dd 31 and dd lt 30 then z dd it dd lt 31 then z dd File name hp 12c pt_user s guide_English_HDPMF123E27 Page 252 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendix E Formulas Used 253 Bonds Reference Jan Mayle TIPS Inc Standard Securities Calculation Methods
4. 1 337 50 You owe this amount at the end of one year Example You re buying a new car that lists for 23 250 The dealer offers you a discount of 8 and the sales tax is 6 Find the amount the dealer is charging you then find the total cost to you including tax Keystrokes ALG mode Display 23250 23 250 00 Keys in the base amount and prepares to subtract the discount percentage File name hp 12c pt_user s guide_English_HDPMF123E27 Page 33 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 34 Section 2 Percentage and Calendar Functions Keystrokes Display 8 1 860 00 Amount of discount 21 390 00 Base amount less discount 6 1 283 40 Amount of tax on 21 390 22 673 40 Total cost base amount less discount plus tax Percent Difference In RPN or ALG mode to find the percent difference between two numbers 1 Key in the base number 2 Press to separate the other number from the base number 3 Key in the other number A Press A If the other number is greater than the base number the percent difference will be positive If the other number is less than the base number the percent difference will be negative Therefore a positive answer indicates an increase while a negative answer indicates a decrease If you are calculating a percent difference over time the base number is typically the amount occurring first Example Yesterday your stock fell from 58 50 to 53 25 pe
5. Example Compute the slope and intercept of the regression line in the preceding example Keystrokes RPN mode Display olg Vr 15 55 y intercept A projected value for x 1 9 9 r xzy Ru xzy 0 001 Slope of the line B indicates the change in the projected values caused by an incremental change in the x value Keystrokes Displa ALG mode p ay Olg Jr 15 55 y intercept A projected value for x 1L9 Srle y R xey 0 001 Slope of the line B indicates the change in the projected values caused by an incremental change in the x value The equation that describes the regression line is y 15 55 0 001x File name hp 12c pt_user s guide_English_HDPMF123E27 Page 98 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 6 Statistics Functions 99 Weighted Mean You can compute the weighted mean of a set of numbers if you know the corresponding weights of the items in question 1 Press f CLEAR gt 2 Key in the value of the item and press ENTER then key in its weight and press z Key in the second item s value press ENTER key in the second weight and press 2 Continue until you have entered all the values of the items and their corresponding weights The rule for entering the data is item weight 2 3 Press 9 Xw to calculate the weighted mean of the items Example Suppose that you stop during a vacation drive to purchase gasoline at
6. Adding Instructions by Branching l Press to set the calculator to Program mode 2 Press 9 GTO L followed by three digits that specify the program line immediately preceding the point at which the new instruction s are being added usually the last program line to be executed before the added instruction s This sets the calculator to the proper program line for inserting a GTO instruction in the next step This instruction will replace whatever instruction was already stored there but that instruction will be keyed back into program memory to be executed just after the new instructions in step 7 Press 9 GTO followed by three digits that specify the second line after the last line you keyed into program memory Branching to the second line rather than to the first is necessary because the first line following the last program in program memory must contain a GTO OOO instruction The GTO OOO instruction ensures that program execution will branch to line OOO and halt after the program is run For example if the last line you keyed into program memory was line 010 you would press 9 GTO O12 at this step preserving the 9 GTO OOO in line 011 Press 9 GTOJ followed by three digits that specify the last line you keyed into program memory Press 9 GTO OOO This automatically converts a data storage register into seven additional lines of program memory if there was not already a 9 GTO OOO
7. Alternatively you could make the fractional payment together with the 327th payment Doing so will result in a somewhat smaller total of all payments since you will not have to pay interest during the 328th payment period You can calculate this final larger 327th payment essentially a balloon payment as follows Keystrokes i RPN mode Display 327 n 327 00 141 87 PMT 325 00 466 87 Keystrokes ALG mode Display 327 n 327 00 141 87 J RCL PMT 325 00 466 87 Stores number of full payments Calculates FV which is the balance remaining after 327 full payments Recalls payment amount Final balloon payment Stores number of full payments Calculates FV which is the balance remaining after 327 full payments Recalls payment amount Final balloon payment Instead of having a fractional or balloon payment at the end of the loan you might wish to make 327 or 328 equal payments Refer to Calculating the Payment Amount on page 58 for a complete description of this procedure File name hp 12c pt_user s guide_English_HDPMF123E27 Page 52 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 3 Basic Financial Functions 53 Example 2 You re opening a savings account today the middle of the month with a 775 deposit The account pays 6 25 interest compounded semimonthly If you make semimonthly deposits of 50 beginning next month how lon
8. _ 44 48 006 44 STO 006 44 0 008 42 34 009 45 1 RCL PV 07 45 13 09 30 0 FV is repeated in the program twice to ensure that it is computed and not stored File name hp 12c pt_user s guide_English_HDPMF123E27 Page 164 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 7 KEYSTROKES RPN mode CHS RCL REA REJO ROL 4 ROIS RCLJ PV DISPLAY 022 023 42 024 025 45 026 027 45 028 029 45 48 030 031 45 032 033 45 034 035 45 036 037 45 038 039 040 45 48 041 45 042 043 044 45 045 Section 12 Real Estate and Lending 20 11 16 11 10 40 25 30 30 40 14 40 14 25 30 13 30 KEYSTROKES ALG mode 2 f anor HS O e RCL N RCLJ4 RCL JO RCL 4 RCL PMT RCLIL J1 RCL 7 I File name hp 12c pt_user s guide_English_HDPMF123E27 Page 165 of 275 Printed Date 2005 8 1 DISPLAY 022 2 024 16 025 10 026 45 11 027 40 028 45 4 029 20 031 25 032 30 033 45 4 035 45 5 036 40 037 45 8 038 40 039 45 14 040 14 042 30 043 45 7 044 25 045 30 Dimension 14 8 cm x 21 cm 165 7 166 Section 12 Real Estate and Lending KEYSTROKES KEYSTROKES RPN mode sided ALG mode ere ee mm a File name hp 12c pt_user s guide_English_HDPMF123E27 Page 166 of
9. Enter either or both of the following e Present value using PV e Payment amount using PMT Note Remember to observe the cash flow sign convention 5 Ifa PMT was entered press 9 BEG or 9 END to set the payment mode 6 Press to calculate the future value File name hp 12c pt_user s guide_English_HDPMF123E27 Page 60 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 3 Basic Financial Functions 61 Example 1 In Example 1 on page 59 we calculated that the payment amount ona 29 year 243 400 mortgage at 5 25 annual interest compounded monthly is 1 363 29 If the seller requests a balloon payment at the end of 5 years what would be the amount of the balloon 243 400 PV Dee 12 n 5 X 12 PMT 1363 29 FV Keystrokes Display I CLEAR FIN 5 9 12x 60 00 Calculates and stores n 5 25 9 12 0 44 Calculates and stores i 243400 PV 243 400 00 Stores PV 1363 29 CHS PMT 1 363 29 Stores PMT with minus sign for cash paid out 9 END 1 363 29 Sets payment mode to End 222 975 98 Amount of balloon payment Example 2 If you deposit 50 a month at the beginning of each month into a new account that pays 6 25 annual interest compounded monthly how much will you have in the account after 2 years 7 FV aa 12 2 X12 PMT 50 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 61 of 275 Printed Date 2005 8 1 Dimension 14 8 cm
10. Example 1 You re planning to build a log cabin on your vacation property Your rich uncle offers you a 35 000 loan at 10 5 interest If you make 325 payments at the end of each month how many payments will be required to pay off the loan and how many years will this take 35 000 PV 10 5 12 Awe PMT 325 Keystrokes s RPN mode Display CLEAR FIN 10 5 9 12 0 88 Calculates and stores i 35000 PV 35 000 00 Stores PV 325 CHS PMT 325 00 Stores PMT with minus sign for cash paid out 9 END 325 00 Sets the payment mode to End The calculator will round n down to the next lower integer if the fractional portion of n is less than 0 005 t After calculating n pressing iJ PV PMT or FV will recalculate the value in the corresponding financial register File name hp 12c pt_user s guide_English_HDPMF123E27 Page 50 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 3 Basic Financial Functions 51 Keystrokes Display RPN mode 328 00 Number of payments required 12 lt 27 33 Twenty seven years and four months In ALG mode pertorm the RPN steps but replace the last step with the step below Kayaks py 12 27 33 Twenty seven years and four months Because the calculator rounds the calculated value of n up to the next higher integer in the preceding example it is likely that while 328 payments will be required to pay off the loan only 327 full paym
11. 128 63 9 0 00 Clears the calculator line File name hp 12c pt_user s guide_English_HDPMF123E27 Page 18 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 1 Getting Started 19 Keystrokes ALG mode Display 12345 9 JLo 63 123 63 Correcting removes the 4 and 5 g e clears the most recent digit entered SS 128 63 is also labeled the key Lg lLe 0 00 Clears the calculator line The CLEAR Keys Clearing a register or the display replaces the number in it with zero Clearing program memory replaces the instructions there with 9 GTO OOO There are several clearing operations on the hp 12c platinum as shown in the table below CLx Display and X register f JCLEARLE Statistics registers R through R stack registers and display JCLEAR Prew Program memory only when pressed in Program mode f JCLEARLFIN Financial registers f JCLEARIREG Data storage registers financial registers stack and LAST X registers and display Note In ALG mode it is a good idea to begin calculations by pressing CLx CLx This will ensure that there are no pending arithmetic calculations that might interfere with the solution of a new problem The reason this key is pressed twice is that pressing it the first time clears the display and X register only allowing you to correct an erroneous entry by keying in a correct number The second press of will cl
12. Example 3 Again using the information given in example 1 what is the APR if the mortgage fee is stated as 2 points plus 750 Keystrokes Keystrokes Displa RPN mode ALG mode pay m cee o p oam sooi 5 5 9 12 5 5 9 J 12 a Percent mo interest rate into i PMT M 908 46 Monthly payment calculated RCL PV 2 RCLILPV J2 Effective mortgage 750 LPV 750 PVv 156 050 00 amount into PV File name hp 12c pt_user s guide_English_HDPMF123E27 Page 158 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 12 Real Estate and Lending 159 Keystrokes Keystrokes Displa RPN mode ALG mode pay kil Li 0 48 Monthly interest rate calculated 12 x x 12 5 73 jAnnudl percentage rate Price of a Mortgage Traded at a Discount or Premium Mortgages may be bought and or sold at prices lower discounted or higher at a premium than the remaining balance of the loan at the time of purchase Given the amount of the mortgage the periodic payment the timing and amount of the balloon or prepayment and the desired yield rate the price of the mortgage may be found It should be noted that the balloon payment amount if it exists occurs coincident with and does not include the last periodic payment amount Information is entered as follows 1 Press 9 END and f JCLEAR FIN 2 Key in the total number of period
13. 14 8 cm x 21 cm 7 114 Section 8 Programming Basics Setting the Calculator to a Particular Program Line There will be occasions when you ll want to set the calculator directly to a particular program line such as when you re storing a second program in program memory or when you re modifying an existing program Although you can set the calculator to any line by using as described above you can do so more quickly as follows e With the calculator in Program mode pressing L9 GTO followed by three digit keys sets the calculator to the program line specitied by the digit keys and then displays that line number and the keycode of the instruction stored there e With the calculator in Run mode pressing 9 GTO followed by three digit keys sets the calculator to the program line specified by the digit keys Since the calculator is not in Program mode the line number and keycode are not displayed The decimal point is not necessary if the calculator is in Run mode but it is necessary if the calculator is in Program mode For example assuming the calculator is still in Program mode you can set it to program line 000 as follows Keystrokes Display 9 IGTO OOO 000 Program line 000 Executing a Program One Line at a Time Pressing repeatedly with the calculator in Program mode as described earlier enables you to verify that the program you have stored is identical to the program yo
14. Nn 57 e aaa of periodic payments RCL RCL PV O RCL PMT X PMT 25000 23 200 00 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 206 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 14 Leasing 207 Keystrokes Keystrokes Displa RPN mode ALG mode p ay Li Li 1 44 Monthly yield calculated x 12 17 33 Annual yield as a percentage If solving for yield will be done repetitively key in the following hp 12c platinum KEYSTROKES mode o DISPLAY OR program KEYSTROKES iee iod o DISPLAY TICLEARE ae co C mo o eee so o eo File name hp 12c pt_user s guide_English_HDPMF123E27 Page 207 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 208 Section 14 Leasing KEYSTROKES ALG mode DISPLAY n n Adv Pmts ini PV Used PMT Pmt 1 Key in the program 2 Key in the total number of payments in the lease then press STO O 3 Key in the total number of payments made in advance then press STO 1 4 Key in the periodic payment to be received then press STO 2 5 Key in the total amount of the loan then press STO 3 then press to obtain the periodic yield 6 For a new case return to step 2 The values changed from the previous case are the only values which need to be re entered Example 2 Using the program solve for yield using the same information given in
15. PMT 75O CHS PV PMT 66 86 nes payment to be received File name hp 12c pt_user s guide_English_HDPMF123E27 Page 205 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 206 Section 14 Leasing Solving for Yield To calculate the periodic yield information is entered as follows 1 Press 9 END and f JCLEAR FIN RPN Mode Key in the total number of payments in the lease then press ENTER Key in the total number of payments made in advance then press sTojO JLn J Key in the periodic payment to be received then press PMT Key in the total amount of the loan then press CHS RCLJO RCL PMT x PV Press i to obtain the periodic yield ALG Mode Key in the total number of payments in the lease then press Key in the total number of payments made in advance then press STOJOLN Key in the periodic payment to be received then press PMT 5 Press RCLJOLX RCL PMT Then key in the total amount of the loan and press CHS PV Press i to obtain the periodic yield Example 1 A lease has been written to run for 60 months The leased equipment has a value of 25 000 with a 600 monthly payment The lessee has agreed to make 3 payments at the time of closing 1 800 What is the annual yield to the lessor Keystrokes Keystrokes Displa a mode pray ow pw 60 3 CORRS a n STO O
16. a SS S a File name hp 12c pt_user s guide_English_HDPMF123E27 Page 210 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 14 Leasing 211 7 For a new case return to step 2 The values changed from the previous case are the only values which need to be re entered Example 1 A copier worth 22 000 is to be leased for 48 months The lessee has agreed to make 4 payments in advance with a purchase option at the end of 48 months enabling him to buy the copier for 30 of the purchase price What monthly payment is necessary to yield the lessor 15 annually A PM7 6600 43 44 45 46 47 48 22000 EE m e O ma mode a mode a w Pec a E 4 STO 4 R S ae R S fe payment received by lessor Example 2 Using the information from example 1 what would the monthly payments be if the lessor desired a yield of 18 annually Keystrokes Keystrokes Displa RPN mode ALG mode pay O k 487 29 From previous example 1 S ENTER 1 2 13 2e 2 1 50 1 50 Monthly interest rate interest rate STO 1 R S CER R S A 81 er payment received by lessor File name hp 12c pt_user s guide_English_HDPMF123E27 Page 211 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 212 Section 14 Leasing Solving for Yield Solving for yield is essentially the same as solving for Internal Rate of Return IRR The keystrokes are as follows 1 Press f C
17. and initial investment using values stored with CFo CFi and page 73 Calculates the internal rate of return yield for up to 80 uneven cash flows and initial investment using values stored with fee CFi and page 78 Initial cash flow Stores contents of displayed X register in Ro initializes n to zero sets N to 1 Used at the beginning of a discounted cash flow problem page 73 Cash flow j Stores the contents of X register in R increments n by 1 and sets N to 1 Used for all cash flows except the initial cash flow in a discounted cash flow problem page 73 Calculates depreciation using straight line method page 83 Price Calculates bond price given desired yield to maturity page 82 Calculates yield to maturity given bond price page 83 Stores the number from 1 to 99 of times each cash flow occurs as N Assumes unless otherwise specitied page 75 Calculates depreciation using sum of the years digits method page 83 Calculates depreciation using declining balance method page 83 Statistics CLEAR gt Clears statistical storage registers R through R and stack registers page 93 Accumulates statistics using numbers from X and Y registers in storage registers R through R page 93 Cancels effect of numbers from X and Y registers in storage registers R through R page 94 File name hp 12c pt_user s g
18. digit keys CHS and and prefix keys f Lg STO RCL and GTO File name hp 12c pt_user s guide_English_HDPMF123E27 Page 21 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 22 Section 1 Getting Started Simple Arithmetic Calculations in ALG Mode In ALG mode any simple arithmetic calculation involves two numbers and an operation addition subtraction multiplication or division To do such a calculation on your hp 12c platinum you tell the calculator the first number then the operation to be performed and then tell the calculator the second number The answer is calculated when the equals key is pressed For example to calculate 21 1 23 8 do the following Keystrokes Displa ALG mode p ay 0 00 Clears any pending operations 21 1 21 10 Keys in the first number and prepares to add the second 23 8 23 8 Keys the second number 44 90 completes the calculation Once a calculation has been completed e pressing another digit key starts a new calculation or e pressing an operator key continues the calculation Keystrokes Display ALG mode 0 00 Clears any pending operations 7721 77 35 90 89 13 54 completes the calculation 6519 x 12 96 75 New calculation J65 x12 3 5 27 64 Calculates 96 75 3 5 You can also do long calculations without pressing after each intermediate calculation just press it at the
19. four stations as follows 15 gallons at 1 16 per gallon 7 gallons at 1 24 per gallon 10 gallons at 1 20 per gallon and 17 gallons at 1 18 per gallon You want to find the average cost per gallon of gasoline purchased If you purchased the same quantity at each station you could determine the simple arithmetic average or mean using the 9 X keys But since you know the value of the item gasoline and its corresponding weight number of gallons purchased use the 9 Rw keys to find the weighted mean Keystrokes Display f CLEAR gt 0 00 Clears statistics registers 1 1 6 ENTER 1 5 2 1 00 First item and weight 1 2A ENTER 7 Z 2 00 Second item and weight 1 2 ENTER 1 O Z 3 00 Third item and weight 1 1 8ENTER 1 7 2 4 00 Fourth item and weight 9 Kw 1 19 Weighted mean cost per gallon A procedure for calculating the standard deviation and standard error as well as the mean of weighted or grouped data is included in the hp 12c platinum Solutions Handbook File name hp 12c pt_user s guide_English_HDPMF123E27 Page 99 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 7 Mathematics and Number Alteration Functions The hp 12c platinum provides several keys for mathematical functions and for altering numbers These functions are useful for specialized financial calculations as well as for general mathematics calculations One Number Functions Most of the
20. from a previous calculation as well as with a number you have just keyed in The examples below indicate how 4 LSTx can recall the original number for further use in RPN mode Keystrokes Displa RPN mode pray CLEARPREFIx 3875968992 Displays all 10 digits of the number inside the calculator 3 88 Display returns to normal format when key is released 3 88 The number now in the display appears the same as before but CLEARPREFIX 3880000000 Displaying all 10 digits of the number inside the calculator shows has changed the number to match its displayed version 3 88 Display returns to normal format g INTG 3 00 The integer portion of the number previously displayed 9 LSTx 3 88 Recalls the original number to the display in RPN mode only 9 FRAC 0 88 The fractional portion of the number previously displayed File name hp 12c pt_user s guide_English_HDPMF123E27 Page 101 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 102 Section 7 Mathematics and Number Alteration Functions The Power Function in RPN Mode Pressing calculates a power of a number that is y Like the arithmetic function Ly requires two numbers 1 Key in the base number which is designated by the y on the key 2 Press to separate the second number the exponent from the first the base 3 Key in the exponent which is designated by the x on the key 4 Press to calculate the power T
21. intermediate results AMOUNT and TAX are automatically displayed when the program is executed Keystrokes Displa RPN mode Pey 6 75 sT0 O 6 75 Stores tax rate in R Lt JCLEAR E 0 00 Clears the registers in R through R 13 13 Keys in quantity of item ENTER 13 00 Separates quantity of item trom cost of item to be keyed in next 68 5 68 5 Keys in cost of item File name hp 12c pt_user s guide_English_HDPMF123E27 Page 118 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Keystrokes RPN mode STO 1 RCLJO STO 2 STO 3 Keystrokes ALG mode 6 75 STO O f JCLEARLE 13 68 5 sTO 1 RCL O STO 2 sTO 3 Display 890 50 890 50 6 75 60 11 60 11 950 61 950 61 Display 6 75 0 00 133 13 00 68 5 890 50 890 50 890 50 6 75 60 11 60 11 950 61 950 61 Section 8 Programming Basics 119 AMOUNT Adds AMOUNT to sum of AMOUNT entries in register R Recalls tax rate to display TAX Adds TAX to sum of TAX entries in register R TOTAL Adds TOTAL to sum of TOTAL entries in register R Stores tax rate in R Clears the registers in R through R Keys in quantity of item Separates quantity of item from cost of item to be keyed in next Keys in cost of item AMOUNT Adds AMOUNT to sum of AMOUNT entries in register R Prepares to add tax Recalls tax rate to display TAX Adds TAX to sum of TA
22. 0 810 555 5520 Brazil Sao Paulo 3747 7799 ROTC 0 800 157751 Mexico Mx City 5258 9922 ROTC 01 800 472 6684 Venezuela 0800 4746 8368 Chile 800 360999 Columbia 9 800 1 14726 Peru 0 800 10111 Central America amp 1 800 7 1 1 2884 Caribbean Guatemala 1 800 999 5105 Puerto Rico 1 877 232 0589 Costa Rica 0 800 01 1 0524 N America Telephone numbers 1800 HP INVENT 905 206 4663 or 800 HP INVENT ROTC Rest of the country Please logon to http www hp com for the latest service and support information Regulatory Information This section contains information that shows how the hp 12c platinum financial calculator complies with regulations in certain regions Any modifications to the calculator not expressly approved by Hewlett Packard could void the authority to operate the 12c platinum in these regions USA This calculator generates uses and can radiate radio frequency energy and may intertere with radio and television reception The calculator complies with the limits for a Class B digital device pursuant to Part 15 of the FCC Rules These limits are designed to provide reasonable protection against harmful interference in a residential installation However there is no guarantee that interference will not occur in a particular File name hp 12c pt_user s guide_English_HDPMF123E27 Page 265 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 266 Appendix F Battery Warranty and Service
23. 20 54 PMT C per month Sm 08 aee SLY gt TaN a IU g 42 L i e668 Yearly interest rate far SS 129 l PMT 71 15 Yearly volatility ATT T 6 00 Neo TEE oso Meni oe RCL PMT L J PMT 1209 J PMT 20 54 Monthly volatility The next example is Example 12 7 trom Options Futures and Other Derivatives 5th Edition by John C Hull Prentice Hall 2002 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 200 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Example 2 The stock price six months from the expiration of an option is 42 the exercise price of the option is 40 the risk free interest rate is 10 per annum Section 13 Investment Analysis 201 and the volatility is 20 per annum Find Call and Put values Keystrokes RPN mode z Keystrokes ALG mode 20 OLF Time to expiry years 10 00 Interest rate per year Volatility per year 40 00 Strike price File name hp 12c pt_user s guide_English_HDPMF123E27 Page 201 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 14 Leasing Advance Payments Situations may exist where payments are made in advance leasing is a good example These agreements call for extra payments to be made when the transaction is closed This first proc
24. 228 Standard deviation 96 Statistics 93 Status indicators 87 Storage register arithmetic 29 Storage registers clearing 29 Storing numbers 41 Storing programs 149 Straightline depreciation 171 Sum ot the years digits depreciation 180 T Two variable statistics 93 U x 20 Under flow 90 W Weighted mean 99 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 277 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 278 Subject Index gt lt xzY 40 42 69 82 90 94 96 125 129 230 100 231 X 94 230 Rr 97 230 Xw 99 125 129 Y YTM 13 82 83 Vr 97 230 y 102 231 Vr 230 Yield 206 212 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 278 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7
25. Display 4 027 27 Calculates FV which equals the balance in the account if 58 full deposits were made PMT 50 00 Recalls amount of deposits 3 977 27 Calculates the balance in the account if 57 full deposits were made and interest accrued during the 58 month 4000 22 73 Calculates final fractional 58 deposit required to reach 4 000 Keystrokes ALG mode Display 4 027 27 Calculates FV which equals the balance in the account if 58 full deposits were made RCL PMT 50 00 Recalls amount of deposits 3 977 27 Calculates the balance in the account it 57 tull deposits were made and interest accrued during the 58 month In this example must be pressed twice since the preceding key pressed was in RPN mode and in ALG mode If we had stored the number of deposits in n as we did following Example 1 we would have to press only once here since the preceding key pressed would have been as it was following Example 1 Remember that it is not necessary to store the number of payments in n before calculating the amount of the final fractional payment Refer to the preceding footnote f You might think that we could calculate the balance in the account after 57 full deposits were made simply by storing that number in n and then calculating FV as we did using the second method following Example 1 However this balance would not include the interest accrued during the 58th month File name h
26. Information installation In the unlikely event that there is interference to radio or television reception which can be determined by turning the calculator off and on the user is encouraged to try to correct the interference by one or more of the following measures e Reorient or relocate the receiving antenna e Relocate the calculator with respect to the receiver Canada This Class B digital apparatus complies with Canadian ICES 003 Cet appareil numerique de la classe B est conforme a la norme NMB 003 du Canada Japan CORES HUBS S SRS BEM wl hes VCCi ORE CEDEO RRR CT COREL KBR CREAT OC CLe BHEL TORFA CORBMIVA PTLE Var SS RICITIEL CHENG amp EME BSesSHCTCEMHVET Ay tart HAS II GED TELL RU FRUISL TKESL Temperature Specifications e Operating 0 to 55 C 32 to 131 F e Storage 40 to 65 C 40 to 149 F Noise Declaration In the operator position under normal operation per ISO 7779 LpA lt 7OcB Disposal of Waste Equipment by Users in Private Household in the European Union This symbol on the product or on its packaging indicates that this product must not be disposed of with your other household waste Instead it is your responsibility to dispose of your waste equipment by handing it over to a designated collection point for the recycling of waste electrical and electronic equipment The separate collection and recycling of your waste equipment at the time of disposal will help to conserve
27. PV 250 000 00 Enters PV All amounts calculated when is pressed are automatically rounded to the number of decimal places specified by the display format The display format is described in Section 5 This rounding affects the number inside the calculator as well as how the number appears in the display The amounts calculated on your hp 12c platinum may differ from those on the statements of lending institutions by a few cents since different rounding techniques are sometimes used To calculate answers rounded to a different number of decimal places press followed by the number of decimal places desired before you press _f_ Awor File name hp 12c pt_user s guide_English_HDPMF123E27 Page 69 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 70 Section 3 Basic Financial Functions Keystrokes Display 1498 1 2 CHS PMT 1 498 12 Enters PMT with minus sign for cash paid out 9 END 1 498 12 Sets payment mode to End 1 2 Jfavorr 13 006 53 Portion of first year s payments 12 months applied to interest 4 970 91 Portion of first year s payments applied to principal 245 029 09 Balance remaining after 1 year 12 00 Total number of payments amortized The number of payments keyed in just before is pressed is taken to be the payments following any that have already been amortized Thus if you now press 12 f Javor your hp 12c platinum will calculate the amounts applied to interest and to the prin
28. Page 86 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 5 Additional Operating Features 87 The Display Status Indicators Nine indicators that appear along the bottom of the display signify the status of the calculator for certain operations These status indicators are described elsewhere in this handbook where the relevant operation is discussed RPN ALG f J BEGIN D MY C PRGM Number Display Formats When the calculator is first turned on after coming from the factory or after Continuous Memory has been reset answers are displayed with two decimal places Keystrokes Display RPN mode 19 8745632 ENTER 19 87 5 14 87 Keysirokes splay 19 8745632 19 87 5 14 87 Although you see only two decimal places all calculations in your hp 12c platinum are performed with full 10 digit numbers 14 87456320 He poems Se go You see only but these digits are these digits also present internally When only two decimal places are displayed numbers are rounded to two decimal places if the third digit is 5 through 9 the second digit is increased by one if the third digit is O through 4 the second digit is not affected Rounding occurs regardless of how many decimal places are displayed File name hp 12c pt_user s guide_English_HDPMF123E27 Page 87 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 88 Section 5 Additional Operating Features Several options are provid
29. ST0 O 58 33 Stores the current balance in register R 0 f CLEARREG is not programmable File name hp 12c pt_user s guide_English_HDPMF123E27 Page 29 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 30 Section 1 Getting Started Keystrokes 22 95 sT0 O 13 7 s TO JO 10 14 sTO JO 1053 sTo 0 RCLJO Display 22 95 13 70 10 14 1 053 00 1 064 54 Subtracts the first check from the balance in R Note that the display continues to show the amount subtracted the answer is placed only in R Subtracts the second check Subtracts the third check Adds the deposit Recalls the number in R to check the new balance File name hp 12c pt_user s guide_English_HDPMF123E27 Page 30 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 7 Section 2 Percentage and Calendar Functions Percentage Functions The hp 12c platinum includes three keys for solving percentage problems A and T You don t need to convert percentages to their decimal equivalents this is done automatically when you press any of these keys Thus 4 need not be changed to 0 04 you key it in the way you see and say it 4 Percentages in RPN Mode In RPN mode to find the amount corresponding to a percentage of a number 1 Key in the base number 2 Press ENER 3 Key in the percentage 4 Press For example to find 14 of 300 Keystrokes Displa RPN mode pray
30. Solving for POY IMEI asctcceccuseabeusisccviuaicnssumeactevossaoraseeniscaxtdasens 209 Sking Tor ASI epee atetcas cesar oe ear eioee eons 212 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 8 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Contents 9 sachon 19 SOVINGS dns 213 Nominal Rate Converted to Effective Rate ccccsecesscceeceeeseeeeees 213 Effective Rate Converted to Nominal Rate ccecesecceecceeceeeeeees 215 Continuous Rate Converted to Effective Rate cccceeeceeecensceueees 216 Section 16 Bonds sseeeeooossseseosssssssessssssssosssssssessssss 217 307 300 Day Basis Bonds ossessi ei a ease eben 217 Annual Coupon Bonds ccccccseeeeecceeeeeeseeeeeeeeeeeeeesaaeeeeeeeeeeeaaas 222 MOU OE aaa icin caieatiniinseenntimenaes 227 Appendix A RPN and the Stack sccssscssssseeesees 228 Getting Numbers Into the Stack The Cy ee ee eee 229 Termination of Digit Entry gacscncrcsacscassebecceeateacesessmteecs csevaasesce 230 Ea A 5 E ASE E EAE AEI EIEE 230 Rearranging Numbers in the Stack cccccccccceceessseeeeeeeeeeeeneeees 230 The E e E E eee 230 The C ENIA NAA ES AE N A EE EN 230 One Number Functions and the Stack c ccccceceeececceceusceeccusceece 231 Two Number Functions and the Stack cccccceeeeecsecceccesceeceusceeees 231 Mathematics Functions cccsscceccesccuccusceccusccuccuscenseuscencs 231 Percentage FU
31. an account that pays 9 75 interest compounded semiannually You open the account with a deposit of 3 200 and intend to make semiannual deposits beginning six months later from your profit sharing bonus paychecks Calculate how much these deposits should be 60 000 FV j 9 75 2 e 8 n 15 X 2 PMT PV 3 200 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 59 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 60 Section 3 Basic Financial Functions Keystrokes RPN mode Display f JCLEAR FIN 1 5ENTER 2 X n 30 00 9 75 ENTER 2 Li 4 88 3200 CHS PV 3 200 00 60000 FV 60 000 00 9 END 60 000 00 PMT 717 44 reper Display Lf JCLEARLEFIN 15 x 2 n 30 00 9 75 2 i 4 88 3200 CHS PV 3 200 00 60000 FV 60 000 00 9 END 60 000 00 PMT 717 44 Calculating the Future Value Calculates and stores n Calculates and stores i Stores PV with minus sign for cash paid out Stores FV Sets payment mode to End Semiannual payment with minus sign for cash paid out Calculates and stores n Calculates and stores i Stores PV with minus sign for cash paid out Stores FV Sets payment mode to End Semiannual payment with minus sign for cash paid out 1 Press f JCLEARLFIN to clear the financial registers 2 Enter the number of payments or periods using or 9 12x 3 Enter the periodic interest rate using Li or 9 12 4
32. cm x 21 cm 7 Making Financial Calculations Easy Before you begin to read through this handbook let s take a look at how easy financial calculations can be with your hp 12c platinum While working through the examples below don t be concerned about learning how to use the calculator we ll cover that thoroughly beginning with Section 1 Example 1 Suppose you want to ensure that you can finance your daughter s college education 14 years from today You expect that the cost will be about 6 000 a year 500 a month for 4 years Assume she will withdraw 500 at the beginning of each month from a savings account How much would you have to deposit into the account when she enters college if the account pays 6 annual interest compounded monthly This is an example of a compound interest calculation All such problems involve at least three of the following quantities e n the number of compounding periods e i the interest rate per compounding period e PV the present value of a compounded amount e PMT the periodic payment amount e FV the future value of a compounded amount In this particular example e nis 4 years x 12 periods per year 48 periods e iis 6 per year 12 periods per year 0 5 per period e PV is the quantity to be calculated the present value when the financial transaction begins e PMTis 500 e FV is zero since by the time your daughter graduates she hopefully will not need any more
33. contents of all higher numbered program lines remain unchanged To add instructions within a program you could simply key in the new instructions beginning at the proper program line followed by the original instructions from that program line through the end of the program This method is described below under Adding Instructions by Replacement When instructions must be added in the middle of a long program however using this method will require you to key in numerous instructions namely the original instructions from the point at which the new instructions are added through the end of program memory Since keying in these instructions may require a signiticant amount of time in such situations you may prefer to use the method described below under Adding Instructions by Branching That method basically involves branching to the new instructions which are stored at the end of program memory then branching back to the program line immediately following the line from which you branched out Adding instructions by branching is not so simple as adding instructions by replacement however it generally will require fewer keystrokes whenever there are more than four program lines between and including the first line to be executed after the new instruction s and the last line you keyed into program memory Furthermore if program memory includes branches to program lines following the point at which the new instruction s are being added ad
34. d LN P Q v v 2 d d v Q Xel 1 100 y 5 100x T Depreciation L asset s useful life expectancy SBV starting book value SAL salvage value FACT declining balance factor expressed as a percentage j period number DPN depreciation expense during period j RDV remaining depreciable value at end of period j RDV DPN where RDV SBV SAL RBV remaining book value RBV DPN where RBV SBV Y number of months in partial first year File name hp 12c pt_user s guide_English_HDPMF123E27 Page 254 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendix E Formulas Used Straight Line Depreciation Keyboard function SBV SAL DPN _ 4 for j 1 2 L Program for partial ye E DPN 2 gt at DPN ee for j 2 3 L DPN RDV Sum of the Years Digits Depreciation sovD WIW 27 where W integer part of k F fractional part of k i e for k 12 25 years W 12 and F 0 25 Keyboard function ape DPN 1 SOYD SBV SAL Program for partial year L Y DPN SBV SAL or 6 LADJ j 2 DPN 2T sav D sat for 1 Y where LADJ L 6 Declining Balance Depreciation Keyboard function FACT l DEN A ET forj 1 2 L Program for partial first year DPN GBs L 1OOQL 12 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 255 of 275 Printed Date 2005
35. data storage registers discussed on page 27 the hp 12c platinum has five special registers in which numbers are stored for financial calculations These registers are designated n i PV PMT and FV The first five keys on the top row of the calculator are used to store a number from the display into the corresponding register to calculate the corresponding financial value and store the result into the corresponding register or to display the number stored in the corresponding register Storing Numbers into the Financial Registers To store a number into a financial register key the number into the display then press the corresponding key Ln Li Pv PMT or LFV Displaying Numbers in the Financial Registers To display a number stored in a financial register press followed by the corresponding key Which operation is performed when one of these keys is pressed depends upon the last preceding operation performed If a number was just stored into a financial register using n LJ Pv PMT FV 9 12x or Lg J 12 pressing one of these five keys calculates the corresponding value and stores it into the corresponding register otherwise pressing one of these five keys merely stores the number from the display into the corresponding register f It s good practice to press the corresponding key twice after RCL since often you may want to calculate a financial value right after displaying another fin
36. during chain calculations as described in section 1 Betore we discuss the details of the stack operation let s take a quick look at how the stack is used in a simple arithmetic calculation and in a chain calculation For each key pressed in the keystroke sequence the diagram illustrating the calculation shows above the key the numbers in each of the stack registers after that key is pressed First let s consider the calculation of 5 2 Keys gt 5 ENTER 2 The diagram shows why we said in section 1 that the key separates the second number entered from the first number entered Note also that this positions the 5 in the Y register above the 2 in the X register just like they would be positioned if you wrote the calculation vertically on paper D a 228 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 228 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendix A RPN and the Stack 229 Now let s see what happens in the stack during a chain calculation in RPN mode 3 x 4 5 x 6 t o o o ojojojojo o o o z o o o ojojzjjo o o o yv o s s o s s z o 42 o0 x 3 s 4 s s e6 soj42 7 6 kys 3 AaogsdAcoao7g ENTER ENTER See how the intermediate results are not only displayed when they are calculated but also automatically stored and available in the stack at just the right time That s basically how the stack operates In the r
37. end The operators perform from left to right in the order you enter them Note that if you have just pressed there is no need to press before starting a new calculation the key will have completed any pending operations File name hp 12c pt_user s guide_English_HDPMF123E27 Page 22 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 1 Getting Started 23 Chain Calculations in RPN Mode Whenever the answer has just been calculated and is therefore in the display you can perform another operation with this number by simply keying in the second number and then pressing the operation key you need not press to separate the second number from the first This is because when a number is keyed in after a function key such as LX l etc is pressed the result of that prior calculation is stored inside the calculator just as when the key is pressed The only time you must press the key to separate two numbers is when you are keying them both in one immediately following the other The hp 12c platinum is designed so that each time you press a function key in RPN mode the calculator performs the operation then not later so that you see the results of all intermediate calculations as well as the bottom line Example Suppose you ve written three checks without updating your checkbook and you ve just deposited your paycheck for 1 053 into your checking account If your late
38. exchange the numbers in the X and Y registers as also explained in Appendix A that is it will place the income back into the X register and place the test value into the Y register This is necessary because when either the RCL 2 instruction in line O05 or the RCL 1 instruction in line O07 is executed the number in the X register is moved into the Y register if the instruction were not included the test value 20 000 rather than the income would be in the Y register when the instruction in line 008 is executed Keystrokes Displa RPN mode p ay 007 43 33 002 Sets calculator to Program mode Display shows program line at which execution was halted at end of preceding example f CLEAR Prem 000 Clears program memory RCL O 001 45 0 Recalls test value into X register and places income in Y register Xzy 002 34 Places income in X register and test value in Y register File name hp 12c pt_user s guide_English_HDPMF123E27 Page 131 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 132 Section 9 Branching and Looping Keystrokes Displa RPN mode p ay 9 JLxsy 003 43 34 Tests whether number in X register income is less than or equal to number in Y register 20 000 9 GTO OO7 004 43 33 007 f condition is true branches to program line 007 RCL 2 005 45 2 If condition is false recalls 25 tax rate to X register g cTO OO8 006 43 33 008 Branches to program line 008 RCL 0
39. for cash paid out Periodic monthly interest rate Annual percentage rate APR Clears financial registers Turns off the indicator in the display so that simple interest will be used for the odd period Keys in the date interest begins accruing and separates it from the next date entered Keys in the date of the beginning of the first period Actual number of odd days Divides by the length of a monthly period to get the fractional part of n Adds the fractional part of n to the number of complete payment periods then stores the result in n Stores PV Stores PMT with minus sign for cash paid out Periodic monthly interest rate Annual percentage rate APR File name hp 12c pt_user s guide_English_HDPMF123E27 Page 67 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 68 Section 3 Basic Financial Functions Before leaving this Odd Period mode example you may now press to turn the annunciator off if needed Note that when the calculator is not in Odd Period mode the status of the annunciator actually has no eftect on calculator operation You will find another use of Odd Period mode and in Section 16 of this manual where the must be set before the two Bond programs will work correctly File name hp 12c pt_user s guide_English_HDPMF123E27 Page 68 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 3 Basic Financial Functions 69 A
40. in displayed X register page 100 Natural antilogarithm Raises e approximately 2 7 18281828 to power of number in displayed X register page 100 Computes natural logarithm base e of number in displayed X register page 100 Computes square of the number displayed in the X register page 100 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 271 of 275 Number Alteration Rounds mantissa of 10 digit number in X register to match the display page 100 Leaves only the integer portion of number in displayed X register by truncating fractional portion page 101 Leaves only the fractional portion of number in displayed X register by truncating integer portion page 101 Stack Rearrangement Opens and closes parenthesis in ALG mode page 239 Exchanges contents of X and Y registers of stack pages 90 and 230 Rolls down contents of stack for viewing in displayed X register page 230 Recalls number displayed before the previous operation back into the displayed X register pages 91 and 234 Dimension 14 8 cm x 21 cm 7 7 Programming Key Index Program Run Toggles into and out of Program mode Automatically sets program to line 000 when returning to Run mode page 86 Memory map Describes the current allocation of memory the number of lines allotted to program memory and the number of available data registers page 93 Program Mode In
41. information For More Solutions to Financial Problems In addition to the specialized solutions found in Sections 12 through 16 of this handbook many more are available in the optional hp 12c platinum Solutions Handbook Included are solutions to problems in lending forecasting pricing statistics savings investment analysis personal finance securities Canadian mortgages learning curves in manufacturing options pricing and queuing theory The solutions handbook is available online at the hp 12c platinum website HP would like to thank the following for their contribution Gene Wright Lipscomb University Nashville TN USA and Tony Hutchins Wellington NZ Jordi Hidalgo Barcelona Spain File name hp 12c pt_user s guide_English_HDPMF123E27 Page 4 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 7 Contents Introduction 00eoeososeseseosososesessosososessssssososssssessosossse 3 About This Handbook 0c cccccecscccecceccceccscccscccccsecssceseessceeceseee 3 Financial Calculations in the United Kingdom cccccccceeeeeeeeeeeeees 4 For More Solutions to Financial Problems ccccesceeccesecsceeseeseens 4 Partl Problem Solving sssccssssscsssssecsssssees 15 Section 1 Getting Started sssccccccssssssssssssrsseccssssees 16 Power On and Offo sts cosidstasansaceenuiden gece seceescsistbsaateaceanucaen eau 16 Low Power Indication c 2cncoxs
42. into the LAST X register in RPN mode In ALG mode those key presses do not cause a refresh of the LAST X register Instead the displayed number is copied into the LAST X register when a new calculation commences either with digit entry i e when one of the digits 0 9 the decimal point or is pressed or with 9 LSTx itself but not when a number is recalled using RCL When 9 LSTx is actually executed in ALG mode it simply swaps the value in the X register with the value in LAST X Therefore in ALG mode it never lifts the stack and in general it changes the value in LAST X However in RPN mode 9 LSTx always lifts the stack and leaves the value in LAST X unchanged In general LAST X in ALG mode is only useful in programs where it can often be used instead of a numbered storage register as it persists unchanged at least until digit entry or 9 LSTx There is an example of its use in the Combinations program in the hp 12c platinum Solutions Handbook The History Stack in ALG Mode In ALG mode the stack holds a history of 4 completed results These results may be rearranged using R and in the same way as described on page 230 for RPN mode Note that once a two numbered function such as LX or 37 has had the second argument entered the two arguments cannot then be swapped using because when the second argument is entered it replaces the first which is removed from the stack So if you w
43. match any of those shown you can solve it nevertheless by first drawing a cash flow diagram then keying the quantities identified in the diagram into the corresponding registers Remember always to observe the sign convention when keying in PV PMT and FV The terminology used for describing financial problems varies among the different segments of the business and financial communities Nevertheless most problems involving compound interest can be solved by drawing a cash flow diagram in one of the following basic forms Listed below each form are some of the problems to which that diagram applies File name hp 12c pt_user s guide_English_HDPMF123E27 Page 47 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 _ 48 Section 3 Basic Financial Functions Compound Growth Savings Plan Savings Account Pension Fund Appreciation Annuity Due Mortgage Mortgage With Balloon Direct Reduction Installment Loan Amortization Amortization Ordinary Annuity Ordinary Annuity Lease Lease With Buyback Residual Amortization Amortization Annuity Due Annuity Due File name hp 12c pt_user s guide_English_HDPMF123E27 Page 48 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 3 Basic Financial Functions 49 Compound Interest Calculations Specifying the Number of Compounding Periods and the Periodic Interest Rate Interest rates are usually quoted at the annual rate also called the nominal rate that is the int
44. mode as described on pages 63 through 67 If n is a noninteger that is there is at least one nonzero digit to the right of the decimal point calculations of i PV PMT and FV are performed in Odd Period mode i is the interest rate per compounding period The interest rate shown in the cash flow diagram and entered into the calculator is determined by dividing the annual interest rate by the number of compounding periods In the problem illustrated above i 6 12 PV the present value is the initial cash flow or the present value of a series of future cash flows In the problem illustrated above PV is the 1 000 initial deposit PMT is the period payment In the problem illustrated above PMT is the 50 deposited each month When all payments are equal they are referred to as annuities Problems involving equal payments are described in this section under Compound Interest Calculations problems involving unequal payments can be handled as described in under Discounted Cash Flow Analysis NPV and IRR Procedures for calculating the balance in a savings account after a series of irregular and or unequal deposits are included in the hp 12c platinum Solutions Handbook File name hp 12c pt_user s guide_English_HDPMF123E27 Page 45 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 46 Section 3 Basic Financial Functions e FV the future value is the final cash flow or the compounded value
45. money you pay out is represented by an arrow pointing down Money paid out Money received Suppose you deposited paid out 1 000 into an account that pays 6 annual interest and is compounded monthly and you subsequently deposited an additional 50 at the end of each month for the next 2 years The cash flow diagram describing the problem would look like this File name hp 12c pt_user s guide_English_HDPMF123E27 Page 44 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 3 Basic Financial Functions 45 FV o o n 2X12 PMT py gt 30 1 000 The arrow pointing up at the right of the diagram indicates that money is received at the end of the transaction Every completed cash flow diagram must include at least one cash flow in each direction Note that cash flows corresponding to the accrual of interest are not represented by arrows in the cash flow diagram The quantities in the problem that correspond to the first five keys on the top row of the keyboard are now readily apparent from the cash flow diagram n is the number of compounding periods This quantity can be expressed in years months days or any other time unit as long as the interest rate is expressed in terms of the same basic compounding period In the problem illustrated in the cash flow diagram above n 2 x 12 The form in which n is entered determines whether or not the calculator performs financial calculations in Odd Period
46. next coupon date divided by the number of days in the coupon period in which settlement occurs File name hp 12c pt_user s guide_English_HDPMF123E27 Page 83 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 84 Section 4 Additional Financial Functions Depreciation Calculations The hp 12c platinum enables you to calculate depreciation and the remaining depreciable value book value minus salvage value using the straight line sum of the years digits and declining balance methods To do so with any of these methods 1 Enter the original cost of the asset using PV 2 Enter the salvage value of the asset using FV If the salvage value is zero press O FV 3 Enter the expected useful life of the asset in years using n 4 If the declining balance method is being used enter the declining balance factor as a percentage using Li For example 1 25 times the straight line rate 125 percent declining balance would be entered as 125 i 5 Key in the number of the year for which depreciation is to be calculated 6 Press e for depreciation using the straight line method e f SovDitor depreciation using the sum of the years digits method tor depreciation using the declining balance method f SL f Sovo and each place the amount of depreciation in the display To display the remaining depreciable value the book value less the salvage value after the depreciation has
47. of 3 950 for a used car began accruing interest on July 19 2004 so that the first period began on August 1 2004 Payments of 120 are made at the end of each month Calculate the annual percentage rate APR using the actual number of odd days and simple interest for the odd period Keystrokes Displa RPN mode p ay Lf CLEARLEFIN Clears financial registers Turns off the C indicator in the display so that simple interest will be used for the odd period 7 192004 ENTER 7 19 Keys in the date interest begins accruing and separates it from the next date entered 8 012004 8 012004 Keys in the date of the beginning of the first period 9 abys 13 00 Actual number of odd days 30 0 43 Divides by the length of a monthly period to get the fractional part of n File name hp 12c pt_user s guide_English_HDPMF123E27 Page 66 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Keystrokes RPN mode 42 n 3950 PV 1 20 CHS PMT G 12 x Keystrokes ALG mode f CLEAR FIN 7 192004 8 012004 9 ADYS 304 42 n 3950 PV 1 20 cHs PmT Li x 12 Section 3 Basic Financial Functions 67 Display 42 43 3 950 00 120 00 1 16 13 95 Display 7 19 8 012004 13 00 0 43 42 43 3 950 00 120 00 1 16 13 95 Adds the fractional part of n to the numker of complete payment periods then stores the result in n Stores PV Stores PMT with minus sign
48. off the calculator will turn off automatically 12 minutes after it was last used Low Power Indication A battery symbol shown in the upper left corner of the display when the calculator is on signifies that the available battery power is nearly exhausted To replace the batteries refer to Appendix F Adjusting the Display Contrast The display s readability depends on lighting your viewing angle and the display contrast setting You can adjust the display contrast by holding down the Lf key and pressing or The Keyboard Many keys on the hp 12c platinum pertorm two or even three functions The primary function of a key is indicated by the characters printed in white on the upper face of the key The alternate function s of a key are indicated by the characters printed in gold above the key and the characters printed in blue on the lower face of the key These alternate functions are specified by pressing the appropriate prefix key before the function key e To specify the alternate function printed in gold PP above a key press the gold prefix key f then AMORT press the function key Pon lt 4 o To specify the primary function printed on the upper 12x face of a key press the key alone aa aa r To specify the alternate function printed in blue on the lower face of a key press the blue prefix key L9 then press the function key Note that the key is lower than the other keys to help prevent its be
49. or Buy Decision The question of whether to rent or purchase a residence is not always easy to answer especially when the time period over which you would own or rent a house is short This program performs an analysis which could be helptul in reaching a decision Essentially it calculates a yield or rate of return on the proposed investment This yield may be compared with the yield obtained by renting a residence and investing the down payment and monthly payment differences in a savings account or other investment opportunity This program takes into account the tax advantages obtained by a home owner on property taxes and mortgage interest First the program computes the Net Cash Proceeds upon Resale NCPR next the yield on the investment in the house and then the value of the hypothetical savings account at the end of the investment period A comparison of the NCPR and the tinal balance of the savings account and a comparison of the yields should aid in determining whether to rent or buy The Net Cash Proceeds upon Resale NCPR sales price commission mortgage balance is the pre tax proceeds The program assumes that the buyer reinvests in like property and is not subject to capital gains tax File name hp 12c pt_user s guide_English_HDPMF123E27 Page 163 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 164 Section 12 Real Estate and Lending KEYSTROKES KEYSTROKES RPN mode DISPLAY ALG mode DISPLAY
50. that line s number and the keycode of the instruction stored there just as in Program mode In Run mode however when the key is released the display again shows the same number as it did before 9 BST was pressed no instruction in program memory is executed File name hp 12c pt_user s guide_English_HDPMF123E27 Page 116 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 8 Programming Basics 117 Interrupting Program Execution Occasionally you ll want a program to stop executing so that you can see an intermediate result or enter new data The hp 12c platinum provides two functions for doing so 9 PSE pause and run stop Pausing During Program Execution When a running program executes a 9 PSE instruction program execution halts for about 1 second then resumes During the pause the calculator displays the last result calculated before the 9 PSE instruction was executed If you press any key during a pause program execution is halted indefinitely To resume program execution at the program line following that containing the 9 PSE instruction press R S Example Create a program that calculates the entries in the AMOUNT TAX and TOTAL columns for each item on the jewelry distributor s invoice shown on the next page and also calculates the total in each of these columns for all items on the invoice Assume the sales tax is 6 75 To conserve lines of program memory instead of keyi
51. the X register is copied into the LAST X register but the stack does not drop The numbers in the Y Z and T registers are not changed when a percentage function is performed LAST X gt o Key File name hp 12c pt_user s guide_English_HDPMF123E27 Page 232 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendix A RPN and the Stack 233 Calendar and Financial Functions The following table shows what quantity is in each stack register after the indicated calendar or financial function key is pressed The symbols x y z and t represent the number that was in the corresponding register X Y Z or T respectively at the time the function key was pressed Ln Lij Pv PMT FV NPV x number of payments ADYS 30 PMT PRIN n i PV PMT PMT ADYS ceva FV NPV IRR mr SL sovo DB y settlement date x maturity date y settlement date x number of year RDV remaining INT x maturity date depreciable value PRICE YTM DEP File name hp 12c pt_user s guide_English_HDPMF123E27 Page 233 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 234 Appendix A RPN and the Stack The LAST X Register and the Key The number in the displayed X register is copied into the LAST X register whenever any of the following function keys is pressed ES te E RND INTG z Rr qr A DATE ADYS Pressing 9 LSTx li
52. the lease The lessee has agreed to make three payments at the time of closing What monthly payment is necessary to yield the lessor 10 annually Keystrokes Keystrokes Biecla RPN mode ALG mode pay TIRE om o oo c ooo E n 3lsTo OLn Number of TE payments omea poe oss E PV RCL O PV RCL O 11 11 6400 750 xzyY 750 xzy EE 45 a payment to be received It solving for the payment amount will be done repetitively key in the following hp 12c platinum program KEYSTROKES RPN mode DISPLAY KEYSTROKES ALG mode DISPLAY P R P R Topera Taaa COE 9 capa om a e Sow a e sim en o o a eooo on Taz 007 a5 2 2 007 45 2 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 203 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ 7 204 Section 14 Leasing KEYSTROKES KEYSTROKES RPN mode DISPLAY ALG mode DISPLAY 009 011 013 014 z 016 f n n Adv Pmt it i dRe aE Key in the program 7 a r olla Joar ao com o REGISTERS PV Used R Adv Pmt Key in the total number of payments in the lease then press STO O Key in the total number of payments made in advance then press ST0 1 Key in the periodic interest rate as a percentage then press STO 2 Key in the loan amount and press STO 3 then press to obtain the periodic
53. the second number 1 67 7 95 Adds the third number to get the total 2 36 2 36 Keys in 2 36 to tind what percentage it is of the number in the display 29 69 Europe had nearly 30 of the total sales In RPN mode the hp 12c platinum holds the total amount inside after a percent of total is calculated Therefore to calculate what percentage another amount is of the total 1 Clear the display by pressing CLx 2 Key in that amount 3 Press again For example to calculate what percent of the total sales in the preceding example occurred in the U S and what percent occurred in the rest of the world Keystrokes Displa RPN mode pray CLx 3 92 T 49 31 The U S had about 49 of the total sales OLX 167 21 01 The rest of the world had about 21 of the total sales File name hp 12c pt_user s guide_English_HDPMF123E27 Page 35 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 36 Section 2 Percentage and Calendar Functions To find what percentage a number is of a total when you already know the total number 1 Key in the total number 2 Press ENTER to separate the other number from the total number 3 Key in the number whose percentage equivalent you wish to find A Press T For example if you already knew in the preceding example that the total sales were 7 95 million and you wanted to find what percentage of that total occurred in Europe Keystrokes RPN mode Disp
54. want to know more about programming such as how to check what keystrokes are stored in program memory how many keystrokes can be stored in program memory how to correct or otherwise modity programs how to skip keystrokes when running a program and so on Before you can understand these aspects of programming we need to briefly discuss how keystrokes are treated by the calculator when they are stored in Program mode and when they are executed in Run mode File name hp 12c pt_user s guide_English_HDPMF123E27 Page 107 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 108 Section 8 Programming Basics Program Memory Keystrokes entered into the calculator in Program mode are stored in program memory Each digit decimal point or function key is called an instruction and is stored in one line of program memory usually referred to simply as a program line Keystroke sequences beginning with the f L9 STOJ RCL and prefix keys are considered to comprise a complete instruction and are stored in only one program line When a program is run each instruction in program memory is executed thot is the keystroke in that program line is performed just as if you were pressing the key manually beginning with the current line in program memory and proceeding sequentially with the higher numbered program lines Whenever the calculator is in Program mode that is whenever the PRGM status indicator in
55. 00 NewAmount x Base y Base y T 100 Amouni x Total y Interest n number of compounding periods i periodic interest rate expressed as a decimal PV present value FV future value or balance PMT periodic payment S payment mode factor O or 1 indicating treatment of PMT O corresponds to End 1 to Begin interest amount INTG n integer portion of n FRAC n fractional portion of n Simple Interest l360 555 x PV xi l5 565 PV xi 250 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 250 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendix E Formulas Used 251 Compound Interest Without an odd period 1 1 i l O PV 1415 PMT Jevas With simple interest used for an odd period l 1 n Sn SEE a O PV 1 iFRAC n 14 iS PM jl FV 1 ij NTS With compound interest used for an odd period 1 4 eae be F l O PV 1 ifa 1 iS PM jl FV 1 i NI Amortization n number of payment periods to be amortized INT amount of PMT applied to interest in period j PRN amount of PMT applied to principal in period j PV present value balance of loan after payment in period j j period number INT 0 if n O and payment mode is set to Begin PV x flee sign of PMT PRN PMT INT PV PV PRN INT PV _ x ilko X Sign of PMI for j gt 1 PRN PMT INT PV PV_ PRN SINT SINT INT INT
56. 000 sTO 2 9 000 00 13 5 13 50 NPV 644 75 Stores the new CF in R Stores i The new NPV Since this NPV is negative the investment would decrease the financial value of the investor s assets Example 2 Change N from 2 to 4 then calculate the new NPV Keystrokes Display 5 n 5 00 AN 4 00 7 0 7 00 NPV 1 857 21 Stores j in the n register Stores the new N Resets the number in the n register to its original value The new NPV This step is necessary in this example because we have calculated IRR since the first time we calculated NPV The IRR calculation replaced the 13 5 we keyed into i before calculating NPV with the result for IRR 13 72 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 81 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 82 Section 4 Additional Financial Functions Bond Calculations The hp 12c platinum enables you to solve for bond price and the interest accrued since the last interest date and the yield to maturity The and calculations are done assuming a semiannual coupon payment and using an actual actual basis such as for U S Treasury bonds and U S Treasury notes In accordance with market convention prices are based on a redemption par value of 100 To calculate bond price and yield for a 30 360 bond that is using the basis of a 30 day month and a 360 day year such as for municipal bonds corporate bonds and to calcul
57. 006 5 007 36 Running a Program To run sometimes called execute a program 1 Press to set the calculator back to Run mode If the calculator is already in Run mode that is the PRGM status indicator in the display is not lit skip this step 2 Key any required data into the calculator just as if you were calculating manually When a program is run it uses the data already keyed into the display and the registers inside the calculator 3 Press to begin program execution File name hp 12c pt_user s guide_English_HDPMF123E27 Page 106 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 8 Programming Basics 107 Example Run the program created above to calculate the net cost of a typewriter listing for 625 and an executive chair listing for 159 Keystrokes Display RPN mode 155 00 Sets calculator fo Run mode Display shows number previously calculated 155 00 Sets RPN mode 625 625 Keys in price of typewriter R S 473 75 Net cost of typewriter 159 159 Keys in list price of chair R S 124 25 Net cost of chair Keytrokes apa 155 00 Sets calculator to Run mode Display shows number previously calculated 155 00 Sets ALG mode 625 625 Keys in price of typewriter R S 473 75 Net cost of typewriter 159 159 Keys in list price of chair R S 124 25 Net cost of chair That s all there is to creating and running simple programs But if you want to use programs frequently you ll
58. 01 43 8 002 42 34 003 n 04 0 jos ajja COE FV Eff Rate RR Unused File name hp 12c pt_user s guide_English_HDPMF123E27 Page 214 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 15 Savings 215 1 Key in the program RPN Key in the annual nominal rate as a percentage then press ENTER 2 2 ALG Key in the annual nominal rate as a percentage then press 3 Key in the number of compounding periods per year then press to obtain the effective annual interest rate 4 For a new case return to step 2 Example 2 What is the effective annual rate of interest if the annual nominal rate of 5 25 is compounded monthly Keystrokes Keystrokes Displa mode ALG mode pay rate Effective Rate Converted to Nominal Rate Given an effective interest rate and the number of compounding periods per year this routine calculates the nominal interest rate 1 Press f JCLEAR FIN 2 Key in the number of periods per year then press n 3 Key in 100 then press PV RPN Mode 4 Key in the effective annual rate as a percentage then press CHS FV iJ 5 Press RCL n X to obtain the annual nominal rate ALG Mode 4 Press Key in the effective annual rate as a percentage then press J CHSILFVJ iJ 5 Press X RCL nN to obtain the annual nominal rate File name hp 12c pt_user s guide_English_HDPMF123E27 Page 215 o
59. 07 45 1 Recalls 20 tax rate to X register 008 25 Calculates tax 190 22 Sets calculator to Run mode Display shows results of running of previous program ALG program notes We ll key the income into the display before running the program We ll store it in R so it will be available for the examples in the next chapter By keying the income into the display before running the program we ensure that it will be in the X register when the RCLJO instruction in program line 002 is executed This instruction will place the test value 20 000 in the X register and move the income into the Y register The instruction in program line 003 will exchange the numbers in the X and Y registers that is it will place the income back into the X register and place the test value into the Y register This is necessary because when either the RCL 2 instruction in line OO7 or the RCL 1 instruction in line 009 is executed the number in the X register is moved into the Y register if the instruction were not included the test value 20 000 rather than the income would be in the Y register when the instruction in line 010 is executed Keystrokes ALG mode Display 007 43 33 002 Sets calculator to Program mode Display shows program line at which execution was halted at end of preceding example CLEAR PRem 000 Clears program memory STO 9 001 44 9 Stores income into register R File name hp 12c pt_user s guide_English_HDP
60. 08 017 43 33 002 6 007 1 5 1 line 002 010 0 3 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 148 of 275 og Instruction replaced in line 001 Branches back to Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 11 Multiple Programs You can store multiple programs in program memory provided that you separate them by instructions that will halt program execution after each program is run and return to the beginning of the program if it is run again You can run programs after the first one stored in program memory by setting the calculator to the first line of the program using before pressing R S Storing Another Program To store a program after another program is already stored in program memory l Press f PIR to set the calculator to Program mode Do not clear program memory Press 9 GTO L followed by three digits that specify the number of the last line you keyed into program memory Note If this is the second program to be stored in program memory you will need to ensure that a GTO OOO instruction separates it from the first program by doing step 3 If there are already two or more programs stored in program memory skip step 3 and proceed with step 4 Press 9 GTO OOO This automatically converts a data storage register into seven additional lines of program memory if there was not already a IGTO OOO instruction remaining at the en
61. 1 254 56 Depreciation declining balance 176 Depreciation excess 191 Depreciation partial year 171 91 Depreciation sum of the years digits 180 Depreciation with crossover 184 9 Digit entry recovering trom errors in 92 Digit entry termination of 21 229 Discounted cashflow analysis 72 Display 87 File name hp 12c pt_user s guide_English_HDPMF 123E27 Printed Date 2005 8 1 Subject Index 275 Display format mantissa 89 Display format standard 88 Display formats number 87 Display scientific notation 88 Displaying numbers 41 Displays special 90 EEX 18 21 65 230 END 46 ENTER 21 31 36 93 99 102 129 229 234 e 100 231 20 22 26 237 Editing a program 139 Effective interest rate converting 215 Effective rate 216 Entry errors 92 Error conditions 90 Error Pr 90 Errors 90 Errors in digit entry 92 Excess depreciation 191 Exponent 18 102 Exponential 100 f 16 21 69 88 108 230 FIN 19 42 FRAC 101 231 FV 41 61 Factorial 100 Financial registers 41 Financial registers clearing 42 Fractional 101 Future value 46 Future value calculating 61 FV 46 G 9 16 21 108 112 230 leto 17 21 108 114 125 130 Page 275 of 275 Dimension 14 8 cm x 21 cm 7 276 Subject Index 143 230 leto J 114 139 cTo 000 112 13 i 13 41 42 INT 42 230 IRR 13 72 73 7
62. 1 45 0 Stores test value in register R Stores 20 tax rate in register R Stores 25 tax rate in register R Keys income less than test value into display and X register Line 001 RCLIO File name hp 12c pt_user s guide_English_HDPMF123E27 Page 133 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 134 Section 9 Branching and Looping Keystrokes RPN mode SST 20000 SST Display 20 000 00 002 34 15 000 00 003 43 34 15 000 00 004 43 33 007 15 000 00 007 45 1 20 00 008 25 3 000 00 20 000 001 45 0 20 000 00 002 34 20 000 00 003 43 34 20 000 00 Test value has been recalled to X register moving income to Y register Line 002 Income has been placed in X register and test value has been placed in Y register Line 003 9 x lt y Condition tested by was true so program execution continued with line 004 9 GTO OO7 Line 007 RCL 1 20 tax rate has been recalled to X register moving income to Y register Line 008 20 of 15 000 3 000 Keys income equal to test value into display and X register Line 001 RCL O Test value has been recalled to X register moving income to Y register Line 002 xy Income has been placed in X register and test value has been placed in Y register Line 003 9 xsy File name hp 12c pt_user s guide_English_HDPMF123E27 Page 134 of 275 Printed Date 2005 8 1 Dimens
63. 12 f JINPv 10 9 12 Lf J NPV eal positive cash flows 20 n FV 775 797 83 NFV of e cash e 180000 CHS 9 180000 CHS 9 NPV of negative cash CFoJOL9 LCFiJ5 9 CFoJOLg LCFi J59 flows Ni 100000 CHS N 100000 CHS g JLCFiJ5 9 JINJ6 9 JLCFi 5 9 N ANP E mee2 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 193 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 194 Section 13 Investment Analysis Black Scholes Formula for Valuing European Options This program implements the Black Scholes formula which has been used extensively in option markets worldwide since its publication in the early 1970 s The five inputs are simply keyed into the five financial variables and then displays the call option value and shows the put option value The option values produced are accurate to at least the nearest cent for asset and strike prices under 100 Reference Tony Hutchins 2003 Black Scholes takes over the HP12C HPCC www hpcc org Datafile V22 N3 pp13 21 KEYSTROKES KEYSTROKES RPN mode DISPLAY ALG mode DISPLAY 007 008 009 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 194 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ Section 13 Investment Analysis 195 KEYSTROKES KEYSTROKES ern N moc
64. 19 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 220 Section 16 Bonds 7 If price is desired a Key in the desired yield to maturity as a percentage then press STO O b Press to calculate price as a percentage of par value RPN Press to display accrued interest due the seller Press to calculate the total price paid ALG Press to display accrued interest due the seller and then press to calculate the total price paid For a new case return to step 3 Note that only those values which have been changed need to be reentered and stored 8 If yield is desired a Press O STO O b Key in the price as a percentage of par value and press STO 1 c Press to compute annual yield to maturity For a new case return to step 3 Note that only those values which have been changed need to be reentered and stored Example 1 What price should you pay on August 28 2004 for a 5 5 bond computed with a 30 360 basis that matures on June 1 2008 if you want a yield of 4 75 What price should you pay for a yield of 4 5 This problem assumes a redemption value of 100 Keystrokes Keystrokes Displa RPN mode ALG mode pay ma o Set compound interest mode if the C indicator is not on 2 register R RS 800 58 Preo ke Xzy Xz 1 33 Accrued interest calculated 4 5 5T0 0 4 5 5T0 0 New yield into R File name hp 12c pt_user s guide_English_HDPMF123E27 Page 220 of 275 Printed Date
65. 2005 8 1 Dimension 14 8 cm x 21 cm 7 224 Section 16 Bonds REGISTERS n Used i Yield PV Used PMT Cpn or O FV Used R Periods n R Yield R Coupon R Redemption R Settlement R Last Coupon R Used R R Unused ee For annual coupon bonds calculated on a 30 360 day basis insert after g ADYS at steps 19 and 23 in the RPN mode program and after 9 JADYS at steps 20 and 24 in the ALG mode making each program two steps longer 1 Key in the program and press it the status indicator is not displayed Key in the total number of coupons which are received and press STO O Key in the annual yield as a percentage then press STO 1 Key in the amount of the annual coupon then press STO 2 Key in the redemption value then press STO 3 Key in the settlement purchase datet then press ST0 4 Key in the date of the next coupon then press STO 5 Press R S to obtain the amount of accrued interest Press R S to determine the price of the bond 10 For a new case return to step 2 OC ONO OR WN Example What is the price and accrued interest of a 20 year Eurobond with annual coupons of 6 5 purchased on August 15 2004 to yield 7 The next coupon is received on December 1 2004 Keystrokes Keystrokes Displa RPN mode ALG mode pay Set compound interest mode if the C indicator is not on 20 STO O 20 STO O 20 00 Total number of coupons 7 STO 1 7 STO 1 7 00
66. 2005 8 1 Dimension 14 8 cm x 21 cm 7 7 Section 16 Bonds 221 Keystrokes Keystrokes Displa mode ms mode pay 103 41 Price to yield 4 5 calculated xz xzy Accrued interest calculated GE 104 74 Total price paid Example 2 The market is quoting 105 for the bond described in example 1 What yield will that provide What would be the yield to maturity if 104 were the quoted price Keystrokes Keystrokes Displa RPN mode ALG mode pay omo oso oo ae R S R S Yield at 105 calculated 104 sT0 1 R S 104 ST0 1 R S Yield at 104 calculated File name hp 12c pt_user s guide_English_HDPMF123E27 Page 221 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 222 Section 16 Bonds Annual Coupon Bonds For bonds which have annual coupons use the following hp 12c platinum program to evaluate price and accrued interest on an Actual Actual day basis This program may be modified for annual coupon bonds to be calculated on a KEYSTROKES mode DISPLAY 001 42 34 002 43 8 30 360 day basis 9 So am e o File name hp 12c pt_user s guide_English_HDPMF123E27 Page 222 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ Section 16 Bonds 223 KEYSTROKES KEYSTROKES RPN mode ete ALG mode STEAN RCL 5 45 5 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 223 of 275 Printed Date
67. 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 12 Real Estate and Lending 167 1 Key in the program 2 Key in the estimated down payment then press STO 1 3 Key in the life of the mortgage then press ST0 2 4 Key in the annual mortgage interest rate then press STO 3 5 Key in the estimated monthly taxes then press STO 4 6 Key in the total amount estimated for monthly repairs improvements incremental insurance utility costs and other expenses then press STO 5 7 Key in the closing costs then press STO 6 8 Key in the selling cost as a percentage of the selling price This should include sales commission escrow fees etc then press STO 7 9 Key in the monthly rent for the alternative housing then press ST0 8 10 Key in the savings or alternative investment annual interest rate as a percentage then press STO 9 11 Key in the combined State and Federal marginal tax rate as a percentage then press STO JO 12 Press 9 END and f JCLEAR FIN then key in the number of years involved in the investment press n 13 Key in the estimated rate of yearly appreciation as a percentage then press Li 14 Key in the price of the house under consideration then press PV 15 Press to compute the net proceeds from the sale of the house A negative value indicates money lost 16 Press to compute the yield on your investment in the house 17 Press to compute the value of a savings acco
68. 3 le 043 036 43 33 043 W W 037 W W H O W Ko H A W Ww m 040 W Ww 041 04 043 H R S A A UI STO 2 044 44 40 STO O 045 44 30 046 42 25 STO 1 047 44 40 A OI H W 45 15 30 45 4 STO 048 44 5 RCL 2 10 45 13 43 34 Dimension 14 8 cm x 21 cm File name hp 12c pt_user s guide_English_HDPMF123E27 Page 186 of 275 Printed Date 2005 8 1 7 7 KEYSTROKES RPN mode g xsy 9 GTO O86 B B STO 6 HH w 4 4 O 6 A O m Section 13 Investment Analysis 187 DISPLAY 057 43 33 086 063 44 30 064 43 33 040 070 44 30 071 44 40 076 44 40 077 1 078 44 30 0 079 44 40 2 Q RCL 9 JfeTo 091 STO 4 9 ieToj04 RCL KEYSTROKES ALG mode 9 GTo 058 9 6To O70 RCL O 4 DISPLAY 056 43 33 058 057 43 33 070 062 43 33 091 068 44 30 069 43 33 044 075 44 30 ocr m e File name hp 12c pt_user s guide_English_HDPMF123E27 Page 187 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 _ 188 Section 13 Investment Analysis KEYSTROKES KEYSTROKES RPN mode ee ae Smet elon 081 STO 1 081 44 40 CCE EE moa meae a S 08 1 x 0 or aa mm File name hp 12c pt_user s guide_
69. 30 a PV Dep Value PMT Unused Key in the program Press f CLEAR FIN Key in the book value then press PV Key in the salvage value then press FV a SS SS Key in the life in years an integer then press n File name hp 12c pt_user s guide_English_HDPMF123E27 Page 173 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ 174 Section 13 Investment Analysis RPN Mode 6 Key in the year desired then press ENTER 7 Key in the number of months in the first year and press R S The display will show the amount of depreciation for the desired year If desired press to see the remaining depreciable value then press RCL PV RCL 3 x2Y RCL LFV to tind the total depreciation from the first year through the current year ALG Mode 6 Key in the year desired then press 7 Key in the number of months in the first year and press R S The display will show the amount of depreciation for the desired year If desired press to see the remaining depreciable value then press RCL PV RCL 3 xz RCL FV to find the total depreciation from the first year through the current year 8 Press for the amount of depreciation and remaining depreciable value for the next year Repeat this step for the following years 9 For a new case press 9 GTO OOO and return to step 2 Note If the number of months in the first calendar
70. 300 300 Keys in the base number ENTER 300 00 Pressing separates the next number entered from the first number just as when an ordinary arithmetic calculation is performed 14 14 Keys in the percentage 42 00 Calculates the amount It the base number is already in the display as a result of a previous calculation you should not press ENTER before keying in the percentage just as in a chain arithmetic calculation 31 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 31 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 32 Section 2 Percentage and Calendar Functions Percentages in ALG Mode In ALG mode to find the amount corresponding to a percentage of a number 1 Key in the base number 2 Press X 3 Key in the percentage 4 Press 5 Press For example to tind 14 of 300 iyakan ely 0 00 Clears any pending operations 300 300 Keys in the base number 300 00 Tells the calculator to multiply the 300 by the percentage entered next 14 14 Keys in the percentage 0 14 Divides the percentage by 100 42 00 Calculates the amount In most cases divides a number by 100 The one exception is when a plus or minus sign precedes the number For instance 25 results in 0 25 To find 25 of 200 press 200 25 l Result is 50 Note This is the last time the initial will be shown in these examples Don t forget to clear the calculator in ALG mode befor
71. 5 on incomes of more than 20 000 To conserve program lines the program assumes that the test value 20 000 has been stored in register R and the tax rates 20 and 25 have been stored in registers R and R respectively Program execution continues at line 004 Note If a program requires that certain numbers be in the X and Y registers when instructions such as 9 x lt y are executed it is extremely helpful when writing the program to show the quantities in each register after each instruction is executed as in the following diagram which shows an RPN mode program although it works in a similar way in ALG mode File name hp 12c pt_user s guide_English_HDPMF123E27 Page 130 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 9 Branching and Looping 131 Y gt o income X B income 20 000 income income income 9 Keys gt income RCL o x lt y GTO 007 Line 001 002 003 004 Y gt income income income income x 25 00 25 00 20 00 tax Keys B gt RcL 2 GTO oos RCL Line B 005 006 007 008 RPN program notes We ll key the income into the display before running the program so that it will be in the X register when the RCL O instruction in program line OO1 is executed This instruction will place the test value 20 000 in the X register and as explained in Appendix A move the income into the Y register The instruction in program line 002 will
72. 5 0 20 000 00 003 34 15 000 00 004 20 15 000 00 005 43 34 15 000 00 006 43 33 009 15 000 00 009 45 1 20 00 010 25 0 20 011 36 3 000 00 Stores test value in register R Stores 20 tax rate in register R Stores 25 tax rate in register R Keys income less than test value into display and X register Line 001 STO0 9 Stores income into register R Line 002 RCLIO Test value has been recalled to X register moving income to Y register Line 003 Income has been placed in X register and test value has been placed in Y register Line 004 Line 005 9 x lt y Condition tested by was true so program execution continued with line O06 9 GTO OO9 Line 009 RCL 1 20 tax rate has been recalled to X register moving income to Y register Line 010 Divides tax rate by 100 Line O11 20 of 15 000 3 000 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 136 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Keystrokes ALG mode SST 20000 SST SST SST Display 012 43 33 000 3 000 00 20 000 001 44 9 20 000 00 002 45 0 20 000 00 003 34 20 000 00 004 20 20 000 00 005 43 34 20 000 00 006 43 33 009 20 000 00 009 45 1 20 00 010 25 0 20 011 36 4 000 00 012 43 33 000 4 000 00 Section 9 Branching and Looping 137 Line 012 9 GTO OOO Keys income equal to test value into display and X regist
73. 50019 CEi 100000 9 CF RCL n 13 50 NPV Section 4 Additional Financial Functions 77 Display 0 00 79 000 00 14 000 00 11 000 00 10 000 00 3 00 9 100 00 9 000 00 2 00 4 500 00 100 000 00 7 00 13 50 907 77 Clears financial and storage registers Initial investment with minus sign for a negative cash flow First cash flow amount Next cash flow amount Next cash flow amount Number of times this cash flow amount occurs consecutively Next cash flow amount Next cash flow amount Number of times this cash flow amount occurs consecutively Next cash flow amount Final cash flow amount Seven different cash flow amounts have been entered Stores i NPV Since NPV is positive the investment would increase the financial value of the investor s assets by 907 77 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 77 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 78 Section 4 Additional Financial Functions Calculating Internal Rate of Return IRR 1 Enter the cash flows using either of the methods described above under Calculating Net Present Value 2 Press f IRR The calculated value of IRR appears in the display and also is automatically stored in the i register Note Remember that the function may take a significant amount of time to produce an answer during which the calculator displays running Example The NPV calculated
74. 8 243 NTG 101 231 Indicators status 87 Instructions in program lines 108 Interest rate annual 55 Interest rate periodic 55 Interest simple 42 Internal rate of return 72 Internal rate of return calculating 78 Internal rate of return modified 192 Interrupting a program 117 IRR 72 192 K Keyboard 16 L LSTx 91 101 234 LN 100 231 LAST X register 86 Leasing 202 Linear estimation 97 Logarithm 100 Looping 125 Low power indicator 16 M M DY 37 MEM 113 Mantissa 18 89 Mantissa Display Format 89 Mean 94 Mean weighted 99 memory 27 Memory program 112 Modes alegebraic 20 RPN 20 Modified internal rate of return 192 Mortgage price of 159 Mortgage yield of 161 Multiple programs 149 N n 41 49 nt 100 231 Ni 75 79 80 NPV 72 73 Negative numbers 17 238 Net amount 33 Net present value 72 Net present value calculating 73 Nominal interest rate converting 213 NPV 72 Number display formats 87 Numbers keying in 17 Numbers large 18 Numbers negative 17 Numbers recalling 27 Numbers storing 27 O ON 16 260 Odd period calculations 63 Odd period mode 45 One number functions 100 One variable statistics 93 Overflow 90 J PIR 104 106 109 124 MT 41 59 EFIX 17 89 cM 19 104 112 RICE 82 230 PSE 117 118 JEEE Z File name hp 12c pt_user s guide_Engli
75. 8 1 Dimension 14 8 cm x 21 cm 255 _ 256 Appendix E Formulas Used FACT 100L forj 1 DPN RBV gt Modified Internal Rate of Return n number of compounding periods NFV Net future value of the positive cash flows NPV Net present value of the negative cash flows F n MIRR 100 P 1 NPV Advance Payments A number of payments made in advance PV FV 1 i PMT T _ n A i 1 i A l Interest Rate Conversions C number of compounding periods per year EFF the effective annual interest rate as a decimal NOM the nominal annual interest rate as a decimal Finite Compounding C EFF Nom C Continuous Compounding EFF e M 1 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 256 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendix E Formulas Used Statistics Mean i ae y Ly n n Weighted Mean N _ gt Wx Yw Linear Estimation n number of data pairs A Bx Taa B gt xy yay where B n 5 x2 2 n A y Bx Emer pe Bl RE Standard Deviation EAE _ fray ey gt n n 1 n n 1 Factorial O For n gt 1 where n is an integer n n i i File name hp 12c pt_user s guide_English_HDPMF123E27 Page 257 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 257 258 Appendix E Formulas Used The Rent or Buy Decision Market Value PRI
76. 9 CFi 4 500 00 RCL 9 J Ni 2 00 RCL 9 CF 9 000 00 RCL 9 J Ni 1 00 RCL 9 CFi 14 000 00 RCL 9 J Ni 1 00 RCL 9 CFi 79 000 00 7 n 7 00 Changing Cash Flow Entries e To change a cash flow amount 1 Key the amount into the display 2 Press STO CF N CF N 5 CF N CF N 0 CF 0 Resets the number in the n register to its original value 3 Key in the number of the register containing the cash flow amount to be changed e To change the number of times a cash flow amount occurs consecutively that is to change the N for a CF 1 Store the number of that cash flow amount that is j in the n register 2 Key the number of times the cash flow amount occurs consecutively into the display 3 Press 9 Ni File name hp 12c pt_user s guide_English_HDPMF123E27 Page 80 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 4 Additional Financial Functions 81 Note If you change the number in the n register in order to change an N be sure to reset the number in the n register to the total number of cash flow amounts originally entered not including the amount of the initial investment CF If this is not done NPV and IRR calculations will give incorrect results Example 1 With the cash flows now stored in the calculator change CF trom 11 000 to 9 000 then calculate the new NPV for a 13 5 return Keystrokes Display 9
77. 90 Section 5 Additional Operating Features Special Displays Running Certain functions and many programs may take several seconds or more to produce an answer During these calculations the word running flashes in the display to let you know that the calculator is running Overflow and Underflow If a calculation results in a number whose magnitude is greater than 9 999999999 x10 the calculation is halted and the calculator displays 9 999999 99 if the number is positive or 9 999999 99 it the number is negative If a calculation results in a number whose magnitude is less than 10 the calculation is not halted but the value O is used for that number in subsequent calculations Errors f you attempt an improper operation such as division by zero the calculator will display the word Error followed by a digit O through 9 To clear the Error display press any key This does not execute that key s function but does restore the calculator to its condition before the improper operation was attempted Refer to Appendix D for a list of error conditions Pr Error f power to the calculator is interrupted the calculator will display Pr Error when next turned on This indicates that Continuous Memory which contains all data program and status information has been reset The Key in RPN Mode Suppose you need to subtract 25 83 from 144 25 and you mistakenly key in 25 83 as the first number and then key i
78. Annual yield Positive for cash received negative for cash paid out t For information about date format see page 37 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 224 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ Section 16 Bonds 225 Keystrokes Keystrokes Displa RPN mode ALG mode p ay 100 STO 3 100 STO 3 Redemption value File name hp 12c pt_user s guide_English_HDPMF123E27 Page 225 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendices File name hp 12c pt_user s guide_English_HDPMF123E27 Page 227 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendix A RPN and the Stack T In RPN mode four special registers in the hp 12c platinum Z are used for storing numbers during calculations To y understand how these registers are used they should be __ Displayed X visualized as stacked on top of each other For this reason they are generally reterred to as the stack registers or collectively as the stack The stack registers are designated X Y Z and T Unless the calculator is in Program mode the number shown in the display is the number in the X register modified according to the current display format The number in the X register and for two number functions the number in the Y register are the number s used in calculations The Z and T registers are used primarily for the automatic retention of intermediate results
79. CE 1 1 where appreciation per year as decimal n number of years Net Cash Proceeds on Resale Market Value Mortgage Balance Commission The interest rate is obtained by solving the financial compound interest equation for i using n number of years house is owned PY down payment closing costs PMT mortgage payment taxes maintenance rent tax interest taxes FV net cash proceeds on resale Annual interest rate 12 x i File name hp 12c pt_user s guide_English_HDPMF123E27 Page 258 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendix F Battery Warranty and Service Information Battery The hp 12c platinum is shipped with one 3 Volt CR2032 Lithium battery Battery life depends on how the calculator is used If the calculator is being used to perform operations other than running programs it uses much less power Low Power Indication A battery symbol shown in the upper left corner of the display when the calculator is on signifies that the available battery power is running low When the battery symbol begins flashing replace the battery as soon as possible to avoid losing data Use only a fresh battery Do not use rechargeable batteries Warning There is the danger of explosion if the battery is incorrectly a replaced Replace only with the same or equivalent type recommended by the manufacturer Dispose of used batteries according to the manufacture
80. CL 9 R S Your guess will aid the calculator in its search and if it finds an IRR answer near your guess that answer will be displayed Since the calculator cannot tell you the number of solutions that exist when there is more than one mathematically correct answer you can continue to make guesses pressing RCL 9 R S after each one to search for IRR solutions You can hasten this process by using the function to help you make a good guess Remember that a correct IRR solution will make the calculated NPV very small So continue to guess interest rates and solve for NPV until the answer you obtain is reasonably close to zero Then press RCL 9 R S to calculate the IRR answer near your guess How would this work in case 2 above The calculator displays a negative answer and you wish to check for a unique positive IRR Key in successively larger guesses for i starting from O and solve for NPV until you reach a sign change in your NPV outcomes Then press RCL 9 R S to find an IRR solution near the last interest rate obtained using the key If you stop the IRR iterative process you can test the interest obtained using NPV and then restart the process by pressing RCL 9 R S File name hp 12c pt_user s guide_English_HDPMF123E27 Page 244 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendix D Error Conditions Some calculator operations cannot be performed under certain
81. Calculates and stores the number of compounding periods 6 9 12 0 50 Calculates and stores the periodic interest rate 11024 82 FV 11 024 82 Stores the future value required 9 END 11 024 82 Sets payment mode to End PMT 42 03 Monthly payment required Example 4 Suppose you cannot find a bank that currently offers an account with 6 annual interest compounded monthly but you can afford to make 45 monthly payments What is the minimum interest rate that will enable you to accumulate the required amount In this problem we do not need to clear the previous financial data inside the calculator since most of it is unchanged from the preceding example Keystrokes Display A5 CHS PMT 45 00 Stores payment amount Lil 0 43 Periodic interest rate RCL 9 12 5 13 Annual interest rate This is only a small sampling of the many financial calculations that can now be done easily with your hp 12c platinum To begin learning about this powerful financial tool just turn the page File name hp 12c pt_user s guide_English_HDPMF123E27 Page 14 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Part Problem Solving File name hp 12c pt_user s guide_English_HDPMF123E27 Page 15 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 1 Getting Started Power On and Off To begin using your hp 12c platinum press the key Pressing again turns the calculator off If not manually turned
82. Case 3 The calculator displays Error 3 This indicates that the computation is very complex possibly involving multiple answers and cannot be continued until you give the calculator an estimate of IRR The procedure for doing so is described below Case 4 The calculator displays Error 7 This indicates that there is no answer to the computation of IRR with the cash flow amounts you have entered This situation is probably the result of a mistake in entering the magnitudes or signs of the cash tlows or the number of times a cash flow amount occurs consecutively Refer to Reviewing Cash Flow Entries page 79 and Changing Cash Flow Entries page 80 to check and correct the entries Error 7 will result if there is not at least one positive cash flow and at least one negative cash flow Although the calculator will eventually reach one of the above outcomes it may take a long time to get there You may wish to terminate the IRR iterative process by pressing any key to see what interest rate the calculator has computed at that point If you stop the calculation you may continue searching for IRR as described below 243 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 243 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 244 Appendix C More About Searching for IRR You can continue searching for IRR solutions even after an Error 3 indication as follows 1 Make a guess for the interest rate and key it in 2 Press R
83. English_HDPMF123E27 Page 188 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 13 Investment Analysis 189 REGISTERS n Life i Factor PV Dep Value PMT Unused FV Salvage R Used R Dep R Counter Key in the program Press f CLEAR REG Key in the book value then press PV Key in the salvage value then press FV Key in the life in years an integer then press n Key in the declining balance factor as a percentage then press i RPN Key in the desired year and press ENTER ALG Key in the desired year and press COPY NIEOOKRWHN gt Key in the number of months in the first year then press R S to calculate the amount of depreciation for the desired year 9 If desired press to see the remaining depreciable value 10 If desired press RCL 1 to see the total depreciation through the current year 11 Continue pressing R S to find the amount of depreciation for the successive years Steps 9 and 10 may be repeated for each year 12 For a new case press 9 GTO OOO and return to step 2 Example An electronic instrument is purchased for 11 000 with 6 months remaining in the current fiscal year The instrument s useful life is 8 years and the salvage value is expected to be 500 Using a 200 declining balance factor generate a depreciation schedule for the instrument s complete life What is the remaining depreciable value after the first year What is th
84. G mode 9 eTOll 1033 STO O RCL O 9 PSE 9 PSE 9 6ToJ035 Display 028 44 0 029 45 0 030 42 11 031 43 31 Keys in program 032 34 033 43 31 034 43 33 029 Display Sets calculator to Program mode 033 43 33 025 Sets calculator to last line keyed into program memory 034 44 0 035 45 0 036 42 11 037 43 31 Keys in program 038 34 039 43 31 040 43 33 035 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 152 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 11 Multiple Programs 153 Running Another Program To run a program that does not begin with program line 001 1 Press to set the calculator to Run mode If the calculator is already in Run mode skip this step 2 Press 9 cTO followed by three digits that specify the first line of the program 3 Press R S Example Run the office supplies program now stored in the calculator beginning at program line 019 in RPN mode and line 025 in ALG mode for the typewriter listing for 625 Keystrokes Displa RPN mode p ay 12 000 00 Sets calculator to Program mode 9 l6To JO19 12 000 00 Sets calculator to first line of program to be executed 625 R S 473 75 Net cost of typewriter Keystrokes ALG mode Display 12 000 00 Sets calculator to Program mode g cT0 025 12 000 00 Sets calculator to first line of program to be executed 625 R S 473 75 Net cost of typ
85. IN A RIS 1 00 First year 1 666 67 depreciation x2 123 333 33 remaining depreciable value R S R S 2 00 Second year 5 000 00 depreciation key xan 118 333 33 remaining depreciable value 3 00 Third year 5 000 00 depreciation x2 Y RCL PV RCL 3 x2 YJ RCLILPV J De ENE 9 letToJO000 _9 lleto 000 11 666 67 Total depreciation through third year CHCLEARTFIN PCIEAREN 14 666 67 25 25m O 25 00 fe OO 250m 25 25 00 Year desired Twenty fifth year depreciation remaining depreciable value Twenty sixth year depreciation remaining depreciable value File name hp 12c pt_user s guide_English_HDPMF123E27 Page 175 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 176 Section 13 Investment Analysis Example 2 A used car was purchased for 6 730 with 4 5 months remaining in the year If the expected life of the car is 5 years what is the amount of depreciation in the first year Keystrokes Keystrokes Displa mode a mode pay 9 ieTo OOO a f CLEARLEFIN a FIN a a a 5 R S 4 5 R S 1 00 First year 504 75 depreciation Declining Balance Depreciation The following hp 12c platinum program calculates the declining balance depreciation for the year desired with the acquisition date occurring at any time during the year KEYSTROKES KEYSTROKES RPN mode gated ALG mode sania om Lf JLP R TICLEAR e TICLEAREI E
86. Keystrokes Display 60ln 60 00 Stores the number of days Zli 7 00 Stores the annual interest rate 450 cHs PV 450 00 Stores the principal 5 25 Accrued interest 360 day basis 455 25 Total amount principal plus accrued interest In ALG mode perform the steps in the RPN listing above except replace the last step with the step below Keystrokes ALG mode Display eyj 455 25 Total amount principal plus accrued interest Example 2 Your friend agrees to the 7 interest on the loan from the preceding example but asks that you compute it on a 365 day basis rather than a 360 day basis What is the amount of accrued interest he will owe you in 60 days and what is the total amount owed Keystrokes RPN mode Display 60l n 60 00 If you have not altered the numbers in 7Li 7 00 the n i and PV registers since the A50 CHS PV 450 00 preceding example you may skip these keystrokes f JUNT JRH y 5 18 Accrued interest 365 day basis 455 18 Total amount principal plus accrued interest In ALG mode perform the steps in the RPN listing above except replace the last step with the step below Keystrokes Displa ALG mode p ay eyj 455 18 Total amount principal plus accrued interest File name hp 12c pt_user s guide_English_HDPMF123E27 Page 43 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 44 Section 3 Basic Financial Functions Financial Calculat
87. LEAR REG 2 Key in the amount of the first cash flow then press 9 CFo This initial amount is the difference between the initial loan amount and any payments received at closing time Observe the sign convention positive for cash received and negative for cash paid out 3 Key in the amount of the first cash flow then press 9 CFi Then key in the number of times that cash flow occurs then press 9 Ni 4 Key in O 9 CFi then the number of advance payments minus one Then press 9 Ni 5 Key in the residual then press 9 CFi Then press to solve for periodic yield Example Equipment worth 5 000 is leased for 36 months at 145 per month The lessee has agreed to pay the first and last month s payments in advance At the end of the lease the equipment may be purchased for 1 500 What is the annual yield to the lessor if the equipment is purchased 2 145 1500 33 34 35 36 5000 Keystrokes Keystrokes RPN mode ALG mode J RPN f ALG Doeane fce fF 5 000 CHS ENTER 145 x 2 Net amount of cash 145ENER2 X o advanced 9 LCFo 9 CFo 145 00 okien oe ooo Thin cosh fow File name hp 12c pt_user s guide_English_HDPMF123E27 Page 212 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 15 Savings Nominal Rate Converted to Effective Rate Given a nominal interest rate and the number of compounding periods pe
88. MF123E27 Page 132 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Keystrokes ALG mode RCL O x lt y L9 lcT0 009 RCL 2 9 GTO O10 RCL L P R Section 9 Branching and Looping 133 Display 002 45 0 003 34 004 20 005 43 34 006 43 33 009 007 45 2 008 43 33 010 009 45 1 010 25 011 36 190 22 Recalls test value into X register and places income in Y register Places income in X register and test value in Y register Prepares for multiplication Tests whether number in X register income is less than or equal to number in Y register 20 000 If condition is true branches to program line 009 If condition is false recalls 25 tax rate to X register Branches to program line 010 Recalls 20 tax rate to X register Divides tax rate by 100 Calculates tax Sets calculator to Run mode Display shows results of running of previous program Now we ll store the required numbers in registers R R and R then we ll run the program using so that we can check that the branching occurs properly It s good practice with programs containing conditional test instructions to check that the program branches correctly for all possible conditions in this case if the income is less than equal to or greater than the test value Keystrokes RPN mode 20000 sTO O 20 STO 1 25 STO 2 15000 SST Display 20 000 00 20 00 25 00 15 000 00
89. NCTIONS c isssscraseeaiadudcesencinreveacassaveoraseneiucnsnavnay 232 Calendar and Financial FUnctions cccceecceccusceucesccuccusceucence 233 The LAST X Register and the Ry EE E E E 234 Chain Calculations in RPN Mode secceecesccuccesceceusceccascence 234 Arithmetic Calculations with Constants scccsecesccecescenceusceeees 235 Appendix B Algebraic Mode ALG cccsssssseceeee 237 Simple Arithmetic Calculations in ALG Mode ceceeeeeeeeeeeeeeeeees 237 Keying in Negative Numbers CHS ccccccccccceeeeeeeeeeeeeeeeeaees 238 Chain Calculations in ALG Mode cecceeceecsccuccesccseusceuceascencs 238 The Key in ALG MOde se vsitccctensnuisctncnsnadcuseussndadsienasteswunnctadys 239 The History Stack in ALG Mode sc cedenchecvccesitcacasactecneapintieteaaseseeest 239 Parentheses Calculations cccccsecesccuccsccesceuceuseesccseasseuscuscens 240 Percentage FUNCHIONS cccecceeeceeeceeeeeeeeeeeeaeeeaeeeaeeeaeeeaeeeneeenes 24 Percent Difference dsscecsdedsdenivenetavadadadendvetsdavedededandversdeaweacbext 241 Percent of Total specs ce scp actcececeece cereus cane aA aTa Aai ra Ea iina 242 The Power Function cccceccusccuccescceccusccuceusceuceuscctceuscenceascanees 242 Appendix C More About IRR sssccccssssecccsssseceees 243 Appendix D Error Conditions csssccsssscssssccoesees 245 Error O Mathematics cicinsdecravessri
90. Page 55 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 56 Section 3 Basic Financial Functions Keystrokes RPN mode iJ A x Keystrokes ALG mode CLEARLFIN 8 x 4 n 6000 cHs PV 10000 Fv Li xJ4 Display 1 61 6 44 Display 32 00 6 000 00 10 000 00 1 61 6 44 Calculating the Present Value 1 Press f JCLEARLFIN to clear the financial registers Periodic quarterly interest rate Annual interest rate Calculates and stores n Stores PV with minus sign for cash paid out Stores FV Periodic quarterly interest rate Annual interest rate Enter the number of payments or periods using LN or 9 12x 2 3 Enter the periodic interest rate using Li or 9 12 4 Enter either or both of the following e Payment amount using PMT e Future value using FV Note Remember to observe the cash flow sign convention 5 Ifa PMT was entered press 9 BEG or 9 END to set the payment mode 6 Press to calculate the present value File name hp 12c pt_user s guide_English_HDPMF123E27 Page 56 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 3 Basic Financial Functions 57 Example 1 You re financing a new car purchase with a loan from an institution that requires 5 9 interest compounded monthly over the 4 year term of the loan If you can make payments of 450 at the end of each month and yo
91. Press A Example Yesterday your stock fell from 35 5 to 31 25 per share What is the percent change Keystrokes Displa ALG mode p ay 0 00 Clears any pending operations 35 5 35 50 Keys in the base number and separates it from the other number 31 25 31 25 Keys in the other number 11 97 Nearly a 12 decrease File name hp 12c pt_user s guide_English_HDPMF123E27 Page 241 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 242 Appendix B Algebraic Mode ALG Percent of Total To calculate what percentage one number is of another 1 Calculate the total amount by adding all individual amounts 2 Key in the number whose percentage equivalent you wish to find 3 Press T Example Last month your company posted sales of 3 92 million in the U S 2 36 million in Europe and 1 67 million in the rest of the world What percentage of the total sales occurred in Europe Keystrokes ALG mode Display 0 00 Clears any pending operations 3921F 3 92 Keys in the first number 2 36 6 28 Adds the second number 1 67 7 95 Adds the third number to get the total 2 36 2 36 Keys in 2 36 to find out what percentage it is of the number in the display 29 69 ee had nearly 30 of the total sales The Power Function Pressing calculates a power of a number that is y Like the arithmetic function 7 requires two numbers 1 Key in the base number which is designated by the y on t
92. Program mode function In Run mode function keys may be executed keys are recorded in as part of a recorded program or program memory Display individually by pressing from the keyboard shows program memory line number and the keycode keyboard row and location in row of the function key Active Keys Pressed from Executed as a In Program mode only the keyboard recorded program following keys are active instruction they cannot be recorded in program memory CLEAR Prev CLEAR Rai Resets calculator in Clear program Clears Run mode so program memory to all IGTO OOO instructions and slag e a a resets calculator so prog operations begin at line 000 TEMO Bes mci of program memory Resets o ae to POO8 r20 E page 113 272 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 272 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm E Program Mode Active Keys Go to Followed by a decimal point and a three digit number positions calculator to that line in program memory No instructions are executed page 114 Single step Displays line number and contents of next program memory line If held down displays line number and contents of all program memory lines one at a time page 109 Back step Displays line number and contents of previous program memory line When back stepped from line 000 goes to end of program memory as defined by 9 MEM If held down disp
93. Volume 1 Third Edition Securities Industry Association Inc New York 1993 DIM days between issue date and maturity date DSM days between settlement date and maturity date DCS days between beginning of current coupon period and settlement date E number of days in coupon period where settlement occurs DSC E DCS days from settlement date to next 6 month coupon date N number of semiannual coupons payable between settlement date and maturity date CPN annual coupon rate as a percentage YIELD annual yield as a percentage PRICE dollar price per 100 par value RDV redemption value For semiannual coupon with 6 months or less to maturity CPN 100 RDV PRICE ee _ BCS CPN DSM YIELD E 2 100 x For semiannual coupon with more than 6 months to maturity KELD N e 200 CP AS Ea E Ex E K 2 E 2 DSC l ry E Ho 200 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 253 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ 254 Appendix E Formulas Used Black Scholes Formula for Valuing European Options P current asset price r risk free rate continuous per time unit s volatility continuous per time unit T term of option same time unit as r and s X exercise price of option N z probability that a unit normal random variable is less than z Call Value P x N d Q x N d Put Value Call Value Q P where
94. X entries in register R TOTAL Adds TOTAL to sum of TOTAL entries in register R File name hp 12c pt_user s guide_English_HDPMF123E27 Page 119 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 120 Section 8 Programming Basics Now we ll store the program in program memory Do not key in the quantity and cost of each item these numbers will vary each time the program is run Keystrokes RPN mode Display f CLEAR Prev 000 x 001 9 PSE 002 STO 1 003 44 RCL O 004 005 9 PSE 006 Sto 2 007 44 008 sTO 3 009 44 eps Display t CLEAR Prev 000 001 Xz V 002 003 9 PSE 004 STO 1 005 44 006 RCL O 007 008 9 PSE 009 Sto 2 010 44 011 43 40 45 43 40 40 43 40 45 43 40 20 31 25 31 40 20 34 36 31 40 25 31 36 Sets calculator to Program mode Clears program memory Pauses to display AMOUNT Pauses to display TAX Sets calculator to Program mode Clears program memory Pauses to display AMOUNT Pauses to display TAX File name hp 12c pt_user s guide_English_HDPMF123E27 Page 120 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 8 Programming Basics 121 Keystrokes Displa ALG mode pray STO 3 012 44 40 3 Note The procedure used in the ALG program in steps 1 through 3 allows the algebraic program to run in the same manner as
95. added First we ll manually calculate the net cost of an item listing for 200 Keystrokes RPN mode Display 200 200 Keys in cost of item ENTER 200 00 Separates cost of item from percentage to be keyed in next 25 50 00 Amount of discount Ea 150 00 Price less discount 5 5 Handling charge 155 00 Net cost price less discount plus handling charge Kayo atl 200 200 Keys in cost of item Ea 200 00 Separates cost of item from percentage to be keyed in next 25 50 00 Amount of discount 150 00 Price less discount 5 a Handling charge 155 00 Net cost price less discount plus Next set the calculator to handling charge Program mode and erase any program s already stored Keystrokes Display Sets calculator to Program mode f CLEAR PRew 000 Clears program s Finally press the keys that we used above to solve the problem manually Do not key in 200 this number will vary each time the program is used Don t be concerned right now about what appears in the display as you press the keys we ll discuss that later in this section File name hp 12c pt_user s guide_English_HDPMF123E27 Page 105 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 106 Section 8 Programming Basics Keystrokes RPN mode Display ENTER 001 36 2 002 2 5 003 5 004 25 005 30 5 006 5 007 40 Keystrokes Display ALG mode 001 30 2 002 2 5 003 5 004 25 005 40 5
96. age 230 that the stack does not lift when a number is keyed into the displayed X register after is pressed Example At Permex Pipes a certain pipe fitting is packaged in quantities of 15 75 and 250 If the cost per fitting is 4 38 calculate the cost of each package Keystrokes RPN mode Display 4 3 8 ENTER ENTER ENTER 4 38 Enters constant into Y Z and T registers 15 15 Enters first quantity into displayed X register 65 70 Cost of a package of 15 cLx 75 75 Clears display and enters second quantity into displayed X register 328 50 Cost of a package of 75 cLx 250 250 Clears display and enters third quantity into displayed X register 1 095 00 Cost of a package of 250 You may want to compare this method of arithmetic calculations with constants to the method using described on page 91 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 236 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendix B Algebraic Mode ALG Although most of this material is included at the appropriate places throughout this manual it is collected here for easy reference To select algebraic mode press f ALG When the calculator is in algebraic mode the ALG status indicator is lit Note In ALG mode it is a good idea to begin calculations by pressing CLx CLx This will ensure that there are no pending arithmetic calculations that might interfere with the solution of a new pro
97. ain now but this time hold it down until program line 007 is displayed Keystrokes Displa RPN mode pray SST 001 36 Program line 001 Release SST 007 40 Program line 007 Keystrokes ALG mode Display SST 001 30 Program line 001 Release SST 007 36 Program line 007 Program line 007 contains the last instruction you keyed into program memory However if you press again you ll see that this is not the last line stored in program memory Keystrokes Display SST 008 43 33 000 Program line 008 As you should now be able to tell from the keycodes displayed the instruction in program line 008 is 9 GTO OO0O File name hp 12c pt_user s guide_English_HDPMF123E27 Page 111 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 112 Section 8 Programming Basics The GTO 000 Instruction and Program Line 000 Whenever you run the program now stored in program memory the calculator executes the instruction in line 008 after executing the seven instructions you keyed in This GTO OOO instruction as its name implies tells the calculator to go to program line O00 and execute the instruction in that line Although line 000 does not contain a regular instruction it does contain a hidden instruction that tells the calculator to halt program execution Thus after each time the program is run the calculator automatically goes to program line 000 and halts ready for you to key in new data and run the p
98. ancial value As indicated in the preceding footnote if you wanted to display FV and then calculate PV for example you should press RCLILFVJ FV PV If you didn t press the second time pressing would store FV in the PV register rather than calculating PV and to calculate PV you would have to press again 41 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 41 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 42 Section 3 Basic Financial Functions Clearing the Financial Registers Every financial function uses numbers stored in several of the financial registers Betore beginning a new financial calculation it is good practice to clear all of the financial registers by pressing Lf CLEAR FIN Frequently however you may want to repeat a calculation after changing a number in only one of the financial registers To do so do not press f CLEAR FIN instead simply store the new number in the register The numbers in the other financial registers remain unchanged The financial registers are also cleared when you press f CLEAR REG and when Continuous Memory is reset as described on page 86 Simple Interest Calculations The hp 12c platinum simultaneously calculates simple interest on both a 360 day basis and a 365 day basis You can display either one as described below Furthermore with the accrued interest in the display you can calculate the total amount principal plus accrued interest by p
99. assumption by utilizing user stipulated reinvestment and borrowing rates Negative cash flows are discounted at a safe rate that reflects the return on an investment in a liquid account The figure generally used is a short term security T Bill or bank passbook rate Positive cash flows are reinvested at a reinvestment rate which reflects the return on an investment of comparable risk An average return rate on recent market investments might be used The steps in the procedure are 1 Calculate the future value of the positive cash flows NFV at the reinvestment rate 2 Calculate the present value of the negative cash flows NPV at the safe rate 3 Knowing n PV and FV solve for i File name hp 12c pt_user s guide_English_HDPMF123E27 Page 192 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 7 Section 13 Investment Analysis 193 Example An investor has the following unconventional investment opportunity The cash flows are 180 000 100 000 100 000 0 200 000 Calculate the MIRR using a safe rate of 6 and a reinvestment risk rate of 10 Keystrokes Keystrokes Displa niak mode ms mode pay f poaa GF en CF 59 5 00 a through sixth cash flows Olg CFiJ5 9 Ni O 9 CFi J5 9 INi Next Next five cash flows cash flows Of 9 CFI IOl 9 Ni Of 9 CFI 9 9 IIN Next nine lec flows 200000 9 CFi 200000 9 CFi 200 000 00 000 00 Last Last cash flow flow 10 9
100. ate bond price for bonds with an annual coupon payment refer to Section 16 Bonds Bond Price 1 Enter the desired yield to maturity as a percentage using i 2 Enter the annual coupon rate as a percentage using PMT 3 Key in the settlement purchase date as described on page 37 then press ENTER 4 Key in the maturity redemption date 5 Press f PRICE The price is shown in the display and also is stored in the PV register The interest accrued since the last interest date is held inside the calculator to display the interest press x2Y to add the interest to the price press in RPN mode and xzy in ALG mode Example What price should you pay on April 28 2004 for a 6 75 U S Treasury bond that matures on June 4 2018 if you want a yield of 4 75 Assume that you normally express dates in the month day year format Keystrokes RPN mode Display 4 75 4 75 Enters yield to maturity 6 75 PMT 6 75 Enters coupon rate 9 Moy 6 75 Sets date format to month day year 4 282004 ENTER 4 28 Enters settlement purchase date 6 042018 6 042018 Enters maturity redemption date PRICE 120 38 Bond price as a percent of par 123 07 Total price including accrued interest All bond calculations are performed in accordance with the Securities Industry Association s recommendations as contained in Jan Mayle TIPS Inc Standard Securities Calculation Methods Volume 1 Third Edition Secur
101. ates when the Julian calendar was in use The Julian calendar was standard in England and its colonies until September 14 1752 when they switched to the Gregorian calendar Other countries adopted the Gregorian calendar at various times File name hp 12c pt_user s guide_English_HDPMF123E27 Page 38 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 2 Percentage and Calendar Functions 39 Example If you purchased a 120 day option on a piece of land on 14 May 2004 what would be the expiration date Assume that you normally express dates in the day month year format Keystrokes Display 9 DMy 7 04 Sets date format to day month year Display shown assumes date remains from preceding example The full date is not now displayed because the display format is set to show only two decimal places as described in Section 5 14 05 2004 ENTER 14 05 Keys in the date and separates it trom the number of days to be entered 120 g DATE 11 09 2004 6 The expiration date is 11 September 2004 a Saturday When 9 DATE is executed as an instruction in a running program the calculator pauses for about 1 second to display the result then resumes program execution File name hp 12c pt_user s guide_English_HDPMF123E27 Page 39 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 40 Section 2 Percentage and Calendar Functions Number of Days Between Dates To calculate the number of days between two
102. atus indicator 65 Calendar functions 37 40 252 Calendar functions and the stack 233 Cash flow diagram 44 48 Cash flow sign convention 42 46 Cash flows changing 80 Cash flows reviewing 79 Cash flows storing for and IRR 73 80 Chain calculations 23 25 26 234 238 Clearing display 19 Clearing financial registers 19 Clearing operations 17 19 Clearing prefix keys 17 Clearing program memory 19 105 Clearing statistics registers 19 93 Clearing storage registers 19 29 86 Clearing X register 19 Compound growth 47 49 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 274 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Compound interest 49 68 251 Compound interest calculation 12 Compounding periods 44 49 Conditional branching 129 30 Conditional test instructions 129 Constants arithmetic calculations with 235 Constants arithmetic calculations with 91 Continuous compounding 216 256 Continuous memory 86 Continuous memory resetting of 42 47 86 88 112 Continuous rate 216 D DATE 37 40 DB 84 230 DYS 65 230 omy 38 D MY status indicator 38 Data storage registers 27 30 Date format 37 86 Dates days between 40 Dates future or past 38 Days between dates 40 Decimal places rounding 87 Decimal point changing 17 Declining balance depreciation 176 Deferred annuities 169 70 Depreciation 84 171 9
103. balloon payment key in the total number of periods and press n 3 Key in the periodic payment amount then press PMT 4 Key in the purchase price of the mortgage then press PV 5 Key in the balloon payment amount then press FV If there is no balloon payment go to step 6 6 Press i to obtain the yield per period RPN Key in the number of periods per year and press X to obtain the nominal annual yield ALG Press LX Key in the number of periods per year and press to obtain the nominal annual yield Example 1 An investor wishes to purchase a 300 000 mortgage taken out at 6 for 21 years Since the mortgage was issued 42 monthly payments have been made What would be the annual yield if the purchase price of the mortgage is 250 000 Since PMT was not given it must be calculated Keystrokes Keystrokes Displa as mode son mode pray C e S Te Enter the number of f CLEARL EIN CLEAR periods into n 21 9 12x 21 9 12x 6l 9 12 6 9 12 eda interest rate into i 30O0000 CHS LPV 300000 CHS PV 300 000 00 Mortgage amount into PV negative to ee money paid out Positive for cash received negative for cash paid out File name hp 12c pt_user s guide_English_HDPMF123E27 Page 161 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 7 162 Section 12 Real Estate and Lending Keystrokes Displa ALG mode prey 2 096 57 Payment rece
104. been calculated press x Y Example A metalworking machine purchased for 10 000 is depreciated over 5 years Its salvage value is estimated at 500 Find the depreciation and remaining depreciable value for the first 3 years of the machine s life using the declining balance method at double the straight line rate 200 percent declining balance Keystrokes Display 1O0000 PV 10 000 00 Enters original cost 500 FV 500 00 Enters salvage value 5 5 00 Enters expected useful life 200L i 200 00 Enters declining balance factor 1 4 000 00 Depreciation in first year 5 500 00 Remaining depreciable value after first year 2 f DB 2 400 00 Depreciation in second year File name hp 12c pt_user s guide_English_HDPMF123E27 Page 84 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 4 Additional Financial Functions 85 Keystrokes Display 3 100 00 Remaining depreciable value after second year 3Lf DB 1 440 00 Depreciation in third year 1 660 00 Remaining depreciable value after third year To calculate depreciation and the remaining depreciable value when the acquisition date of the asset does not coincide with the beginning of the fiscal accounting year refer to the procedures in Section 13 That section also includes a procedure for depreciation calculations when changing from the declining balance method to the straightline method and a procedure for calculating excess depreciation File na
105. blem The reason this key is pressed twice is that pressing it the first time clears the display and X register only allowing you to correct an erroneous entry by keying in a correct number The second press of will clear any pending operations as well Pressing the key is another way to ensure that there are no pending operations before beginning a new calculation Simple Arithmetic Calculations in ALG Mode To calculate 21 1 23 8 Keystrokes Displa ALG mode p ay 0 00 Clears any pending operations 21 1 21 10 Enters first number and prepares to add 23 8 23 8 Enters the second number 44 90 completes the calculation Once a calculation has been completed e pressing another digit key starts a new calculation or e pressing an operator key continues the calculation Keystrokes Displa ALG mode prey 0 00 Clears any pending operations 77 35 77 35 Enters first number and prepares to subtract 237 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 237 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 238 Appendix B Algebraic Mode ALG Keystrokes ALG mode Display 90 89 13 54 completes the calculation 65Ls lx 12l 96 75 New calculation 4 65 x12 3 5 27 64 Calculates 96 75 3 5 You can also do long calculations without pressing after each intermediate calculation just press it at the end The operators perform from left to right in the o
106. c pt_user s guide_English_HDPMF123E27 Page 179 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 180 Section 13 Investment Analysis Keystrokes Keystrokes Displa RPN mode ALG mode pay O ee Sum of the Years Digits Depreciation The following hp 12c platinum program calculates the sum of the years digits depreciation for the year desired with the acquisition date occurring at any time during the year KEYSTROKES a ere 2 _ DISPLAY ea om File name hp 12c pt_user s guide_English_HDPMF 123E27 Page 180 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 13 Investment Analysis 181 KEYSTROKES RPN mode DISPLAY PV 018 13 RCL N 019 45 11 RCL O om em C o s ea KEYSTROKES ALG mode een RCL 018 45 13 30 023 30 oes u RCL oom e o sTO O 035 44 40 0 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 181 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 182 Section 13 Investment Analysis KEYSTROKES KEYSTROKES RPN mode DISPLAY ALG mode DISPLAY see es ess REGISTERS Li i Unused PV Dep Value PMT Unused FV Salvage K R Mos 12 R Counter R 1 Yr Dep R R Unused ee Key in the program Press f CLEAR FIN Key in the book value then press PV Key in the salvage value then press FV oF ge ee Key in the life in y
107. ccae cesar 42 Financial Calculations and the Cash Flow Diagram c00sseeeees 44 The Cash Flow Sign Convention cccccccccceesssseeeeeeeeeeeesaeeeees 46 The Payment Mode scecccccceeeessseeeeeeeeeeeesseeeeeeeeeeeeesaneeees 46 Generalized Cash Flow Diagrams cccccccesssseeeseeeeeeeaeeeees 47 Compound Interest Calculations ccccccccccesssseeeeeeeeeeeesaaeeseeeeees 49 Specifying the Number of Compounding Periods and the Periodic Interesi Rale anisina a a 49 Calculating the Number of Payments or Compounding Periods 49 Calculating the Periodic and Annual Interest Rates 00008 55 Calculating the Present Value ccccceeeececeeeeeeeseeeeseeeeeeeeaaas 56 Calculating the Payment AMOuN1 ccececceeeeeeesaeeeeeeeeeeeeaaas 58 Calculating the Future Value icc cc deeccde ee ceveacbetea niece nceseeceecs 60 Odd Period Calculations cccccccccceeseseeeeeeeeeesaeeeeeeeeeeeeaaas 63 Amoriza ON oc tpeyetsovatyacuensencsasuntyeceneasneswncatveansedeysurovetaecnsuvedoeumeess 69 Section 4 Additional Financial Functions csssseee 72 Discounted Cash Flow Analysis NPV and IRR ceeeceeeeeeeeeeeeees 72 Calculating Net Present Value NPV ccccssseeeeeeeeeeeeeaeeeees 73 Calculating Internal Rate of Return IRR cccccccceeeeeeeeeeeeees 78 Reviewing Cash Flow Entries ccccccccesssseeeeeceeceeesseeeseeeeees 79 Changing Cash F
108. ccuserdnectosnareessennmechectasoaneocerectenwans 16 Adjusting the Display Contrast ccccccccessseeeeeeeeeeeesseeeeeeeeees 16 E Ee EE E E E EA N 16 Keying in Numbers actress soa nes eects tee kon ectuers eaunen cuebeedtoekene 17 ICTS SOI CIOl oera E E 17 Negative Numbers cccccccceessseeeceeeeeeeesseeseeeeeeeessaaeeseeeeess 17 Keying in Large Numbers ccccccccceceesseseeeeeeeeeeessaaeeseeeeees 18 POC SOO ING euaissi eri ap E a nR aN 18 Ihe CLEAR KEYS sveririseriorens Tesora retiens Enn ee ETTV ASEET Eei 19 Undo Opera oN ae nen eee ae ene EENE 20 The RPN and ALG Keys cdcie csus eave cotdcsanisedianccoetetaneveserescensenewees 20 Simple Arithmetic Calculations in RPN Mode ccceeceeeeseeeeeeeeeeeeees 21 Simple Arithmetic Calculations in ALG Mode ccceeeeeeeeeeeeeeeeeeees 22 Chain Calculations in RPN Mode ccccccccceesssseeseeceeeeeesaeeeeeeeeees 23 Chain Calculations in ALG Mode cccccceessseeeeeceeeeeesaseeeeeeeeeeaas 26 Parentheses Calculations ccccccccccesssseeeeeceeceeeeesseeeeeeeeeeeessaaeeees 26 DIMA Re Eear E EEE ENIE 27 Storing and Recalling Numbers cccccccceceeeeeseeseeeeeeeenaas 27 Clearing Storage Registers cccccccsseseeeecceeesseeeeeeeeeeeeeeaaeeees 29 Storage Register Arithmetic cccccccesseeeceeeceeeeesseeeeeeeeeeeeeaas 29 Section 2 Percentage and Calendar Functions 5 31 Percentage FUNCTIONS c cpr cas
109. ce of his mortgage It the mortgage amount is 160 000 for 30 years and the interest rate is 5 5 per year with monthly payments what true annual percentage rate is the borrower paying One point is equal to 1 of the mortgage amount Keystrokes Keystrokes Displa RPN mode ALG mode pay 9 END CLEAR FIN F CLEAR FIN sores soaa 5 5 9 12 5 5 9 12 eae vy interest rate into i i 160000 PV 160000 PV 160 000 00 000 00 Loan amount into PV amount into PV PMT PMT TUNEN 46 a payment calculated ma PV 2 L a PV 2 Actual amount received 156 800 00 by borrower into PV 0 47 monthly interest rate calculated Annual percentage rate File name hp 12c pt_user s guide_English_HDPMF123E27 Page 157 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 158 Section 12 Real Estate and Lending Example 2 Using the same information as given in example 1 calculate the APR if the mortgage fee is 750 instead of a percentage Keystrokes Keystrokes Displa RPN mode ae mode pay _f J RPN ze C a 30 9 J 12x Ee Months into n 5 5 9 12 5 5 9 12 Percent monthly interest rate into i 160000 PV 160000 PV 160 000 00 000 00 Loan amount into PV amount into PV PMT PMT canes 46 a payment calculated ao m 1750 Effective mortgage 159 250 00 amount into PV Monthly interest rate calculated e a uses ai in
110. ch is the rule rather than the exception the amounts of depreciation in the first and last years are computed as fractions of a full year s depreciation Straight Line Depreciation The following hp 12c platinum program calculates the straight line depreciation for the year desired with the acquisition date occurring at any time during the year KEYSTROKES KEYSTROKES RPN mode DISPLAY ALG mode DISPLAY i CLEAR Pron 171 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 171 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 172 Section 13 Investment Analysis KEYSTROKES RPN mode fc 2 O RCL 2 DISPLAY 025 43 33 035 027 43 31 028 45 0 029 42 23 030 31 031 1 KEYSTROKES ALG mode z S om O TO O038 SE eos mos os OEE a O BRE a gt a O alg ale Ez U z 5 A m no E O Dimension 14 8 cm x 21 cm DISPLAY 42 015 45 016 017 44 018 45 020 021 022 45 45 45 43 23 20 1 36 3 13 30 34 13 11 30 1 11 0 35 028 43 33 038 45 43 45 42 035 44 40 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 172 of 275 Printed Date 2005 8 1 2 31 0 23 31 1 0 7 Section 13 Investment Analysis 173 KEYSTROKES RPN mode DISPLAY DISPLAY S 036 44 40 GTO O30 041 43 33 0
111. cipal from the second year s payments that is the second 12 months Keystrokes Display 1 2 favor 12 739 18 Portion of second year s payments applied to interest 5 238 26 Portion of second year s payments applied to principal 12 00 Number of payments just amortized 239 790 83 Balance remaining after 2 years 24 00 Total number of payments amortized Pressing RCL Pv or RCL N displays the number in the PV or n register When you did so after each of the last two calculations you may have noticed that PV and n had been changed from their original values The calculator does this so that you can easily check the remaining balance and the total number of payments amortized But because of this if you want to generate a new amortization schedule from the beginning you must reset PV to its original value and reset n to O For example suppose you now wanted to generate an amortization schedule for each of the first two months Keystrokes Display 250000 PV 250 000 00 Resets PV to original value Oln 0 00 Resets n to zero File name hp 12c pt_user s guide_English_HDPMF123E27 Page 70 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Keystrokes l 1 Section 3 Basic Financial Functions 71 Display 1 093 75 404 37 1 091 98 406 14 2 00 Portion of first payment applied to interest Portion of first payment applied to principal Portion of second payment applied t
112. compute n without taking the odd period into account The values in the other financial registers will correspond to the new n but the original assumptions for the problem will be changed ft The two methods of counting odd days will yield slightly different answers If you are calculating i to determine the annual percentage rate APR for an odd period transaction the lower APR will result if the calculation uses the greater number of odd days determined using the two methods t is not programmoble File name hp 12c pt_user s guide_English_HDPMF123E27 Page 64 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 3 Basic Financial Functions 65 Example 1 A 36 month loan for 4 500 accrues interest at a 5 annual percentage rate APR with the payments made at the end of each month If interest begins accruing on this loan on February 15 2004 so that the first period begins on March 1 2004 calculate the monthly payment with the odd days counted on the basis of a 30 day month and compound interest used for the odd period Keystrokes R RPN mode Display 7 ICLEARTFIN 9 Moy 9 END 2 152004 ENTER 2 15 3 012004 3 012004 g ADYS 15 00 16 00 30 0 53 36 Ln J 36 53 5 9 12 0 42 A500 PV 4 500 00 PMT 135 17 Keystrokes ALG mode Display Clears financial registers Sets date format to month day year Sets payment mode to End Turns on the C indicator in the display so that c
113. conditions for example when x 0 If you attempt such an operation under these conditions the calculator will display the word Error followed by a digit O through 9 Listed below are operations that cannot be performed under the conditions specified The symbols x and y represent the number in the X and Y registers respectively when the operation key is pressed Error 0 Mathematics Operation Condition Ex ka 1x x 0 x lt 0 x lt 0 y Oandx lt 0 y lt Oand x is noninteger A y 0 y 0 STO O through 4 x 0 x is noninteger x lt 0 245 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 245 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ 246 Appendix D Error Conditions Error 1 Storage Register Overflow Operation Condition STO O through 4 STO O through 4 TE anes A T STO O through 4 x 12x Error 2 Statistics Operation Condition X n number in R 0 Xw xx 0 Ls n 0 n gt lt gt lt gt lt s x lt gt lt gt aS nx x lt O nxy Zy lt O n 0 nix 2x 0 n 0 nxy 2y 0 x AV lt x N lt wm n x Ex nZy 2y lt O Error 3 IRR Refer to Appendix C Error 4 Memory Attempting to enter more than 400 program lines Attempting to to a program line that does not exist Attempting storage register arithmetic in R through R or R thr
114. contents have been lost the display will show Pr Error Pressing any key will clear this message File name hp 12c pt_user s guide_English_HDPMF123E27 Page 260 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Appendix F Battery Warranty and Service Information 261 Verifying Proper Operation Self Tests If it appears that the calculator will not turn on or otherwise is not operating properly use one of the following procedures For a calculator that does not respond to keystrokes l Fora The Insert a thin pointed object all the way into the reset hole near the battery compartment and then remove it The display will show Pr Error Pressing any key will clear this message from the display If the calculator still does not respond to keystrokes remove and reinsert the battery Make sure that the battery is properly positioned in the battery compartment If the calculator does not turn on install a fresh battery If there is still no response the calculator requires service calculator that does respond to keystrokes With the calculator off hold down the key and press X Release the key then release the key This initiates a complete test of the calculator s electronic circuitry If everything is working correctly within about 25 seconds during which the word running flashes the display should show 8 8 8 8 8 8 8 8 8 8 and all of the status indicators except the battery p
115. d 5th years Assume the first depreciation year is 11 months long Keystrokes Keystrokes Displa RPN mode aask mode pay me oo e o o d T a ree e e e Refer to straight line depreciation instruction note page 174 T The display will pause showing the year number before showing the amount of depreciation for that year File name hp 12c pt_user s guide_English_HDPMF123E27 Page 183 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 184 Section 13 Investment Analysis Keystrokes Keystrokes Displa RPN mode ALG mode pay 11 R S 11 R S Fourth year depreciation remaining depreciable value Fifth year depreciation remaining depreciable value Full and Partial Year Depreciation with Crossover When calculating declining balance depreciation it is often advantageous for tax purposes to switch from declining balance to straight line depreciation at some point This hp 12c platinum program calculates the optimum crossover point and automatically switches to straight line depreciation at the appropriate time The crossover point is the end of the year in which the declining balance depreciation last exceeds or equals the amount of straight line depreciation The straightline depreciation is determined by dividing the remaining depreciable value by the remaining usetul life Given the desired year and the number of months in the first year this program calculates the depreciation for the desire
116. d of program memory and it ensures that program execution will branch to line OOO after the first program is run Key the program into program memory If you are storing a program that you originally had written to be stored at the beginning of program memory and the program contains a GTO instruction be sure to change the line number specitied in the instruction so that the program will branch to the actual new line number Note The next two steps are included so that program execution will halt after this program is run and will return to the beginning of the program if it is run again If the program ends with a loop you should skip steps 5 and 6 since the instructions in those steps would serve no purpose and never be executed Press R S This halts program execution at the end of the program Press 9 GTO followed by three digit keys that specify the first line number of your new program This transfers program execution to the beginning of the new program when the program is run again 149 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 149 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm m 150 Section 11 Multiple Programs Example 1 Assuming that program memory still contains the last program from the preceding section which consisted of 17 program lines in RPPN mode and 23 program lines in ALG mode store after that program the office supplies program from Section 8 page 104 Si
117. d year the remaining depreciable value and the total depreciation through the current year KEYSTROKES KEYSTROKES al mode DISPLAY ALG mo 1 DISPLAY om LE JLP R TCIEAREE soo fe TCIEARE File name hp 12c pt_user s guide_English_HDPMF123E27 Page 184 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 7 Section 13 Investment Analysis 185 KEYSTROKES RPN mode DISPLAY 009 012 44 30 014 44 3 015 42 25 16 45 STO 4 STO 1 sTol STO STO 3 RCL 6 017 20 STO RCL PV xey im mos e KEYSTROKES mode eer fa a eee STO STO STO 2 STO 3 010 O O O gt T 015 44 30 as ae os mtr sa oa rp oag a2 2s C C File name hp 12c pt_user s guide_English_HDPMF123E27 Page 185 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 186 Section 13 Investment Analysis KEYSTROKES RPN mode DISPLAY 9 Gtoj 039 032 43 33 039 R4 033 U Ww m O W o W m li O W o Ww W O W tO i O N A N N UI TO 2 sTo O 041 44 30 4 044 045 046 047 a O 048 f Q IN lt 050 O 2 fe O UI A g O A W Ww m 2 ife 040 44 40 043 44 40 053 051 43 33 053 065 052 43 33 065 KEYSTROKES ALG mode DISPLAY N a 3
118. de Arithmetic Calculations With Constants Example At Permex Pipes a certain pipe fitting is packaged in quantities of 15 75 and 250 If the cost per fitting is 4 38 calculate the cost of each package Keystrokes Display RPN mode 1 5 ENTER 15 00 Keys first quantity into calculator 4 38 4 38 Keys unit cost into display 65 70 Cost of a package of 15 75 75 Keys second quantity into display 9 J LSTx 4 38 Recalls unit cost which was last number in display before x was pressed into display 328 50 Cost of a package of 75 250 250 Keys third quantity into display 9 J LSTx 4 38 Recalls unit cost into display again 1 095 00 Cost of a package of 250 Another method for doing arithmetic calculations with constants is described on page 235 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 91 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 92 Section 5 Additional Operating Features Recovering From Errors in Digit Entry Example Suppose you want to divide the total annual production for one of your tirm s products 429 000 by the number of retail outlets 987 in order to calculate the average number distributed by each outlet Unfortunately you mistakenly key in the number of outlets as 9987 rather than as 987 It s easy to correct Keystrokes RPN mode Display 429000 ENTER 429 000 00 9987 9 987 You haven t noticed your mistake yet 42 96 About 43 products per
119. described above under Calculating NPV for Ungrouped Cash Flows Equal consecutive cash tlows can be entered using that method provided there are enough storage registers available to accommodate the total number of individual cash flows The facility of grouping equal consecutive cash flows is provided to minimize the number of storage registers required Note When entering cash flow amounts including the initial investment CF remember to observe the cash flow sign convention by pressing after keying in the amount for a negative cash flow If you have stored a program in the calculator the number of registers available for storing cash flow amounts may be less than 81 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 75 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 _ 76 Section 4 Additional Financial Functions In summary to enter the amounts of the cash flows and the number of times they occur consecutively 1 2 Press f CLEAR REG to clear the financial and storage registers Key in the amount of the initial investment press it that cash flow is negative then press 9 CFo If the initial investment consists of more than one cash flow of the amount entered in step 2 key in the number of those cash flows then press 9 Ni If L9 LNi is not pressed the calculator assumes that N is 1 Key in the amount of the next cash flow press if that cash flow is negative t
120. dicator is lit Example Suppose you want to calculate 1 2 3 In RPN mode you enter the first number press the ENTER key enter the second number and finally press the arithmetic operator key In ALG mode you enter the first number press enter the second number and finally press the equals key Don t forget to press before doing the calculation RPN mode ALG mode 1 ENER 2 1 4 2 You can choose either ALG Algebraic or RPN Reverse Polish Notation mode for your calculations Throughout the manual most examples are shown in both modes The Keystrokes column will indicate RPN mode or ALG mode where the keystrokes differ When the keystrokes are the same the column is simply titled Keystrokes File name hp 12c pt_user s guide_English_HDPMF123E27 Page 20 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 1 Getting Started 21 Simple Arithmetic Calculations in RPN Mode In RPN mode any simple arithmetic calculation involves two numbers and an operation addition subtraction multiplication or division To do such a calculation on your hp 12c platinum you first tell the calculator the two numbers then tell the calculator the operation to be performed The answer is calculated when the operation key x or is pressed The two numbers should be keyed into the calculator in the order they would appear if the calculation were written d
121. ding instructions by branching will not require that you change the line numbers specified in the instructions which may be necessary when you add instructions by replacement Adding Instructions by Replacement 1 Press to set the calculator to Program mode 2 Press 9 GTO followed by three digits that specify the last program line to be executed before the added instruction s This sets the calculator to the proper program line for adding the new instruction s in the next step 3 Key in the new instruction or instructions File name hp 12c pt_user s guide_English_HDPMF123E27 Page 142 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 10 Program Editing 143 4 Key in the original instruction or instructions beginning with the first instruction to be executed after the added instruction s and continuing through the last instruction you keyed into program memory Note If program memory includes branches to program lines following that at which the first new instruction is being added remember to change the line number s specified in the instruction s as described above under Changing the Instruction in a Program Line to the actual new line number s Example Assuming you have made the program modifications as in the preceding example suppose you now wanted to insert a instruction before the program calculates net income after tax so that the program will display the amount o
122. done using only the four stack registers However to avoid having to store an intermediate result in a storage register you should begin every chain calculation at the innermost number or pair of parentheses and then work outward just as you would if you were doing the calculation manually that is using pencil and paper For example consider the calculation of 3 4 5 6 7 If this calculation were done from left to right as were the simpler examples under Chain Calculations on page 23 and page 25 you would have to enter five numbers into the calculator before doing the first operation possible 6 7 But since the stack holds only four numbers this calculation cannot be done left to right However it can easily be done if you begin with the calculation in the innermost pair of parentheses again 6 7 Keystrokes RPN mode Display GO ENTER Z 13 00 Intermediate result of 6 7 5 x 65 00 Intermediate result of 5 6 7 A 69 00 Intermediate result of 4 5 6 7 3 x 207 00 Final result 3 4 5 6 7 Arithmetic Calculations with Constants Because the number in the T register remains there when the stack drops this number can be used as a constant in arithmetic operations To place the constant into the T register key it into the display that is into the X register then press three times This also places the constant in the Y and Z registers Each time an arithmetic operation is the
123. e 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 8 Programming Basics 113 Program Memory Storage Registers oO THI TETIT a w N w N un a a N N o0 a To determine at any time how many program lines including those containing 9 GTO O000 are currently in program memory press 9 MEM memory The calculator will respond with a display like the following P 008 r 20 a Allocated program lines Available storage registers If you find yourself creating long programs you should create your programs so that they don t use up program lines unnecessarily since program memory is limited to 400 program lines One way to minimize program length is to replace numbers consisting of more than just one digit like the number 25 in lines 002 and 003 of the program keyed in above by a instruction and then storing the number in the designated storage register before running the program In this case this would save one program line since the instruction requires only one program line not two as are required by the number 25 Of course doing so uses up data storage registers that you might want to save for other data As in many business and financial decisions there is a trade off involved here it is between program lines and data storage registers File name hp 12c pt_user s guide_English_HDPMF123E27 Page 113 of 275 Printed Date 2005 8 1 Dimension
124. e The cash flow diagram from the investor s viewpoint looks like this 750 600 n n2 n3 PV To find today s present value of the cash flows assuming a desired yield the NPV technique may be used Refer to pages 73 through 77 Example 2 A 2 year lease calls for monthly payments at the beginning of the month of 500 per month for the first 6 months 600 per month for the next 12 months and 750 per month for the last 6 months If you wish to earn 13 5 annually on these cash flows how much should you invest what is the present value of the lease Keystrokes Keystrokes Displa RPN mode mode p a T ate a First cash flow 9 LCFi 9 JLCFi 500 00 Second through sixth cash 5 9 JLNi 5 9 JLNi 5 00 flows 600 9 CF 600l 9 CFi 600 00 Next twelve cash flows 12 9 J Ni 12 9 JLNi 12 00 750 9 CFi 750 9 CFi 750 00 Last six cash flows la JIN la JLNi 6 00 13 59 12 13 59 J 12 Monthly interest rate f NPV 12 831 75 Amount to invest to achieve a 13 5 yield File name hp 12c pt_user s guide_English_HDPMF123E27 Page 170 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 13 Investment Analysis Partial Year Depreciation For both income tax purposes and financial analyses it is valuable to calculate depreciation based on a calendar or fiscal accounting year When the acquisition date of an asset does not coincide with the start of the year whi
125. e n is measured in years or months and i and PMT are rates per year or per month i is a continuous percentage rate PMT is the standard deviation of the continuous percentage stock return as observed over the time unit For sensible output all inputs should be positive The PMT 0 case can be simulated by using a PMT arbitrarily close to O Program Instructions 1 Key in the program 2 Enter the five inputs into the five financial registers These values are preserved by the program a Key in the unexpired term of the option and press n b Key in the risk free interest rate as a percentage and press i c Key in the current or spot stock price and press PV d Key in the volatility assumption as a percentage and press PMT e Key in the strike price and press FV 3 Press R S The Call value is displayed Press to see the Put value File name hp 12c pt_user s guide_English_HDPMF123E27 Page 199 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 200 Section 13 Investment Analysis Example 1 An option has 6 months to run and a strike price of 45 Find Call and Put values assuming a spot price of 52 return volatility of 20 54 per month and a risk free interest rate of 0 5 per month Show how to change the time scale of the inputs between monthly and annual values ied Po ALG mode mw a sin eoo Tine oop ron un e Interest rate per 5x month 52 00 Stock price 2 PV
126. e amount RCL PV key in the fee amount flat charge press PV If fees are stated as a percentage of the mortgage amount plus a flat charge recall the mortgage amount RCL PV key in the fee percentage rate press key in the fee amount flat charge press Pv Positive for cash received negative for cash paid out 156 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 156 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 12 Real Estate and Lending 157 ALG Mode e It fees are stated as a percentage of the mortgage amount points recall the mortgage amount RCL PV press key in the fee percentage rate press PV If fees are stated as a flat charge recall the mortgage amount RCL PV press key in the fee amount flat charge press PV If fees are stated as a percentage of the mortgage amount plus a flat charge recall the mortgage amount RCLILPV press key in the fee percentage rate press key in the fee amount flat charge press PV 4 Press i to obtain the interest rate per compounding period RPN To obtain the annual nominal percentage rate key in the number of periods per year then press X ALG To obtain the annual nominal percentage rate press X Key in the number of periods per year then press J Example 1 A borrower is charged 2 points for the issuan
127. e beginning a new calculation File name hp 12c pt_user s guide_English_HDPMF123E27 Page 32 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 2 Percentage and Calendar Functions 33 Net Amount in RPN Mode A net amount that is the base amount plus or minus the percentage amount can be calculated easily with your hp 12c platinum since the calculator holds the base amount inside after you calculate a percentage amount To calculate a net amount simply calculate the percentage amount then press or Example You re buying a new car that lists for 23 250 The dealer offers you a discount of 8 and the sales tax is 6 Find the amount the dealer is charging you then find the total cost to you including tax Keystrokes RPN mode Display 2325 O ENTER 23 250 00 Keys in the base amount and separates it from the percentage 8 1 860 00 Amount of discount 21 390 00 Base amount less discount 6 1 283 40 Amount of tax on 21 390 22 673 40 Total cost base amount less discount plus tax Net Amount in ALG Mode In ALG mode you can calculate a net amount all in one calculation For example to decrease 200 by 25 just enter 200 25 Result is 150 Example You borrow 1 250 from a relative and agree to repay the loan in a year with 7 simple interest How much money will you owe Keystrokes i ALG mode Display 1250 7 87 50 Interest on the loan is 87 50
128. e o PE E A E E EE A een Sones E 252 Ac ual Day BOS eran E A ne eee 252 30 360 Day BasiSsssareniereneei anki eaa 252 51e AEE T O TS E A ET E 253 Black Scholes Formula for Valuing European Options 000000000 254 Bree a e e Er E E tener E O A T 254 Straight Line Depreciation ccceccccccscesseeeeeeeeeeeeeeeeeeeeeeeeeaaaas 255 Sum ot the Years Digits Depreciation 0 cceeeseeeeeeeeeeeeeeeeeens 255 Declining Balance Depreciation ccccccceeesesseeeeeeeeeeeeeeeeees 255 Modified Internal Rate of Return ccccccccccccccceecceeessssseeeeeeeeees 256 Advance Payment ccccccceessseeeeeceeeeeeesseeeeeeeeeeeessaeeeeeeeeenaaas 256 Interest Rate Conversions ccccsiasxsanssnactawssna coreavensimwovesniamnseacinwswsnvies 256 Finite COMPOWNO ING sccictedcessventesceennnewcconcenaseieuacetempeweees 256 Continuous COMpPOUNGING cx lt sncrsenctarantegeecanes boestebdamecanes clon 256 E E SIGS A EEEE A N E IE E E EE 257 AE AI AE EAE EI AAEL I A daca AA A 257 Weighted IMME GI sssrcsesarsisrssanne oain erare inne eT E 257 Linear Estimation cccccecceseecceeeeceeeeceeeeneeeeaeeeeaneeeeneeaeeeeaes 257 Standard Device tl se j ascscnsectcenconeantaceecocnaseecsentmectecteseauen s 257 Eeee a e E E A EE ETEEN T 257 The Rent or Buy Decision cccccseeeeeccceeeeessseeeeeeeeeeeeasaaeeseeeeees 258 Appendix F Battery Warranty and Service Information 259 BOM CRY r E E E E 259 File name hp 12c pt_user s
129. e previously stored in R and this will be done by changing the sign of the tax to make it negative and then adding it to the income You could do this as follows Keystrokes Displa RPN mode pray 9 GTO J008 008 25 009 30 25 00 15000 R S 12 000 00 Keystrokes i ALG mode Display L9 JlGTO L gt 011 011 36 CHS 012 16 013 40 RCL 014 45 9 015 36 25 00 Sets calculator to Program mode Sets calculator to last line keyed into program memory Keys new instruction into program line 009 Sets calculator back to Run mode Net income after 20 tax is subtracted from 15 000 income Sets calculator to Program mode Sets calculator to last line keyed into program memory Keys new instruction into program line 012 Keys new instruction into program line 013 Keys new instruction into program line 014 Keys new instruction into program line 015 Sets calculator back to Run mode File name hp 12c pt_user s guide_English_HDPMF123E27 Page 141 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 142 Section 10 Program Editing Keystrokes ALG mode Display 15000 R S 12 000 00 Net income after 20 tax is subtracted from 15 000 income Adding Instructions within a Program If an instruction is to be added within a program simply keying it in will replace the instruction previously stored in that program line as described above the
130. e total depreciation after the 7th year Keystrokes Keystrokes Displa tah mode as mode pay Refer to straight line depreciation note page 174 t The display will pause with the year number before displaying the amount of depreciation for that year File name hp 12c pt_user s guide_English_HDPMF123E27 Page 189 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 190 Section 13 Investment Analysis Keystrokes Keystrokes Displa RPN mode ALG mode pasy 500 Fv 500 FV Salvage value C a E a 200l i Decliningbelance factor balance factor l 1 00 First year e ecco desired 6 R S 6 R S First year depreciation remaining depreciable value R S 2 00 Second year 2 406 25 depreciation 3 00 Third year 1 804 69 depreciation 4 00 Fourth year 1 353 51 depreciation 5 00 Fifth year 1 015 14 depreciation 6 00 Sixth year 761 35 depreciation 7 00 Seventh year 713 62 depreciation RCL 1 RCL 1 9 429 56 Total depreciation through the seventh year 8 00 Eight year 713 63 depreciation 9 00 Ninth year 356 81 depreciation By observation the crossover was year 6 Years 7 8 and 9 use straight line depreciation File name hp 12c pt_user s guide_English_HDPMF123E27 Page 190 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 13 Investment Analysis 191 Excess Depreciation When accelerated depreciation is used the difference between tota
131. e you keyed into program memory line 010 in RPN and line 016 in ALG it will require fewer keystrokes to add the new instructions by branching than to add them by replacement Keystrokes RPN mode Display Sets calculator to Program mode _9 GTO JOOO 000 Sets calculator to program line immediately preceding point at which new instructions are being added In this particular example this step could have been skipped since calculator was already set at the proper program line 9 cTo 012 001 43 33 012 Branches to program line 012 the second line after last line of program 9 Ileto e O10 010 30 Sets calculator to last line of program so that the 9 GTOo OOO instruction keyed in next will be stored as the last line of the current program 9 GTO OOO 011 43 33 000 Ends the current program with a g IGTO O0O0 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 145 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 146 Section 10 Program Editing Keystrokes RPN mode RCL 3 ERESI Lg GTO O000 REJO 9 JletTo 002 7500 ST0 3 6500 R S 15000 R S R S Keystrokes ALG mode 9 leto J000 Display 012 45 3 013 34 014 43 34 015 43 33 000 016 45 0 017 43 33 002 12 000 00 7 500 00 6 500 00 3 000 00 12 000 00 Display 000 Added instructions Keys in instruction immediately following point at which new inst
132. ear any pending operations as well Pressing the key is another way to ensure that there are no pending operations before beginning a new calculation since the key will evaluate any pending expressions File name hp 12c pt_user s guide_English_HDPMF123E27 Page 19 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 7 20 Section 1 Getting Started Undo Operation Every time you press CLx 9 fJCLEARIREG fJCLEARLE or f JCLEARLFIN key to clear data the i status indicator appears in the display This means you can press 9 to undo the last operation i e to recover the data Note the Undo function is only available immediately after data has been cleared When the Undo indicator is turned off no operation can be undone The RPN and ALG Keys The calculator can be set to pertorm arithmetic operations in either RPN Reverse Polish Notation or ALG Algebraic mode In Reverse Polish Notation RPN mode the intermediate results of calculations are stored automatically hence you do not have to use parentheses In algebraic ALG mode you perform addition subtraction multiplication and division in the traditional way using parentheses if needed To select RPN mode Press to set the calculator to RPN mode When the calculator is in RPN mode the RPN status indicator is lit To select ALG mode Press to set the calculator to ALG mode When the calculator is in ALG mode the ALG status in
133. ears an integer then press n File name hp 12c pt_user s guide_English_HDPMF123E27 Page 182 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ Section 13 Investment Analysis 183 RPN Mode Key in the year desired then press ENTER Key in the number of months in first year then press R S The display will show the amount of depreciation for the desired year If desired press to see the remaining depreciable value then press RCL PV RCL 3 x2Y RCL FV to tind the total depreciation through the current year ALG Mode 6 Key in the year desired then press 7 Key in the number of months in first year then press R S t The display will show the amount of depreciation for the desired year If desired press to see the remaining depreciable value then press RCLILPV FJ RCL 3 xeyJ RCLILFV L to find the total depreciation through the current year 8 Press for the amount of depreciation then if desired press for the remaining depreciable value for the next year Repeat this step for the following years 9 For a new case press 9 GTO OOO and return to step 2 Example A commercial movie camera is purchased for 12 000 If maintained properly the camera has a useful life expectancy of 25 years with 500 salvage value Using the sum ot the years digits method what is the amount of depreciation and the remaining depreciable value for the 4th an
134. ears or ordinary annuities Calculations involving payments in advance yield different results than calculations involving payments in arrears Illustrated below are portions of cash flow diagrams showing payments in advance Begin and payments in arrears End In the problem illustrated in the cash flow diagram above payments are made in arrears Begin End 2 3 2 3 Regardless of whether payments are made in advance or in arrears the number of payments must be the same as the number of compounding periods To specify the payment mode e Press 9 BEG if payments are made at the beginning of the compounding periods e Press 9 END if payments are made at the end of the compounding periods File name hp 12c pt_user s guide_English_HDPMF123E27 Page 46 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 3 Basic Financial Functions 47 The BEGIN status indicator is lit when the payment mode is set to Begin If BEGIN is not lit the payment mode is set to End The payment mode remains set to what you last specified until you change it it is not reset each time the calculator is turned on However if Continuous Memory is reset the payment mode will be set to End Generalized Cash Flow Diagrams Examples of various kinds of financial calculations together with the applicable cash flow diagrams appear under Compound Interest Calculations later in this section If your particular problem does not
135. ecimal place to the right giving the number 14 87456 which is the first seven digits of the number previously in the display To set the display back to standard display format press followed by the desired number of decimal places Scientific notation display format remains in effect until you change to the standard display format it is not reset each time the calculator is turned on However if Continuous Memory is reset when the calculator is next turned on the standard display format with two decimal places will be used Mantissa Display Format Because both the standard display format and scientific notation display format often show only a few digits of a number you may occasionally want to see all 10 digits the full mantissa of the number inside the calculator To do so press f JCLEARPREFX and hold down the key The display will show all 10 digits of the number as long as you hold down the key after you release the key the number will again be displayed in the current display format For instance if the display still contains the result from the preceding example Keystrokes Display f ICLEARPREFIX 1487456320 All 10 digits of the number inside the calculator 1 487456 01 Display returns to its former contents when the key is released Lf 2 14 87 Returns display to standard format File name hp 12c pt_user s guide_English_HDPMF123E27 Page 89 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm
136. ecution g cT0 025 033 43 33 025 Branches to beginning of program 12 000 00 Sets calculator back to Run mode Display shown assumes results remain from running program in previous example Example 2 With the two programs now stored in program memory from the preceding examples occupying 27 program lines in RPN mode and 33 lines in ALG mode store the amortization program from Section 9 page 125 Since there are already two programs stored in program memory we ll skip step 3 in the procedure above Furthermore since the amortization program ends with a loop we ll skip steps 5 and 6 When the amortization program was stored at the beginning of program memory the instruction at the end of the program branched to the RCLJO instruction in line 002 In the RPN program since the RCL O instruction is now in line 029 we ll specify that line number with the instruction in line 034 In the ALG program since the RCLJO instruction is now in line 035 we ll specify that line number with the instruction in line 041 Keystrokes Displa RPN mode pray Sets calculator to Program mode g lGTO O27 027 43 33 019 Sets calculator to last line keyed into program memory File name hp 12c pt_user s guide_English_HDPMF123E27 Page 151 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 152 Section 11 Multiple Programs Keystrokes RPN mode STO O RCL O 9 PSE 9 PSE 9 leTO JO29 Keystrokes AL
137. ed for controlling how numbers appear in the display But regardless of which display format or how many displayed decimal places you specity the number inside the calculator which appears altered in the display is not altered unless you use the RND avort SL SOYD or functions Standard Display Format The number 14 87 now in your calculator is currently being displayed in the standard display format with two decimal places shown To display a different number of decimal places press followed by a digit key O through 9 specifying the number of decimal places In the following examples notice how the displayed form of the number inside the calculator 14 87456320 is rounded to the specitied number of digits Keystrokes Display f 4 14 8746 ERL 14 9 t0 15 Lt 9 14 87456320 Although nine decimal places were specified after f only eight are displayed since the display can show a total of only 10 digits The standard display format plus the specified number of decimal places remain in effect until you change them they are not reset each time the calculator is turned on However if Continuous Memory is reset when the calculator is next turned on numbers will be displayed in the standard display format with two decimal places shown If a calculated answer is either too small or too large to be displayed in the standard display format the display format automatically switches to scientific notat
138. education You estimate that when she is of college age 9 years trom now she will need 7 000 at the beginning of each year for 4 years for college tuition and expenses You wish to establish a fund which earns 6 annually How much do you need to deposit in the fund today to meet your daughter s educational expenses hrm md PHY wala mode sec mode o s oo Doaa TCA 0 00 tae ma a p i Of g CF Olg CF 0 00 Second through ninth 8 9 JLNi 8Lo JN 8 00 cash flows 7000 g CF 7000 9 CF 7 000 00 Tenth through thirteenth 4 9 N Al g J N 4 00 cash flows a a pe e Leases often call for periodic contractual adjustments of rental payments For example a 2 year lease calls for monthly payments at the beginning of the month of 500 per month for the first 6 months 600 per month for the next 12 months and 750 per month for the last 6 months This situation illustrates what is called a step up lease A step down lease is similar except that rental payments are decreased periodically according to the lease contract Lease payments are made at the beginning of the period File name hp 12c pt_user s guide_English_HDPMF123E27 Page 169 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ 170 Section 12 Real Estate and Lending In the example cited the rental payment stream for months 7 through 24 are deterred annuities as they start at some time in the futur
139. edure finds the periodic payment amount necessary to achieve a desired yield when a number of payments are made in advance And given the periodic payment the second procedure calculates the periodic yield Solving for Payment To calculate the payment information is entered as follows 1 Press 9 END and f JCLEAR FIN RPN Mode Key in the total number of payments in the lease then press ENTER Key in the total number of payments made in advance then press IsTO O NJ Key in or calculate the periodic interest rate as a percentage then press iJ Press 1 CHS PMT PV RCL O Key in the initial loan amount then press x2Y to obtain the periodic payment to be received by the lessor ALG Mode Key in the total number of payments in the lease Key in the total number of payments made in advance then press stToJOLn Key in or calculate the periodic interest rate as a percentage then press iJ _ Press 1 CHS PMT PV RCL O Key in the initial loan amount then press xX2 _ to obtain the periodic payment to be received by the lessor 202 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 202 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm m _ Section 14 Leasing 203 Example 1 Equipment worth 750 is leased for 12 months The equipment is assumed to have no salvage value at the end of
140. eee me mode eer a so ae aa oo o w a 022 36 9 LSTx STO 028 44 029 030 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 195 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 196 Section 13 Investment Analysis o 9 Ea 3 8 z 9 0 1 2 3 4 9 x STO 0 moss ae x x 7 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 196 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ Section 13 Investment Analysis 197 so E 9 GTO O28 088 43 33 028 088 1 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 197 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 198 Section 13 Investment Analysis KEYSTROKES RPN a eo 2o m m me n a KEYSTROKES ALG mode MISERA STO 3 089 44 30 3 X2zy RCL 5 093 45 5 9 J0 ysToN106 O mes RCL 3 670037 105 43 33 037 meo m a s e File name hp 12c pt_user s guide_English_HDPMF123E27 Page 198 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 13 Investment Analysis 199 KEYSTROKES KEYSTROKES RPN mode sae ALG mode eee O 4 TO 117 44 5 114 44 40 4 ms r a s o tc QNU Reswm OOOO Note The n i and PMT values must all be based on the same time unit for exampl
141. eeeeeeeeees 114 Interrupting Program Execution ccceecceeeceeeeeeeeeeeaeeeeeeeneeees 117 Pausing During Program Execution cceeeeeeeeeeeeeeeeeeeeeees 117 Stopping Program Execution scc10csseeconiadaecesssedosmnrudeecnascoganates 122 Section 9 Branching and Looping ccssssssccsssssseees 125 Simple Branching se actctessessunciecemsosu nates sededctosouesdfaeeudsasdeneenceaesumessenasd 125 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 7 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ 8 Contents LS OD ING P AE E E E E 126 Condihonal Branching eee eee een eee eee u an eS 129 Section 10 Program Editing ssssssscccccsssssssssssrsceeees 139 Changing the Instruction in a Program Line cceeeeeeeeeeeeeeeeeeeees 139 Adding Instructions at the End of a Program 140 Adding Instructions within a Program c cssecccceeeeesseeeeeeeeeeeeaas 142 Adding Instructions by Replacement ccceeeeceeeeeeeeeeeees 142 Adding Instructions by Branching ccccccceesseeeeeeeeeeesaeeeees 144 Section 11 Multiple Programs sscccssssssssssssessssseees 149 Storing Another Program sacscccsseidccravessvessselasenncessveravesduacesesiveeve 149 Running Another Program cccccccccccceeessseeeeeeeeeeeeesaeeeeeeeeeeeeeaas 153 Part Ill Solutions scscecscscscscscscsscscscscccscsscsces 155 Section 12 Real Estate and Lending
142. en press to set the calculator to Program mode and display that program line You may also want to display the current program line by pressing Lf P R if your program has halted at one of several instructions in your program and you want to determine which one that is To continue executing the program afterward 1 Press to set the calculator back to Run mode 2 If you want to resume execution from the program line at which execution halted rather than from line OOO press 9 GTO followed by three digit keys that specity the program line desired 3 Press to resume execution Stopping Program Execution Manually Pressing any key while a program is running halts program execution You may want to do this if the calculated results displayed by a running program appear to be incorrect indicating that the program itself is incorrect To halt program execution during a pause in a running program that is when 9 PSE is executed press any key Atter stopping program execution manually you can determine at which program line execution has halted and or resume program execution as described above File name hp 12c pt_user s guide_English_HDPMF123E27 Page 124 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 9 Branching and Looping Although the instructions in a program normally are executed in order of their program line numbers in some situations it is desirable to have program execution transf
143. ents of 325 will be required the next and final payment being less than 325 You can calculate the final fractional 328th payment as follows Keystrokes Displa RPN mode p ay 328 n 328 00 Stores total number of payments 181 89 Calculates FV which equals the overpayment if 328 full payments were made PMT 325 00 Recalls payment amount 143 11 Final fractional payment Keystrokes ALG mode Display 328 n 328 00 Stores total number of payments 181 89 Calculates FV which equals the overpayment if 328 full payments were made You could skip this step since 328 is already stored in the n register If you do so however you will need to press twice in the next step for the reason discussed in the first footnote on page 41 you would not have to press twice if you had not pressed 12 in RPN mode or 12 in ALG mode after in the example above We choose to show this and the following example in a parallel format so that the procedure is easy to remember the number you key is the number of the final payment either the fractional payment or the balloon payment whose amount is to be calculated File name hp 12c pt_user s guide_English_HDPMF123E27 Page 51 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 52 Section 3 Basic Financial Functions Keystrokes ALG mode Display RCL PMT 325 00 143 11 Recalls payment amount Final fractional payment
144. er Line 001 STO 9 Stores income into register R Line 002 RCLIO Test value has been recalled to X register moving income to Y register Line 003 xzy Income has been placed in X register and test value has been placed in Y register Line 004 Line 005 9 xsy Condition tested by was true so program execution continued with line O06 9 IGTO OO9 Line 009 RCL 1 20 tax rate has been recalled to X register moving income to Y register Line 010 Divides tax rate by 100 Line O11 20 of 20 000 4 000 Line 012 9 GTO OOO File name hp 12c pt_user s guide_English_HDPMF123E27 Page 137 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 138 Section 9 Branching and Looping Keystrokes ALG mode 25000 SST SST Display 25 000 001 25 000 002 20 000 003 25 000 004 25 000 005 25 000 007 25 00 44 00 45 00 00 00 43 00 45 34 20 34 008 43 33 010 25 00 010 0 25 011 6 250 00 25 36 Keys income greater than test value into display and X register Line 001 STO0 9 Stores income into register R Line 002 RCLIO Test value has been recalled to X register moving income to Y register Line 003 xzy Income has been placed in X register and test value has been placed in Y register Line 004 x Line 005 9 xsy Condition tested b
145. er or branch to a program line that is not the next line in program memory Branching also makes it possible to automatically execute portions of a program more than once a process called looping Simple Branching The go fo instruction is used in a program to transter execution to any program line The program line desired is specitied by keying its three digit line number into the program line containing the instruction When the instruction is executed program execution branches or goes to the program line specitied and then continues sequentially as usual a 003 causes program execution to branch to line 003 You have already seen a common use of branching the 9 GTOJOOO instruction that is stored in program memory after the program you key in transfers execution to program line OOO A instruction can be used to branch not only backward in program memory as in the case of 9 GTO O00 and as illustrated above but also forward in program memory Backward branching is typically done to create loops as described next forward branching is typically done in conjunction with a 9 xy or 9 x0 instruction for conditional branching as described afterward 125 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 125 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 126 Section 9 Branching and Looping Looping If a instruction specifies a lower numbered line in program
146. erest rate per year However in compound interest problems the interest rate entered into i must always be expressed in terms of the basic compounding period which may be years months days or any other time unit For example if a problem involves 6 annual interest compounded quarterly for 5 years n the number of quarters would be 5 x 4 20 and i the interest rate per quarter would be 6 4 1 5 If the interest were instead compounded monthly n would be 5 x 12 60 and i would be 6 12 0 5 If you use the calculator to multiply the number of years by the number of compounding periods per year pressing LN then stores the result into n The same is true tor i Values of n and i are calculated and stored like this in Example 2 on page 59 If interest is compounded monthly you can use a shortcut provided on the calculator to calculate and store n and i e To calculate and store n key the number of years into the display then press o 12x e To calculate and store i key the annual rate into the display then press 9 12 Note that these keys not only multiply or divide the displayed number by 12 they also automatically store the result in the corresponding register so you need not press the n or Li key next The L9 12x and 9 12 keys are used in Example 1 on page 59 Calculating the Number of Payments or Compounding Periods 1 Press f CLEARLFIN to clear the financial registers 2 Ente
147. es indefinitely The test can be terminated by pressing any key which will halt the test within 25 seconds The 0N combination initiates a test of the keyboard and the display When the key is released certain segments in the display will be lit To run the test the keys are pressed in order from left to right along each row from the top row to the bottom row As each key is pressed different segments in the display are lit If the calculator is operating properly and all the keys are pressed in the proper order the calculator will display 12 after the last key is pressed The key should be pressed both with the third row keys and with the fourth row keys If the calculator is not working properly or if a key is pressed out of order the calculator will display Error 9 Note that if this error display results from an incorrect key being pressed this does not indicate that your calculator requires service This test can be terminated by pressing any key out of order which will of course result in the Error 9 display Both the Error 9 display and the 12 display can be cleared by pressing any key File name hp 12c pt_user s guide_English_HDPMF123E27 Page 262 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendix F Battery Warranty and Service Information 263 Warranty hp 12c platinum Financial Calculator Warranty period 12 months l HP warrants to you the end user customer that HP hardware accessorie
148. esceeais 94 EA E a EEE E E ANE T EE EE AE EEE 94 Standard Deviation cccccccsscsccnscceccuccusccuccscesccuscescetceseeascaeees 96 Linear Te SPANO sereaitna i ae E a A AEEA 97 Weigmed Mensas rcn NE 99 Section 7 Mathematics and Number Alteration Functions 100 One Number Functions c ccecceccsccuccesccuccasccuccasceuceusceuceasceucs 100 The Power Function in RPN Mode cccceecescceceescceceuscenceuscesees 102 The Power Function in ALG Mode ccccccceccnsccecctccnceuscctceaseanees 102 Part Il Programming cccceccscccscceseseseseeeeee 103 Section 8 Programming Basics ccccccccssscccscsccsssces 104 Way Use PIS ONS cs ctncosesezgsbecusestcepaeaeteerotaaeberngsoaameeee eens 104 Crealing POGOe cacsesisratinrenoioceare sdiotanceoie seisbinsisolaaroacanieaidt AEA 104 Running a PIOGIOMissn20icanaciisavesiaeseiateasoinaawoteunedsdintesduateuaaqetsions 106 Program Memory cccsecceeeceeeceeeeeceeeeseeeeseeeeaeeeeaeeeseeeeaeeeeaeeees 108 Identifying Instructions in Program lines cccccccsssseeeeeeeeees 108 Displaying Program Lines cccccccccceeessseeeeeeeeeeesaseeeeeeeees 109 The GTO OOO Instruction and Program Line 000 00eee 112 Expanding Program Memory ccccccceessseeeseeceeeeaeseeeeeeeeees 112 Setting the Calculator to a Particular Program Line 005 114 Executing a Program One Line at a Time cee eeeeeeeeeeee
149. eses will be closed You can t use more than 13 pending opened parentheses at the same time 8 5 1 Keying 8 5 1 will calculate 8 5 first and then the result 1 6 will have 1 subtracted from it resulting in 0 6 Keystrokes Display ALG mode 0 00 Clears any pending operations 8l J5 5 00 No calculation is done 1g 4 00 Calculates 5 1 2 00 8 Calculates File name hp 12c pt_user s guide_English_HDPMF123E27 Page 240 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendix B Algebraic Mode ALG 241 Percentage Functions In most cases divides a number by 100 The one exception is when a plus or minus sign precedes the number For instance 25 results in 0 25 To find 25 of 200 press 200 x 25 Result is 50 You can also calculate a net amount all in one calculation For instance to decrease 200 by 25 just enter 200 25 Result is 150 Example You borrow 1 250 from a relative and agree to repay the loan in a year with 7 simple interest How much money will you owe Keystrokes Display ALG mode 0 00 Clears any pending operations 1250 7 87 50 Interest on the loan is 87 50 1 337 50 You owe this amount at the end of one year Percent Difference To find the percent difference between two numbers 1 Key in the base number 2 Press to separate the other number from the base number 3 Key in the other number A
150. est of this appendix we ll take a more detailed look at how numbers are entered into and rearranged within the stack and the effect of the various hp 12c platinum functions on the numbers in the stack Getting Numbers Into the Stack The Key As discussed in earlier sections if two numbers are being keyed in for a two number function such as you press between the numbers to separate them The following diagram illustrates what happens in the stack when you enter the numbers 10 and 3 to calculate for example 10 3 Assume that the stack registers have been already loaded with the numbers shown as the result of previous calculations Phas ree mart 6 B 6 ae gail ho rhe Keys nad ENTER When a digit is keyed into the display it is simultaneously entered into the X register As additional digit keys are pressed the corresponding digits are appended that is added to the right of those already in the displayed X register until is pressed As shown in the preceding diagram pressing does the following 1 It copies the number from the displayed X register into the Y register This process is part of the stack lift 2 It tells the calculator that the number in the displayed X register is complete that is it terminates digit entry File name hp 12c pt_user s guide_English_HDPMF123E27 Page 229 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 230 Appendix A RPN and the Stack Termina
151. ewriter File name hp 12c pt_user s guide_English_HDPMF123E27 Page 153 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Part IlI Solutions File name hp 12c pt_user s guide_English_HDPMF123E27 Page 155 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 12 Real Estate and Lending Annual Percentage Rate Calculations With Fees Borrowers are usually charged fees in connection with the issuance of a mortgage which effectively raises the interest rate The actual amount received by the borrower PV is reduced while the periodic payments remain the same Given the life or term of the mortgage the interest rate the mortgage amount and the basis of the fee charge how the fee is calculated the true Annual Percentage Rate APR may be calculated Information is entered as follows 1 Press 9 END and f CLEAR FIN 2 Calculate and enter the periodic payment amount of the loan a Key in the total number of payment periods press n b Key in the periodic interest rate as a percentage press i c Key in the mortgage amount press PV d To obtain the periodic payment amount press PMT 3 Calculate and key in the actual net amount disbursed RPN Mode e It fees are stated as a percentage of the mortgage amount points recall the mortgage amount RCL PV key in the fee percentage rate press PV If fees are stated as a flat charge recall the mortgag
152. example 1 Then change the payment to 625 and solve for the yield Number of payments Number of advance payments Periodic payment Annual yield as a percentage Annual yield as a percentage when PMT is increased 25 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 208 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 14 Leasing 209 Advance Payments With Residual Situations may arise where a transaction has advance payments and a residual value salvage value at the end of the normal term Solving for Payment The following program solves for the periodic payment amount necessary to achieve a desired yield wm a owes oe a e e RCL 3 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 209 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 210 Section 14 Leasing KEYSTROKES KEYSTROKES RPN mode DISPLAY Ea ALG mode DISPLAY Eeey REGISTERS i Interest PV Used FV Residual R Pmts n R Residual R Adv Pmt R R Unused Key in the program Key in the total number of payments then press STO O Key in or calculate the periodic interest rate then press STO 1 Key in the loan amount then press ST0 2 Key in the residual value then press ST0 3 Key in the total number of payments made in advance then press STO 4 Then press to obtain the payment amount received by the lessor
153. f 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 216 Section 15 Savings Example Find the nominal rate compounded quarterly if the effective annual rate is 5 35 Keystrokes Keystrokes Displa RPN mode ALG mode pay es E 4 n 100 PVv 4 n 100 Pv moo Bai n x n _ interesi rate Continuous Rate Converted to Effective Rate This procedure converts a continuous annual interest rate to the effective rate RPN Press 1 ENTER ALG Press 1 2 Key in the continuous rate as a percentage then press 3 Press 9 Le A Example What is the effective rate resulting from a 5 25 passbook rate with continuous compounding Keystrokes Keystrokes Displa sh mode asii mode pay m a e a ma me ae ooo File name hp 12c pt_user s guide_English_HDPMF123E27 Page 216 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 16 Bonds 30 360 Day Basis Bonds A bond is a contract to pay interest usually semiannually at a given rate coupon and to pay the principal of the bond at some specified future date A bond which is calculated on a 30 360 day basis is one in which the day count basis is computed using 30 days in a month and 360 days in a year The following program solves for the price given the yield or for the yield given the price of a semiannual coupon bond which is calculated on a 30 360 day basis and is held tor more tha
154. f odd days counted on the basis of a 30 day month The 9 ADYS function can be used to calculate the number of odd days either way The fractional part of n is a fraction of a payment period so the number of odd days must be divided by the number of days in a period If interest is compounded monthly for this number you can use either 30 365 12 or if the odd period falls entirely within a single month the actual number of days in that month Usually a monthly period is taken to be 30 days long At your option the calculations of i PV PMT and FV can be performed with either simple interest or compound interest accruing during the odd period If the status indicator in the display is not lit simple interest is used To specify compound interest turn the indicator on by pressing STO EEX Pressing again turns the indicator off and calculations will then be performed using simple interest for the odd period Calculations of i PMT and FV are performed using the present value at the end of the odd period This is equal to the number in the PV register plus the interest accrued during the odd period When calculating PV in Odd Period mode the calculator returns a value equal to the present value at the beginning of the odd period and stores it in the PV register After calculating i PV PMT or FV in Odd Period mode you should not try to calculate n If you do the calculator will switch out of Odd Period mode and
155. f the tax before displaying the net income after tax The program should be moditied by making the changes below Keystrokes RPN mode 9 GTO J008 R S 15000 R S R S Keystrokes ALG mode 9 GToO O11 R S Display 008 25 009 31 010 30 12 000 00 3 000 00 12 000 00 Display 011 36 012 31 Sets calculator to Program mode Sets calculator to last program line to be executed which contains the instruction Keys in new instruction Keys in original instruction which was replaced by new instruction added Sets calculator back to Run mode Twenty percent tax on 15 000 income Net income after tax Sets calculator to Program mode Sets calculator to last line keyed into program memory for original program Keys new instruction into program line 012 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 143 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 144 Section 10 Program Editing Keystrokes ALG mode Display CHS 013 16 Keys new instruction into program line 013 014 40 Keys new instruction into program line 014 RCL 9 015 45 9 _ Keys new instruction into program line 015 016 36 Keys new instruction into program line 016 12 000 00 Sets calculator back to Run mode 15000 R S 3 000 00 Twenty percent tax on 15 000 income R S 12 000 00 Net income after 20 tax is subtracted from 15 000 income
156. f the x value is added to the number in R The y value is added to the number in R The square of the y value is added to the number in R The product of the x and y values is added to the number in R This also clears the stack registers and the display 93 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 93 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ 94 Section 6 Statistics Functions The table below shows where the accumulated statistics are stored R and display n number of data pairs accumulated R x summation of x values R Zx summation of squares of x values R Ly summation of y values R Yy summation of squares of y values R xy summation of products of x values and y values Correcting Accumulated Statistics If you discover you have entered data incorrectly the accumulated statistics can easily be corrected Simply key in the incorrect data point or data pair again as if it were new but press 9 instead of Then enter the correct data point or data pair and press Mean Pressing 9 X calculates the means arithmetic averages of the x values X and of the y values Y The mean of the x values appears in the display after 9 X is pressed to display the mean of the y values press x2 Example A survey of seven salespersons in your company reveals that they work the following hours a week and sell the following do
157. fts the stack unless ENTER CLx or was the last key pressed as described on page 230 then copies the number from the LAST X register into the displayed X register The number remains also in the LAST X register Lost Chain Calculations in RPN Mode The automatic stack lift and stack drop make it possible to do chain calculations without the necessity for keying in parentheses or storing intermediate results as are required on some other calculators An intermediate result in the displayed X register is automatically copied into the Y register when a number is keyed in after a function key is pressed Therefore when a two number function key is then pressed that function is performed using the number keyed into the displayed X register and the intermediate result in the Y register The number then in the Y register if remaining as an intermediate result from an earlier calculation can then be used with the intermediate result in the X register for another calculation The diagram on page 229 illustrates how the automatic stack lift and stack drop make chain calculations quick and error free Except for ENTER CLx z For more information refer to Stack Lift page 230 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 234 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Appendix A RPN and the Stack 235 Virtually every chain calculation you are likely to encounter can be
158. g will it take for your account to reach 4 000 4 000 FV PMT PV 50 7175 Keystrokes RPN mode Display f ICLEAR FIN 6 25 ENTER 24 i 0 26 Calculates and stores i 775 CHS PV 775 00 Stores PV with minus sign for cash paid out 50 CHS PMT 50 00 Stores PMT with minus sign for cash paid out AOOO FV 4 000 00 Stores FV 9 END 4 000 00 Sets the payment mode to End 58 00 Number of semimonthly deposits 2 29 00 Number of months Keystrokes Displa ALG mode p ay f CLEARLEFIN 6 25 24 i 0 26 Calculates and stores i 775 CHS PV 775 00 Stores PV with minus sign for cash paid out 50 CHS PMT 50 00 Stores PMT with minus sign for cash paid out AOOO FV 4 000 00 Stores FV File name hp 12c pt_user s guide_English_HDPMF123E27 Page 53 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 54 Section 3 Basic Financial Functions Keystrokes Display ALG mode 9 END 4 000 00 Sets the payment mode to End n 58 00 Number of semimonthly deposits 2 29 00 Number of months As in Example 1 it is likely that only 57 full deposits will be required the next and tinal deposit being less than 50 You can calculate this final fractional 58th deposit as in Example 1 except that for this example you must subtract the original FV In Example 1 the original FV was zero The procedure is as follows Keystrokes RPN mode
159. given dates 1 Key in the earlier date and press ENTER 2 Key in the later date and press 9 ADYS The answer shown in the display is the actual number of days between the two dates including leap days the extra days occurring in leap years if any In addition the hp 12c platinum also calculates the number of days between the two dates on the basis of a 30 day month This answer is held inside the calculator to display it press x2Y Pressing again will return the original answer to the display Example Simple interest calculations can be done using either the actual number of days or the number of days counted on the basis of a 30 day month What would be the number of days counted each way to be used in calculating the simple interest accruing from June 3 2004 to October 14 2005 Assume that you normally express dates in the month day year format Keystrokes Display 9 J M y 11 09 Sets date format to month day year Display shown assumes date remains from preceding example 6 032004 ENTER 6 03 Keys in the earlier date and separates it trom the later date 10 142005 9 apys 498 00 Keys in the later date Display shows actual number of days 491 00 Number of days counted on the basis of a 30 day month File name hp 12c pt_user s guide_English_HDPMF123E27 Page 40 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 3 Basic Financial Functions The Financial Registers In addition to the
160. guide_English_HDPMF123E27 Page 10 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Contents 11 Low Power Indication cect ccusadiasssncstesneraieacnteadendvudeisacssnadgeeesadnettes 259 Installing a New Battery scccaciecuscoiessoecusesenwnsedeceucpibtecesdeivccene 260 Verifying Proper Operation Self Tests ccccsssssssseeeeeeeeeeeeeeeeeees 261 NVGMOINY scanauntacsnsteenoerton E usmat eaten nioet acme E 263 DEFY CC ce E E A NE E E E E EN 264 Regulatory Information gy scnncs 6s tier sacsacrersacinascobeastunassaetaetnueieas 265 Temperature Specifications cccccccccccccccceeseesssssseeeeeeeeeeeeeeeeees 266 Noise Declaration atsicae cee peae sets eetnariecececkie veveseadoeenocteeexe ctessoenmeeaes 266 Disposal of Waste Equipment by Users in Private Household in the BUD EED T e o EI E teces tai EE A E TE E EE 266 Appendix G United Kingdom Calculations s 267 MOITE ee es ta tree eae enc ht tea nats Senna tena e ea eee tinea 267 Annual Percentage Rate APR Calculations ccccssseeeeeeeeeeeeaes 268 Bond GG 0 OI Sa pccncrtasncsscecdyaneseiareccusitaescuneacgenssearnenecunteeenctaees 268 Function Key IndeX oseeoseeosseoseccsecosecosecosecosesssesoee 269 Programming Key Index sssccssssccsssscccssscccsssseees 272 SUDET INGOs isiavauenctarcssi ncaa meanaraies 274 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 11 of 275 Printed Date 2005 8 1 Dimension 14 8
161. hanged Keys new instruction into program line 007 replacing the RCL 2 instruction previously there Shows that instruction in program line 008 has not been changed Sets calculator back to Run mode Display shown assumes results remain from last example in preceding section Copies tax rate from R into R Adding Instructions at the End of a Program To add one or more instructions at the end of the last program stored in program memory 1 Press to set the calculator to Program mode 2 Press 9 GTO followed by three digits that specify the last line you keyed into program memory that is the highest numbered line not necessarily the line most recently keyed in 3 Key in the new instruction or instructions File name hp 12c pt_user s guide_English_HDPMF123E27 Page 140 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 10 Program Editing 141 Note To add one or more instructions at the end of a program that is not the last program stored in program memory use the procedure described below under Adding Instructions within a Program Example With the last program from the preceding section stored in the calculator suppose you wanted to calculate the net income after taxes In the RPN program you could add a instruction at the end in order to calculate the net income after taxes In the ALG program the tax computed would need to be subtracted trom the incom
162. he key 2 Press y and key in the exponent which is designated by the x on the key 3 Press to calculate the power Don t forget to press if you are unsure if there are any pending operations To Calculate ALG rode Display 2 2 y 1 4 2 64 a 2 y 1 4 CHS 0 38 2 2 CHS y 3 8 00 32 or 2 20 3 e J 1 26 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 242 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Appendix C More About Given a sequence of positive and negative cash flows we hope that there is enough information to determine whether an IRR answer exists and what that answer is For the vast majority of cases your hp 12c platinum will find the unique IRR answer it it exists But the IRR computation is so complex that if the cash flow sequence does not meet certain criteria then sometimes the calculator is unable to determine whether or not an answer or answers exist Let s look at all of the possible outcomes of IRR as calculated by your hp 12c platinum Case 1 A positive answer If a positive answer is displayed it is the only such answer One or more negative answers may also exist Case 2 A negative answer If a negative answer is displayed there may be additional negative answers and there may be a single positive answer If additional answers negative or positive exist they can be calculated using the procedure described below
163. he right of the last digit Digit Separators As a number is keyed in each group of three digits to the left of the decimal point is automatically separated in the display When the calculator is first turned on after coming from the factory or after Continuous Memory is reset the decimal point in displayed numbers is a dot and the separator between each group of three digits is a comma If you wish you can set the calculator to display a comma for the decimal point and a dot for the three digit separator To do so turn the calculator off then press and hold down the key while you press ON Doing so again sets the calculator to use the original digit separators in the display Negative Numbers To make a displayed number negative either one that has just been keyed in or one that has resulted from a calculation simply press change sign When the display shows a negative number that is the number is preceded by a minus sign pressing removes the minus sign from the display making the number positive File name hp 12c pt_user s guide_English_HDPMF123E27 Page 17 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 18 Section 1 Getting Started Keying in Large Numbers Since the display cannot show more than 10 digits of a number numbers greater than 9 999 999 999 cannot be entered into the display by keying in all the digits in the number However such numbers can be easily entered
164. he second pass through the loop File name hp 12c pt_user s guide_English_HDPMF123E27 Page 128 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 9 Branching and Looping 129 Keystrokes Display R S 592 25 Portion of third month s payment applied to interest 190 22 Portion of third month s payment applied to principal R S or any key 190 22 Halts program execution Conditional Branching Often there are situations when it is desirable for a program to be able to branch to different lines in program memory depending on certain conditions For example a program used by an accountant to calculate taxes might need to branch to different program lines depending on the tax rate for the particular income level The hp 12c platinum provides two conditional test instructions that are used in p p p programs for conditional branching e g x lt y tests whether the number in the X register represented by the x in the key symbol is less than or equal to the number in the Y register represented by the y in the key symbol As discussed in Appendix A the number in the X register is simply the number that would if the calculator were in Run mode be currently in the display and the number in the Y register is the number that would if the calculator were in Run mode have been in the display when ENTER was pressed For example pressing 4 ENTER5 would place the number 4 in the Y register and the number 5
165. hen press 9 CFi If the cash flow amount is zero in the next period press O 9 CFi If the amount entered in step 4 occurs more than once consecutively key in the number of times that cash flow amount occurs consecutively then press Lo Jini If LO JLNi is not pressed the calculator assumes that N is 1 for the CF just entered Repeat steps 4 and 5 for each CF and N until all cash flows have been entered With the amounts of the cash flows and the number of times they occur consecutively stored in the calculator NPV can be calculated by entering the interest rate and pressing f NPV just as described earlier Example An investor has an opportunity to purchase a piece of property for 79 000 and he would like a 13 5 return He expects to be able to sell it after 10 years for 100 000 and anticipates the yearly cash flows shown in the table below Cash Flow 14 000 9 100 11 000 9 000 10 000 9 000 10 000 4 500 10 000 100 000 Since two cash flow amounts 10 000 and 9 000 are repeated consecutively we can minimize the number of storage registers required by using the method just described File name hp 12c pt_user s guide_English_HDPMF123E27 Page 76 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Keystrokes f JCLEARIREG 79000 cHs f 9 CFo 14000 9 J CF 11000 9 J CF 10000 9 J CF 3La J Ni 9100 9 CFi 9000 9 CF 2 9 JLNiJ 4
166. hp 12c platinum financial calculator user s guide KA invent Edition 4 HP part number F2232 90001 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 1 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Notice REGISTER YOUR PRODUCT AT www register hp com THIS MANUAL AND ANY EXAMPLES CONTAINED HEREIN ARE PROVIDED AS IS AND ARE SUBJECT TO CHANGE WITHOUT NOTICE HEWLETT PACKARD COMPANY MAKES NO WARRANTY OF ANY KIND WITH REGARD TO THIS MANUAL INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY NON INFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE HEWLETT PACKARD CO SHALL NOT BE LIABLE FOR ANY ERRORS OR FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES IN CONNECTION WITH THE FURNISHING PERFORMANCE OR USE OF THIS MANUAL OR THE EXAMPLES CONTAINED HEREIN Copyright 1981 1982 1999 2002 2005 Hewlett Packard Development Company L P Reproduction adaptation or translation of this manual is prohibited without prior written permission of Hewlett Packard Company except as allowed under the copyright laws Hewlett Packard Company 4995 Murphy Canyon Rd Suite 301 San Diego CA 92123 Printing History Edition 4 March 2005 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 2 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Introduction About This Handbook This hp 12c platinum user s guide is intended to help you get the most out of your inves
167. ide the calculator are done with numbers rounded to 10 digits NPV may never reach exactly zero Nevertheless the interest rate that results in a very small NPV is very close to the actual IRR f In the case of multiple answers for IRR the decision criteria listed on page 72 should be modified accordingly File name hp 12c pt_user s guide_English_HDPMF123E27 Page 78 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 4 Additional Financial Functions 79 Reviewing Cash Flow Entries e To display a single cash flow amount press RCL then key in the number of the register containing the cash tlow amount to be displayed Alternatively store the number of that cash flow amount that is the value of j for the CF desired in the n register then press RCL 9 CF e To review all the cash flow amounts press RCL 9 CFi repeatedly This displays the cash flow amounts in reverse order that is beginning with the tinal cash flow and proceeding to CF e To display the number of times a cash flow amount occurs consecutively that is to display the N for a CF store the number of that cash flow amount that is the value of j in the n register then press RCL 9 Ni e To review all the cash flow amounts together with the number of times each cash flow amount occurs consecutively that is to review each CF and N pair press RCL 9 Ni RCL 9 CFi repeatedly This displa
168. if the desired yield is 12 Since the payment amount is not given it must be calculated Keystrokes Keystrokes Displa RPN mode ALG mode pay 9 J END o J END f CLEARLEFIN 4 CLEAR FIN 26 9 12x 26 9 12x 312 00 Months into n 6 5 9 12 6 5 9 12 Percent monthly interest rate into i 249 350 CHS PV 249350 CHS Monthly payment to be PMT PMT 1 657 97 received calculated 12 9 12 12 9 12 1 00 Desired monthly interest rate into i Pv 158 361 78 Purchase price to achieve the desired yield calculated Note that the payments are positive because this problem is in seen from the viewpoint of the lender who will be receiving payments The negative PV indicates money that was lent out File name hp 12c pt_user s guide_English_HDPMF123E27 Page 160 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 12 Real Estate and Lending 161 Yield of a Mortgage Traded at a Discount or Premium The annual yield of a mortgage bought at a discount or premium can be calculated given the original mortgage amount interest rate and periodic payment as well as the number of payment periods per year the price paid for the mortgage and the balloon payment amount if it exists Information is entered as follows 1 Press 9 END and f JCLEAR FIN 2 Key in the total number of periods until the balloon payment occurs and press n If there is no
169. ifferently In general the repayment amount of a Building Society mortgage is calculated as follows first the annual repayment amount is calculated using the annual interest rate second the periodic repayment amount is calculated by dividing the annual repayment amount by the number of repayment periods in one year Furthermore the calculations used by Building Societies are rounded therefore to match their scale repayment figures you would have to round your calculations accordingly 267 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 267 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 268 Appendix G United Kingdom Calculations Annual Percentage Rate APR Calculations In the United Kingdom the calculation of the Annual Percentage Rate of Charge APR in accordance with the United Kingdom Consumer Credit Act 1974 differs from the calculation of the APR in the United States Unlike the practice in the United States where the APR can be calculated by multiplying the periodic interest rate by the number of periods per year in the United Kingdom the APR is calculated by converting the periodic interest rate to the effective annual rate then rounding the result to one decimal place With the periodic interest rate in the display and in the i register and the payment mode set to End the effective annual rate can be calculated by pressing CHS PMT then keying in the number of compounding peri
170. in the X register e g x0 tests whether the number in the X register is equal to zero The possible results of executing either of these instructions are e If the condition tested for is true when the instruction is executed program execution continues sequentially with the instruction in the next line of program memory e If the condition tested for is false when the instruction is executed program execution skips the instruction in the next line of program memory and continues with the instruction in the following line File name hp 12c pt_user s guide_English_HDPMF123E27 Page 129 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 130 Section 9 Branching and Looping These rules can be summarized as DO if TRUE Program Execution Program Execution If True If False Line Following conditional test is skipped WWII UUE The program line immediately following that containing the conditional test instruction can contain any instruction however the most commonly used instruction there is GTO If a instruction follows a conditional test instruction program execution branches elsewhere in program memory if the condition is true and continues with the next line in program memory if the condition is false Program Execution Program Execution If True If False Program execution continues at line 007 Example The following program calculates income tax at a rate of 20 on incomes of 20 000 or less and 2
171. in the preceding example was positive indicating that the actual rate of return that is the IRR was greater than the 13 5 used in the calculation Find the IRR Assuming the cash flows are still stored in the calculator we need only press Lf JLIRR Keystrokes Display 13 72 IRR is 13 72 Note that the value calculated by is the periodic rate of return If the cash flow periods are other than years for example months or quarters you can calculate the nominal annual rate of return by multiplying the periodic IRR by the number of periods per year As noted above the calculator may take several seconds or even minutes to produce an answer for IRR This is because the mathematical calculations for finding IRR are extremely complex involving a series of iterations that is a series of successive calculations In each iteration the calculator uses an estimate of IRR as the interest rate in a computation of NPV The iterations are repeated until the computed NPV reaches about zero The complex mathematical characteristics of the IRR computation have an additional ramification Depending on the magnitudes and signs of the cash flows the computation of IRR may have a single answer multiple answers a negative answer or no answer t For additional information regarding f URR refer to Appendix C For an alternative method of calculating IRR refer to Section 13 In practice because the complex mathematical calculations ins
172. ine number and the keycode of the instruction stored there e Pressing 9 BST back step while the calculator is in Program mode sets the calculator back to the previous line in program memory then displays that line number and the keycode of the instruction stored there File name hp 12c pt_user s guide_English_HDPMF123E27 Page 109 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 110 Section 8 Programming Basics For example to display the first two lines of the program now stored in program memory set the calculator to Program mode and press twice Keystrokes Displa RPN mode prey 000 Sets calculator to Program mode and displays current line of program memory SST 001 36 Program line 001 SST 002 2 Program line 002 digit 2 Keystrokes ALG mode Display 000 Sets calculator to Program mode and displays current line of program memory SST 001 30 Program line 001 SST 002 2 Program line 002 digit 2 Pressing 9 BST does the reverse Keystrokes RPN mode Display 9 BST 001 36 Program line 001 9 BST 000 Program line OOO Keystrokes ALG mode Display 9 BST 001 30 Program line 001 9 BST 000 Program line OOO File name hp 12c pt_user s guide_English_HDPMF123E27 Page 110 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 8 Programming Basics 111 If either the key or the key is held down the calculator displays all of the lines in program memory Press ag
173. ing pressed inadvertently 16 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 16 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 1 Getting Started 17 Throughout this handbook references to the functions shown on the keyboard in gold under the bracket labeled CLEAR appear throughout this handbook preceded by the word CLEAR for example The CLEAR REG function or Pressing f CLEAR REG If you press the or 9 prefix key mistakenly you can cancel it by pressing f JCLEARPREFIX This can also be pressed to cancel the STO RCL and keys These keys are prefix keys in the sense that other keys must be pressed after them in order to execute the corresponding function Since the key is also used to display the mantissa all 10 digits of a displayed number the mantissa of the number in the display will appear for a moment after the key is released Pressing the Lf or 9 prefix key turns on the corresponding status indicator f or g in the display Each indicator turns off when you press a function key executing an alternate function of that key another prefix key or Lf CLEARPREFIX Keying in Numbers To key a number into the calculator press the digit keys in sequence just as if you were writing the number on paper A decimal point must be keyed in using the decimal point key if it is part of the number unless it appears to t
174. inst zero It true calculator continues execution at next program memory line If false calculator skips next line before resuming execution page 129 Dimension 14 8 cm x 21 cm 7 Subject Index A avort 13 69 230 Adding instructions 140 48 Adjusting the Display Contrast 16 Advance payments 202 209 Algebraic mode 20 237 Amortization 48 69 71 251 Annual interest rate 49 Annual Percentage Rate 65 68 156 59 268 Annuities 45 Annuities deferred 169 70 Annuity due 47 48 Appreciation 48 APR See Annual Percentage Rate Arithmetic calculations with constants 91 235 Arithmetic calculations chain 23 25 Arithmetic calculations simple 21 22 Arithmetic operations and the stack 231 Arithmetic storage register 29 Average See Mean BEG 46 BST 109 116 139 18 Backstep 109 Balloon payments 50 52 Battery 259 Battery power low 13 16 259 Battery installing 260 BEGIN status indicator 47 Black Scholes formula for valuing European options 194 254 274 Bonds 82 83 217 25 253 268 Bonds 30 360 day basis 217 21 Bonds annual coupon 222 Bonds corporate 82 Bonds municipal 82 Bonds U S Treasury 82 Branching 125 38 144 Branching adding instructions by 144 48 Branching conditional 129 30 Branching simple 125 C CFo 74 76 CFi 73 74 76 79 CHS 17 21 42 73 230 CLx 19 35 230 234 236 C st
175. instruction remaining at the end of program memory and it File name hp 12c pt_user s guide_English_HDPMF123E27 Page 144 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 10 Program Editing 145 ensures that program execution will branch to line O00 after the program is run Key in the instruction s being added Key in the instruction that originally immediately followed the point at which the new instruction s are being added that is the first instruction to be executed after the added instruction s This instruction was replaced by the GTO instruction keyed in at step 3 Press 9 GTO followed by three digits that specify the second line following the point at which the new instruction s are being added This instruction will cause program execution to branch back to the proper line within the original program Example Continuing with the preceding example suppose incomes less than or equal to 7 500 were not to be taxed You could modify the program to check for this condition and stop at line O00 displaying the original income keyed in by storing 7 500 in register R and adding the following instructions between lines 000 and 001 the added lines are the same in RPN and ALG modes RCL 3 xzy 9 xsy 9 IGTO IOOO Since there are more than four instructions between and including the first line to be executed after the added instructions line 001 and the last lin
176. into the display if the number is expressed in a mathematical shorthand called scientific notation To convert a number into scientific notation move the decimal point until there is only one digit a nonzero digit to its left The resulting number is called the mantissa of the original number and the number of decimal places you moved the decimal point is called the exponent of the original number If you moved the decimal point to the left the exponent is positive if you moved the decimal point to the right this would occur for numbers less than one the exponent is negative To key the number into the display simply key in the mantissa press enter exponent then key in the exponent If the exponent is negative press after pressing EEX For example to key in 1 781 400 000 000 we move the decimal point 12 places to the left giving a mantissa of 1 7814 and an exponent of 12 Keystrokes Display 1 78 14 EEX 12 1 7814 12 1 781 400 000 000 entered in scientific notation Numbers entered in scientitic notation can be used in calculations just like any other number Backspacing While you are entering a number pressing 9 lt deletes the last character you entered After performing a calculation pressing 9 deletes the current number Keystrokes RPN mode 12345 9 9 OS ENTER 123 63 Correcting removes the 4 and 5 g clears the most recent digit entered Display 5
177. inus sign for a negative cash flow File name hp 12c pt_user s guide_English_HDPMF123E27 Page 74 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 4 Additional Financial Functions 75 Keystrokes Display 500 CHS 9 CF 500 00 Stores CF with minus sign for a negative cash flow 4500 9 J CF 4 500 00 Stores CF 5500 g CF 5 500 00 Stores CF A500 9 CFi 4 500 00 Stores CF 130000 g CFi 130 000 00 Stores CF 5 00 Checks number of cash flow amounts entered in addition to CF 13 i 13 00 Stores i Lf NPV 212 18 NPV Since NPV is positive the investment would increase the financial value of the investor s assets Calculating NPV for Grouped Cash Flows A maximum of 80 cash flow amounts in addition to the initial investment CF can be stored in the hp 12c platinum However problems involving more than 80 cash flows can be handled if among the cash flows there are equal consecutive cash flows For such problems you merely enter along with the amounts of the cash flows the number of times up to 99 each amount occurs consecutively This number is designated N corresponding to cash flow amount CF and is entered using the 9 Ni keys Each N is stored in a special register inside the calculator This method can of course be used for problems involving fewer than 80 cash flows and it will require fewer storage registers than the method
178. ion 14 8 cm x 21 cm 7 Keystrokes RPN mode SST SST 25000 SST Section 9 Branching and Looping 135 Display 004 43 33 007 20 000 00 007 45 1 20 00 008 25 4 000 00 25 000 001 45 0 20 000 00 002 34 25 000 00 003 43 34 25 000 00 005 45 2 25 00 006 43 33 008 25 00 008 25 6 250 00 Condition tested by was true so program execution continued with line 004 9 GTO OO7 Line 007 RCL 1 20 tax rate has been recalled to X register moving income to Y register Line 008 20 of 20 000 4 000 Keys income greater than test value into display and X register Line 001 RCLIO Test value has been recalled to X register moving income to Y register Line 002 xzy Income has been placed in X register and test value has been placed in Y register Line 003 9 xsy Condition tested by was false so program execution skipped the next line and continued at line 005 RCL 2 25 tax rate has been recalled to X register moving income to Y register Line 006 9 GTO OO8 Line 008 25 of 25 000 6 250 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 135 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 136 Section 9 Branching and Looping Keystrokes ALG mode 20000 sT0 O 20 STO 1 25 STO 2 15000 SST SST Display 20 000 00 20 00 25 00 15 000 001 44 9 15 000 00 002 4
179. ion described below The display returns to the standard display format for all numbers that can be displayed in that format Scientific Notation Display Format 7 digit mantissa Exponent of 10 yy 9 123456 78 Sign of mantissa t Sign of exponent In scientific notation a number is displayed with its mantissa at the left and a two digit exponent at the right The mantissa is simply the first seven digits in the number and has a single nonzero digit to the left of the decimal point The File name hp 12c pt_user s guide_English_HDPMF123E27 Page 88 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 5 Additional Operating Features 89 exponent is simply how many decimal places you would move the decimal point in the mantissa before writing down the number in standard format If the exponent is negative that is there is a minus sign between it and the mantissa the decimal point should be moved to the left this occurs for any number less than 1 If the exponent is positive that is there is a blank space between it and the mantissa the decimal point should be moved to the right this occurs for any number greater than or equal to 1 To set the display format to scientific notation press f L For example assuming the display still shows 14 87456320 from the preceding example Keystrokes Display Lf IL J 1 487456 01 The exponent in this example indicates that the decimal point should be moved one d
180. ions and the Cash Flow Diagram The concepts and examples presented in this section are representative of a wide range of financial calculations If your specific problem does not appear to be illustrated in the pages that follow don t assume that the calculator is not capable of solving it Every financial calculation involves certain basic elements but the terminology used to refer to these elements typically differs among the various segments of the business and financial communities All you need to do is identify the basic elements in your problem and then structure the problem so that it will be readily apparent what quantities you need to tell the calculator and what quantity you want to solve for An invaluable aid for using your calculator in a financial calculation is the cash flow diagram This is simply a pictorial representation of the timing and direction of financial transactions labeled in terms that correspond to keys on the calculator The diagram begins with a horizontal line called a time line It represents the duration of a financial problem and is divided into compounding periods For example a financial problem that transpires over 6 months with monthly compounding would be diagrammed like this ___ __ ___ ___ 1 2 3 4 5 6 The exchange of money in a problem is depicted by vertical arrows Money you receive is represented by an arrow pointing up from the point in the time line when the transaction occurs
181. ish to do 25 83 144 25 but then realize you meant to do 144 25 25 83 the way to correct this is to proceed and do CHS All will do at this point is replace the 144 25 with whatever was displayed before the 25 83 was entered and the first argument remains unchanged File name hp 12c pt_user s guide_English_HDPMF123E27 Page 239 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 240 Appendix B Algebraic Mode ALG The stack diagrams showing the output for the Calendar and Financial functions on page 233 are the same for ALG as RPN mode To add INT and PRICE atter executing the bond function press xzY In this case is used to enter the second argument for the operation After executing x2Y the total price INT PRICE will be displayed LAST X will be unchanged but the original PRICE will be found in the Y register One can also do RiJ to get the total price with the only difference being that the original PRICE would then be in the T register Parentheses Calculations In ALG mode parentheses can be used in calculations to change the order in which operations are evaluated When there are pending open parentheses the status indicator will be shown in the display As open parentheses are closed the expression contained within the parentheses is evaluated The final result of a calculation will be displayed when you press the key and then any pending parenth
182. isplay betore an operation is performed in RPN mode In addition to these registers into which numbers are stored automatically up to 20 data storage registers are available tor manual storage of numbers These data storage registers are designated R through R and R through R Still other storage registers referred to as the financial registers are reserved for numbers used in financial calculations Storing and Recalling Numbers To store the number from the display into a data storage register 1 Press store 2 Key in the register number O through 9 for registers R through R or JO through 9 for registers R through R Similarly to recall a number from a storage register into the display press recall then key in the register number This copies the number from the storage register into the display the number remains unaltered in the storage register Furthermore when this is done the number previously in the display is automatically held inside the calculator for a subsequent calculation just as the number in the display is held when you key in another number File name hp 12c pt_user s guide_English_HDPMF123E27 Page 27 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 28 Section 1 Getting Started Example Before you leave to call on a customer interested in your personal computer you store the cost of the computer 1 250 and also the cost of a printer 500 in data sto
183. isters Mathematics Functions To perform an arithmetic operation the numbers are positioned in the X and Y registers just as you would write them vertically on paper the number you would write on top goes in the Y register and the number you would write on the bottom goes in the X register For example to do each of the four arithmetic calculations shown below you would put the 8 in the Y register using and then key the 2 into the displayed X register File name hp 12c pt_user s guide_English_HDPMF123E27 Page 231 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 _ 232 Appendix A RPN and the Stack When an arithmetic operation or is performed the answer is placed in the X register the number formerly in the X register is copied into the LAST X register and the stack drops When the stack drops the number in the Z register is copied into the Y register and the number in the T register is copied into the Z register but also remains in the T register The diagram on the next page illustrates the stack operation when 8 2 is calculated Assume that the stack and LAST X registers have already been loaded with the numbers shown as the result of previous calculations PIF eens Y 7 6 8 gt 8 cele Sele asx ef He Ge oe Keys gt 8 ENTER 2 Percentage Functions When any of the three percentage functions is performed the answer is placed in the X register the number formerly in
184. ities Industry Association Inc New York 1993 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 82 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 4 Additional Financial Functions 83 In ALG mode perform the steps listed for RPN mode above but replace the last step with the step below Keystrokes Displa ALG mode p ay eyj 123 07 Total price including accrued interest Bond Yield 1 Enter the quoted price as a percent of par using PV 2 Enter the annual coupon rate as a percentage using PMT 3 Key in the settlement purchase date then press ENTER 4 Key in the maturity redemption date 5 Press f YTM The yield to maturity is shown in the display and also is stored in the i register Note Remember that the function may take a significant amount of time to produce an answer during which the calculator displays running Example The market is quoting 122 125 for the bond described in the preceding example What yield will that provide Keystrokes Display 122 125 PVv 122 13 Enters quoted price 6 7 5 PMT 6 75 Enters coupon rate 4 282004 ENTER 4 28 Enters settlement purchase date 6 042018 6 042018 Enters maturity redemption date 4 60 Bond yield After solving a bond problem the FV register contains the redemption value plus the annual coupon rate percentage divided by two and the n register contains the days from settlement date to the
185. ived calculated ReL n 252 00 Recall number of periods 42 n 210 00 Number of periods lett after mortgage is bought into n 250 000 00 Input price of mortgage into PV negative to indicate money paid out Yield per month calculated xJ12 Percent annual yield Example 2 Using the same information given in example 1 calculate the annual yield if the loan is to be paid in full at the end of the fifth year from original issuance In this case both the payment amount and the balloon must be calculated since they are not given Keystrokes RPN mode o END f CLEARLEFIN 21 9 12x 6 9 12 Keystrokes ALG mode ALG 9 END Input the number of f CLEARLEFIN periods into n 21 9 12x 252 00 6 9 12 0 50 Monthly interest rate into PV PV em PMT 2 096 57 Payment calculated 300000 CHSI PV 300000 CHSI PV aa a amount into File name hp 12c pt_user s guide_English_HDPMF123E27 Page 162 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 _ Section 12 Real Estate and Lending 163 Calculate the remaining balance of the loan after five years Keystrokes Keystrokes Bicala RPN mode ALG mode pay 5 9 12x 59112x 60 00 Number of periods to be amortized 258 377 24 Remaining balance of the loan after five eee a 18 00 New a of loan se CHS PV ees Percent yield 1 01 calculated The Rent
186. ized below With this procedure NPV and IRR problems involving up to 80 cash flows in addition to the initial investment CF can be solved If two or more consecutive cash flows are equal for example if the cash flows in periods three and four are both 8 500 you can solve problems involving more than 80 cash flows or you can minimize the number of storage registers required for problems involving less than 80 cash flows by using the procedure described next under Calculating NPV for Grouped Cash Flows page 75 The amount of the initial investment CF is entered into the calculator using the 9 CFo keys Each cash flow CF CF etc is designated CF where j takes on values from 1 up to the number of the final cash flow The amount of a cash flow is entered using the 9 CFi keys Each time 9 CFi is pressed the amount in the display is stored in the next available storage register and the number in the n register is increased by 1 This register therefore counts how many cash flow amounts in addition to the initial investment CF have been entered Note When entering cash flow amounts including the initial investment CF remember to observe the cash flow sign convention by pressing after keying in a negative cash flow File name hp 12c pt_user s guide_English_HDPMF123E27 Page 73 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 _ 74 Section 4 Additional Financial Functio
187. l depreciation charged over a given period of time and the total amount that would have been charged under straight line depreciation is called excess depreciation To obtain excess depreciation RPN Mode 1 Calculate the total depreciation then press ENTER 2 Key in the depreciable amount cost less salvage then press ENTER Key in the useful life of the asset in years then press Key in the number of years in the income projection period then press to get the total straight line depreciation charge Press to get the excess depreciation ALG Mode 1 Calculate the total depreciation then press 9 JL 2 Key in the depreciable amount cost less salvage then press Key in the useful life of the asset in years then press X Key in the number of years in the income projection period then press 9 L to get the total straight line depreciation charge Press to get the excess depreciation Example What is the excess depreciation in the previous example over 7 calendar years Because of the partial first year there are 6 5 years depreciation in the first 7 calendar years Keystrokes Keystrokes Displa RPN mode ALG mode poy 9429 5SGLENTER 9429 56 J 9 9 429 56 Total depreciation through seventh year 1 O5OOENTER 10500 Depreciable amount 8 8 x 1 312 50 Yearly straight line depreciation 6 5 9 8 531 25 Total straightline depreciation File name hp 12c pt_
188. laced it is not automatically bumped into line 006 Example With the last program from the preceding section still stored in the calculator suppose you wanted to use register R for some other purpose and so you needed to replace the RCL 2 instruction in program line 005 in the RPN program line 007 in the ALG program with say RCL 6 You could change the instruction in line 005 as follows Keystrokes Displa RPN mode p ay Sets calculator to Program mode 9 IGTO e J004 004 43 33 007 Sets calculator to program line preceding that containing the instruction to be changed RCL 6 005 45 6 Keys new instruction into program line 005 replacing the RCL 2 instruction previously there 139 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 139 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 140 Section 10 Program Editing Keystrokes RPN mode Display SST 006 43 33 008 6 250 00 RCL 2 STO 6 25 00 Keystrokes ALG mode Display 9 GTO L O06 006 43 33 009 RCL 6 007 45 6 SST 008 43 33 010 6 250 00 RCL 2 STO 6 25 00 Shows that instruction in program line 006 has not been changed Sets calculator back to Run mode Display shown assumes results remain from last example in preceding section Copies tax rate from R into R Sets calculator to Program mode Sets calculator to program line preceding that containing the instruction to be c
189. lay 7 95 ENTER 7 95 Keys in the total amount and separates it from the next number 2 36 2 36 Keys in 2 36 to tind what it is of the number in the display T 29 69 Europe had nearly 30 ot the total sales Percent of Total in ALG Mode In ALG mode to calculate what percentage one number is of another 1 Calculate the total amount by adding the individual amounts just as in a chain arithmetic calculation 2 Key in the number whose percentage equivalent you wish to find 3 Press T Example Last month your company posted sales of 3 92 million in the U S 2 36 million in Europe and 1 67 million in the rest of the world What percentage of the total sales occurred in Europe Keystrokes Displa ALG mode p ay 3 92 3 92 Keys in the first number and separates it from the second 2 36 4 6 28 Adds the second number 1 67 7 95 Adds the third number to get the total 2 36 2 36 Keys in 2 36 to tind what it is of the number in the display 29 69 Europe had nearly 30 of the total sales File name hp 12c pt_user s guide_English_HDPMF123E27 Page 36 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 2 Percentage and Calendar Functions 37 To find what percentage a number is of a total when you already know the total number 1 Key in the total number 2 Press to separate the other number from the total number 3 Key in the number whose percentage equivalent you wish to fi
190. lays line number and contents of all program memory lines one at a time page 113 Printed Date 2005 8 1 Programming Key Index 273 Pressed from keyboard Run Stop Begins execution of a stored program Stops execution if program is running page 106 Go to Followed by a three digit number positions calculator to that line in program memory No instructions are executed page 125 Single step Displays line number and keycode of current program memory line when pressed executes instruction displays result and moves to next line when released page 114 Back step Displays line number and keycode of previous program memory line when pressed displays original contents of X register when released No instructions are executed page 116 Any key Pressing any key on the keyboard stops execution of a program page 124 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 273 of 275 Executed as a recorded program instruction Run Stop Stops program execution page 122 Go to Followed by a three digit number causes calculator to branch to the specified line number next and resumes program execution from there page 125 Pause Stops program execution for about 1 second and displays contents of X register then resumes program execution page 117 Conditional tests number in X register against that in Y register tests number in X register aga
191. lish_HDPMF123E27 Page 72 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 4 Additional Financial Functions 73 e It NPV is positive the financial value of the investor s assets would be increased the investment is financially attractive e f NPV is zero the financial value of the investor s assets would not change the investor is indifferent toward the investment e It NPV is negative the financial value of the investor s assets would be decreased the investment is not financially attractive A comparison of the NPVs of alternative investment possibilities indicates which of them is most desirable the greater the NPV the greater the increase in the financial value of the investor s assets IRR is the rate of return at which the discounted future cash flows equal the initial cash outlay IRR is the discount rate at which NPV is zero The value of IRR relative to the present value discount rate also indicates the result of the investment e f IRR is greater than the desired rate of return the investment is financially attractive e f IRR is equal to the desired rate of return the investor is indifferent toward the investment e If IRR is less than the desired rate of return the investment is not financially attractive Calculating Net Present Value NPV Calculating NPV for Ungrouped Cash Flows If there are no equal consecutive cash flows use the procedure described and then summar
192. llar volumes each month How many hours does the average salesperson work each week How much does the average salesperson sell each month File name hp 12c pt_user s guide_English_HDPMF123E27 Page 94 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 N Oo Oo A W N Section 6 Statistics Functions 95 Hours Week Sales Month 32 40 45 40 38 50 35 17 000 25 000 26 000 20 000 21 000 28 000 15 000 To find the average workweek and sales of this sample Keystrokes f CLEARLE 32 ENTER 17000 z AOJENTER 25000 2 45 ENTER 26000 2 4OENTER 20000 z 38 ENTER 21000 50 ENTER 28000 2 SS ENTER 15000 z Display 0 00 32 00 1 00 40 00 2 00 45 00 3 00 40 00 4 00 38 00 5 00 50 00 6 00 35 00 7 00 21 714 29 40 00 Clears statistics registers First entry Second entry Third entry Fourth entry Fifth entry Sixth entry Total number of entries in the sample Mean dollar sales per month x Mean workweek in hours y File name hp 12c pt_user s guide_English_HDPMF123E27 Page 95 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 96 Section 6 Statistics Functions Standard Deviation Pressing 9 s calculates the standard deviation of the x values s and of the y values s The standard deviation of a set of data is a measure of the dispersion around the mean The standard de
193. low Entries ccccsseeeeeeeceeeeeeeeeeeeeseeeenaas 80 Bond Coalculah OMS pth nen cast essk cated secmn nin cack etcsheee shen EEA TO EERS 82 DOME PMCS EEE EE E E TE EE E TE 82 Bond NO ere E cane tanta nase edeeteants 83 Depreciation Calculations ss jc0eicisedcacdevaecevoeasceseiaeeeuent ate deaetcsantaedeaee 84 Section 5 Additional Operating Features scssssssees 86 Continuous Memory sissies sussasedscranicdsucanidatanapieenmdanda acabbiadiedandiasendies 86 te DiS pere ceccten cease E E E 87 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 6 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 _ Contents 7 Salus WGC Cl OCS rans cee ctintad sarees E ENE RENE ia rin 87 Number Display FO ONS ee aaa enor seers pesca etacen detec asioe 87 Scientific Notation Display Format cccccccccccceeeeeeeeeeeeeeeaees 88 aeaa Bic 0 ge en ee ee eee ee ee ee oe ee eee oe 90 The Key in RPN Mode cccccccceeessseeececeeeeeeaaeeeeeeeeeeesaaeeees 90 The Keyin RPN MOG nres nE AEE 9 Arithmetic Calculations With Constants 0ccssccesenseceseasceuce 91 Recovering From Errors in Digit Entry ccsecceseeeceeeeeeeeeeeees 92 Section 6 Statistics FUNCTIONS ccccccssscssscesscesscessceescees 93 Accumulating Statistics xc ceccsesscsnsnndcuasunedsmccimediedsucatsncoinedduduadadecceiess 93 Correcting Accumulated Statistics scicsc seccs2caseaccunesas teamenracensel
194. mathematics functions require that only one number be in the calculator that is the number in the display before the function key is pressed Pressing the function key then replaces the number in the display by the result Reciprocal Pressing calculates the reciprocal of the number in the display that is it divides 1 by the number in the display Square Pressing 9 x calculates the square of the number in the display Square Root Pressing 9 calculates the square root of the number in the display Logarithm Pressing 9JLLN calculates the natural logarithm that is the logarithm to the base e of the number in the display To calculate the common logarithm that is the logarithm to the base 10 of the number in the display calculate the natural logarithm then press 10 9JLLN in RPN mode and 10 9 JLLN in ALG mode Exponential Pressing 9 e calculates the exponential of the number in the display that is it raises the base e to the number in the display Factorial Pressing 9 n calculates the factorial of the number in the display that is it calculates the product of the integers from 1 to n where n is the number in the display Round The display format specities to how many decimal places a number inside the calculator is rounded when it appears in the display but the display format alone does not affect the number itself inside the calculator Pressing f RND however change
195. me hp 12c pt_user s guide_English_HDPMF123E27 Page 85 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 5 Additional Operating Features Continuous Memory The calculator s Continuous Memory contains the data storage registers the financial registers the stack and LAST X registers program memory and status information such as display format date format and payment mode All information in Continuous Memory is preserved even while the calculator is turned off Furthermore information in Continuous Memory is preserved for a short time when the batteries are removed so that you can change the batteries without losing your data and programs Continuous Memory may be reset if the calculator is dropped or otherwise traumatized or if power is interrupted You can also manually reset Continuous Memory as follows 1 Turn the calculator off 2 Hold down the key and press ON When Continuous Memory is reset e All registers are cleared e Program memory consists of eight program lines each containing the instruction 9 GTO OOO Display tormat is set to the standard format with two decimal places Date format is set to month day year Payment mode is set to End e Arithmetic operation is set to RPN mode Whenever Continuous Memory has been reset the display will show Pr Error Pressing any key will clear this message from the display 86 File name hp 12c pt_user s guide_English_HDPMF123E27
196. me your daughter enters college 14 years from now Let s say that she has a paid up 5 000 insurance policy that pays 5 35 compounded annually How much would it be worth by the time she enters college In this example we need to calculate FV the future value Keystrokes Display f CLEAR FIN 21 396 61 Clears previous financial data inside the calculator 14ln 14 00 Stores the number of compounding periods 5 35 i 5 35 Stores the periodic interest rate 5000 cHs PV 5 000 00 Stores the present value of the policy Don t be concerned now about the minus sign in the display That and other details will be explained in Section 3 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 13 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 14 Making Financial Calculations Easy Keystrokes Display FV 10 371 79 Value of policy in 14 years Example 3 The preceding example showed that the insurance policy will provide about half the required amount An additional amount must be set aside to provide the balance 21 396 61 10 371 79 11 024 82 Suppose you make monthly payments beginning at the end of next month into an account that pays 6 annually compounded monthly What payment amount would be required in order to accumulate 11 024 82 in the 14 years remaining Keystrokes Display CLEAR FIN 10 371 79 Clears previous financial data inside the calculator 14 9 12x 168 00
197. memory the instructions in the program lines between the specified line and the instruction will be executed repeatedly As can be seen in the illustration above under Simple Branching once the program begins executing the loop it will execute it again and again If you want to terminate the execution of a loop you can include a 9 x lt or 9 0 instruction described below or an instruction within the loop You can also terminate execution by pressing any key while the loop is being executed Example The following program automatically amortizes the payments on a home mortgage without requiring you to press for each payment It will amortize one month s payments each time or one year s payments each time the loop is executed depending on whether the number 1 or 12 is in the display when you start running the program Before running the program we ll initialize it by storing the required data in the financial registers just as we would do if we were amortizing a single payment manually We ll run the program for a 150 000 mortgage at 4 75 for 30 years and we ll key 1 into the display just before running it in order to amortize monthly payments For the first two passes through the loop we ll execute the program one line at a time using SST so that we can see the looping occurring then we ll use to execute the entire loop a third time before terminating execution Keystrokes Display Sets calculator t
198. money To begin turn the calculator on by pressing the key Then press the keys shown in the Keystrokes column below If you are not familiar with the use of an hp calculator keyboard refer to the description on pages 16 and 17 12 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 12 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Making Financial Calculations Easy 13 Note A battery symbol 0 shown in the upper left corner of the display when the calculator is on signifies that the available battery power is nearly exhausted To install new batteries refer to Appendix F The calendar functions and nearly all of the financial functions take some time to produce an answer This is typically just a few seconds but theliJ avort IRR and functions could require a half minute or more During these calculations the word running flashes in the display to let you know that the calculator is running Keystrokes Display Lf CLEARIREG 2 0 00 Clears previous data inside the calculator and sets display to show two decimal places 4l o 12x 48 00 Calculates and stores the number of compounding periods 6 9 12 0 50 Calculates and stores the periodic interest rate 500 PMT 500 00 Stores periodic payment amount 9 BEG 500 00 Sets payment mode to Begin 21 396 61 Amount required to be deposited Example 2 We now need to determine how to accumulate the required deposit by the ti
199. mortization The hp 12c platinum enables you to calculate the amounts applied toward principal and toward interest from a single loan payment or from several payments and also tells you the remaining balance of the loan after the payments are made To obtain an amortization schedule e H p 7 10 Press f CLEAR FIN to clear the financial registers Enter the periodic interest rate using i or 9 12 Enter the amount of the loan the principal using PV Key in the periodic payment then press the sign of PMT must be negative in accordance with the cash flow sign convention Press 9 BEG or for most direct reduction loans 9 END to set the payment mode Key in the number of payments to be amortized Press to display the amount from those payments applied toward interest Press to display the amount trom those payments applied toward the principal To display the number of payments just amortized press R Ru To display the remaining balance of the loan press RCL PV 11 To display the total number of payments amortized press RCL Example For a house you re about to buy you can obtain a 25 year mortgage for 250 000 at 5 25 annual interest This requires payments of 1 498 12 at the end of each month Find the amounts that would be applied to interest and to the principal from the first year s payments Keystrokes Display CLEAR FIN 5 25 9 12 0 44 Enters i 250000
200. n 144 25 as the second number But then you realize that when written down on paper the desired calculation reads 144 25 25 83 so that you have unfortunately keyed in the second number first To correct this mistake merely exchange the first and second numbers by pressing xz the exchange key Keystrokes Displa RPN mode pray 25 83 ENTER 144 25 144 25 Oops You mistakenly keyed in the second number first 25 83 Exchanges the first and second numbers The first number keyed in is now in the display 118 42 The answer is obtained by pressing the operation key File name hp 12c pt_user s guide_English_HDPMF123E27 Page 90 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 5 Additional Operating Features 91 The key is also useful for checking the first number entered to make sure you keyed it in correctly Before pressing the operation key or equals key however you should press again to return the second number entered to the display Regardless of how many times you press x2Y the calculator considers the number in the display to be the second number entered The Key in RPN Mode Occasionally you may want to recall to the display the number that was there before an operation was performed This is useful for doing arithmetic calculations with constants and for recovering from errors in keying in numbers To do so press 9 LSTx LAST X This section describes how to use 9 LSTx in RPN mo
201. n performed using the constant in the Y register and a number keyed into the displayed X register the constant will be dropped back into the Y register Example The annual sales of solar engineering hardware your firm currently 84 000 are projected to double each year for the next 3 years Calculate the annual sales for each of those years Keystrokes RPN mode pispiay 2 ENTER ENTER ENTER 2 00 Enters constant into Y Z and T registers File name hp 12c pt_user s guide_English_HDPMF123E27 Page 235 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 236 Appendix A RPN and the Stack Keystrokes Displa RPN mode prey 84000 84 000 Enters base amount into displayed X register x 168 000 00 Annual sales after first year x 336 000 00 Annual sales after second year x 672 000 00 Annual sales after third year In the example above the constant was repeatedly multiplied by the result of the previous operation which was already in the displayed X register In another class of calculations with constants the constant is multiplied by or added to etc a new number keyed into the displayed X register For these calculations you must press before keying in a new number after having pressed an operator key If this were not done the stack would lift when you keyed in a new number after pressing the operator key and the Y register would no longer contain the constant Recall from p
202. n six months KEYSTROKES KEYSTROKES u a DISPLAY a ae m DISPLAY Domo one CLEAR FIN JCLEAR FIN ce ee Z O m On 33 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 217 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 218 Section 16 Bonds 028 43 33 039 038 43 33 000 KEYSTROKES ALG mode DISPLAY H fel uj f e iz 7 O oO N N e oO Ww oO Be oO o N N W N O N A A Ol m A STO 6 RCL O X 0 le 029 43 33 041 fel cT0 041 m O 030 mn 031 lt RCL 6 y CHS X N RCL 6 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 218 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 16 Bonds 219 KEYSTROKES KEYSTROKES RPN mode DISPLAY ALG mode DISPLAY a o RCL 039 45 REGISTERS So atsisters O wrsm OOOO S Key in the program It the status indicator is not displayed press STO EEX Key in the annual coupon interest rate as a percentage then press STO 2 Key in the settlement date MM DDYYYY then press STO 3 Key in the maturity date MM DDYYYY then press STO 4 Key in the redemption value as a percentage of par then press STO 5 oS eom SS For information about date format see pages 37 to 38 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 2
203. naesieancnseaurerassiessasvciabeesaudansdayadars 245 Error 1 Storage Register Overflow ccccccecceccceceeeeeeeeeeeeeesaaes 246 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 9 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ 10 Contents Error 2e SIOUSHCS nesies ERa ESEESE EEE OERE 246 EO IRE e E EE 246 Error Ae MEMORY cresnannieenaiae tit inaen aE E EE EEEE a 246 Error 5 Compound Interest ei caesnticcdaszasianstateatarsaihecsiedeatecuesattit 247 Error 6 Storage Registers cccceecceeeecceeeeeeeeeeeeeeeeeeeeneeseeeeaeeens 248 EO 7 IER core tcc es codeine ree nase de tana edeNece dee nano e 248 Error 8 Calendar a ae aan ae ee ne enon nee ae eee eae 249 WON Fs OCI E A E 249 PE EOT strccsceciaccetireas Ocaivanta tAcrndenitea burt E EEEE EEEE 249 Appendix E Formulas Used ssccsssscssssscccsssseees 250 PENCE STNOG E enserra vuceaiura E casas E A EE 250 WRC saree E E sted tree E EAE E EE T 250 Simple Interest cccccccccccesssseeeeecceeeesssaeeeeeeeeeeeessaeeeseeeeess 250 Compound INIGrst 0 iacieseiseenesessncrssesevanssesivetaceseveeesetecetanes 251 PIMOMIZOMON hin cited irena rE EAn E REESE EEO EE EEA 251 Discounted Cash Flow Analysis cen cede czniesonentedaceaeniseenesselsccxemintaee 252 Net Present Value ac ies oss osscniucunasintsasutencedmdaingaanedeniadminaeianmiies 252 Internal Rate of Return ccccccccccccccceseeeessssssseeeeeeseeeceeeeseees 252 Eo a
204. natural resources ensure that it is recycled in a manner that protects human health and the environment For more information about where you can drop off your waste equipment for recycling please contact your local city office your household waste disposal service or the shop where you purchased the product File name hp 12c pt_user s guide_English_HDPMF123E27 Page 266 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Appendix G United Kingdom Calculations The calculations for most financial problems in the United Kingdom are identical to the calculations for those problems in the United States which are described earlier in this handbook Certain problems however require different calculation methods in the United Kingdom than in the United States even though the terminology describing the problems may be similar Therefore it is recommended that you ascertain the usual practice in the United Kingdom for the financial problem you are solving The remainder of this appendix describes three types of financial calculations for which the conventional practice differs significantly between the United Kingdom and the United States Mortgages The amount of the repayments on home loans and mortgages offered by banks in the United Kingdom can usually be calculated as described under Calculating the Payment Amount page 58 Building Societies in the United Kingdom however calculate the amount of these repayments d
205. nce this is the second program to be stored in program memory we ll ensure that a GTO OOO instruction separates it from the first program by doing step 3 in the procedure above Furthermore since this program does not end with a loop we ll do steps 5 and 6 too Keystrokes RPN mode Lg lieto J017 9 JlctTo 000 ENTER 2 5 5 R S g ieToJO19 Keystrokes ALG mode 9 jeto J023 9 eTo O00 Display 017 43 33 002 018 43 33 000 019 36 020 2 021 5 022 25 023 30 024 5 025 40 026 31 027 43 33 019 12 000 00 Display 023 43 33 002 024 43 33 000 File name hp 12c pt_user s guide_English_HDPMF 123E27 Printed Date 2005 8 1 Sets calculator to Program mode Sets calculator to last line keyed into program memory Ensures that second program is separated from first by GTO OOO Keys in program Halts program execution Branches to beginning of program Sets calculator back to Run mode Display shown assumes results remain from running program in previous example Sets calculator to Program mode Sets calculator to last line keyed into program memory Ensures that second program is separated from first by GTO OOO Page 150 of 275 Dimension 14 8 cm x 21 cm 7 Section 11 Multiple Programs 151 Keystrokes ALG mode Dispiay 025 30 2 026 2 5 027 5 028 25 Keys in program 029 40 5 030 5 031 36 032 31 Halts program ex
206. nd A Press T For example if you already knew in the preceding example that the total sales were 7 95 million and you wanted to find what percentage of that total occurred in Europe Keystrokes ALG mode Display 7 95 7 95 Keys in the total amount and separates it from the next number 2 36 2 36 Keys in 2 36 to tind what percentage it is of the number in the display 29 69 Europe had nearly 30 of the total sales Calendar Functions The calendar functions provided by the hp 12c platinum 9 DATE and g jabYS can handle dates from October 15 1582 through November 25 4046 These calendar functions work the same in both RPN and ALG modes Date Format For each of the calendar functions and also for bond calculations f_ PRICE and f YTM the calculator uses one of two date formats The date format is used to interpret dates when they are keyed into the calculator as well as for displaying dates Month Day Year To set the date format to month day year press 9 M 0Y To key in a date with this format in effect 1 Key in the one or two digits of the month 2 Press the decimal point key L 3 Key in the two digits of the day 4 Key in the four digits of the year Dates are displayed in the same format File name hp 12c pt_user s guide_English_HDPMF123E27 Page 37 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 38 Section 2 Percentage and Calendar Function
207. ndicator will be shown in the display As open parentheses are closed the expression contained within the parentheses is evaluated from left to right The final result of a calculation will be displayed when you press the key and then any pending parentheses will be closed You can t use more than 13 pending opened parentheses at the same time For example suppose you want to calculate 8 5 1 Keying 8 5 1 will calculate 8 5 first and then the result 1 6 will have 1 subtracted from it resulting in 0 6 which is not what is intended File name hp 12c pt_user s guide_English_HDPMF123E27 Page 26 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 1 Getting Started 27 If you want to calculate use the following keystrokes Keystrokes Display ALG mode 0 00 Clears any pending operations 8 JL9 LUS5L 5 00 No calculation is done 1 9 J 4 00 Calculates 5 1 2 00 8 Calculates 5 1 Storage Registers Numbers data in the hp 12c platinum are stored in memories called storage registers or simply registers The singular term memory is sometimes used in this handbook to refer to the entire collection of storage registers Four special registers are used for storing numbers during calculations these stack registers are described in Appendix A and another called the LAST X register is used for storing the number last in the d
208. ng in the tax rate before the instruction we ll store it in register R and recall it before the instruction Before storing the program in program memory we ll calculate the required amounts for the first item on the invoice manually The keystroke sequence will use storage register arithmetic described on page 29 in registers R R and R to calculate the column sums Since these registers are cleared when f CLEAR Z is pressed we ll press those keys before beginning the manual calculation and also later before running the program to ensure that the column sums are initialized to zero Pressing f JCLEAR REG would clear registers R through R but would also clear R which will contain the tax rate File name hp 12c pt_user s guide_English_HDPMF123E27 Page 117 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 118 Section 8 Programming Basics DIRECT FORM PURCHASE REQUISITION ORDER P O No 25 RASTON UNGER BENTZ amp YATES JEWELERS 2561 N W Morrison Ave New York New York 14203 Telephone 716 731 8240 ORDER CONFIRMING SHIP VIA SURFACE a AIR L UPS E DATE VENDOR E WILL CALL L OTHER ITEM DESCRIPTION UNIT AMOUNT PRICE 6 75 pt i S a T a a Pressing the 9 PSE keys is not necessary when we do the calculations manually since in Run mode the result of every intermediate calculation is displayed automatically but we ll include 9 PSE instructions in the program so that the
209. ng operation automatically clears the register before the data is stored To clear all storage registers at once including the financial registers the stack registers and the LAST X register press f CLEAR REG This also clears the display All storage registers are also cleared when Continuous Memory is reset as described on page 86 Storage Register Arithmetic Suppose you wanted to perform an arithmetic operation with the number in the display and the number in a storage register then store the result back into the same register without altering the number in the display The hp 12c platinum enables you to do all this in a single operation 1 Press STO 2 Press X or to specify the desired operation 3 Key in the register number When storage register arithmetic is performed the new number in the register is determined according to the following rule number now number formerly i l number in display In register In register X dar Storage register arithmetic is possible with only registers R through R Example In the example on page 23 we updated the balance in your checkbook Let s suppose that because data is stored indefinitely in your calculator s Continuous Memory you keep track of your checking account balance in the calculator You could use storage register arithmetic to quickly update the balance after depositing or writing checks Keystrokes Display 58 33
210. ng such products and services Nothing herein should be construed as constituting an additional warranty HP shall not be liable for technical and editorial errors or omissions contained herein FOR CONSUMER TRANSACTIONS IN AUSTRALIA AND NEW ZEALAND THE WARRANTY TERMS CONTAINED IN THIS STATEMENT EXCEPT TO THE EXTENT LAWFULLY PERMITTED DO NOT EXCLUDE RESTRICT OR MODIFY AND ARE IN ADDITION TO THE MANDATORY STATUTORY RIGHTS APPLICABLE TO THE SALE OF THIS PRODUCT TO YOU Service Telephone numbers Austria 43 1 360277 1203 32 2 7126219 45 8 2332844 420 5 41422523 35 89640009 33 1 49939006 49 69 95307 103 Greece 420 5 41422523 Holland 3 1 2 06545301 ltaly 39 02 75419782 47 63849309 35 1 229570200 34 9 1 5 642095 Europe Belgium Denmark Eastern Europe countries Finland France Germany Norway Portugal Spain Sweden Switzerland Turkey UK Czech Republic South Africa Luxembourg Other European countries 46 851992065 41 1 4395358 German 4 22 8278780 French 39 02 75419782 Italian 420 5 41422523 44 207 4580161 420 5 41422523 27 11 2376200 32 2 7126219 420 5 41422523 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 264 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendix F Battery Warranty and Service Information 265 Asia Pacific Telephone numbers Australia 61 3 9841 5211 Singapore 61 3 9841 521 1 L America Argentina
211. ns In summary to enter the cash flow amounts 1 Press f CLEAR REG to clear the financial and storage registers 2 Key in the amount of the initial investment press if that cash flow is negative then press 9 CFo 3 Key in the amount of the next cash flow press if the cash flow is negative then press 9 CFi If the cash flow amount is zero in the next period press O 9 CFi 4 Repeat step 3 for each cash flow until all have been entered With the amounts of the cash flows stored in the calculator s registers you can calculate NPV as follows 1 Enter the interest rate using Li or 9 12 2 Press f_ NPV The calculated value of NPV appears in the display and also is automatically stored in the PV register Example An investor has an opportunity to buy a duplex for 80 000 and would like a return of at least 13 He expects to keep the duplex 5 years and then sell it for 130 000 and he anticipates the cash flows shown in the diagram below Calculate NPV to determine whether the investment would result in a return or a loss 130 000 CF 4500 2299 4500 cr s CF CF CF 500 80 000 Note that although a cash flow amount 4 500 occurs twice these cash flows are not consecutive Therefore these cash flows must be entered using the method described above Keystrokes Display CLEAR REG 0 00 Clears financial and storage registers 80000 CHS 9 CFo 80 000 00 Stores CF with m
212. o interest Portion of second payment applied to principal Total number of payments amortized If you want to generate an amortization schedule but do not already know the monthly payment 1 Calculate PMT as described on page 58 2 Press Oln to reset n to zero 3 Proceed with the amortization procedure listed on page 69 beginning with step 6 Example Suppose you obtained a 30 year mortgage instead of a 25 year mortgage for the same principal 250 000 and at the same interest rate 5 25 as in the preceding example Calculate the monthly payment then calculate the amounts applied to interest and to the principal from the first month s payment Since the interest rate is not being changed do not press f JCLEAR FIN to calculate PMT just enter the new value for n reset PV then press PMT Keystrokes 309 12x 250000 PV PMT oln 1 Lf favor Display 360 00 Enters n 250 000 00 Enters PV 1 380 51 0 00 1 093 75 286 76 Monthly payment Resets n to zero Portion of first payment applied to interest Portion of first payment applied to principal 249 713 24 Remaining balance File name hp 12c pt_user s guide_English_HDPMF123E27 Page 71 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 7 Section 4 Additional Financial Functions Discounted Cash Flow Analysis NPV and IRR The hp 12c platinum provides functions for the two most widely used methods
213. o Calculate Keystrokes Display RPN mode 2 2 ENTER 1 4 y 2 64 P 2 ENTER 1 4 cHs y 0 38 2 2 CHS ENTER 3 y 8 00 3 9 or 2 2 ENTER 3 Lx J Y 1 26 The Power Function in ALG Mode To calculate a power of a number that is y in ALG mode do the following 1 Key in the base number which is designated by the y on the key 2 Press y and key in the exponent which is designated by the x on the key 3 Press to calculate the power To Calculate se ae Display 7 2 y 1 4 2 64 a 2 y 1 4 CHS 0 38 2 2 CHS y 3l 8 00 J2 o2 2 9 3 4 1 26 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 102 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Part Il Programming File name hp 12c pt_user s guide_English_HDPMF123E27 Page 103 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 8 Programming Basics Why Use Programs A program is simply a sequence of keystrokes that is stored in the calculator Whenever you have to calculate with the same sequence of keystrokes several times you can save a great deal of time by incorporating these keystrokes in a program Instead of pressing all the keys each time you press just one key to start the program the calculator does the rest automatically Creating a Program Creating a program consists simply of writing the program then storing it 1 Write down the sequence
214. o Program mode CLEAR PRem 000 Clears program memory STO O 001 44 0 Stores the number from the display into register R This number will be the number of payments to be amortized RCL O 002 45 0 Recalls the number of payments to be amortized This program line is the one to which program execution will later branch It is included because after the first time the loop is executed the number in the display is replaced by the result of f avort More precisely the number in the X register File name hp 12c pt_user s guide_English_HDPMF123E27 Page 126 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Keystrokes 9 PSE 9 PSE 9 GTO O02 JCLEAR FIN 30 9 12x 4 75012 150000 PV 9 J END PMT oln 1 Section 9 Branching and Looping 127 Display 003 42 11 004 43 31 005 34 006 43 31 007 43 33 002 0 00 0 00 360 00 0 40 150 000 00 150 000 00 782 47 0 00 1 001 44 0 1 00 002 45 0 1 00 003 42 11 Amortizes payment s Pauses to display amount of payment s applied to interest Brings amount of payment s applied to principal into display Pauses to display amount of payment s applied to principal Transfers program execution to line 002 so that the number of payments to be amortized can be recalled to the display before the instruction in line 003 is executed Sets calculator to Run mode Display shown ass
215. ods per year and pressing n OlPvV FvV Pressing will then display the rounded APR Bond Calculations Solutions for the price and yield to maturity of United Kingdom bonds are not included in this handbook Actual practice differs according to the type of bond variations such as cumulative and ex dividend pricing simple or compound interest discounting etc may be encountered Application Notes covering such situations may be available in the United Kingdom check with your local authorized Hewlett Packard dealer File name hp 12c pt_user s guide_English_HDPMF123E27 Page 268 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 E Function Key Index General Power on off key page 16 Shift key Selects alternate function in gold above the function keys page 16 Also used in display formatting page 87 L9 Shift key Selects alternate function in blue on the slanted face of the function keys page 16 IJCLEARPREFX after f 9 STO RCL or GTO cancels that key page 19 CLEARPREFIX also displays mantissa of number in the displayed X register page 89 Backspacing Deletes last character or a number page 18 Undo Recovers the last operation page 19 Digit Entry Enters a copy of number in displayed X register into Y register Used to separate numbers pages 21 and 229 Changes sign of number or exponent of 10 in X register
216. of discounted cash flow analysis net present value and internal rate of return These functions enable you to analyze financial problems involving cash flows money paid out or received occurring at regular intervals As in compound interest calculations the interval between cash flows can be any time period however the amounts of these cash flows need not be equal To understand how to use and f IRR lets consider the cash flow diagram for an investment that requires an initial cash outlay CF and generates a cash flow CF at the end of the first year and so on up to the final cash flow CF at the end of the sixth year In the following diagram the initial investment is denoted by CF and is depicted as an arrow pointing down from the time line since it is cash paid out Cash tlows CF and CF also point down trom the time line because they represent projected cash flow losses CF CF CF CF CF CF CF NPV is calculated by adding the initial investment represented as a negative cash flow to the present value of the anticipated future cash flows The interest rate i will be referred to in this discussion of NPV and IRR as the rate of return The value of NPV indicates the result of the investment Other terms are sometimes used to refer to the rate of return These include required rate of return minimally acceptable rate of return and cost of capital 72 File name hp 12c pt_user s guide_Eng
217. of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 6 Statistics Functions 97 To continue summing data pairs press 9 X 9 before entering more data Note In some cases involving data values that differ by a relatively small amount the calculator cannot compute the standard deviation or the linear estimation accurately because such calculations would exceed the precision of the calculator For instance while the standard deviation of the values 1 999 999 2 000 000 and 2 000 001 is 1 the standard deviation returned by the hp 12c platinum is O due to the effect of roundoff This will not happen however if you normalize the data by keying only the difference between each value and the mean or approximate mean of the values In the preceding example the correct result can be obtained using the values 1 O and 1 instead Just remember to add the difference 2 000 000 back to the calculation of the average Linear Estimation With two variable statistical data accumulated in the statistics registers you can estimate a new y value Y given a new x value and estimate a new x value X given a new y value To calculate Y and 1 Key in a new x value 2 Press 9 9 r To calculate x 1 Key in a new y value 2 Press 9 Rr Example Using the accumulated statistics from the preceding problem estimate the amount of sales delivered by a new salesperson working 48 hours per week Keys
218. of a series of prior cash flows In the particular problem illustrated above FV is unknown but can be calculated Solving the problem is now basically a matter of keying in the quantities identitied in the cash tlow diagram using the corresponding keys and then calculating the unknown quantity by pressing the corresponding key In the particular problem illustrated in the cash flow diagram above FV is the unknown quantity but in other problems as we shall see later n i PV or PMT could be the unknown quantity Likewise in the particular problem illustrated above there are four known quantities that must be entered into the calculator before solving for the unknown quantity but in other problems only three quantities may be known which must always include n or i The Cash Flow Sign Convention When entering the PV PMT and FV cash flows the quantities must be keyed into the calculator with the proper sign plus or minus in accordance with The Cash Flow Sign Convention Money received arrow pointing up is entered or displayed as a positive value Money paid out arrow pointing down is entered or displayed as a negative value The Payment Mode One more bit of information must be specified before you can solve a problem involving periodic payments Such payments can be made either at the beginning of a compounding period payments in advance or annuities due or at the end of the period payments in arr
219. of keystrokes that you would use to calculate the quantity or quantities desired 2 Select the mode you want to use by pressing or f ALG Note Programs or steps created and saved in RPN mode should only be executed in RPN mode and programs or steps created and saved in ALG mode should only be executed in ALG mode You can also create steps in your program to switch to the appropriate mode 3 Press to set the calculator to Program mode When the calculator is in Program mode functions are not executed when they are keyed in but instead are stored inside the calculator The PRGM status indicator in the display is lit when the calculator is in Program mode 4 Press f CLEAR PRem to erase any previous programs that may be stored inside the calculator If you want to create a new program without erasing a program already stored skip this step and proceed as described in Section 11 Multiple Programs 5 Key in the sequence of keystrokes that you wrote down in step 1 Skip the beginning keystrokes that enter data which would differ each time the program is used 104 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 104 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 8 Programming Basics 105 Example Your office supplies dealer is selling selected stock at 25 off Create a program that calculates the net cost of an item after the discount is subtracted and the 5 handling charge is
220. ogram so that the 9 GTo O0O instruction keyed in next will be stored as the last line of the current program Ends the current program with a 9 6To 000 Added instructions Keys in instruction immediately following point at which new instructions are being added This instruction was replaced in line 001 by 9 GT0 018 instruction Branches back to second line line 002 following point at which new instructions are being added Sets calculator back to Run mode Stores test value in register R Runs program for income less than 7 500 Display shows original income keyed in indicating that tax is Zero Tax on 15 000 income Net income atter tax This shows program still works for an income greater than 7 500 and less than 20 000 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 147 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 148 Section 10 Program Editing The following illustration of the edited RPN program shows how program execution branches to the instructions added at the end of program memory then branches back While the actual program in ALG mode is different the illustration does indicate the method used Branches to line 012 000 O 011 43 33 000 lt GTO 000 instruction preserved 001 43 33 012 gt gt 012 45 3 lt a Instructions added 5 0 005 45 45 08 09 015 43 33 000 013 014 43 34 16 006 43 33 0
221. ompound interest will be used for the odd period Keys in the date interest begins accruing and separates it from the next date entered Keys in the date of the beginning of the first period Actual number of odd days Number of odd days counted on the basis of a 30 day month Divides by the length of a monthly period to get the fractional part of n Adds the fractional part of n to the number of complete payment periods then stores the result in n Calculates and stores i Stores PV Monthly payment Turns on the C indicator in the display so that compound interest will be used for the odd period File name hp 12c pt_user s guide_English_HDPMF123E27 Page 65 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 66 Section 3 Basic Financial Functions Keystrokes Displa ALG mode prey 2 152004 2 15 Keys in the date interest begins accruing and separates it from the next date entered 3 012004 3 012004 Keys in the date of the beginning of the first period 9 abys 15 00 Actual number of odd days 16 00 Number of odd days counted on the basis of a 30 day month 304 0 53 Divides by the length of a monthly period to get the fractional part of n 36ln 36 53 Adds the fractional part of n to the number of complete payment periods then stores the result in n 5 9 12 0 42 Calculates and stores i 4500 PV 4 500 00 Stores PV PMT 135 17 Monthly payment Example 2 A 42 month loan
222. osing costs would be about 3 700 Selling costs include a 6 commission for resale and miscellaneous other fees that amount to another 2 of the sale price Housing in the area is appreciating 5 per year Property taxes would be about 300 per month and you estimate that maintenance would cost an additional 165 per month An alternative would be to rent a similar dwelling at 900 per month and to invest the difference between the purchase cost and rent at 3 interest Your personal income tax rate marginal is 25 Federal and 5 State Which alternative is more financially attractive sit a mm RPN mode ALG mode f RPN ALG e Co a Oe ee am fam 00 Years in investment s a File name hp 12c pt_user s guide_English_HDPMF123E27 Page 168 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 _ Section 12 Real Estate and Lending 169 Keystrokes Keystrokes Displa RPN mode ALG mode pay By purchasing a house you would gain 7 047 04 53 095 65 46 048 61 over an alternate investment at 3 interest Deferred Annuities Sometimes transactions are established where payments do not begin for a specitied number of periods the payments are deferred The technique for calculating NPV may be applied assuming zero for the first cash flow Refer to pages 73 through 77 Example 1 You have just inherited 20 000 and wish to put some of it aside for your daughter s college
223. ough R Too many open parentheses File name hp 12c pt_user s guide_English_HDPMF123E27 Page 246 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Appendix D Error Conditions 247 Error 5 Compound Interest Operation Condition i 0 and PMT 0 PMT is between FV x d and PV x d inclusive ez where d 100 where S 0 for END 4 1x 100 mode and 1 for BEG mode i lt 100 Li n 0 n gt 10 orn lt O i lt 100 Cash flows all have same sign i lt 100 PMT n 0 i lt 100 Fv i lt 100 x lt 0 x Is noninteger i lt 100 n lt O SOYD n gt 10 DB x lt 0 x is noninteger PMT lt 0 YTM PMT lt 0 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 247 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ 248 Appendix D Error Conditions Error 6 Storage Registers Operation STO RCL CFj Z 3 lt rs A z Error 7 IRR Refer to Appendix C Condition Storage register specified does not exist or has been converted to progranm lines n specifies a storage register that does not exist or has been converted to progranm lines n gt 80 n lt 0 n is noninteger x gt 99 x lt 0 x is noninteger Attempted to input N for CF File name hp 12c pt_user s guide_English_HDPMF123E27 Page 248 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Appendix D Error Conditions 249 Error 8 Calendar O
224. outlet but that seems too low 9 LSTx 9 987 00 Recalls to the display the number that was there before you press You see that you keyed it in wrong 429000 ENTER 429 000 00 Begins the problem over 987 434 65 The correct answer File name hp 12c pt_user s guide_English_HDPMF123E27 Page 92 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 6 Statistics Functions Accumulating Statistics The hp 12c platinum can perform one or two variable statistical calculations The data is entered into the calculator using the 2 key which automatically calculates and stores statistics of the data into storage registers R through R These registers are therefore referred to as the statistics registers Before beginning to accumulate statistics for a new set of data you should clear the statistics registers by pressing f JCLEARL In one variable statistical calculations to enter each data point referred to as an xvalue key the x value into the display then press In two variable statistical calculations to enter each data pair referred to as the x and y values 1 Key the y value into the display 2 Press ENTER 3 Key the x value into the display A Press z Each time you press 2 the calculator does the following e The number in R is increased by 1 and the result is copied into the display The x value is added to the number in R The square o
225. ower indicator should turn on If the display shows Error 9 goes blank or otherwise does not show the proper result the calculator requires service status indicators turned on at the end of this test include some that normally are not displayed on the hp 12c platinum t If the calculator displays Error 9 as a result of the 0N X test or the ON test but you wish to continue using your calculator you should reset Continuous Memory as described on page 86 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 261 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 262 Appendix F Battery Warranty and Service Information Note Tests of the calculator s electronics are also performed if the key or the key is held down when 0N is released These tests are included in the calculator to be used in veritying that it is operating properly during manutacturing and service If you had suspected that the calculator was not working properly but the proper display was obtained in step 2 it is likely that you made an error in operating the calculator We suggest you reread the section in this handbook applicable to your calculation including if appropriate Appendix A If you still experience difficulty write or telephone Hewlett Packard at an address or phone number listed under Service Page 264 The ON combination initiates a test that is similar to that described above but continu
226. own on paper leftto right After keying in the first number press the key to tell the calculator that you have completed entering the number Pressing separates the second number to be entered from the first number already entered In summary to perform an arithmetic operation 1 Key in the first number 2 Press to separate the second number from the first 3 Key in the second number 4 Press LXJ or to perform the desired operation For example to calculate 13 2 proceed as follows Keystrokes RPN mode pispidy 13 13 Keys the first number into the calculator ENTER 13 00 Pressing separates the second number from the first 2 2 Keys the second number into the calculator Ea 6 50 Pressing the operation key calculates the answer Notice that after you pressed ENTER two zeroes appeared following the decimal point This is nothing magical the calculator s display is currently set to show two decimal places of every number that has been entered or calculated Before you pressed ENTER the calculator had no way of knowing that you had completed entering the number and so displayed only the digits you had keyed in Pressing tells the calculator that you have completed entering the number it terminates digit entry You need not press after keying in the second number because the L LX and keys also terminate digit entry In fact all keys terminate digit entry except for digit entry keys
227. p 12c pt_user s guide_English_HDPMF123E27 Page 54 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 3 Basic Financial Functions 55 Keystrokes i ALG mode Display 4000 22 73 Calculates final fractional 58 deposit required to reach 4 000 Calculating the Periodic and Annual Interest Rates 1 Press f CLEARLFIN to clear the financial registers 2 Enter the number of payments or periods using n or 9 12x 3 Enter at least two of the following values e Present value using PV e Payment amount using PMT e Future value using FV Note Remember to observe the cash flow sign convention 4 Ifa PMT was entered press 9 BEG or 9 END to set the payment mode Press i to calculate the periodic interest rate 6 To calculate the annual interest rate in RPN mode key in the number of periods per year then press X To calculate the annual interest rate in ALG mode press X key in the number of periods per year then press Example What annual interest rate must be obtained to accumulate 10 000 in 8 years on an investment of 6 000 with quarterly compounding 10 000 FV A n PV 6 000 Keystrokes RPN mode JCLEAR FIN SENTER A X n 32 00 Calculates and stores n 6000 CHS PV 6 000 00 Stores PV with minus sign for cash paid out 10000 FV 10 000 00 Stores FV Display File name hp 12c pt_user s guide_English_HDPMF123E27
228. page 17 Enter exponent Atter pressing next numbers keyed in are exponents of 10 page 18 0 9 digits Used for keying in numbers page 21 and display formatting page 87 Decimal point page 17 Also used for display formatting page 87 Clears contents of displayed X register to zero page 19 Arithmetic J JL lt JL JL J Arithm etic operators page 21 Storage Registers Store Followed by number key decimal point and number key or top row financial key stores displayed number in ede register specitied page 27 Also used to perform storage register arithmetic page 29 Recall Followed by number key decimal point and number key or top row financial key recalls value from storage register eee into the displayed X register page 27 269 CLEAR Clears contents of stack X Y Z and T all storage registers statistical registers and financial registers page 28 Leaves program memory untouched not programmable Percentage Computes x of y and retains the y value in the Y register page 31 Computes percent of change between number in Y register and number in displayed X register page 33 Computes percent that x is of number in Y register page 35 Calendar Sets date format to day month year page 38 not programmable Sets date format to month day year page 37 not programmable Changes a date in the Y register b
229. payment to be received by the lessor 6 For a new case return to step 2 The values changed from the previous case are the only values which need to be entered File name hp 12c pt_user s guide_English_HDPMF123E27 Page 204 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 7 Section 14 Leasing 205 Example 2 Using the preceding program solve for the monthly payment using the information given in example 1 Then change the yearly interest to 15 and solve tor the new payment amount Keystrokes Keystrokes Displa sa mode te mode pay wO a aan 3 00 of advance payments a a 750 STO 3 R S R S a o payment to be 1500126 Parag 1 tan o R S sTO 2 CoE ea 43 a payment to achieve a 15 yield Example 3 Using the information from example 1 what monthly payment is necessary to yield the lessor 15 annually if one payment is due at the time of closing Assuming that the previous example was just solved the keystrokes are as follows Keystrokes Keystrokes Discla RPN mode ALG mode pay 1 STO 1 R S 1 ST0 1 R S 66 86 Monthly payment to be received Since this problem is an annuity due situation one payment at the beginning of the period the calculation could also be done as follows Keystrokes Keystrokes Displa RPN mode ALG mode pay me 12 12 Periodic interest rate into Periodic interest rate into i 750 CHS PV
230. peration Condition ADYS DATE Improper date format or illegal date DATE Attempting to add days beyond calculator s date capacity a Improper date format or illegal date More than 500 years between settlement purchase date and maturity redemption date Maturity date earlier than settlement date Maturity date has no corresponding coupon date 6 months earlier Error 9 Service Refer to Appendix F Pr Error e Continuous Memory has been reset Refer to Continuous Memory page 86 e You have reset the calculator using the reset hole see page 261 This is the case for the 31st of March May August October and December plus August 29 except in a leap year and 30 For example there is no September 31 so March 31 has no corresponding coupon date 6 months earlier To correct this problem for all maturity dates except August 29 and 30 add one day to both the settlement date and the maturity date in your calculations For instance if a bond were purchased on June 1 2004 the settlement date with a maturity date of December 31 2005 you should change the dates to June 2 2004 and January 1 2006 for your calculations For August 29 and 30 there is no calculator solution that gives the correct answer File name hp 12c pt_user s guide_English_HDPMF123E27 Page 249 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendix E Formulas Used Percentage of Base y x Rate x 100 A 1
231. period For simplicity in using the hp 12c platinum we will always regard the first period as equal to the remaining periods and we will refer to the period between the date interest begins accruing and the beginning of the first payment period as simply the odd period or the odd days Note that the odd period is always assumed by the calculator to occur before the first full payment period The following two cash flow diagrams represent transactions including an odd period for payments in advance Begin and for payments in arrears End PV Begin n n FV End yar odd 1 2 period PMT File name hp 12c pt_user s guide_English_HDPMF123E27 Page 63 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 64 Section 3 Basic Financial Functions You can calculate i PV PMT and FV for transactions involving an odd period simply by entering a noninteger n A noninteger is a number with at least one nonzero digit to the right of the decimal point This places the calculator in Odd Period mode The integer part of n the part to the left of the decimal point specities the number of full payment periods and the fractional part the part to the right of the decimal specities the length of the odd period as a fraction of a full period The odd period therefore cannot be greater than one full period The fractional part of n can be determined using either the actual number of odd days or the number o
232. r s instructions Do not mutilate puncture or dispose of batteries in fire The batteries can burst or explode releasing hazardous chemicals Replacement battery is a Lithium 3V Coin Type CR20372 259 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 259 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 260 Appendix F Battery Warranty and Service Information Installing a New Battery The contents of the calculator s Continuous Memory are preserved for a short time while the battery is out of the calculator provided that you turn off the calculator before removing the battery This allows you ample time to replace the battery without losing data or programs If the battery is lett out of the calculator for an extended period the contents of Continuous Memory may be lost To install a new battery use the following procedure LOON pn 4 With the calculator turned off slide the battery cover off Remove the old battery Insert a new battery with positive polarity facing outward Replace the battery cover Note Be careful not to press any keys while the battery is out of the calculator If you do so the contents of Continuous Memory may be lost and keyboard control may be lost that is the calculator may not respond to keystrokes s Replace the battery compartment cover and press to turn on the power If for any reason Continuous Memory has been reset that is if its
233. r maintenance HP MAKES NO OTHER EXPRESS WARRANTY OR CONDITION WHETHER WRITTEN OR ORAL TO THE EXTENT ALLOWED BY LOCAL LAW ANY IMPLIED WARRANTY OR CONDITION OF MERCHANTABILITY SATISFACTORY QUALITY OR FITNESS FOR A PARTICULAR PURPOSE IS LIMITED TO THE DURATION OF THE EXPRESS WARRANTY SET FORTH ABOVE Some countries states or provinces do not allow limitations on the duration of an implied warranty so the above limitation or exclusion might not apply to you This warranty gives you specific legal rights and you might also have other rights that vary from country to country state to state or province to province TO THE EXTENT ALLOWED BY LOCAL LAW THE REMEDIES IN THIS WARRANTY STATEMENT ARE YOUR SOLE AND EXCLUSIVE REMEDIES EXCEPT AS INDICATED ABOVE IN NO EVENT WILL HP OR ITS SUPPLIERS BE LIABLE FOR LOSS OF DATA OR FOR DIRECT SPECIAL INCIDENTAL CONSEQUENTIAL INCLUDING LOST PROFIT OR DATA OR OTHER DAMAGE WHETHER BASED IN CONTRACT TORT OR OTHERWISE File name hp 12c pt_user s guide_English_HDPMF123E27 Page 263 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 _ 264 Appendix F Battery Warranty and Service Information Some countries States or provinces do not allow the exclusion or limitation of incidental or consequential damages so the above limitation or exclusion may not apply to you 8 The only warranties for HP products and services are set forth in the express warranty statements accompanyi
234. r share What is the percent change Note that the key is the same as the key in ALG mode Keystrokes Display 58 5 ENTER 58 50 Keys in the base number and separates it from the other number 53 25 53 25 Keys in the other number 8 97 Nearly a 9 decrease The key can be used for calculations of the percent difference between a wholesale cost and a retail cost If the base number entered is the wholesale cost the percent difference is called the markup if the base number entered is the retail cost the percent difference is called the margin Examples of markup and margin calculations are included in the hp 12c platinum Solutions Handbook File name hp 12c pt_user s guide_English_HDPMF123E27 Page 34 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 2 Percentage and Calendar Functions 35 Percent of Total in RPN Mode In RPN mode to calculate what percentage one number is of another 1 Calculate the total amount by adding the individual amounts just as in a chain arithmetic calculation 2 Key in the number whose percentage equivalent you wish to find 3 Press T Example Last month your company posted sales of 3 92 million in the U S 2 36 million in Europe and 1 67 million in the rest of the world What percentage of the total sales occurred in Europe Keystrokes Displa RPN mode p 3 9 2 ENTERI 3 92 Keys in the first number and separates it from the second 2 36 4 6 28 Adds
235. r the periodic interest rate using Li or 9 12 3 Enter at least two of the following values e Present value using PV Note Remember to observe e Payment amount using PMT the cash flow sign e Future value using FV convention 4 Ifa PMT was entered press 9 BEG or 9 END to set the payment mode 5 Press N to calculate the number of payments or periods File name hp 12c pt_user s guide_English_HDPMF123E27 Page 49 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 50 Section 3 Basic Financial Functions If the answer calculated is not an integer that is there would be nonzero digits to the right of the decimal point the calculator rounds the answer up to the next higher integer before storing it in the n register and displaying it For example if n were calculated as 318 15 319 00 would be the displayed answer n is rounded up by the calculator to show the total number of payments needed n 1 equal full payments and one final smaller payment The calculator does not automatically adjust the values in the other financial registers to reflect n equal payments rather it allows you to choose which if any of the values to adjust Therefore if you want to know the value of the final payment with which you can calculate a balloon payment or desire to know the payment value for n equal payments you will need to press one of the other financial keys as shown in the following two examples
236. r year this keystroke procedure computes the effective annual interest rate 1 Press 9 JEND and f CLEAR FIN RPN Mode 2 Key in the annual nominal rate as a percentage then press ENTER 3 Key in the number of compounding periods per year then press n J i 4 Press CHS PMT FV to obtain the effective annual interest rate ALG Mode Key in the annual nominal rate as a percentage Press Key in the number of compounding periods per year then press i CHS PMT Then key in the number of compounding periods per year and press n Press to obtain the effective annual interest rate Example 1 What is the effective annual interest rate if the annual nominal rate of 5 25 is compounded quarterly Keystrokes Keystrokes RPN mode ALG mode Ti f CLEAR FIN f CLEAR FIN 4 n Jl 4l i 1 31 Percent quarterly interest rate CHS PMT FV CHS PMT 4 n Fv Percent effective interest rate 213 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 213 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm m _ 214 Section 15 Savings For repeated calculations the following hp 12c platinum program can be used KEYSTROKES DISPLAY ALG mode DISPLAY P R CLEAR Prem 000 CLEAR Prev el E g 001 43 8 f CLEAR FIN 002 42 34 Xzy 004 34 CLEARLFIN 005 10 006 34 i 000 0
237. rage registers Later the customer decides to buy six computers and one printer You recall the cost of the computer multiply by the quantity ordered and then recall and add the cost of the printer to get the total invoice Keystrokes Display 1250 STO O 1 250 00 500 sTo 2 500 00 ON Later that same day Keystrokes RPN mode Display 500 00 RCLJO 1 250 00 6Lx 7 500 00 RCL 2 500 00 8 000 00 Keystrokes Displa ALG mode pray 500 00 RCLJO 1 250 00 x 6 6 RCL 2 500 00 8 000 00 Stores the cost of the computer in R Stores the cost of the printer in R Turns the calculator off Turns the calculator back on Recalls the cost of the computer to the display Multiplies the quantity ordered to get the cost of the computers Recalls the cost of the printer to the display Total invoice Turns the calculator back on Recalls the cost of the computer to the display Multiplies by the quantity ordered to get the cost of the computers Recalls the cost of the printer to the display Total invoice File name hp 12c pt_user s guide_English_HDPMF123E27 Page 28 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 1 Getting Started 29 Clearing Storage Registers To clear a single storage register that is to replace the number in it with zero merely store zero into it You need not clear a storage register before storing data into it the stori
238. rder you enter them Keying in Negative Numbers chs The key changes the sign of a number e To key in a negative number type that number and then press CHS e To change the sign of an already displayed number press CHS Keystrokes Display ALG mode 0 00 Clears any pending operations 75 CHS 75 Changes the sign of 75 X 7 1 532 50 Multiplies 75 by 7 1 Chain Calculations in ALG Mode To do a chain calculation you don t need to press after each operation but only at the very end 50x12 360 e 750 x 12 360 or e 750 Xx 12 360 In the second case the key acts like the key by displaying the result of 750 x 12 For instance to calculate you can enter either 456 75 68 18 5 1 9 This calculation can be written as 456 75 18 5 x 68 1 9 Watch what happens in the display as you key it in Here s a longer chain calculation File name hp 12c pt_user s guide_English_HDPMF123E27 Page 238 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Appendix B Algebraic Mode ALG 239 Keystrokes Display ALG mode 0 00 Clears any pending operations 456 75 381 00 18 5 x 20 59 68 1 400 43 1 9 737 07 The Key in ALG Mode LAST X in ALG mode is not used in this book It is the one function that is quite different in ALG and RPN modes Refer to page 234 for the list of 23 ditferent key presses that cause the displayed X register to be copied
239. ressing in RPN mode or xey in ALG mode 1 Key in or calculate the number of days then press n Key in the annual interest rate then press i 2 3 Key in the principal amount then press CHS PV 4 Press to calculate and display the interest accrued on a 360 day basis 5 If you want to display the interest accrued on a 365 day basis press RuJ xzy 6 In RPN mode press or in ALG mode press X2Y to calculate the total of the principal and the accrued interest shown in the display The quantities n i and PV can be entered in any order Pressing the key stores the principal amount in the PV register which then contains the present value of the amount on which interest will accrue The key is pressed first to change the sign of the principal amount before storing it in the PV register This is required by the cash flow sign convention see page 46 which is applicable primarily to compound interest calculations File name hp 12c pt_user s guide_English_HDPMF123E27 Page 42 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 3 Basic Financial Functions 43 Example 1 Your good friend needs a loan to start his latest enterprise and has requested that you lend him 450 for 60 days You lend him the money at 7 simple interest to be calculated on a 360 day basis What is the amount of accrued interest he will owe you in 60 days and what is the total amount owed
240. revious balance The new current balance appears in the display The preceding example demonstrates how the hp 12c platinum calculates just as you would using pencil and paper except a lot faster 58 33 22 95 l 35 38 You do one 13 70 m a a the operation ata 21 68 results of eac time 10 14 operation 11 54 immediately 1 053 00 1 064 54 Let s see this happening in a different type of calculation one that involves multiplying groups of two numbers and then adding the results This is the type of calculation that would be required to total up an invoice consisting of several items with different quantities and different prices For example consider the calculation of 3 x 4 5 x 6 If you were doing this on paper you would do the multiplication in the first parentheses then the multiplication in the second parentheses and finally add the results of the two multiplications 3 xA 5A 212 020 042 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 24 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ Section 1 Getting Started 25 Your hp 12c platinum calculates the answer in just the same way in RPN mode Keystrokes RPN mode Display SENTERIA x 12 00 Step 1 Multiply the numbers in the first parentheses SIENTER 6 x 30 00 Step 2 Multiply the numbers in the second parentheses 42 00 Step 3 Add the results of the two multiplications Notice tha
241. rogram again The calculator is also automatically set to program line 000 when you press to set the calculator from Program mode to Run mode or when f CLEAR Prem is pressed in run mode The GTO OOO instruction was already stored in line 008 in fact in all program lines before you keyed in the program If no instructions have been keyed into program memory if Continuous Memory is reset or if Lf CLEAR PRcM is pressed in Program mode the instruction GTO OOO is automatically stored in program lines 001 through 008 As you key each instruction into program memory it replaces the GTO OOO instruction in that program line If your program should consist of exactly eight instructions there would be no GTO OOO instructions remaining at the end of program memory Nevertheless after such a program is executed the calculator automatically returns to program line 000 and halts just as if there were a GTO OOO instruction following the program If you key in more than eight instructions program memory automatically expands to accommodate the additional instructions Expanding Program Memory If no instructions have been keyed into program memory if Continuous Memory has been reset or if f CLEAR PRem has been pressed in Program mode program memory consists of 8 program lines and there are 20 storage registers available for storage of data File name hp 12c pt_user s guide_English_HDPMF123E27 Page 112 of 275 Printed Dat
242. ructions are being added This instruction was replaced in line 001 by 9 GTO O12 instruction Branches back to second line line 002 following point at which new instructions are being added Sets calculator back to Run mode Stores test value in register R Runs program for income less than 7 500 Display shows original income keyed in indicating that tax is Zero Tax on 15 000 income Net income after tax This shows program still works for an income greater than 7 500 and less than 20 000 Sets calculator to Program mode Sets calculator to program line immediately preceding point at which new instructions are being added In this particular example this step could have been skipped since calculator was already set at the proper program line File name hp 12c pt_user s guide_English_HDPMF123E27 Page 146 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Keystrokes ALG mode 9 Jleto 01 8 g eToll e J016 9 GTO OOO RCL 3 xey 9 Jy 9 GTO OOO STO 9 9 leTo O02 t P R 7500 sT0 3 6500 R S 15000 R S R S Display 001 43 33 018 016 36 017 43 33 000 018 45 3 019 34 020 43 34 021 43 33 000 022 44 9 023 43 33 002 12 000 00 7 500 00 6 500 00 3 000 00 12 000 00 Section 10 Program Editing 147 Branches to program line 018 the second line after last line of program Sets calculator to last line of pr
243. s For example to key in April 7 2004 Keystrokes Display 4 072004 4 072004 Day Month Year To set the date format to day month year press 9 DmY To key in a date with this format in effect 1 Key in the one or two digits of the day 2 Press the decimal point key Le 3 Key in the two digits of the month 4 Key in the four digits of the year For example to key in 7 April 2004 Keystrokes Display 7 042004 7 042004 When the date format is set to day month year the D MY status indicator in the display is lit If D MY is not lit the date format is set to month day year The date format remains set to what you last specified until you change it it is not reset each time the calculator is turned on However if Continuous Memory is reset the date format is set to month day year Future or Past Dates To determine the date and day that is a given number of days from a given date 1 Key in the given date and press ENTER 2 Key in the number of days 3 If the other date is in the past press CHS 4 Press 9 DATE The answer calculated by the 9 DATE function is displayed in a special format The numbers of the month day and year or day month and year are separated by digit separators and the digit at the right of the displayed answer indicates the day of the week 1 for Monday through 7 for Sunday The day of the week indicated by the function may differ from that recorded in history for d
244. s and supplies will be free from defects in materials and workmanship after the date of purchase for the period specified above If HP receives notice of such defects during the warranty period HP will at its option either repair or replace products which prove to be defective Replacement products may be either new or like new HP warrants to you that HP software will not fail to execute its programming instructions after the date of purchase for the period specified above due to defects in material and workmanship when properly installed and used If HP receives notice of such defects during the warranty period HP will replace software media which does not execute its programming instructions due to such defects HP does not warrant that the operation of HP products will be uninterrupted or error free If HP is unable within a reasonable time to repair or replace any product to a condition as warranted you will be entitled to a refund of the purchase price upon prompt return of the product HP products may contain remanufactured parts equivalent to new in performance or may have been subject to incidental use Warranty does not apply to defects resulting from a improper or inadequate maintenance or calibration b software interfacing parts or supplies not supplied by HP c unauthorized modification or misuse d operation outside of the published environmental specifications for the product or e improper site preparation o
245. s sncengoetinuntscntmntes ontiowneh uatmnaenoatnonthvasnaiaswete 3 Percentages in RPN Mode cccccccceceeesseeeeeeeeeeeessaaeeseeeeees 31 Percentages in ALG Mode cccccccccceeesseeeeeeeeeeeessaeeeeeeeeeaaas 32 Net Amount in RPN Mode 0ccccccecceessseeeeceeeeeeeseeeeeeeeeeeeaas 33 Net Amount in ALG Mode ccccccccccceesseeeeeeeeeeaaseeeeeeeeeeeaaas 33 Percent Difference ccccccccccccccceeeeeeeeeeessseeeeseeeeeeeeeeeeeeeeeees 34 Percent of Total in RPN Mode acsccacdectmentscacnncccessaeuieiaseneaeateadies 35 5 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 5 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ 6 Contents Percent of Total in ALG Mode cccccccccceesessssseeeeeeeeceeeeeeeees 36 Gio aio lo a Foncions eea ree ee eer 37 Date FOP essenin n eE a EE 37 Future or Past DGIES x sunssenscasssetaaunn uansutanoswineseasentiocduaupdeasiutue 38 Number of Days Between Dotes cccccesssssssseeeeeeeeeeeeeeeeeees 40 Section 3 Basic Financial Functions sscccsssssecsssseees 4 Th Financial Registers sey ce teense tase ete anol nsec a 4 Storing Numbers into the Financial Registers ccceeeeeeeee 4 Displaying Numbers in the Financial Registers 00000008 4 Clearing the Financial Registers ccccccceeeceeeesseeeeeeeeeeeeaas 42 Simple Interest CGC OIGRONS asesge eeepc encezeete aceon exe esas
246. s the number inside the calculator to match its displayed version Thus to round a number in the display to a given number of decimal places temporarily set the display format as described on page 87 to show the desired number of decimal places then press _f_ RND 100 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 100 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 7 Mathematics and Number Alteration Functions 101 Integer Pressing 9 JUNTG replaces the number in the display by its integer portion that is it replaces each digit to the right of the decimal point by O The number is changed inside the calculator as well as in the display In RPN mode the original number can be recalled to the display by pressing 9 LSTx Fractional Pressing 9 FRAC replaces the number in the display by its fractional portion that is it replaces all digits to the lett of the decimal point by O Like Lg INTG 9 FRAC changes the number inside the calculator as well as its displayed version In RPN mode the original number can be recalled to the display by pressing 9 LSTx All of the above functions are used basically in the same way For example to find the reciprocal of 0 258 Keystrokes Display 258 0 258 Keys the number into the display We 3 88 The reciprocal of 0 258 the original number Any of the above functions can be done with a number in the display resulting
247. s until the balloon payment or prepayment occurs press Nn If there is no balloon payment key in total number of payments and press n 3 Key in the desired periodic interest rate yield and press i 4 Key in the periodic payment amount press PMT 5 Key in the balloon payment amount and press FV If there is no balloon payment go to step 6 6 Press to obtain the purchase price of the mortgage Example 1 A lender wishes to induce the borrower to prepay a low interest rate loan The interest rate is 5 with 72 payments remaining of 137 17 and a balloon payment at the end of the sixth year of 2 000 If the lender is willing to discount the future payments at 9 how much would the borrower need to prepay the note Keystrokes Keystrokes RPN mode ALG mode JCLEARLFIN f CLEAR FIN 72 n 72 n Months into n Positive for cash received negative for cash paid out File name hp 12c pt_user s guide_English_HDPMF123E27 Page 159 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 160 Section 12 Real Estate and Lending Keystrokes Keystrokes Displa RPN mode ALG mode pay ue poe 137 17 PMT 137 17 PMT Monthly payments into PMT 2000 FV PV 2000 FV PV 8 777 61 Amount necessary to prepay the note Example 2 A 6 5 mortgage with 26 years remaining and a remaining balance of 249 350 is available for purchase Determine the price to pay for this mortgage
248. scribes how to use the powerful programming capabilities of the hp 12c platinum e Part Ill sections 12 through 16 gives you step by step solutions to specialized problems in real estate lending savings investment analysis and bonds Some of these solutions can be done manually while others involve running a program Since the programmed solutions are both self contained and step by step you can easily employ them even if you don t care to learn how to create your own programs But if you do start to create your own programs look over the programs used in the solutions they contain examples of good programming techniques and practices File name hp 12c pt_user s guide_English_HDPMF123E27 Page 3 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 4 Introduction e The various appendices describe additional details of calculator operation as well as warranty and service information e The Function Key Index and Programming Key Index at the back of the handbook can be used as a handy page reference to the comprehensive information inside the manual Financial Calculations in the United Kingdom The calculations for most financial problems in the United Kingdom are identical to the calculations for those problems in the United States which are described in this handbook Certain problems however require different calculation methods in the United Kingdom than in the United States Refer to Appendix G for more
249. sh_HDPMF123E27 Page 276 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 PV 41 42 55 Parentheses Calculations 26 240 Partial year depreciation 171 Payment 45 209 Payment amount calculating 59 Payment mode 46 Payments advance 202 209 Payments number of 49 Percent difference 34 241 Percent of total 35 242 Percentages 31 32 241 PMT 45 Populations 96 Power function 102 242 Pr error 90 Prefix key 16 Present value 45 Present value calculating 56 PRGM status indicator 104 106 Program branching 125 Program editing 139 Program lines displaying 109 Program looping 125 Program memory 108 112 Program mode 104 Program creating 104 Program interrupting 117 Program running 106 153 Program running one line at a time 112 Program stopping 117 122 Program storing 149 Programming 104 Programs multiple 149 PV 45 RU 42 69 230 RIS 106 117 122 RCL 17 21 27 41 108 230 REG 19 42 RND 88 100 231 Reciprocal 100 registers 27 Subject Index 277 Registers financial 41 Registers statistics 93 Renting versus Buying 163 Residual 209 Round 100 Rounding 87 RPN mode 20 23 228 Running message 13 78 STO 17 21 27 29 65 108 230 SST 109 114 133 139 Samples 96 Savings 213 Scientific notation 18 88 Simple branching 125 Simple interest 42 Square Root 100 Stack
250. splay will show the amount of depreciation for the desired year Press to see the remaining depreciable value If desired press RCL PV J RCL 3 x2Y RCL LFV to tind the total depreciation through the current year ALG Mode 7 Key in the year desired then press 8 Key in the number of months in first year and press R S t The display will show the amount of depreciation for the desired year Press to see the remaining depreciable value If desired press RCL PV RCL 3 xz y RCL LFV to find the total depreciation through the current year 9 Press for the amount of depreciation then if desired press for the remaining depreciable value for the next year Repeat this step for the following years 10 For a new case press 9 GTO OOO and return to step 2 Example An electron beam welder which costs 50 000 is purchased 4 months before the end of the accounting year What will the depreciation be during the first full accounting year year 2 if the welder has a 6 year depreciable life a salvage value of 8 000 and is depreciated using the declining balance depreciation method The declining balance factor is 150 Keystrokes Keystrokes Displa RPN mode mode pay oO a po ri C Refer to straight line depreciation instruction note page 174 t The display will pause showing the year number before showing the amount of depreciation for that year File name hp 12
251. st balance was 58 33 and the checks were written for 22 95 13 70 and 10 14 what is the new balance Solution When written down on paper this problem would read 58 33 22 95 13 70 10 14 1053 Keystrokes Displa RPN mode p ay 58 33 58 33 Keys the first number ENTER 58 33 Pressing separates the second number from the first 22 95 22 95 Keys in the second number 35 38 Pressing subtracts the second number from the first The calculator displays the result of this calculation which is the balance after subtracting the first check 13 7 13 7 Keys in the next number Since a calculation has just been performed do not press ENTER the next number entered 13 7 is automatically separated trom the one previously in the display 35 38 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 23 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 24 Section 1 Getting Started Keystrokes RPN mode S 10 14 1053 Display 21 68 11 54 1 064 54 Pressing subtracts the number just entered from the number previously in the display The calculator displays the result of this calculation which is the balance after subtracting the second check Keys in the next number and subtracts it from the previous balance The new balance appears in the display It s getting rather low Keys in the next number the paycheck deposited and adds it to the p
252. t betore doing step 2 you did not need to store or write down the result of step 1 it was stored inside the calculator automatically And after you keyed in the 5 and the 6 in step 2 the calculator was holding two numbers 12 and 5 inside for you in addition to the 6 in the display The hp 12c platinum can hold a total of three numbers inside in addition to the number in the display After step 2 the calculator was still holding the 12 inside tor you in addition to the 30 in the display You can see that the calculator holds the number for you just as you would have them written on paper and then calculates with them at the proper time just as you would yourself But with the hp 12c platinum you don t need to write down the results of an intermediate calculation and you don t even need to manually store it and recall it later By the way notice that in step 2 you needed to press ENTER again This is simply because you were again keying in two numbers immediately following each other without performing a calculation in between To check your understanding of how to calculate with your hp 12c platinum try the following problems yourself Although these problems are relatively simple more complicated problems can be solved using the same basic steps If you have difficulty obtaining the answers shown review the last few pages 3 4 x 5 6 77 00 27 14 0 25 14 38 5 n 3416 21 Although you don t need
253. the RPN version In the instructions below the key is the same as the key in ALG mode Now to run the program first set the appropriate mode by pressing Lf RPN or Lf ALG and then do the following Keystrokes Display 950 61 Sets calculator to Run mode f CLEAR gt 0 00 Clears registers R R 6 75 ST0 O Stores tax rate 1 3ENTER 68 5 68 5 Enters quantity and price of first item on invoice R S 890 50 AMOUNT for first item 60 11 TAX for first item 950 61 TOTAL for first item 1 8ENTER 72 9 72 9 Enters quantity and price of second item on invoice R S 1 312 20 AMOUNT for second item 88 57 TAX for second item 1 400 77 TOTAL for second item 24ENTER 85 85 Enters quantity and price of third item on invoice R S 2 040 00 AMOUNT for third item 137 70 TAX for third item 2 177 70 TOTAL for third item 5 ENTER 345 345 Enters quantity and price of fourth item on invoice R S 1 725 00 AMOUNT for fourth item 116 44 TAX for fourth item 1 841 44 TOTAL for fourth item RCL 5 967 70 Sum of AMOUNT column File name hp 12c pt_user s guide_English_HDPMF123E27 Page 121 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 122 Section 8 Programming Basics Keystrokes Display RCL 2 402 82 Sum of TAX column RCL 3 6 370 52 Sum of TOTAL column If the duration of the pause is not long enough to write down the number displayed you can prolong it by using more than one 9 PSE instruction Alterna
254. the display is lit the display shows information about the program line to which the calculator is currently set At the left of the display is the number of the program line within program memory The remaining digits in the display comprise a code that indicates what instruction has been stored in that program line No code is shown for program line 000 since no regular instruction is stored there Identifying Instructions in Program Lines Each key on the hp 12c platinum keyboard except for the digit keys O through 9 is identified by a two digit keycode that corresponds to the key s position on the keyboard The first digit in the keycode is the number of the key row counting from row 1 at the top the second digit is the number of the key in that row counting from 1 for the first key in the row through 9 for the ninth key in the row and O for the tenth key in the row The keycode for each digit key is simply the digit on the key Thus when you keyed the instruction into program memory the calculator displays a line number and a keycode 004 25 This indicates that the key for the instruction in program line 004 is in the second row on the keyboard and is the fifth key in that row the key When you keyed the instruction into program memory the calculator displays a line number and keycode as 007 40 This indicates that the key for the instruction in program line 007 is in the fourth row on the keyboard and is
255. the tenth key in that row the key When you keyed the digit 5 into program memory the keycode displayed was only the digit 5 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 108 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 8 Programming Basics 109 hp 12c plati ca financial calculator AMORT INT NPV RND IRR RPN AoOeeeaeaagqgg Ni BOND DEPRECIATION PRICE YTM S ALG L SOYD DB ARE AG GAGSaas M DY CLEAR A FIN P R 5 PRGM REG 2 ye ey E alela yor OFF e YS Eg amp cs GY ee O J CEJ OLJ Second row fifth key Since keystroke sequences beginning with f Lg STO RCL and are stored in only one program line the display of that line would show the keycodes for all the keys in the keystroke sequence Instruction Keycode 9 ADYS nnn 43 26 STO O nnn 44 40 0 9 GTo OOO nnn 43 33 000 Displaying Program Lines Pressing to set the calculator from Run mode to Program mode displays the line number and keycode for the program line to which the calculator is currently set Occasionally you ll want to check several or all of the instructions stored in program memory The hp 12c platinum enables you to review program instructions either forward or backward through program memory e Pressing single step while the calculator is in Program mode advances the calculator to the next line in program memory then displays that l
256. tion of Digit Entry The first digit keyed in after digit entry has been terminated replaces the number already in the displayed X register Digit entry is automatically terminated when any key is pressed except for digit entry keys digit keys CHS and and prefix keys f 9 STO RCL and GTO Stack Lift When the stack lifts the number in each stack register is copied into the register above and the number formerly in the T register is lost The number formerly in the X register is then contained in both the X register and the Y register When a number is entered into the displayed X register either from the keyboard from a storage register using RCL or from the LAST X register using LSTx the stack usually lifts first The stack does not lift if the last key pressed before a number is entered was one of the following ENIER CLx Z or Z If one of these keys was the last key pressed the number in the displayed X register is replaced when a new number is entered Rearranging Numbers in the Stack The Key Pressing exchanges the numbers in the X and Y registers Certain functions ADYS INT avort price SL sovo DB X Ls Br and amp r return answers to the Y register as well as to the displayed X register The key since it exchanges the number in the Y register with that in the displayed X register is used to display the second number calc
257. tively you can have the program automatically stop as described next Stopping Program Execution Stopping Program Execution Automatically Program execution is automatically halted when the program executes a instruction To resume executing the program from the program line at which execution was halted press R S Example Replace the program above by one containing instructions instead of 9 PSE instructions Keystrokes Display RPN mode Lf PIR Sets calculator to Program mode CLEAR Prew 000 Clears program memory Xx 001 20 R S 002 31 Stops program execution to display AMOUNT STO 1 003 44 40 1 RCLJO 004 45 0 005 25 R S 006 31 Stops program execution to display TAX STO 2 007 44 40 2 008 40 STO 3 009 44 40 3 Kayes Duplay Sets calculator to Program mode CLEAR PRem 000 Clears program memory File name hp 12c pt_user s guide_English_HDPMF123E27 Page 122 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Keystrokes ALG mode x R S STO 1 RCLIO R S sTO 2 sTOJ 3 Display 001 002 003 004 005 44 40 006 007 45 008 009 010 44 40 011 012 44 40 Section 8 Programming Basics 123 20 34 36 31 1 40 0 25 31 2 36 3 Stops program execution to display AMOUNT Stops program execution to display TAX Now to run the program first set the appropriate mode b
258. tment in your hp 12c platinum Programmable Financial Calculator Although the excitement of acquiring this powerful financial tool may prompt you to set this handbook aside and immediately begin pressing buttons in the long run you ll protit by reading through this handbook and working through the examples it contains Following this introduction is a brief section called Making Financial Calculations Easy which shows you that your hp 12c platinum does just that The remainder of this handbook is organized basically into three parts e Part sections 1 through 7 describes how to use the various financial mathematics statistics and other functions except for programming provided in the calculator e Section 1 is about Getting Started It tells you how to use the keyboard how to do simple arithmetic calculations and chain calculations and how to use the storage registers memories e Section 2 tells you how to use the percentage and calendar functions e Section 3 tells you how to use the simple interest compound interest and amortization functions e Section 4 tells you how to do discounted cash flow analysis bond and depreciation calculations e Section 5 tells you about miscellaneous operating features such as Continuous Memory the display and special function keys e Sections 6 and 7 tell you how to use the statistics mathematics and number alteration functions e Part Il sections 8 through 11 de
259. to know just how these numbers are stored and brought back at just the right time if you re interested you can read all about it in Appendix A By gaining a more complete understanding of the calculator s operation you ll use it more efficiently and confidently yielding a better return on the investment in your hp 12c platinum File name hp 12c pt_user s guide_English_HDPMF123E27 Page 25 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 26 Section 1 Getting Started Chain Calculations in ALG Mode To do a chain calculation you don t need to press after each operation but only at the very end For instance to calculate C you can enter either l 360 e 750 x 12 360 or e 750 x 12 360 In the second case the key acts like the key by displaying the result of 750 x 12 456 75 68 xX 18 5 1 9 This calculation can be written as 456 75 18 5 x 68 1 9 Watch what happens in the display as you key it in Here s a longer chain calculation Keystrokes Display ALG mode 0 00 Clears any pending operations 456 75 381 00 Subtracts 75 from 456 18 5 x 20 59 Divides 381 by 18 5 68 1 400 43 Multiplies by 68 1 9 737 07 Divides by 1 9 and displays the result Parentheses Calculations In ALG mode parentheses can be used in calculations to change the order in which operations are evaluated When there are pending open parentheses the status i
260. trokes Display A8 9 Xr 28 818 93 Estimated sales for a 48 hour workweek The reliability of a linear estimate depends upon how closely the data pairs would it plotted on a graph lie in a straight line The usual measure of this reliability is the correlation coefficient r This quantity is automatically calculated whenever Y or X is calculated to display it press xz A correlation coefficient close to 1 or 1 indicates that the data pairs lie very close to a straight line On the other hand a correlation coefficient close to O indicates that the data pairs do not lie closely to a straight line and a linear estimate using this data would not be very reliable File name hp 12c pt_user s guide_English_HDPMF123E27 Page 97 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 98 Section 6 Statistics Functions Example Check the reliability of the linear estimate in the preceding example by displaying the correlation coefficient Keystrokes Display 0 90 The correlation coefficient is close to 1 so the sales calculated in the preceding example is a good estimate To graph the regression line calculate the coefficients of the linear equation y A Bx 1 Press O g r to compute the y intercept A 2 To compute the slope of the line B in RPN mode press 19 l r xz Ru xz To compute the slope of the line B in ALG mode press these keys 1 9 V r xz RUL xeY
261. ts cash received 540000 FV 540 000 00 Stores FV 9 END 540 000 00 Sets payment mode to End Pv 369 494 09 The maximum purchase price to Calculating the Payment Amount 1 Press f JCLEARLFIN to clear the financial registers provide a 12 annual yield PV is displayed with a minus sign since it represents cash paid out Enter the number of payments or periods using L or 9 12x 2 3 Enter the periodic interest rate using Li or 9 12 4 Enter either or both of the following e Present value using PV e Future value using FV Note Remember to observe the cash flow sign convention File name hp 12c pt_user s guide_English_HDPMF123E27 Page 58 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 3 Basic Financial Functions 59 5 Press 9 BEG or 9 END to set the payment mode 6 Press to calculate the payment amount Example 1 Calculate the payment amount on a 29 year 243 400 mortgage at 5 25 annual interest compounded monthly 243 400 PV an 12 n 29 X 12 PMT Keystrokes Display Lf CLEARLEFIN 29 9 12x 348 00 Calculates and stores n 5 25 9 12 0 44 Calculates and stores i 243400 PV 243 400 00 Stores PV 9 END 243 400 00 Sets payment mode to End PMT 1 363 29 Monthly payment with minus sign for cash paid out Example 2 Looking forward to retirement you wish to accumulate 60 000 after 15 years by making deposits in
262. u wrote that is to verify that you have keyed the instructions in correctly However this does not ensure that the program you wrote calculates the desired results correctly even programs created by the most experienced programmers often do not work correctly when they are first written To help you verify that your program works correctly you can execute the program one line at a time using the key Pressing while the calculator is in Run mode advances the calculator to the next line in program memory then displays that line s number and the keycode of the instruction stored there just as in Program mode In Run mode however when the key is released the instruction in the program line just displayed is executed and the display then shows the result of executing that line For example to execute the program stored in the calculator one line at a time File name hp 12c pt_user s guide_English_HDPMF123E27 Page 114 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Keystrokes RPN mode 625 Display 124 25 625 001 625 00 002 003 25 004 156 25 005 468 75 006 007 473 75 36 25 30 40 Section 8 Programming Basics Sets calculator to Run mode and to line 000 in program memory Display shown assumes results remain from previous calculation Keys in price of typewriter Program line 001 Result of executing program line 001 Program line 002 2 Res
263. uide_English_HDPMF123E27 Page 270 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 E Computes mean average of x values and y values using accumulated statistics page 94 Computes weighted average of y item and x weight values using accumulated statistics page 99 Computes sample standard deviations of x and y values using accumulated statistics page 96 Linear estimate X register correlation coefficient Y register Fits a line to a set of x y data pairs entered using z then extrapolates this line to estimate a y value for a given x value Also computes strength of linear relationship r among that set of x y data pairs page 97 Linear estimate X register correlation coefficient Y register Fits a line to a set of x y data pairs entered using 2 then extra polates this line to estimate an x value for a given y value Also computes strength of linear relationship r among that set of x y data pairs page 97 Printed Date 2005 8 1 Function Key Index 271 Modes sets calculator to RPN mode page 19 sets calculator to algebraic ALG mode page 19 Mathematics Computes square root of number in displayed X register page 100 Raises number in Y register to power of number in X register page 102 Computes reciprocal of number in displayed X register page 100 n1 Computes factorial ne n 1 3 2 1 of number
264. ulated The Key When roll down is pressed the number in each stack register is copied into the register below and the number formerly in the X register is copied into the T register Pressing four times successively displays the numbers in the Y Z and T registers and returns the numbers to their original registers Note also that although the stack lifts when ENTER is pressed it does not lift when a number is entered after ENTER is pressed File name hp 12c pt_user s guide_English_HDPMF123E27 Page 230 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 7 Appendix A RPN and the Stack 231 One Number Functions and the Stack T 1 Z gt 2 Y 3 X 4 Keys One number mathematics and number alteration functions LN e x nt RND INTG and use only the number in the displayed X register When the key is pressed the function is performed upon the number in the X register and the answer is then placed into the X register The stack does not lift so the number formerly in the X register does not get copied into the Y register but this number is copied into the LAST X register The numbers in the Y Z and T registers are not affected when a one number function is performed 1 x Two Number Functions and the Stack Two number functions X D A and use the numbers in both the X and the Y reg
265. ult of executing program line 002 Program line 003 5 Result of executing program line 003 Program line 004 Result of executing program line 004 Program line 005 Result of executing program line 005 Program line 006 5 Result of executing program line 006 Program line 007 Result of executing program line 007 the last line of the program File name hp 12c pt_user s guide_English_HDPMF123E27 Page 115 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 116 Section 8 Programming Basics Keystrokes Displa ALG mode pray 124 25 Sets calculator to Run mode and to line 000 in program memory Display shown assumes results remain from previous calculation 625 625 Keys in price of typewriter SST 001 30 Program line 001 625 00 Result of executing program line 001 SST 002 2 Program line 002 2 2 Result of executing program line 002 SST 003 5 Program line 003 5 25 Result of executing program line 003 SST 004 25 Program line 004 156 25 Result of executing program line 004 SST 005 40 Program line 005 468 75 Result of executing program line 005 SST 006 5 Program line 006 5 5 Result of executing program line O06 SST 007 36 Program line 007 473 75 Result of executing program line 007 the last line of the program Pressing 9 BST while the calculator is in Run mode sets the calculator to the previous line in program memory then displays
266. umes no results remain from previous calculations Clears financial registers Enters n Enters i Enters PV Sets payment to End Calculates the monthly payment Reset n to zero Keys 1 into the display to amortize monthly payments Line 001 STOJO Line 002 RCLJO This is the beginning of the first pass through the loop Line 003 _ aworr File name hp 12c pt_user s guide_English_HDPMF123E27 Page 127 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 _ 128 Section 9 Branching and Looping Keystrokes Display 593 75 004 43 593 75 005 188 72 006 43 188 72 31 34 31 007 43 33 002 188 72 002 45 1 00 003 42 593 00 004 43 593 00 005 189 47 006 43 189 47 11 31 34 31 007 43 33 002 189 47 Portion of first month s payment applied to interest Line 004 9 PSE Line 005 xzy Portion of first month s payment applied to principal Line 006 9 PSE Line 007 9 GTO OO2 This is the end of the first pass through the loop Line 002 RCL O Program execution has branched to the beginning of the loop for the second pass through it Line 003 f aworr Portion of second month s payment applied to interest Line 004 9 PSE Line 005 xzy Portion of second month s payment applied to principal Line 006 9 PSE Line 007 9 GTO OO2 This is the end of t
267. unt or other investment 18 Compare the value of the hypothetical savings account to the net proceeds of the sale of the house Examine the sign and magnitude of the yield to arrive at your decision 19 To change data and repeat the calculations store the changed values in the appropriate registers and go to step 12 The user should key in the total marginal income tax Federal plus State to obtain calculations which reflect the tax advantages of home ownership Because of the complexities of tax laws and different financial and tax considerations for each individual this program should only serve as a guide in considering an investment of this type For more specific detailed information consult a tax accountant or qualified tax advisor f If the calculator displays a negative result or Error 5 when solving for yield then your investment has resulted in a loss The amount of interest earned on the alternative investment is not taken into account in this calculation File name hp 12c pt_user s guide_English_HDPMF123E27 Page 167 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 168 Section 12 Real Estate and Lending Example You are being transferred for 4 years to a distant city and are faced with the decision of whether to rent or to buy a house A quick survey of the housing market indicates that you can purchase an acceptable house for 270 000 with a 7 000 down payment on a 30 year mortgage at 6 interest The cl
268. ur down payment will be 1 500 what is the maximum price you can pay for the car Assume the purchase date is one month prior to the date of the first payment 5 9 PV 12 e 8 n 4X12 PMT 450 Keystrokes RPN mode Display CLEAR FIN Al 9 12x 48 00 Calculates and stores n 5 9 9 J12 0 49 Calculates and stores i 450 CHS PMT 450 00 Stores PMT with minus sign for cash paid out 9 END 450 00 Sets payment mode to End 19 198 60 Maximum amount of loan 1500 20 698 60 Maximum purchase price In ALG mode press the keys listed for RPN mode but replace the last step above with the step below Keystrokes ALG mode 1500 20 698 60 Maximum purchase price Display File name hp 12c pt_user s guide_English_HDPMF123E27 Page 57 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 58 Section 3 Basic Financial Functions Example 2 A development company would like to purchase a group of condominiums with an annual net cash flow of 17 500 The expected holding period is 5 years and the estimated selling price at that time is 540 000 Calculate the maximum amount the company can pay for the condominiums in order to realize at least a 12 annual yield i 12 540 000 FV 17 500 PMT n 5 PV Keystrokes Display f JCLEARLFIN 5 n 5 00 Stores n 12 1 12 00 Stores i 17500 PMT 17 500 00 Stores PMT Unlike in the previous problem here PMT is positive since it represen
269. user s guide_English_HDPMF123E27 Page 191 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 192 Section 13 Investment Analysis Modified Internal Rate of Return The traditional Internal Rate of Return IRR technique has several drawbacks which hamper its usefulness in some investment applications The technique implicitly assumes that all cash flows are either reinvested or discounted at the computed yield rate This assumption is financially reasonable as long as the rate is within a realistic borrowing and lending range for example 10 to 20 When the IRR becomes significantly greater or smaller the assumption becomes less valid and the resulting value less sound as an investment measure IRR also is limited by the number of times the sign of the cash flow changes positive to negative or vice versa For every change of sign the IRR solution has the potential for an additional answer The cash flow sequence in the example that follows has three sign changes and hence up to three potential internal rates of return This particular example has three positive real answers 1 86 14 35 and 29 Although mathematically sound multiple answers probably are meaningless as an investment measure This Modified Internal Rate of Return procedure MIRR is one of several IRR alternatives which avoids the drawbacks of the traditional IRR technique The procedure eliminates the sign change problem and the reinvestment or discounting
270. viation of the x values appears in the display after 9 S is pressed to display the standard deviation of the y values press Xz Example To calculate the standard deviations of the x values and of the y values trom the preceding example Keystrokes Display 9 Ls 4 820 59 Standard deviation of sales 6 03 Standard deviation of hours worked The formulas used in the hp 12c platinum for calculating s and s give best estimates of the population standard deviation based on a sample of the population Thus current statistical convention calls them sample standard deviations So we have assumed that the seven salespersons are a sample of the population of all salespersons and our formulas derive best estimates of the population from the sample What if the seven salespersons constituted the whole population of salespersons Then we wouldn t need to estimate the population standard deviation We can tind the true population standard deviation o when the data set equals the total population using the following keystrokes Keystrokes Display g X 21 714 29 Mean dollars z 8 00 Number of entries 1 Lo JLs 4 463 00 5 Xzy 5 58 Oo y lt turns out that if you sum the mean of the population into the set itself and find the new s computed using the formulas on page 257 that s will be the population standard deviation o of the original set File name hp 12c pt_user s guide_English_HDPMF123E27 Page 96
271. x 21 cm 62 Section 3 Basic Financial Functions Keystrokes Display f JCLEARLFIN 2 9 12x 24 00 Calculates and stores n 6 25 9 12 0 52 Calculates and stores i 50 CHS PMT 50 00 Stores PMT with minus sign for cash paid out 9 BEG 50 00 Sets payment mode to Begin 1 281 34 Balance after 2 years Example 3 Property values in an unattractive area are depreciating at the rate of 2 per year Assuming this trend continues calculate the value in 6 years of property presently appraised at 32 000 FV PV 32 000 Keystrokes Display CLEAR FIN 6ln 6 00 Stores n 2 CHS i 2 00 Stores i with minus sign for a negative interest rate 32000 CHS 32 000 00 Stores PV with minus sign for cash paid out 28 346 96 Property value after 6 years File name hp 12c pt_user s guide_English_HDPMF123E27 Page 62 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm Section 3 Basic Financial Functions 63 Odd Period Calculations The cash flow diagrams and examples presented so far have dealt with financial transactions in which interest begins to accrue at the beginning of the first regular payment period However interest often begins to accrue prior to the beginning of the first regular payment period The period from the date interest begins accruing to the date of the first payment being not equal to the regular payment periods is sometimes referred to as an odd first
272. y pressing or and then do the following Keystrokes Lf JLP R f JCLEARLE 1 SENTERI68 5 R S R S RIS 1 SENTER72 9 RIS R S RIS 2 A ENTER 85 R S Display 6 370 52 0 00 68 5 890 50 60 11 950 61 72 9 1 312 20 88 57 1 400 77 85 2 040 00 File name hp 12c pt_user s guide_English_HDPMF 1 23E27 Printed Date 2005 8 1 Sets calculator to Run mode Clears registers R through R First item AMOUNT for first item TAX for first item TOTAL for first item Second item AMOUNT for second item TAX for second item TOTAL for second item Third item AMOUNT for third item Page 123 of 275 Dimension 14 8 cm x 21 cm 7 124 Section 8 Programming Basics Keystrokes Display R S 137 70 TAX for third item R S 2 177 70 TOTAL for third item 5ENTER 345 345 Fourth item R S 1 725 00 AMOUNT for fourth item R S 116 44 TAX for fourth item R S 1 841 44 TOTAL for fourth item RCL 1 5 967 70 Sum of AMOUNT column RCL 2 402 82 Sum of TAX column RCL 3 6 370 52 Sum of TOTAL column Program execution is also automatically halted when the calculator overflows refer to page 90 or attempts an improper operation that results in an Error display Either of these conditions signifies that the program itself probably contains an error To determine at which program line execution has halted in order to locate the error press any key to clear the Error display th
273. y the number of days in the X register and displays day of week page 38 Computes the number of days between two dates in the Y and X registers page 40 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 269 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm _ 270 Function Key Index Financial CLEAR Clears contents of financial registers page 42 Sets payment mode to Begin for compound interest calculations involving payments page 46 Sets payment mode to End for compound interest calculations involving payments page 46 Calculates simple interest page 42 Stores or computes number of periods in financial problem page 41 Multiplies a number in displayed X register by 12 and stores the resulting value in the n register page 49 Li Stores or computes interest rate per compounding period page 41 Divides number in displayed X register by 12 and stores the resulting value in the i register page 49 Stores or computes the present value that is the initial cash flow of a financial problem page 41 Stores or computes payment amount page 41 Stores or computes tuture value final cash tlow of a financial problem page 41 Amortizes x number of periods using values stored in PMT i PV and the display Updates values in PV and n page 69 Calculates the net present value of up to 80 uneven cash flows
274. y was false so program execution skipped the next line and continued at line 007 RCL 2 25 tax rate has been recalled to X register moving income to Y register Line 008 9 GTO O10 Line 010 Divides tax rate by 100 Line O11 25 of 25 000 6 250 File name hp 12c pt_user s guide_English_HDPMF123E27 Page 138 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 10 Program Editing There are various reasons why you might want to modify a program you have stored in Program memory to correct a program that turns out to have errors to insert new instructions such as to store intermediate results or to display intermediate results or to replace a PSE instruction by an instruction Rather than clearing program memory and keying in the modified program you can modify the program already stored in the calculator This is called program editing Changing the Instruction in a Program Line To change a single instruction in program memory 1 Press to set the calculator to Program mode 2 Use SST BST or GTO to set the calculator to the program line preceding the line containing the instruction to be changed 3 Key in the new instruction For example to change the instruction stored in program line 005 press 9 GTO e J004 then key in the new instruction that is to be stored in program line 005 The instruction previously stored in line 005 will be rep
275. year is less than 12 the amount of depreciation in the Ist year will be less than a full year s depreciation The actual number of years that depreciation will occur is equal to the life 1 For example a drill has a life of 3 years and is purchased 3 months before the year end The following time diagram shows that depreciation will occur over 4 calendar years Ist year 3rd year 2nd year Ath year _ 3 lt ie Example 1 A property has just been purchased for 150 000 The purchase price is allocated between 25 000 for land and 125 000 for improvements building The remaining useful life of the building is agreed to be 25 years There is no salvage value forecasted at the end of the useful life of the building Thus the depreciable value and book value is 125 000 The building was acquired 4 months before the end of the year Using straight line depreciation find the amount of depreciation and remaining depreciable value for the Ist 2nd 25th and 26th years What is the total depreciation after 3 years The display will pause showing the year number before showing the amount of depreciation for that year File name hp 12c pt_user s guide_English_HDPMF123E27 Page 174 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 7 Section 13 Investment Analysis 175 Keystrokes Keystrokes Displa RPN mode ALG mode pay a f CLEARLEIN f CLEAR FIN Salvage value O so FV 0 set to O by CLEARL EF
276. ys N followed by CF beginning with the final cash flow amount and proceeding to N and _ Note Neither nor changes the number in the n register However each time RCL 9 CFi is pressed the number in the n register is decreased by 1 If this is done or if you manually change the number in the n register in order to display a single N and or CF be sure to reset the number in the n register to the total number of cash flow amounts originally entered not including the amount of the initial investment CF If this is not done NPV and IRR calculations will give incorrect results also a review of cash flow entries would begin with N and CF where n is the number currently in the n register For example to display the fitth cash flow amount and the number of times that amount occurs consecutively Keystrokes Display RCL 5 9 000 00 CF 5 n 5 00 Stores the value of j in the n register RCL 9 Ni 2 00 N 71n 7 00 Resets the number in the n register to its original value File name hp 12c pt_user s guide_English_HDPMF123E27 Page 79 of 275 Printed Date 2005 8 1 Dimension 14 8 cm x 21 cm 80 Section 4 Additional Financial Functions To display all the cash flow amounts and the number of times they occur consecutively Keystrokes Display RCLI g J N 1 00 RCL 9 CF 100 000 00 RCL 9 J Ni 1 00 RCL

HP Hewlett-Packard HEW12CPT Calculator Financial Pm

Contents

Download Pdf Manuals

Related Search

Related Contents