34
34
34
34 Section 3:
Section 3:
Section 3:
Section 3: Basic Financial Functions
Basic Financial Functions
Basic Financial Functions
Basic Financial Functions
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Printed Date: 2021/6/16
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Key
Key
Key
Keystrokes
strokes
strokes
strokes
Display
Display
Display
Display
7
¼
7.00
Stores the annual interest rate.
450
Þ$
–450.00
Stores the principal.
fÏ
5.25
Accrued interest, 360-day basis.
+
455.25
Total amount: principal plus accrued
interest.
Example 2:
Example 2:
Example 2:
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
Keystrokes
Keystrokes
Keystrokes
Display
Display
Display
Display
60
w
7
¼
450
Þ$
60.00
7.00
–450.00
If you have not altered the numbers in
the n, i, and PV registers since the
preceding example, you may skip
these keystrokes.
fÏd~
5.18
Accrued interest, 365-day basis.
+
455.18
Total amount: principal plus accrued
interest.
Financial Calculations and the Cash Flow Diagram
Financial Calculations and the Cash Flow Diagram
Financial Calculations and the Cash Flow Diagram
Financial Calculations 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:
Summary of Contents for 0012C-90001
Page 1: ...hp 12c financial calculator user s guide H Edition 5 HP Part Number 0012C 90001 ...
Page 14: ......
Page 15: ...Part I Part I Part I Part I Problem Solving Problem Solving Problem Solving Problem Solving ...
Page 86: ......
Page 87: ...Part II Part II Part II Part II Programming Programming Programming Programming ...
Page 123: ...Part III Part III Part III Part III Solutions Solutions Solutions Solutions ...
Page 169: ...Appendi Appendi Appendi Appendixes xes xes xes ...