User Guide

Section 3: Basic Financial Functions 43
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
Example 1:
Your good friend needs a loan to start his latest enterprise and has
requested that you lend him $450 for 60 days. You lend him the money at 7%
simple interest, to be calculated on a 360-day basis. What is the amount of
accrued interest he will owe you in 60 days, and what is the total amount owed
?
Keystrokes
(RPN mode)
Display
60
n
60.00
Stores the number of days.
7
¼
7.00
Stores the annual interest rate.
450
Þ$
–450.00
Stores the principal.
fÏ
5.25
Accrued interest, 360-day basis.
+
455.25
Total amount: principal plus accrued
interest.
In ALG mode, perform the steps in the RPN listing above, except replace the last
step with the step below.
Keystrokes
(ALG mode)
Display
+~}
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
60
n
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.
In ALG mode, perform the steps in the RPN listing above, except replace the last
step with the step below.
Keystrokes
(ALG mode)
Display
+~}
455.18
Total amount: principal plus accrued
interest.