Operation Manual

54 Section 3: Basic Financial Functions
Example 2: A 42-month car loan for $3,950 began accruing interest on July 19,
2003, so that the first period began on August 1, 2003. Payments of $120 are
made at the end of each month. Calculate the annual percentage rate (APR),
using the actual number of odd days and simple interest for the odd period.
Amortization
The HP 12C Platinum enables you to calculate the amounts applied toward
principal and toward interest from a single loan payment or from several
payments, and also tells you the remaining balance of the loan after the payments
are made.
13
Keystrokes (RPN mode) Display
fCLEARG Clears financial registers.
?Æ Turns off the C indicator in the
display, so that simple interest will
be used for the odd period.
7.192003\
7.19
Keys in the date interest begins
accruing and separates it from the
next date entered.
8.012003
8.012003
Keys in the date of the beginning of
the first period.
gÒ
13.00
Actual number of odd days.
30z
0.43
Divides by the length of a monthly
period to get the fractional part of n.
42+n
42.43
Adds the fractional part of n to the
number of complete payment
periods, then stores the result in n.
3950$
3,950.00
Stores PV.
120ÞP
–120.00
Stores PMT (with minus sign for
cash paid out).
¼
1.16
Periodic (monthly) interest rate.
12§
13.95
Annual percentage rate (APR).
13.
All amounts calculated when f! 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
f followed by the number of decimal places desired before you press f!.