Summary of the content on the page No. 1
hp
12c financial calculator
user's guide
H
Edition 4
HP Part Number 0012C-90001
File name: hp 12c_user's guide_English_HDPMBF12E44 Page: 1 of 209
Printed Date: 2005/7/29 Dimension: 14.8 cm x 21 cm
Summary of the content on the page No. 2
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 W
Summary of the content on the page No. 3
Introduction About This Handbook This hp 12c user's guide is intended to help you get the most out of your investment in your hp 12c 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 profit by reading through this handbook and working through the examples it contains. Following this introduction is a brief section called Making F
Summary of the content on the page No. 4
4 Introduction The various appendices describe additional details of calculator operation as well as warranty and service information. 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 — w
Summary of the content on the page No. 5
Contents Introduction.................................................................... 3 About This Handbook.....................................................................3 Financial Calculations in the United Kingdom.....................................4 For More Solutions to Financial Problems...........................................4 Part I. Problem Solving ......................................... 15 Section 1: Getting Started............................................
Summary of the content on the page No. 6
6 Contents Clearing the Financial Registers .............................................. 33 Simple Interest Calculations........................................................... 33 Financial Calculations and the Cash Flow Diagram.......................... 34 The Cash Flow Sign Convention.............................................. 36 The Payment Mode ............................................................... 37 Generalized Cash Flow Diagrams..................................
Summary of the content on the page No. 7
Contents 7 Section 6: Statistics Functions........................................ 76 Accumulating Statistics..................................................................76 Correcting Accumulated Statistics ...................................................77 Mean .........................................................................................77 Standard Deviation.......................................................................79 Linear Estimation .................
Summary of the content on the page No. 8
8 Contents Section 11: Multiple Programs ...................................... 120 Storing Another Program ............................................................ 120 Running Another Program........................................................... 122 Part III. Solutions .................................................. 123 Section 12: Real Estate and Lending .............................. 124 Annual Percentage Rate Calculations With Fees............................. 124 Price
Summary of the content on the page No. 9
Contents 9 Appendixes................................................................ 169 Appendix A: The Automatic Memory Stack ................... 170 Getting Numbers Into the Stack: The Key..............................171 Termination of Digit Entry .....................................................172 Stack Lift.............................................................................172 Rearranging Numbers in the Stack ...............................................172 The
Summary of the content on the page No. 10
10 Contents 30/360 Day Basis.............................................................. 187 Bonds ...................................................................................... 188 Depreciation ............................................................................. 189 Straight-Line Depreciation..................................................... 189 Sum-of-the-Years-Digits Depreciation ...................................... 189 Declining-Balance Depreciation ........
Summary of the content on the page No. 11
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. 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 ($50
Summary of the content on the page No. 12
12 Making Financial Calculations Easy Note: A battery symbol ( ) shown in the lower-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 E. 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 the ¼, !, L, and S functions could require a half-minute or more.) During these calculations, the
Summary of the content on the page No. 13
Making Financial Calculations Easy 13 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 – 10,470.85 = 10,925.76). 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 $10,925.75 in the 14 years remaining? Keystrokes Disp
Summary of the content on the page No. 14
Summary of the content on the page No. 15
Part I Problem Solving File name: hp 12c_user's guide_English_HDPMBF12E44 Page: 15 of 209 Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm
Summary of the content on the page No. 16
Section 1 Getting Started Power On and Off To begin using your hp 12c, press the ; key . Pressing ; again turns the * calculator off. If not manually turned off, the calculator will turn off automatically 8 to 17 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 E. The Keyboard Man
Summary of the content on the page No. 17
Section 1: Getting Started 17 Throughout this handbook, references to the operation of an alternate function appear as only the function name in a box (for example, “The L function …”). References to the selection of an alternate function appear preceded by the appropriate prefix key (for example, “Pressing fL …”). 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 CLE
Summary of the content on the page No. 18
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 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)
Summary of the content on the page No. 19
Section 1: Getting Started 19 Simple Arithmetic Calculations Any simple arithmetic calculation involves two numbers and an operation — addition, subtraction, multiplication, or division. To do such a calculation on your hp 12c, 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 (+,-,§, or z) is pressed. The two numbers should be keyed into the calculator in the order they would appear if
Summary of the content on the page No. 20
20 Section 1: Getting Started Chain Calculations 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 +,-,§, z, etc.) is pressed, the result of that prior calculation is stored inside the calculator — ju
