HP 10bII - Page 73

5: Time Value of Money Calculations 73
First Bank
Second Bank
Third Bank
)LUVW%DQNRIIHUVDVOLJKWO\EHWWHUGHDOVLQFHLVJUHDWHUWKDQDQG

Compounding and Payment Periods Differ
7KH790DSSOLFDWLRQDVVXPHVWKDWWKHFRPSRXQGLQJ
SHULRGVDQGWKHSD\PHQWSHULRGVDUHWKHVDPH6RPHORDQ
LQVWDOOPHQWVRUVDYLQJVGHSRVLWVDQGZLWKGUDZDOVGRQRW
FRLQFLGHZLWKWKHEDQN·VFRPSRXQGLQJSHULRGV,IWKH
SD\PHQWSHULRGGLIIHUVIURPWKHFRPSRXQGLQJSHULRG
DGMXVWWKHLQWHUHVWUDWHWRPDWFKWKHSD\PHQWSHULRG
EHIRUHVROYLQJWKHSUREOHP
Keys: Display: Description:
*
6.70
6WRUHVQRPLQDOUDWH
*b
4.00
6WRUHVTXDUWHUO\
FRPSRXQGLQJSHULRGV
*Z
6.87
&DOFXODWHVDQQXDO
HIIHFWLYHUDWH
*
6.65
6WRUHVQRPLQDOUDWH
*b
12.00
6WRUHVPRQWKO\FRP
SRXQGLQJSHULRGV
*Z
6.86
&DOFXODWHVDQQXDO
HIIHFWLYHUDWH
*
6.63
6WRUHVQRPLQDOUDWH
*b
360.00
6WRUHVFRPSRXQGLQJ
SHULRGV
*Z
6.85
&DOFXODWHVDQQXDO
HIIHFWLYHUDWH
.book Page 73 Wednesday, June 21, 2000 5:19 PM