Making Financial Calculations Easy 13
6% annually, compounded monthly. What payment amount would be required in
order to accumulate $10,925.75 in the 14 years remaining?
Example 4: Suppose you cannot find a bank that currently offers an account
with 6% annual interest compounded monthly, but you can afford to make
$45.00 monthly payments. What is the minimum interest rate that will enable
you to accumulate the required amount?
In this problem, we do not need to clear the previous financial data inside the
calculator, since most of it is unchanged from the preceding example.
This is only a small sampling of the many financial calculations that can now be
done easily with your HP 12C Platinum. To begin learning about this powerful
financial tool, just turn the page.
Keystrokes Display
fCLEARG
10,470.85
Clears previous financial data
inside the calculator.
14gA
168.00
Calculates and stores the number of
compounding periods.
6gC
0.50
Calculates and stores the periodic
interest rate.
10925.76M
10.925.76
Stores the future value required.
gÂ
10.925.76
Sets payment mode to End.
P
–41.65
Monthly payment required.
Keystrokes Display
45ÞP
–45.00
Stores payment amount.
¼
0.42
Periodic interest rate.
12§
5.01
Annual interest rate.
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