HP 12c Platinum Owner's Handbook

Section 3: Basic Financial Functions 47
Example 2: A development company would like to purchase a group of
condominiums with an annual net cash flow of $17,500. The expected holding
period is 5 years, and the estimated selling price at that time is $540,000.
Calculate the maximum amount the company can pay for the condominiums in
order to realize at least a 12% annual yield.
Keystrokes(RPN mode) Display
fCLEARG
4gA
48.00
Calculates and stores n.
15gC
1.25
Calculates and stores i.
150ÞP
–150.00
Stores PMT (with minus sign for
cash paid out).
gÂ
–150.00
Sets payment mode to End.
$
5,389.72
Maximum amount of loan.
1500+
6,889.72
Maximum purchase price.
Keystrokes Display
fCLEARG
5n
5.00
Stores n.
12¼
12.00
Stores i.
17500P
17,500.00
Stores PMT. Unlike in the
previous problem, here PMT
is positive since it represents
cash received.
540000M
540,000.00
Stores FV.
gÂ
540,000.00
Sets payment mode to End.
$
–369,494.09
The maximum purchase price
to provide a 12% annual
yield. PV is displayed with a
minus sign since it represents
cash paid out.

HP 12c Platinum Specifications

General

Digits	10 digits
Battery type	CR2032
Type	Financial
Form factor	Pocket

Weight and Dimensions

Weight	110 g
Dimensions (WxDxH)	79 x 129 x 15 mm