HP 12C - Section 15: Savings; Nominal Rate Converted to Effective Rate

213
File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 213 of 275
Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm
Section 15
Savings
Nominal Rate Converted to Effective Rate
Given a nominal interest rate and the number of compounding periods per year,
this keystroke procedure computes the effective annual interest rate.
1. Press g and fCLEARG.
RPN Mode:
2. Key in the annual nominal rate as a percentage, then press \.
3. Key in the number of compounding periods per year, then press nz¼.
4. Press ÞPM to obtain the effective annual interest rate.
ALG Mode:
2. Key in the annual nominal rate as a percentage.
3. Press z. Key in the number of compounding periods per year, then
press ¼ÞP. Then key in the number of compounding periods per
year and press n.
4. Press M to obtain the effective annual interest rate.
Example 1:
What is the effective annual interest rate if the annual nominal rate
of 5.25% is compounded quarterly
?
Keystrokes
(RPN mode)
Keystrokes
(ALG mode)
Display
f] f[
g gÂ
f
CLEAR
G f
CLEAR
G
5.25
\
5.25
z
5.25
Nominal rate.
4
nz¼
4
¼
1.31
Percent quarterly interest
rate.
ÞPM
ÞP
4
nM
5.35
Percent effective interest
rate.