HP 12C - Page 57

Section 3: Basic Financial Functions 57
File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 57 of 275
Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm
Example 1:
You’re financing a new car purchase with a loan from an institution
that requires 5.9% interest compounded monthly over the 4-year term of the loan.
If you can make payments of $450 at the end of each month and your down
payment will be $1,500, what is the maximum price you can pay for the car
?
(Assume the purchase date is one month prior to the date of the first payment.)
Keystrokes
(RPN mode)
Display
f
CLEAR
G
4
gA
48.00
Calculates and stores n.
5.9
gC
0.49
Calculates and stores i.
450
ÞP
–450.00
Stores PMT (with minus sign for cash
paid out).
gÂ
–450.00
Sets payment mode to End.
$
19,198.60
Maximum amount of loan.
1500
+
20,698.60
Maximum purchase price.
In ALG mode, press the keys listed for RPN mode but replace the last step above
with the step below.
Keystrokes
(ALG mode)
Display
+
1500
}
20,698.60
Maximum purchase price.