VICTOR TECHNOLOGY
16
.i.
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The V12 is calculating the value.
0.50
Displays the monthly interest rate.
Example
8 % annual interest, which is compounded quarterly for 3 years:
n is number of quarters (3 * 4=12)
i is interest rate per quarter (8% ÷ 4 = 0.02%)
If interest rate was compounded monthly, n would be 8% ÷ 12 =0.006
Since many financial calculations utilize an annual interest rate compounded
monthly, the V12 has two functions to simplify the entry of interest rate and
periods. The r 12÷ function will divide an annual interest rate by 12 and
enter the result as the monthly interest rate.
Example
24% annual interest which is compounded monthly
24 r 12÷ will enter an interest rate of 2% into the i. register.
The r 12x function will multiply a number of years by 12 and enter the result
as the number of monthly periods.
Example
30 year loan which is compounded monthly
30 r 12x will enter 360 periods into the n. register.
Determining Present Value: Solving for PV
¾ Touch b CLEAR FIN to reset financial registers
¾ Enter the number of payment periods and touch n.
¾ Enter the interest rate and touch i..
¾ Enter the payment value per period (a negative number) and touch
PMT.
¾ Enter the future value of the amount owed at the end of the payment
periods, touch CHS to make the number negative, and touch FV.
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