HP 12C Instruction Manual page 5

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HP 12C Depreciation
Example 3: Using the same video equipment from the previous example, calculate the amount of depreciation of the
fourth year using SOYD, but now assume that the equipment was bought in February.
Solution: The diagram in Figure 8 helps building the solution. The fourth year is calculated by adding 1/12 of the third
depreciation year to 11/12 of the fourth depreciation year. If data from previous example has not been
changed yet, the following keystroke sequence can be used:
3 fÝ 12 z ?0
This is the depreciation amount for 1/12 of the 3
fourth depreciation year, add it to R
4 fÝ 11 § 12 z ?+0 :0
Answer: The amount of depreciation for the fourth year is $1,962.74 given that the first depreciation year was only
11 months long.
Additional Information
The HP12C Owner's Handbook and Problem Solving Guide , Part III Section 13, under Investment Analysis, has
many examples on how to use programs with depreciation functions in more complex depreciation situations.
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# of months
1 11
Calendar
years
1
Depreciation
years
1
and retrieve the accumulated value:
0
4 year
th
2 3 4
2 3 4
8-year life
year, and it is stored in R
rd
- 5 -
5
5
Figure 8
Figure 9
. Now calculate 11/12 of the
0
Figure 10
HP 12C Depreciation - Version 1.0