Calculating The Present Value - HP 12C Platinum Owner's Handbook Manual

46 Section 3: Basic Financial Functions
Keystrokes (RPN mode)
fCLEARG
8\4§n
6000Þ$
10000M
¼
4§

Calculating the Present Value

1. Press fCLEARG to clear the financial registers.
2. Enter the number of payments or periods, using n or A.
3. Enter the periodic interest rate, using ¼ or C.
4. Enter either or both of the following:
Payment amount, using P.
Future value, using M.
5. If a PMT was entered, press g× or g to set the payment mode.
6. Press $ to calculate the present value.
Example 1: You're financing a new car purchase with a loan from an institution
that requires 15% interest compounded monthly over the 4-year term of the loan.
If you can make payments of $150 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.)
Display
Calculates and stores n.
32.00
–6,000.00 Stores PV (with minus sign for cash
paid out).
10,000.00 Stores FV.
Periodic (quarterly) interest rate.
1.61
Annual interest rate.
6.44
Note:
observe the cash flow
sign convention.
Remember to