Solving For Yield - HP 12C Platinum User Manual

Solving for Yield

To calculate the periodic yield, information is entered as follows:
1. Press g and fCLEARG.
RPN Mode:
2. Key in the total number of payments in the lease then press \.
3. Key in the total number of payments made in advance then press
?0-n.
4. Key in the periodic payment to be received then press P.
5. Key in the total amount of the loan then press Þ:0:P§+$.
6. Press ¼ to obtain the periodic yield.
ALG Mode:
2. Key in the total number of payments in the lease then press -.
3. Key in the total number of payments made in advance then press
?0n.
4. Key in the periodic payment to be received then press P.
5. Press :0§:P³+. Then key in the total amount of the loan and
press Þ$.
6. Press ¼ to obtain the periodic yield.
Example 1: A lease has been written to run for 60 months. The leased
equipment has a value of $25,000 with a $600 monthly payment. The lessee has
agreed to make 3 payments at the time of closing ($1,800). What is the annual
yield to the lessor ?
Keystrokes Keystrokes
(RPN mode) (ALG mode)
f] f[
g gÂ
fCLEARG fCLEARG
60\3 60-3
?0-n ?0n
600P 600P
25000Þ:
:0§:
0:P§
P+25000
+$ Þ$
Section 14: Leasing
Display
3.
Number of periodic
57.00
payments.
Monthly payment.
600.00
PV.
-23,200.00
209