Continuous Rate Converted To Effective Rate - HP 12C User Manual

216 Section 15: Savings
Example: Find the nominal rate compounded quarterly if the effective annual rate
is 5.35%.
Keystrokes
(RPN mode)
f]
fCLEARG
4n100$
5.35+Þ
M¼
:n§

Continuous Rate Converted to Effective Rate

This procedure converts a continuous annual interest rate to the effective rate.
1. RPN: Press 1\.
1. ALG: Press 1³.
2. Key in the continuous rate as a percentage then press b.
3. Press g>à.
Example: What is the effective rate resulting from a 5.25% passbook rate with
continuous compounding ?
Keystrokes
(RPN mode)
f]
1\5.25b
g>
à
File name: hp 12c pt_user's guide_English_HDPMF123E27
Printed Date: 2005/8/1
Keystrokes
Display
(ALG mode)
f[
fCLEARG
100.00
4n100$
+5.35³Þ –105.35
M¼
1.31
§:n³
5.25
Keystrokes
Display
(ALG mode)
f[
0.05
1³5.25b
g>
1.05
à
5.39
Page: 216 of 275
Dimension: 14.8 cm x 21 cm
Percent nominal interest
rate.
Effective rate.