HP 10bII+ Quick Start Manual download pdf (Page 23)

Getting Started 17

Interest Rate Conversion

To convert between nominal and effective interest rates, enter the known rate and

the number of periods per year, then solve for the unknown rate.

Find the annual effective interest rate of 10% nominal interest compounded

monthly.

For more information on interest rate conversions, refer to the section titled,

Interest Rate Conversions in chapter 6, Time Value of Money Calculations in the

HP 10bII+ Financial Calculator User’s Guide.

Table 1-19 Keys for interest rate conversion

Keys Description

\Ó

Nominal interest percent.

\Ð

Effective interest percent.

\Í

Periods per year.

Table 1-20 Calculating the interest rate

Keys Display Description

J:\Ó

10.00 Enters nominal rate.

JG\Í

12.00 Enters payments per

year.

\Ð

10.47 Calculates annual

effective interest.

1 2 ... 18 19 20 21 22 23 24 25 26 27 28 ... 44 45

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HP 10bII+ Quick Start Manual Page 23