HP 12C Platinum Financial Calculator User Manual

© Hewlett-Packard Development Company, L.P. rev. 03.04 HP 12C Platinum Solutions

10 Real Estate Where: n1 = number of years remaining in original mortgage PMT1 = yearly payment of original mortgage PV1 = remaining balance of or

100 Statistics For repeated use of this routine, the following HP 12C Platinum program will be useful. 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c

Statistics 101 Program Instructions: 1. Ke

102 Statistics Logarithmic Curve Fit If your data does not fit a line or an exponential curve, try the following logarithmic curve fit. This is cal

Statistics 103 Example 1: A manufacturer ob

104 Statistics Power Curve Fit Another method of analysis is the power curve or geometric curve. The equation of the power curve is y = AxB, and

Statistics 105 Find the power curve formul

106 Statistics ALG Mode: 5. Press gvz:1gr³ to obtain the standard error of the mean of the x-values. 6. Alternatively, press gv~z:1gr³ to obtain

Statistics 107 5. To calculate the mean (av

108 Statistics 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY gv 011, 43 48:6 011, 45 6t 012, 31

Statistics 109 12c platinum / 12CRPN Keystr

Real Estate 11 12c platinum / 12C RPN Keystrok

110 Statistics Example 1: A suspect die from a Las Vegas casino is brought to an independent testing firm to determine its bias, if any. The die i

Statistics 111 12c platinum / 12CRPN KEYST

112 Statistics Normal Distribution The normal (or Gaussian) distribution is an important tool in statistics and business analysis. The following

Statistics 113 12c platinum / 12CRPN KEYSTR

114 Statistics Covariance Covariance is a measure of the interdependence between paired variables (x and y). Like standard deviation, covariance ma

Statistics 115 Try the previous example usi

116 Statistics 12c platinum / 12C RPN Keystrokes 12c platinum ALG Keystrokes Display Comments fCLEARH fCLEARH 92\26t 92³26t 85\30t 85³30t 7

Statistics 117 REGISTERS n: Unused i: Un

118 Statistics 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY fs fs fCLEARÎ 000, fCLEARÎ 000,

Statistics 119 Random Number Generator This

12 Real Estate 12c platinum / 12C RPN Keystrokes 12c platinum ALG Keystrokes Display Comments g g fCLEARG fCLEARG 200n12gC 200n12gC Number

120 Statistics Program Instructions: 1. Key in the program. 2. To generate a random number, press t.3. Repeat step 2 as many times as desired.

121

122 Personal Finance 12c platinum / 12C RPN Keystrokes 12c platinum ALG KeystrokesDisplay Comments 10b-$ -10b$ 58,500.00 Mortgage balance. 25:1§

Personal Finance 123 Program Instructions: 1. Key in t

124 Personal Finance Tax-Free Individual Retirement (IRA) or Keogh Plan The advent of tax-free retirement accounts (IRA or Keogh) has resulted in c

Personal Finance 125 12c platinum / 12CRPN KEYSTROKESDISP

126 Personal Finance 11. Press t to compute the total dividends paid. 12. Press t to compute the future value when, after retirement, money is wi

Personal Finance 127 Stock Portfolio Evaluation and An

128 Personal Finance 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY g(001 020,43,33,001?+3 020,44 40 3+

Personal Finance 129 Program Instructions: 1. Key in t

Real Estate 13 Thus: Effective Gross Income

130 Personal Finance 12c platinum / 12C RPN Keystrokes 12c platinum ALG KeystrokesDisplay Comments 200\ 200³ 200.00 P. D. Q. 30.25t 30.25t 1.00

131

132 Canadian Mortgages Number of Periodic Payments to Fully Amortize a Mortgage Example 2: An investor can afford to pay $440 per month on a $56,00

Canadian Mortgages 133 12c platinum / 12CRPN Keystrokes 12c pl

134

Miscellaneous 135 unit. These calculations may be rapidly

136 Miscellaneous 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY q 039, 21g° 039, 43 23- 040, 30

Miscellaneous 137 Program Instructions: 1. Key in the p

138 Miscellaneous Queuing and Waiting Theory Waiting lines, or queues, cause problems in many marketing situations. Customer goodwill, business eff

Miscellaneous 139 ALG Mode: 1. Key in the arrival rate o

14 Real Estate 2. Calculate the Outstanding Balance of the Mortgage at the end of the Income Projection Period and subtract it from Proceeds of Res

140 Miscellaneous If the number of servers is limited to one, with other conditions remaining the same (unlimited queue, Poisson arrival, exponent

Miscellaneous 141 With an HP 12C Platinum program one can

142 Miscellaneous 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY § 037, 20y 037, 22:7 038, 45

Miscellaneous 143 REGISTERS n: Unused i: Unused PV:

144 Miscellaneous 12c platinum / 12C RPN Keystrokes 12c platinum ALG Keystrokes Display Comments fCLEARH fCLEARH 0.00 3?0?7 3?0?7 3.00 n 1.2?8

145

146 Appendix A Algebraic Mode Programs Section 12: The Rent or Buy Decision ALG KEYSTROKES DISPLAY ALG KEYSTROKES DISPLAY fs

Appendix A 147 Section 13: Straight-Line Deprecia

148 Appendix A Section 13: Declining-Balance Depreciation ALG KEYSTROKES DISPLAY ALG KEYSTROKES DISPLAY fs $

Appendix A 149 Section 13: Sum-of-the-Years-Digits

Real Estate 15 income is readjusted each year

150 Appendix A Section 13: Full- and Partial- Year Depreciation with Crossover ALG KEYSTROKES DISPLAY ALG KEYSTROKES DISPLAY fs

Appendix A 151 Full- and partial-Year Depreciatio

152 Appendix A Section 14: Advance Payments With Residual - Solving for Payment ALG KEYSTROKES DISPLAY ALG KEYSTROKES DISPLAY fs

Appendix A 153 Section 16: 30/360 Day Basis Bond

154 Appendix A Section 16: Annual Coupon Bonds ALG KEYSTROKES DISPLAY ALG KEYSTROKES DISPLAY fs gÒ 020, 43 26fCL

155

156 Appendix B Lending Loans With a Constant Amount Paid Towards Principal BALk = remaining balance after time period k. CPMT = Constant payment

Appendix B 157 ()2kIknRebate−= BALk = (n − k)

158 Appendix B Savings Compounding Periods Different From Payment Periods C = number of compounding periods per year. P = number of payment periods

Appendix B 159 Securities and Options Discounte

16 Real Estate 12c platinum / 12C RPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY n 036, 11³ 036, 36:2 037, 45 2

160 Appendix B Forecasting Simple Moving Average average. moving x = average. movingin elements ofnumber =m mxxxxxm++++=...3211 mxxxxxm 14322...−

Appendix B 161 ()11lnlnln11−−+==∑=bbabcnySnnii

162 Appendix B 1001MaCS−= +=1001MuCS −=1001MaSC 1001MuSC+= 1001MuMuMa+= 1001MaMaMu−= Calculations of List and Net Prices with Discounts

Appendix B 163 −=∑∑nxBnyAiilnexp BxAey =ˆ

164 Appendix B Personal Finance Tax-Free Retirement Account (IRA) or Keogh Plan n = the number of years to retirement. i = the compounded annual in

Appendix B 165 Miscellaneous Learning Curve for

166

Subject Index 167 E Effective Interest Rate (Yiel

168 Subject Index P Periodic Deposits and Withdrawals 42 Periodic Payment Amount 131 Permutations 116 Personal Finance 121, 164 Portfolio beta co

Real Estate 17 Program Instructions: 1. Press

18 Real Estate 12c platinum / 12CRPN Keystrokes 12c platinum ALG KeystrokesDisplay Comments 3291.75?3 3291.75?3 3,291.75 1st year operating cost. 7

Real Estate 19 12c platinum / 12C RPN Keystrok

2

20 Real Estate This program uses declining balance depreciation to find the amount of depreciation from purchase to sale. This amount is used to det

Real Estate 21 12c platinum / 12CRPN KEYSTROKE

22 Real Estate 2. Key in the loan values: • Key in annual interest rate and press gC. • Key in mortgage amount and press $. • Key in monthly

Real Estate 23 12c platinum / 12C RPN Keystrok

24

Lending 25 Example 1: A $60,000 land loan a

26 Lending RPN Mode: 1. Press g and press fCLEARG . 2. Key in the number of months in the loan and press n\:gA . 3. Key in the add-on rate and pre

Lending 27 2. Enter the following informati

28 Lending 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY § 011, 20§ 011, 20- 012, 30:1

Lending 29 12c platinum / 12CRPN KEYSTROKESD

Introduction 3 itself and the ALG alternative

30 Lending 9. Press t to calculate the total finance charge. 10. Press t to calculate the annual percentage rate. 11. For a new loan return to ste

Lending 31 Example 1: A 30 month $1000 loan

32 Lending 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY g(000 026,43,33,000~ 026, 34fs ³ 02

Lending 33 Given the term of the mortgage (i

34 Lending 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY gm 037, 43 35- 037, 30g(040 038,43,33,04

Lending 35 REGISTERS n: Used i: i/12 PV:

36 Lending 12c platinum / 12C RPN Keystrokes 12c platinum ALG KeystrokesDisplay Comments t t 3.00 Year 3 t t -494.89 3rd year monthly payment. t

Lending 37 c. Key in the number of years

38 Lending Skipped Payments Sometimes a loan (or lease) may be negotiated in which a specific set of monthly payments are going to be skipped each

Lending 39 Example: A bulldozer worth $100,0

4

40

Savings 41 Number of Periods to Deplete

42 Savings Periodic Deposits and Withdrawals This section is presented as a guideline for evaluating a savings plan when deposits and withdrawals o

Savings 43 You increase your monthly dep

44 Savings This type of procedure may be continued for any length of time, and may be modified to meet the user's particular needs. Savings Ac

Savings 45 12c platinum / 12CRPN KEYSTRO

46 Savings 12c platinum / 12CRPN Keystrokes 12c platinum ALG KeystrokesDisplay Comments fCLEARH fCLEARH gÕ gÕ 1.192003\ 1.192003³ 5.25\ 5.2

Savings 47 To calculate the equivalent

48 Savings Example 2: Solving for payment amount. For 8 years you wish to make weekly deposits in a savings account paying 5.5% compounded quarte

49

Contents 5 Forecasting...

50 Investment Analysis 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY :7 023, 45 7$ 023, 13¼ 024,

Investment Analysis 51 - Key in the annual interest rate an

52 Investment Analysis salvage value. An accountant informs management to take the 10% capital investment tax credit at the end of the second year

Investment Analysis 53 12c platinum / 12CRPN Keystrokes 12c

54 Investment Analysis The variables are: fixed costs (F), Sales price per unit (P), variable cost per unit (V), number of units sold (U), and gro

Investment Analysis 55 ALG Mode: 1. Key in the desired gros

56 Investment Analysis Find the gross profit if 2500 units are sold. 12c platinum / 12C RPN Keystrokes 12c platinum ALG KeystrokesDisplay Comments

Investment Analysis 57 12c platinum / 12CRPN KEYSTROKESDISPL

58 Investment Analysis Example 2: A manufacturer of automotive accessories produces rear view mirrors. A new line of mirrors will require fixed cos

Investment Analysis 59 Operating Leverage The degree of oper

6 Contents Section 15: Nominal Rate Converted to Effective Rate... 152 Section 16: 30/360 Day Basis Bonds .

60 Investment Analysis For repeated calculations the following HP 12C Platinum program can be used: 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c pl

Investment Analysis 61 Profit and Loss Analysis The HP 12C

62 Investment Analysis 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY + 025, 40³ 025, 36:0 026,

Investment Analysis 63 4. To calculate list price: a. Do

64 Investment Analysis If manufacturing expenses increase to $3.25, what is the effect on net profit? 12c platinum / 12C RPN Keystrokes 12c plati

65

66 Securities and Options 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKESDISPLAY fS 030, 42 22g(000 030,43,33,000g(000 03

Securities and Options 67 Discounted Notes A note is a written ag

68 Securities and Options REGISTERS n: Unused i: Unused PV: Unused PMT: Unused FV: Unused R0: Unused R1: Settl. date R2: Mat. Date R3: 360

Securities and Options 69 Example 2: Determine the yield of this

7

70 Securities and Options 12c platinum / 12C RPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY g° 017, 43 23³ 017,

Securities and Options 71 12c platinum / 12C RPN KEYSTROKESDISPLA

72 Securities and Options 12c platinum / 12C RPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY ?6 101, 44 6 O 102

Securities and Options 73 Example 1: An option has 6 months to

74

Forecasting 75 12c platinum / 12CRPN Keystrokes

76 Forecasting 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY ?9 027, 44 9:.0 027,45 48 0+10 028, 40?

Forecasting 77 Program Instructions: 1. Key in

78 Forecasting 12c platinum / 12CRPN Keystrokes 12c platinum ALG KeystrokesDisplay Comments 300500t 300500t 207,440.00 3-month average for May. 27

Forecasting 79 12c platinum / 12CRPN KEYSTROKES

8 Real Estate 12c platinum / 12CRPN Keystrokes 12c platinum ALG Keystrokes Display Comments 9.5gC 200000Þ$ P 9.5gC 200000Þ$ P 1,979.56 Monthly

80 Forecasting Example: Econo-Wise Home Appliance Company had quarterly sales for the years 2000 thru 2002 as follows: Sales (IN $K) Quarterly 1st

Forecasting 81 12c platinum / 12CRPN Keystrokes

82 Forecasting 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY + 021, 40 ?6 021, 44 6:8 022, 45 8 +

Forecasting 83 Program Instructions: 1. Key in

84 Forecasting 12c platinum / 12CRPN KEYSTROKESDISPLAY 12c platinum ALG KEYSTROKES DISPLAY g° 004, 43 23g° 004, 43 23?+2 005,44 40 2?

Forecasting 85 12c platinum / 12CRPN KEYSTROKES

86 Forecasting 3. Key in the first point of group I and press \(³) 4. Key in the first point of group II and press \(³). 5. Key in the first point

Forecasting 87 12c platinum / 12CRPN Keystrokes

88 Forecasting Forecasting with exponential smoothing involves selecting the best smoothing factor based on historical data and then using the fact

Forecasting 89 12c platinum / 12CRPN KEYSTROKES

Real Estate 9 12c platinum / 12CRPN Keystrokes

90 Forecasting Forecasting: RPN Mode: 1. Key in the number 1 and press \. 2. Key in the selected α and press ?0-?1. ALG Mode: 1. Key in the num

Forecasting 91 12c platinum / 12CRPN Keystrokes

92

Pricing Calculations 93 Example 1: If the cost of an item is $

94 Pricing Calculations REGISTERS n: Unused i: Unused PV: Unused PMT: Unused FV: Unused R0-R.8: Unused Program Instructions: 1. Key in

Pricing Calculations 95 Calculations of List and Net prices Wi

96 Pricing Calculations The following program for the HP 12C Platinum will be helpful in performing the calculations: 12c platinum / 12CRPN KEY

Pricing Calculations 97 ALG Mode: 5. To calculate the list p

98

Statistics 99 4. Press 1 gRg>0gRg> to