hp 12c_solutions handbook_English_E.pdf
Page 3
... loan at 9.5% interest. Although the going current market interest rate is 11.5%, the lender has agreed to the borrower of the net cash received. Calculate the Net Present Value (NPV) to both borrower and lender to refinance an existing mortgage which originated 8 years ago with a loan at a below...monthly payment received by the lender (and paid by the borrower) by lender. 2 The current balance is the NPV to the lender as an IRR. 6. Calculate the monthly payment on the existing mortgage. 2. What are the NPV and effective yield to the figure found in Step 1 to the lender on...
... loan at 9.5% interest. Although the going current market interest rate is 11.5%, the lender has agreed to the borrower of the net cash received. Calculate the Net Present Value (NPV) to both borrower and lender to refinance an existing mortgage which originated 8 years ago with a loan at a below...monthly payment received by the lender (and paid by the borrower) by lender. 2 The current balance is the NPV to the lender as an IRR. 6. Calculate the monthly payment on the existing mortgage. 2. What are the NPV and effective yield to the figure found in Step 1 to the lender on...
hp 12c_solutions handbook_English_E.pdf
Page 4
...it had a 20year term with full amortization in full force. NPV to lender of net cash advanced 0 12 15.25 0 14.83 % nominal yield (IRR). -65,376.72 1,433.28 Present value of net monthly payment at 6.75% interest. Keystrokes Display 144.00 Total number of months remaining in the...has agreed to "wrap" a $300,000 second mortgage at 10%, with full amortization in cash to the borrower are the same, the procedures in calculating NPV and IRR to the lender and NPV to the borrower, and receives as those presented in original load (into n). 3 9.5 200000 1,979.56 Monthly payment ...
...it had a 20year term with full amortization in full force. NPV to lender of net cash advanced 0 12 15.25 0 14.83 % nominal yield (IRR). -65,376.72 1,433.28 Present value of net monthly payment at 6.75% interest. Keystrokes Display 144.00 Total number of months remaining in the...has agreed to "wrap" a $300,000 second mortgage at 10%, with full amortization in cash to the borrower are the same, the procedures in calculating NPV and IRR to the lender and NPV to the borrower, and receives as those presented in original load (into n). 3 9.5 200000 1,979.56 Monthly payment ...
hp 12c_solutions handbook_English_E.pdf
Page 5
...,132.06 -2,031.55 0.83 -300,000.00 3,585.23 1,553.69 Monthly interest rate (into PV). 200132.06 12 15.85 Nominal yield (IRR) to lender (calculated). Monthly payment on wrap-around (into PV). Net monthly payment received (into PMT). -99,867.94 Net cash advanced (into i). Loan amount (into PV...
...,132.06 -2,031.55 0.83 -300,000.00 3,585.23 1,553.69 Monthly interest rate (into PV). 200132.06 12 15.85 Nominal yield (IRR) to lender (calculated). Monthly payment on wrap-around (into PV). Net monthly payment received (into PMT). -99,867.94 Net cash advanced (into i). Loan amount (into PV...
HP 12c Financial Calculator Quick Start Guide
Page 20
...number of return (yield) for all cash flows except the initial cash flow in R0, initializes n to zero, sets N0 to 1. T IRR Internal Rate of Return Calculates the internal rate of periods using values stored in c, d, and e (page 63). Used for up to 20 uneven cash flows and initial... c, d, and e(page 58). Updates C Amortization and A (page 54). Used at the beginning of a financial problem (pages 32, 36). Stores the contents of X-register in the User's Guide Stores or calculates the future value (final cash flow) of a discounted cash flow problem (page 57). Table 1-3 Keys and ...
...number of return (yield) for all cash flows except the initial cash flow in R0, initializes n to zero, sets N0 to 1. T IRR Internal Rate of Return Calculates the internal rate of periods using values stored in c, d, and e (page 63). Used for up to 20 uneven cash flows and initial... c, d, and e(page 58). Updates C Amortization and A (page 54). Used at the beginning of a financial problem (pages 32, 36). Stores the contents of X-register in the User's Guide Stores or calculates the future value (final cash flow) of a discounted cash flow problem (page 57). Table 1-3 Keys and ...
hp 12c_user's guide_English_E_HDPMBF12E44.pdf
Page 6
...Calculating the Present Value 44 Calculating the Payment Amount 46 Calculating the Future Value 48 Odd-Period Calculations 50 Amortization 54 Section 4: Additional Financial Functions 57 Discounted Cash Flow Analysis: NPV and IRR 57 Calculating Net Present Value (NPV 58 Calculating Internal Rate of Return (IRR... Notation Display Format 72 Special Displays 73 The key 74 The Key 74 Arithmetic Calculations With Constants 75 Recovering From Errors in Digit Entry 75 File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 6 of 209 Dimension: 14.8...
...Calculating the Present Value 44 Calculating the Payment Amount 46 Calculating the Future Value 48 Odd-Period Calculations 50 Amortization 54 Section 4: Additional Financial Functions 57 Discounted Cash Flow Analysis: NPV and IRR 57 Calculating Net Present Value (NPV 58 Calculating Internal Rate of Return (IRR... Notation Display Format 72 Special Displays 73 The key 74 The Key 74 Arithmetic Calculations With Constants 75 Recovering From Errors in Digit Entry 75 File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 6 of 209 Dimension: 14.8...
hp 12c_user's guide_English_E_HDPMBF12E44.pdf
Page 9
...the Stack 173 Mathematics Functions 173 Percentage Functions 174 Calendar and Financial Functions 175 The LAST X Register and the Key 176 Chain Calculations 176 Arithmetic Calculations with Constants 177 Appendix B: More About L 179 Appendix ...IRR 184 Error 8: Calendar 184 Error 9: Service 184 Pr Error 184 Appendix D: Formulas Used 185 Percentage 185 Interest 185 Simple Interest 185 Compound Interest 186 Amortization 186 Discounted Cash Flow Analysis 187 Net Present Value 187 Internal Rate of Return 187 Calendar 187 Actual Day Basis 187 File name: hp...
...the Stack 173 Mathematics Functions 173 Percentage Functions 174 Calendar and Financial Functions 175 The LAST X Register and the Key 176 Chain Calculations 176 Arithmetic Calculations with Constants 177 Appendix B: More About L 179 Appendix ...IRR 184 Error 8: Calendar 184 Error 9: Service 184 Pr Error 184 Appendix D: Formulas Used 185 Percentage 185 Interest 185 Simple Interest 185 Compound Interest 186 Amortization 186 Discounted Cash Flow Analysis 187 Net Present Value 187 Internal Rate of Return 187 Calendar 187 Actual Day Basis 187 File name: hp...
hp 12c_user's guide_English_E_HDPMBF12E44.pdf
Page 36
..., PMT, and FV are four known quantities that is, there is entered determines whether or not the calculator performs financial calculations in the hp 12c Solutions Handbook.) z FV - is the initial cash flow or the present value of a series of keying... in the quantities identified in this section under Discounted Cash Flow Analysis: NPV and IRR. The Cash Flow Sign Convention When entering the PV, PMT, and FV cash flows, the quantities must be calculated...
..., PMT, and FV are four known quantities that is, there is entered determines whether or not the calculator performs financial calculations in the hp 12c Solutions Handbook.) z FV - is the initial cash flow or the present value of a series of keying... in the quantities identified in this section under Discounted Cash Flow Analysis: NPV and IRR. The Cash Flow Sign Convention When entering the PV, PMT, and FV cash flows, the quantities must be calculated...
hp 12c_user's guide_English_E_HDPMBF12E44.pdf
Page 57
..., i, will be equal. These functions enable you to analyze financial problems involving cash flows (money paid out. however, the amounts of these cash flows need not be referred to in compound interest calculations, the interval between cash flows can be any time period;... return, and cost of capital. 57 File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 57 of the anticipated future cash flows. Section 4 Additional Financial Functions Discounted Cash Flow Analysis: NPV and IRR The hp 12c provides functions for an investment that requires an initial cash...
..., i, will be equal. These functions enable you to analyze financial problems involving cash flows (money paid out. however, the amounts of these cash flows need not be referred to in compound interest calculations, the interval between cash flows can be any time period;... return, and cost of capital. 57 File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 57 of the anticipated future cash flows. Section 4 Additional Financial Functions Discounted Cash Flow Analysis: NPV and IRR The hp 12c provides functions for an investment that requires an initial cash...
hp 12c_user's guide_English_E_HDPMBF12E44.pdf
Page 58
...: the greater the NPV, the greater the increase in the n register. Calculating Net Present Value (NPV) Calculating NPV for Grouped Cash Flows, page 61). The value of IRR relative to the desired rate of return, the investment is financially attractive. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 58 of return, the investment...
...: the greater the NPV, the greater the increase in the n register. Calculating Net Present Value (NPV) Calculating NPV for Grouped Cash Flows, page 61). The value of IRR relative to the desired rate of return, the investment is financially attractive. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 58 of return, the investment...
hp 12c_user's guide_English_E_HDPMBF12E44.pdf
Page 63
...estimate is put into the i register at the end of each iteration, the calculator uses an estimate of NPV. Press fL. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 63 of Return (IRR) 1. If the cash flow periods are other than the 131/2 used in ... nominal annual rate of return by multiplying the periodic IRR by the number of IRR is in the calculator, we need only press fL: Keystrokes Display fL 13.72 IRR is very close to wait for IRR. Section 4: Additional Financial Functions 63 Calculating Internal Rate of 209 Dimension: 14.8 cm x ...
...estimate is put into the i register at the end of each iteration, the calculator uses an estimate of NPV. Press fL. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 63 of Return (IRR) 1. If the cash flow periods are other than the 131/2 used in ... nominal annual rate of return by multiplying the periodic IRR by the number of IRR is in the calculator, we need only press fL: Keystrokes Display fL 13.72 IRR is very close to wait for IRR. Section 4: Additional Financial Functions 63 Calculating Internal Rate of 209 Dimension: 14.8 cm x ...
hp 12c_user's guide_English_E_HDPMBF12E44.pdf
Page 64
...done, NPV and IRR calculations will give incorrect results; For example, to Appendix B. z To review all the cash flow amounts together with Nn and CFn, where n is done, or if you manually change the number in the n register. 64 Section 4: Additional Financial Functions The complex ...proceeding to CF0. Note: Neither L nor l change the number in the n register in the n register, then press :gK. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 64 of times a cash flow amount occurs consecutively - This displays the cash flow amounts in the...
...done, NPV and IRR calculations will give incorrect results; For example, to Appendix B. z To review all the cash flow amounts together with Nn and CFn, where n is done, or if you manually change the number in the n register. 64 Section 4: Additional Financial Functions The complex ...proceeding to CF0. Note: Neither L nor l change the number in the n register in the n register, then press :gK. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 64 of times a cash flow amount occurs consecutively - This displays the cash flow amounts in the...
hp 12c_user's guide_English_E_HDPMBF12E44.pdf
Page 66
... to its original value. Treasury bonds and U.S. The IRR calculation replaced the 13.5 we calculated NPV. Keystrokes Display 9000?2 13.5¼ fl 9,000.00 13.50 -644.75 Stores the new CF2 in the n register. Bond Calculations The hp 12c enables you change the number in the n register in... j in R. 2 Stores i.* The new NPV. Treasury notes). If this NPV is not done, NPV and IRR calculations will give incorrect results. Since this is negative, the investment would decrease the financial value of 209 Dimension: 14.8 cm x 21 cm Stores the new N5. 66 Section 4: Additional...
... to its original value. Treasury bonds and U.S. The IRR calculation replaced the 13.5 we calculated NPV. Keystrokes Display 9000?2 13.5¼ fl 9,000.00 13.50 -644.75 Stores the new CF2 in the n register. Bond Calculations The hp 12c enables you change the number in the n register in... j in R. 2 Stores i.* The new NPV. Treasury notes). If this NPV is not done, NPV and IRR calculations will give incorrect results. Since this is negative, the investment would decrease the financial value of 209 Dimension: 14.8 cm x 21 cm Stores the new N5. 66 Section 4: Additional...
hp 12c_user's guide_English_E_HDPMBF12E44.pdf
Page 148
Calculate the total depreciation then press \. 2. Although mathematically sound, multiple answers ....00 1,312.50 8,531.25 898.31 Total depreciation through seventh year. Depreciable amount. This assumption is financially reasonable as long as the rate is the excess depreciation in the previous example over a given period of the...then press § to 20%). Key in the number of Return (IRR) technique has several drawbacks which hamper its usefulness in years then press z. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 148 of the partial...
Calculate the total depreciation then press \. 2. Although mathematically sound, multiple answers ....00 1,312.50 8,531.25 898.31 Total depreciation through seventh year. Depreciable amount. This assumption is financially reasonable as long as the rate is the excess depreciation in the previous example over a given period of the...then press § to 20%). Key in the number of Return (IRR) technique has several drawbacks which hamper its usefulness in years then press z. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 148 of the partial...
hp 12c_user's guide_English_E_HDPMBF12E44.pdf
Page 149
... might be used is one of several IRR alternatives which reflects the return on an investment in the procedure are : Group # of Months Cash Flow ($) 0 1 -180,000 1 5 100,000 2 5 -100,000 3 9 0 4 1 200,000 Calculate the MIRR using a safe rate of ...6% and a reinvestment (risk) rate of 10%. Example: An investor has the following unconventional investment opportunity. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 149 of the negative cash flows ...
... might be used is one of several IRR alternatives which reflects the return on an investment in the procedure are : Group # of Months Cash Flow ($) 0 1 -180,000 1 5 100,000 2 5 -100,000 3 9 0 4 1 200,000 Calculate the MIRR using a safe rate of ...6% and a reinvestment (risk) rate of 10%. Example: An investor has the following unconventional investment opportunity. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 149 of the negative cash flows ...
hp 12c_user's guide_English_E_HDPMBF12E44.pdf
Page 175
... Financial Functions The following table shows what quantity is in each stack register after the indicated calendar or financial function key is pressed to calculate the... corresponding quantity rather than to merely store a number in the corresponding register (X, Y, Z, or T, respectively) at the time the function key was in the corresponding register. n, ¼, $, Register D Ò Ï P, M, l, ! L* T t t x t y Z t z INT365 z x (number of payments) Y z ∆DYS30-day -PV y PMTPRIN X DATE ∆DYSactual INT360 n, i, PV, PMT, FV, NPV, IRR...
... Financial Functions The following table shows what quantity is in each stack register after the indicated calendar or financial function key is pressed to calculate the... corresponding quantity rather than to merely store a number in the corresponding register (X, Y, Z, or T, respectively) at the time the function key was in the corresponding register. n, ¼, $, Register D Ò Ï P, M, l, ! L* T t t x t y Z t z INT365 z x (number of payments) Y z ∆DYS30-day -PV y PMTPRIN X DATE ∆DYSactual INT360 n, i, PV, PMT, FV, NPV, IRR...
hp 12c_user's guide_English_E_HDPMBF12E44.pdf
Page 179
... cm For the vast majority of cases, your hp 12c: Case 1: A positive answer. Let's look at all of the possible outcomes of IRR as follows: 1. Case 4: The calculator displays Error 7. If you stop the calculation, you may continue searching for IRR solutions, even after an Error 3 indication, as calculated by pressing any key, to see what that...
... cm For the vast majority of cases, your hp 12c: Case 1: A positive answer. Let's look at all of the possible outcomes of IRR as follows: 1. Case 4: The calculator displays Error 7. If you stop the calculation, you may continue searching for IRR solutions, even after an Error 3 indication, as calculated by pressing any key, to see what that...
hp 12c_user's guide_English_E_HDPMBF12E44.pdf
Page 180
... the l key. Then press :gt to search for a unique positive IRR. How would this process by pressing :gt. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 180 of solutions that answer will aid the calculator in case 2 above? Remember that a correct IRR solution will make guesses, pressing :gt after each one mathematically...
... the l key. Then press :gt to search for a unique positive IRR. How would this process by pressing :gt. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 180 of solutions that answer will aid the calculator in case 2 above? Remember that a correct IRR solution will make guesses, pressing :gt after each one mathematically...
hp 12c_user's guide_English_E_HDPMBF12E44.pdf
Page 184
...) date and maturity (redemption) date. Condition Improper date format or illegal date. 184 Appendix C: Error Conditions Error 7: IRR Refer to add days beyond calculator's date capacity. Improper date format or illegal date. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 184 of December 31, 2005, you should change the dates to...
...) date and maturity (redemption) date. Condition Improper date format or illegal date. 184 Appendix C: Error Conditions Error 7: IRR Refer to add days beyond calculator's date capacity. Improper date format or illegal date. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 184 of December 31, 2005, you should change the dates to...
hp 12c_user's guide_English_E_HDPMBF12E44.pdf
Page 210
210 Subject Index Interest, simple, 33 Internal rate of return, 57 Internal rate of return, calculating, 63 Internal rate of return, modified, 148 Interrupting a program, 97 IRR, 57, 148 K Keyboard, 16 L , 74 LAST X register, 70 Leasing, 151 Linear estimation, 80 Logarithm, 83 Looping, 103 Low-power indicator, 16 M , 172 Mantissa, 18..., 92 Program looping, 103 Program memory, 90, 94 Program mode, 88 Program, creating, 88 Program, interrupting, 97 Program, running, 89, 122 File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 210 of 209 Dimension: 14.8 cm x 21 cm
210 Subject Index Interest, simple, 33 Internal rate of return, 57 Internal rate of return, calculating, 63 Internal rate of return, modified, 148 Interrupting a program, 97 IRR, 57, 148 K Keyboard, 16 L , 74 LAST X register, 70 Leasing, 151 Linear estimation, 80 Logarithm, 83 Looping, 103 Low-power indicator, 16 M , 172 Mantissa, 18..., 92 Program looping, 103 Program memory, 90, 94 Program mode, 88 Program, creating, 88 Program, interrupting, 97 Program, running, 89, 122 File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 210 of 209 Dimension: 14.8 cm x 21 cm