HP 12 C simple interest calcuation  Printable Version + HP Forums (https://archived.hpcalc.org/museumforum) + Forum: HP Museum Forums (https://archived.hpcalc.org/museumforum/forum1.html) + Forum: Old HP Forum Archives (https://archived.hpcalc.org/museumforum/forum2.html) + Thread: HP 12 C simple interest calcuation (/thread237310.html) 
HP 12 C simple interest calcuation  sam  01152013 Hi all, I am new to this forum. Recently, I am excited by the HP 15C limited edition and trying to recall the memory of using my Singapore version of HP 12C as well. Back to the subject, I want to calculate the principal which will accumulate to $10,000 at simple rate 7% p.a. over two years.
FV = 10,000 The PV is calculated as 8,734.39. As you may know, this is not correct given the formula PV*(1+2*0.07)=10,000. The correct PV should be 8,771.93 I figure out that it is the default compound interest calculation in HP 12C. My question is that is there a way to make HP 12C use simple interest method to work out the PV? I understand there is a key STO EEX for old period calculation but it seems that is not useful here. I would appreciate your assistance. Many thanks.
Sam
Re: HP 12 C simple interest calcuation  peacecalc  01152013 Hello Sam, the formula used by HP 12C accumulates the interest: PV*(1+0.07)^2 = 10,000 So you get PV = 10,000/1.07^2 = 8734,39. That is exactly what the calc you told. The situation you calculate is different.
greetings peacecalc
Re: HP 12 C simple interest calcuation  sam  01152013 Hi peacecalc, Thanks so much for your assistance. I did not expect to get it so quick. I understand what you said is right that I told the HP 12C to calculate like this. However, this is because i do not know how to tell the calculator to work the PV out in a simple interest calculation. The denominator 1.07^2 is the compound interest method, i.e., (1+0.07)*(1+0.07). But I like to calculate this in the simple interest method which should be: PV*(1+0.07*2)=10,000 Perhaps I should not use the financial register to work this out. A simple formula below is ok
10,000 enter
Re: HP 12 C simple interest calcuation  fhub  01152013 Quote:Well, although TVM calculators are usually not used for 'simple' compoundings (that's just _too_ simple ;)), you _can_ do it if you really want: You only need to always set n=1 and enter n*i for i, that's all.
Franz
Re: HP 12 C simple interest calcuation  Thomas Ritschel  01152013 Hi Sam,
one can still use the financial registers for a simple interest calculation.
10,000 FV This should give you PV = 8,771.93 as requested.
Kind regards, Re: HP 12 C simple interest calcuation  sam  01162013 Thanks for all. The method n=1 and treatment of i is useful although it is a bit odd.
Sam
Re: HP 12 C simple interest calcuation  fhub  01162013 Quote:No, it's not odd at all. Odd is using a TVM calculator for a problem with a simple (i.e. not compounded) interest rate. ;)
Franz
