HP 12 C simple interest calcuation « Next Oldest | Next Newest »

 ▼ sam Junior Member Posts: 14 Threads: 6 Joined: Jan 2013 01-15-2013, 12:32 PM 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 i = 7 n =2 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 ▼ peacecalc Member Posts: 97 Threads: 9 Joined: Nov 2011 01-15-2013, 12:59 PM 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 ▼ sam Junior Member Posts: 14 Threads: 6 Joined: Jan 2013 01-15-2013, 01:15 PM 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 0.07 enter 2 x 1 + / Best regards, sam ▼ fhub Posting Freak Posts: 1,216 Threads: 75 Joined: Jun 2011 01-15-2013, 01:23 PM Quote: Perhaps I should not use the financial register to work this out. 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 Thomas Ritschel Junior Member Posts: 17 Threads: 1 Joined: Nov 2012 01-15-2013, 01:29 PM Hi Sam, one can still use the financial registers for a simple interest calculation. You just need to use a "total interest rate" by multiplying the yearly interest rate by the number of years and then use n = 1: ```10,000 FV 0.07 ENTER 2 x i 1 n PV ``` This should give you PV = -8,771.93 as requested. Kind regards, Thomas ▼ sam Junior Member Posts: 14 Threads: 6 Joined: Jan 2013 01-16-2013, 08:48 AM Thanks for all. The method n=1 and treatment of i is useful although it is a bit odd. Sam ▼ fhub Posting Freak Posts: 1,216 Threads: 75 Joined: Jun 2011 01-16-2013, 10:22 AM Quote: The method n=1 and treatment of i is useful although it is a bit odd. 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

 Possibly Related Threads... Thread Author Replies Views Last Post Simple Tetris. free for you to improve on cyrille de Brébisson 3 1,623 11-20-2013, 05:43 PM Last Post: Erwin Ried [HP-Prime] Simple Game (Bugs) CompSystems 1 1,050 11-01-2013, 10:18 AM Last Post: Han Simple Math Question Namir 2 1,149 08-09-2013, 06:13 PM Last Post: Eddie W. Shore HP-42S with Electroluminescent screen and simple I/O port Jose Poyan 8 2,265 03-27-2013, 07:11 PM Last Post: Jose Poyan Simple sample programs for the HP-41CX? Tom Lewis 5 1,716 03-25-2013, 07:11 PM Last Post: Allen Simple? programming question [WP34S] Shawn Gibson 3 1,204 03-15-2013, 11:56 AM Last Post: Didier Lachieze Article of interest Victor Quiros 0 779 03-09-2013, 03:56 PM Last Post: Victor Quiros Good (simple?) calculation for benchmarking? Jedidiah Smith 28 5,954 03-01-2013, 05:13 PM Last Post: Harald SpeedUI: Version 12.05 Holiday Edition released:-) Raymond Del Tondo 3 1,343 12-30-2012, 02:18 AM Last Post: Han What are the most popular functions? (Poll until 18.12.) Walter B 62 9,541 12-18-2012, 08:18 AM Last Post: Walter B

Forum Jump: