HP HP-12C - Manual

15 After-Tax Net Cash Proceeds of Resale The After-Tax Net Cash Proceeds of Resale ( ATNCPR ) is the after-tax reversion to equity; generally, the estimated resale price of the property less commissions, outstanding debt and any tax claim.The After-Tax Net Cash Proceeds can be found using the HP-12C...

20 Lending Loan With a Constant Amount Paid Towards Principal This type of loan is structured such that the principal is repaid in equal installments with the interest paid in addition. Therefor each periodic payment has a constant amount applied toward the principle and a varying amount of interest...

21 Add-On Interest Rate Converted to APR An add-on interest rate determines what portion of the principal will be added on for repayment of a loan. This sum is then divided by the number of months in a loan to determine the monthly payment. For example, a 10% add-on rate for 36 months on $3000 means...

29 1. Key in the program. 2. Key in the number of months in the loan and press . 3. Key in the payment number when prepayment occurs and press . 4. Key in the total finance charge and press to obtain the unearned interest (rebate). 5. Key in the periodic payment amount and press to find the amount o...

34 Variable Rate Mortgages As its name suggests, a variable rate mortgage is a mortgage loan which provides for adjustment of its interest rate as market interest rates change. As a result, the current interest rate on a variable rate mortgage may differ from its origination rate (i.e., the rate whe...

36 Skipped Payments Sometimes a loan (or lease) may be negotiated in which a specific set of monthly payments are going to be skipped each year. Seasonally is usually the reason for such an agreement. For example, because of heavy rainfall, a bulldozer cannot be operated in Oregon during December, J...

38 Savings Initial Deposit with Periodic Deposits Given an initial deposit into a savings account, and a series of periodic deposits coincident with the compounding period, the future value (or accumulated amount) may be calculated as follows: 1. Press and press CLEAR . 2. Key in the initial investm...

39 Number of Periods to Deplete a Savings Account or to Reach a Specified Balance. Given the current value of a savings account, the periodic interest rate, the amount of the periodic withdrawal, and a specified balance, this procedure determines the number of periods to reach that balance (the bala...

40 The cash flow diagram looks like this: Now suppose that at the beginning of the 6th month you withdrew $80. What is the new balance? You increase your monthly deposit to $65. How much will you have in 3 months?The cash flow diagram looks like this: Keystrokes Display CLEAR 50 5.5 1023.25 5 1,299....

41 Suppose that for 2 months you decide not to make a periodic deposit. What is the balance in the account? This type of procedure may be continued for any length of time, and may be modified to meet the user's particular needs. Savings Account Compounded Daily This HP 12C program determines the val...

47 Investment Analysis Lease vs. Purchase An investment decision frequently encountered is the decision to lease or purchase capital equipment or buildings. Although a thorough evaluation of a complex acquisition usually requires the services of a qualified accountant, it is possible to simplify a n...

57 Example 2: A manufacturer of automotive accessories produces rear view mirrors. A new line of mirrors will require fixed costs of $35,00 to produce. Each mirror has a variable cost of $8.25. The price of mirrors is tentatively set at $12.50 each. What volume is needed to break even? What would be...

59 1. Key in the program.2. Key in and store input variables F , V and P as described in the Break-Even Analysis program. 3. Key in the sales volume and press to calculate the operating leverage. 4. To calculate a new operating leverage at a different sales volume, key in the new sales volume and pr...

65 Securities After-Tax Yield The following HP-12C program calculate the after tax yield to maturity of a bond held for more than one year. The calculations assumes an actual/actual day basis. For after-tax computations, the interest or coupon payments are considered income, while the difference bet...

67 8. Key in the purchase date (MM.DDYYYY) and press . 9. Key in the assumed sell date (MM.DDYYYY) and press to find the after-tax yield (as a percentage). 10. For the same bond but different date return to step 8.11. For a new case return to step 2. Example: You can buy a 7% bond on October 1, 1981...

71 Forecasting Simple Moving Average Moving averages are often useful in recording of forecasting sales figures, expenses or manufacturing volume. There are many different types of moving average calculations. An often used, straightforward method of calculation is presented here.In a moving average...

82 1. Key in the program. 2. Press CLEAR . 3. Key in 12 and press 0.4. Key in the values for the first 13 months, storing them one at a time in registers 1 through .3; i.e.Key in the 1st month and press 1. Key in the 2nd month and press 2, etc., Key in the 10th month and press 0, etc., Key in the 13...

87 present trend continues? What annual sales rate would the curve have predicted for the 5th year of the product's life? (Arrange the data as follows:) Forecasting with Exponential Smoothing A common method for analyzing trends in sales, inventory and securities is the moving average. Exponential s...

93 Pricing Calculations Markup and Margin Calculations Sales work often involves calculating the various relations between markup, margin, selling price and costs. Markup is defined as the difference between selling price and cost, divided by the cost. Margin is defined as the difference between sel...

99 Statistics Curve Fitting Exponential Curve Fit Using the function of the HP-12C, a least squares exponential curve fit may be easily calculated according to the equation y = Ae Bx . The exponential curve fitting technique is often used to determine the growth rate of a variable such as a stock's ...

103 Logarithmic Curve Fit If your data does not fit a line or an exponential curve, try the following logarithmic curve fit. This is calculated according to the equation y = A + B (ln x ), and all x values must be positive. A typical logarithmic curve is shown below. The procedure is as follows: 27....

105 Power Curve Fit Another method of analysis is the power curve or geometric curve. The equation of the power curve is y = Ax B , and the values for A and B are computed by calculations similar to linear regression. Some examples of power curves are shown below. The following keystrokes fit a powe...

106 levels of the Tower of Pisa (which was leaning even then) and timed its descent by counting his pulse. The following data are measurements Galileo might have made. Find the power curve formulas that best expresses h as a function of t ( h = At B ). The formula that best expresses h as a function...

110 4. Key in the respective frequency and press . The display shows the number of data points entered. 5. Repeat steps 3 and 4 for each data point. 6. To calculate the mean, press 05 . 7. Press to find the standard deviation. 8. Press to find the standard error of the mean. 9. For a new case, go to...

113 1. Key in the program. 2. Press CLEAR . 3. Key in the first O i value and press . 4. Key in the first E i value and press . 5. Repeat steps 3 and 4 for all data pairs. The x 2 value is displayed. 6. For a new case, go to step 2. Normal Distribution The normal (or Gaussian) distribution is an imp...

117 3. Repeat step 2 for each new case. Example: Find Q ( x ) for x = 1.18 and x = 2.1. Covariance Covariance is a measure of the interdependence between paired variables ( x and y ). Like standard deviation, covariance may be defined for either a sample (S xy ) or a population (S' xy ) as follows: ...

119 1. Key in the program. 2. Press CLEAR . 3. Key in the y -value and press . 4. Key in the x -value and press . Repeat steps 3 and 4 for all data pairs. 5. Press 03 . to obtain the value of S xy . 6. Press to obtain S' xy . 7. For a new case, go to step 2. Permutation A permutation is an ordered s...

121 Combination A combination is a selection of one or more of a set of distinct objects without regard to order. The number of possible combinations, each containing n objects, that can be formed from a collection of m distinct objects is given by: Where m , n are integers and 69 ≥ m ≥ n ≥ 0. Use t...

122 1. Key in the program. 2. Key in m and press . 3. Key in n and press to calculate m C n . 4. For a new case, go to step 2. Example: A manager wants to choose a committee of three people from the seven engineers working for him. In how many different ways can the committee be selected? Random Num...

124 Personal Finance Homeowners Monthly Payment Estimator It is often useful, when comparison shopping for a mortgage or determining the appropriate price range of houses to consider, to be able to quickly estimate the monthly payment given the purchase price, tax rate per $1000, percent down, inter...

130 6. If you invest the same amount ($1500, *after taxes for a not-Keogh or IRA account.) each year with dividends taxed as ordinary income, what will be the total tax-paid cash at retirement? 7. What is the purchasing power of that figure in terms of today's dollars? Stock Portfolio Evaluation and...

136 Canadian Mortgages In Canada, interest is compounded semi-annually with payments made monthly. This results in a different monthly mortgage factor than is used in the United States and preprogrammed into the HP-12C. This difference can be easily handled by the addition of a few keystrokes. For a...

137 Number of Periodic Payments to Fully Amortize a Mortgage Example 2: An investor can afford to pay $440 per month on a $56,000 Canadian Mortgage. If the annual interest rate is 9 1/4 %, how long will it take to completely amortize this mortgage? Effective Interest Rate (Yield) Example 3: A Canadi...

139 Miscellaneous Learning Curve for Manufacturing Costs Many production process costs vary with output according to the "learning curve" equation. The production team becomes more proficient in manufacturing a given item as more and more of them are fabricated and costs may be expected to d...

143 Queuing and Waiting Theory Waiting lines, or queues, cause problems in many marketing situations. Customer goodwill, business efficiency, labor and space considerations are only some of the problems which may be minimized by proper application of queuing theory.Although queuing theory can be com...

150 Appendix Real Estate Wrap-Around Mortgage • n 1 = number of years remaining in original mortgage. • PMT 1 = yearly payment of original mortgage. • PV 1 = remaining balance of original mortgage. • n 2 = number of years in wrap-around mortgage. • PMT 2 = yearly payment of wrap-around mortgage. • r...

151 Lending Loans with a constant amount paid towards Principal • BAL k = remaining balance after time period k. • CPMT = Constant payment to principal. • BAL k = PV - ( k x CPMT ) • K th payment to interest = i ( BAL k ) = ( PMT i ) k • K th total payment = CPMT + ( PMT i ) k Add-On Interest Rate t...

153 Compounding Periods Different From Payment Periods • C = number of compounding periods per year. • P = number of payments periods per year. • i = periodic interest rate, expressed as a percentage. • r = i / 100, periodic interest rate expressed as a decimal. • i PMT = ((1 + r / C) C/P - 1)100 In...

159 Calculations of List and Net Prices with Discounts • L = List price. • N = Net price. • D = Discount(%). • • • Statistics Exponential Curve Fit • y = Ae Bx • • • = - Ae Bx Logarithmic Curve Fit • y = A + B (ln x ) D ' 1 D 100 ---------- – = L N D ' 1 D ' 2 S S D D F × × -------------------------...

161 • mean • standard deviation • standard error Personal Finance Tax-Free Retirement Account (IRA) or Keogh Plan • n = the number of years to retirement. • i = the compunded annual interest. • PMT = the earnings used for investment (and taxes). • FV = future value. • tax = the percent tax expressed...

162 Portfolio beta coefficient: • Canadian Mortgages • r = annual interest rate expressed as a decimal. • monthly factor Miscellaneous Learning Curve for Manufacturing Cost • C n = Cost of the n th unit. • C 1 = Cost of the first unit. • n = number of units. • r = learning factor. • k = ln r / ln 2 ...

163 Queuing and Waiting Theory • n = number of servers. • λ = arrival rate of customers (Poisson input). • µ = service rate for each server (exponential service). • ρ = Intensity factor = λ / µ ( ρ , n for valid results). • P 0 = Probability that all servers are idle. • P b = Probability that all se...