HP12c Notes

0.

To have n decimal points appear, type f n

Also, to be sure constant cash flow streams begin in the first period (end of
the current period) make sure the word BEGIN does not appear on the display. If
it does, type f 8 (i.e., END).
1.

x + y:
x Enter y +

for multiplication, division or subtraction, substitute or for +.

2.

ab:
a Enter b yx

e.g., effective annual rate of return corresponding to an APR of 10% compounded

monthly:
need to calculate (1 + 0.1/12)12 - 1. To do this, type
0.1 Enter 12 1 + (This should give you 1.00833) followed by 12 yx 1
3. To store a value that is currently displayed, type STO n where n is the register
(memory place) in which the displayed number will be stored. To recall the stored
number, type RCL n where n is the registered in which your number is stored.
e.g., type 453 followed by Enter. The number 456.00 should be displayed. Now
type STO 1 followed by CLX to clear the display. The number 456.00 is now
stored in register #1. To recall it, type RCL 1.
4.
Constant cash flows with or without a face value: type the information to
any four of the following inputs followed by the corresponding function. Pressing
on the fifth button will calculate its value.
1) #payments is N type N followed by n.
2) (constant) discount rate is r% type r followed by i.
3) Present Value is V type V followed by CHS followed by PV.
4) Constant payment amount is C type C followed by PMT.
5) Face value is P (0 in case of an annuity, and the principle in case of a

bond) type P followed by FV.

Particularly Relevant Examples:
A) To find the present value of an annuity that pays $10 every month for 30
years at a monthly compounded APR of 10%, use n = 360, r = 10/12, C
= 10, and P=0. After entering these inputs, pressing on PV should give
the correct answer (the present value is $1,139.51).
B) To find the present value of a bond that pays $10 every month for 30
years at a monthly compounded ytm of 10%, and matures with a
principle of $100, do the same as above but use P=100 (the present value
is $1,144.55).
C) To find the quarterly payments corresponding to a 5-year annuity with
present value 100 and a true effective quarterly discount rate of 2%, use n
= 20, r = 2, V = 100, and P=0. After entering these inputs, pressing on
PMT should give the correct answer (ans. 6.116).
D) To find the quarterly coupons corresponding to a 5-year bond with
present value at par (i.e., 100) and a true effective ytm of 2.00%, do as in
example (C) but use P=100 (ans. 2.00).
E) To find the ytm of a 7-yr 12% coupon bond semi-annually and selling at
112.3 use n = 14, C = 6, V = 112.3, and P=100. After entering these
inputs, pressing on i should give the ytm per 6-mo period (ans. 4.775%).
To annualize this number (i.e., quote the ytm as an APR) you must
multiply by 2 (ans. 9.55%).
5.
NPV and IRR of variable cash flow streams: first enter the cash flow values
into the appropriate registers. If you will receive C0, C1, C2,, CN, in dates 0 to N,
enter C0 followed by g PV (i.e., CF0 ) and then sequentially enter the remaining
cash flows by pressing Ck followed by g PMT (i.e., CFj ) for each k = 1,,N. note:
the nth cash flow will be stored in the nth memory register and will wipe out
anything that is currently stored there. To be sure that the nth cash flow is properly
entered, you can review the content of that registry by typing RCL n where n is the
period whose cash flow you wish to review.
After properly entering the cash flow, you can calculate the NPV given a
constant discount rate of r by pressing r i f PV (i.e., r i NPV).
If an IRR exists, you can calculate it for the cash flows by typing f FV (i.e.,
IRR). You can give the HP12c an initial guess for the IRR by keying in the guess,
typing RCL g R/S followed by IRR.