(12C) Simple Interest
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11-23-2023, 05:40 AM
Post: #1
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(12C) Simple Interest
Simple Interest Formula
T = B + B × R% × N = P × (1 + R% × N) T = total future value (uses the FV register) B = beginning value (uses the PV register) R = annual interest rate (uses the i register) N = time in years (uses the n register) The program uses four of the TVM registers for the purpose of storing registers in a convenient way. HP 12C Code: Simple Interest Step : Key Code : Key # Solve for the future value, GTO 01, R/S Code: 01: __, 45, 13: RCL PV # Solve for the present value, GTO 09, R/S Code: 09: __, 45, 15: RCL FV # Solve for the time in years, GTO 19, R/S Code: 19: __, 45, 15: RCL FV # Solve for the interest rate, GTO 32, R/S Code: 32: __, 45, 15: RCL FV Summary T = B + B × R% × N To solve for T: GTO 01, [ R/S ] To solve for B: GTO 09, [ R/S ] To solve for N: GTO 19, [ R/S ] To solve for R: GTO 32, [ R/S ] Examples 1. What is the interest rate required if you begin with $1,000.00 and end up with $1,135.00 in 5 years? Assume that account accrues using simple interest. 1000 [ PV ] 1135 [ FV ] 5 [ n ] GTO 32, [ R/S ] Answer: 2.70%. 2. An auto loan of $8,000.00 is to paid back in 60 monthly payments (5 years). The loan's rate is 6% at simple interest. What is the monthly payment of this loan? The first step is to find the total amount: 8000 [ PV ] 6 [ i ] 5 [ n ] GTO 01, [ R/S ] T = $10,400.00 (total plus interest) [ RCL ] [ FV ] 60 [ ÷ ] Monthly payment with simple interest: $ 173.33 Source Hayes, Adam. "Simple Interest: Who Benefits, With Formula and Example" Investopedia. Last updated May 27, 2023. Retrieved November 19, 2023. URL: https://www.investopedia.com/terms/s/sim...terest.asp |
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(12C) Simple Interest - Eddie W. Shore - 11-23-2023 05:40 AM
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