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An excerpt from Readings in Financial Planning 3e, © 1998 The American College, ISBN 1-57996-001-4, pgs. 361-364

                Appendix C
Keystrokes for Solving Selected TVM Problems Using the HP-12C Calculator

Note: The individual keystrokes in this appendix are separated by commas.

1. Preliminary “housekeeping” and miscellaneous chores
    a. Clearing memory
        yellow f, REG or
        yellow f, FIN
    b. Setting number of decimal places displayed
        yellow f and desired number
    c. Clearing display or eliminating last keystroke
        CLX
    d. Raising a number to a power
        base number, ENTER, exponent, y^x
2. Future value of a single sum problems
    a. Finding FVSS
        amount of present value, CHS, PV, number of periods, n, interest rate, i, FV
    b. Finding approximate n
        amount of present value, CHS, PV, amount of future value, FV, interest rate, i, n
    c. Finding i
        amount of present value, CHS, PV, amount of future value, FV, number of periods, n, i
3. Present value of a single sum problems
    a. Finding PVSS
        amount of future value, FV, number of periods, n, interest rate, i, PV
    b. Finding approximate n
        see 2b above
    c. Finding i
        see 2c above
4. Future value of an annuity problems
    a. Finding FVA
        amount of one payment, CHS, PMT, interest rate, i, number of payments, n, blue g, END, FV
    b. Finding approximate n
        future value of the annuity, FV, amount of one payment, CF1S, PMT, blue g, END, interest rate, i, n
    c. Finding i
        future value of the annuity, FV, amount of one payment, CHS, PMT, number of payments, n, blue g, END, i
5. Future value of an annuity due problems
    a. Finding FVAD
        amount of one payment, CHS, PMT, interest rate, i, number of payments, n, blue g, BEG, FV
    b. Finding approximate n
        future value of the annuity due, FV, amount of one payment, CHS, PMT, blue g, BEG, interest rate, i, n
    c. Finding i
        future value of the annuity due, FV, amount of one payment, CHS, PMT, number of payments, n, blue g, BEG, i
6. Sinking fund problems
    a. Finding sinking fund payment
        target amount of sinking fund, FV, interest rate, i, number of payments, n, blue g, BEG (or END), PMT
    b. Finding approximate n
        target amount of sinking fund, FV, interest rate, i, amount of one payment, CHS, PMT, blue g, BEG (or END), n
    c. Finding i
        target amount of sinking fund, FV, amount of one payment, CHS, PMT, number of payments, n, blue g, BEG (or END), i
7. Present value of an annuity problems
    a. Finding PVA
        amount of one payment, CHS, PMT, interest rate, i, number of payments, n, blue g, END, PV
    b. Finding approximate n
        present value of the annuity, CHS, PV, amount of one payment, PMT, blue g, END, interest rate, i, n
    c. Finding i
        present value of the annuity, CHS, PV, amount of one payment, PMT, number of payments, n, blue g, END, i
8. Present value of an annuity due problems
    a. Finding PVAD
amount of one payment, CHS, PMT, interest rate, i, number of payments, n, blue g, BEG, PV
    b. Finding approximate n
        present value of the annuity due, CHS, PV, amount of one payment, PMT, blue g, BEG, interest rate, i, n
    c. Finding i
        present value of the annuity due, CHS, PV, amount of one payment, PMT, number of payments, n, blue g, BEG, i
9. Debt service/capital sum liquidation problems
    a. Finding the payment
        beginning amount of loan or capital sum, CHS, PV, interest rate, i, number of payments, n, blue g, BEG (or END), PMT
    b. Finding the approximate n
        beginning amount of loan or capital sum, CHS, PV, interest rate, i, amount of one payment, PMT, blue g, BEG (or END), n
    c. Finding i
        beginning amount of loan or capital sum, CHS, PV, amount of one payment, PMT, number of payments, n, blue g, BEG (or END), i
    d. Creating an amortization schedule
        annual interest rate, i (or blue g, 12 ÷ if loan payments are to be made monthly), blue g, END (normally), beginning amount of loan, PV, amount of one loan payment, CHS, PMT, 1 (or 12 if loan payments are to be made monthly), yellow f, AMORT (to show total interest payments in first year), x⇄y, (to show total principal payments in first year), RCL, PV (to show unpaid loan balance at end of first year); repeat 1 (or 12), yellow f, AMORT x⇄y, RCL, PV to show the total interest payments, principal payments, and unpaid loan balance for each successive year of the loan’s duration
10. Present value of uneven cash flows problems
    a. Cash flows at end of year: ungrouped data (see text for grouped data) amount of first cash flow, blue g, CFj, second cash flow, blue g, CFj, etc. through entire sequence; then interest rate, i, yellow f, NPV
    b. Cash flows at beginning of year: ungrouped data (see text for grouped data)
        amount of first cash flow, blue g, CFo, second cash flow, blue g, CFj, third cash flow, blue g, CFj, etc. through entire sequence; then interest rate, i, yellow f, NPV
    c. Cash flows that grow by a constant percentage, with first payment made immediately
        blue g, BEG, amount of first cash flow, PMT, 1 plus interest rate, ENTER, 1 plus growth rate, ÷, 1, -, 100, ×, i, number of payments, n, PV
    d. Cash flows that grow by a constant percentage, with first payment made after one year
        divide answer found in 10c by (1 plus interest rate)
11. Future value of uneven cash flows problems
    a. Generally
        Compute present value as in 10a or 10b above; then ENTER, CHS PV, interest rate, i, number of years, n, FV
    b. Special case: deposits growing by a constant percentage
        compute present value as in 10c or 10d above; then STO, 1, yellow f, FIN, RCL, 1, PV, interest rate, i, number of years, n, FV
12. Net present value problems
    a. Ungrouped data
        amount of initial outflow, CHS, blue g, CFo; then amount of each succeeding inflow or outflow, including zeros, pressing blue g and CFj after each (CHS, blue g, and CFj for outflows); then interest rate, i, yellow f, NPV
    b. Grouped data
        amount of initial outflow, CHS, blue g, CFo; then amount of first inflow or outflow, including zeros, blue g, CFj (CHS, blue g, CFj for outflows); then number of times that amount occurs in succession, blue g, Nj; repeat the process for each subsequent inflow, outflow, or zero flow or group of same; then interest rate, i, yellow f, NPV
13. Internal rate of return problems
        Same as NPV problems except for last four keystrokes; instead of interest rate, i, yellow f, and NPV, press yellow f, IRR
14. Conversion of nominal interest rate to effective interest rate problems
    a. Discrete compounding or discounting
        nominal interest rate, ENTER, number of compounding periods per year, n, ÷, i, 100, CHS, ENTER, PV, FV, +
    b. Continuous compounding or discounting during 360-day year
        1, ENTER, nominal interest rate, %, blue g, e^x, ∆%

BEST!
SlideRule

ps: link is correct