Re: HP-12C Rounding of periods Message #3 Posted by Les Bell (Australia) on 5 Mar 2001, 11:37 p.m., in response to message #1 by Hoang Tran
Hoang Tran wrote:
>>
Invest $1000 at 10% annual interest. How long does it take for the the money to double? The HP will say it takes 8 years, although it really only takes seven years
and change. How do I get this value displayed as 7.xxx?
<<
Problem here is your selection of compound interval. Although the interest rate is 10% per annum, it is more usually compounded monthly, i.e. i = 10%/12 = 0.83%. Now, if you repeat the calculation, you should get a result of 83.52 *months*, or just under 7 years. I would expect the 12C to have shifted functions to allow entry of annual interest rates, but compounded monthly - the various 41C pacs that do TVM all do.
Best,
--- Les [http://www.lesbell.com.au]
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