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Keys, 121(ezxsi, Display: description – HP 10B User Manual

Page 111

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This problem is solved in two steps. First calculate the amount you’ll need

when she starts college. Start with an interest rate conversion because of

the monthly compounding.

^ $15,000 >

m i i i H i n

H i m i n n

i m i m m

I/YR =9%

i m u m n

Year 1

Year 2

Years

Year 4

Keys:

9

lEEia

121(EZXSI

lEES

Display:

Description:

9.00

Stores annual nominal

rate.

12.00

Stores number of com­

pounding periods used

with this nominal rate.

9.38

Culcululcs annual

effective rate.

When compounding occurs only once per year, the effective rate and the

nominal rate arc the same.

9.38

Stores effective rale as

annual rate.

Set to Begin mode. Press

displayed.

dll^üSD

if BEGIN annunciator is not

1

15000 fPMTl

4 ■

1.00

15,000.00

4.00

Sets 1 payment per year.

Stores annual withdrawal.

Stores number of with­

drawals.

108

8: Additional Examples