Hp 12cp Financial Calculator

[Claribel Szwaja]

Thisfinance calculator can be used to calculate the future value (FV), periodic payment (PMT), interest rate (I/Y), number of compounding periods (N), and PV (Present Value). Each of the following tabs represents the parameters to be calculated. It works the same way as the 5-key time value of money calculators, such as BA II Plus or HP 12CP calculator.

Suppose someone owes you $500. Would you rather have this money repaid to you right away in one payment or spread out over a year in four installment payments? How would you feel if you had to wait to get the full payment instead of getting it all at once? Wouldn't you feel that the delay in the payment cost you something?

According to a concept that economists call the "time value of money," you will probably want all the money right away because it can immediately be deployed for many different uses: spent on the lavish dream vacation, invested to earn interest, or used to pay off all or part of a loan. The "time value of money" refers to the fact that a dollar in hand today is worth more than a dollar promised at some future time.

This is the basis of the concept of interest payments; a good example is when money is deposited in a savings account, small dividends are received for leaving the money with the bank; the financial institution pays a small price for having that money at hand. This is also why the bank will pay more for keeping the money in long and for committing it there for fixed periods.

Also, the PV in finance is what the FV will be worth given a discount rate, which carries the same meaning as interest rate except applied inversely with respect to time (backward rather than forward. In the example, the PV of an FV of $121 with a 10% discount rate after 2 compounding periods (N) is $100.

PMT or periodic payment is an inflow or outflow amount that occurs at each period of a financial stream. Take, for instance, a rental property that brings in rental income of $1,000 per month, a recurring cash flow. Investors may wonder what the cash flow of $1,000 per month for 10 years is worth. Otherwise, they have no conclusive evidence that suggests they should invest so much money into a rental property. As another example, what about the evaluation of a business that generates $100 in income every year? What about the payment of a down payment of $30,000 and a monthly mortgage of $1,000? For these questions, the payment formula is quite complex, so it is best left in the hands of our Finance Calculator, which can help evaluate all these situations with the inclusion of the PMT function. Don't forget to choose the correct input for whether payments are made at the beginning or end of compounding periods; the choice has large ramifications on the final amount of interest incurred.

For any business student, it is an immensely difficult task to navigate finance courses without a handy financial calculator. While most basic financial calculations can technically be done by hand, professors generally allow students to use financial calculators, even during exams. It's not the ability to perform calculations by hand that's important; it's the understanding of financial concepts and how to apply them using these handy calculating tools that were invented. Our web-based financial calculator can serve as a good tool to have during lectures or homework, and because it is web-based, it is never out of reach, as long as a smartphone is nearby. The inclusion of a graph and a schedule, two things missing from physical calculators, can be more visually helpful for learning purposes.

In essence, our Finance Calculator is the foundation for most of our Financial Calculators. It helps to think of it as an equivalent to the steam engine that was eventually used to power a wide variety of things such as the steamboat, railway locomotives, factories, and road vehicles. There can be no Mortgage Calculator, or Credit Card Calculator, or Auto Loan Calculator without the concept of the time value of money as explained by the Finance Calculator. As a matter of fact, our Investment Calculator is simply a rebranding of the Finance Calculator while everything underneath the hood is essentially the same.

I am aware that the 12c is the best selling HP calculator ever and also the longest in production; however, I cannot fathom the reasons for this. I'd like your opinions.My first HP financial calculator was the original 12c, purchased in 1981. Later on, I tried to replace it with a 17B when it hit the market. I liked the features but hated the by then unfamiliar and awkward Algebraic mode, so I returned to my 12c. When HP finally wisened and came out with the 17bII, I got one and soon it became 2nd nature. The keys performed one or two functions at the most and the softkeys were great, with mostly logical and intuitive arrangemets.Some weeks ago, my aging 17bII gave up the ghost (the LCD just blanked out) and I hurried to the local Office Depot to replace it. As things usually go, they didn't have one, but they did have the 25th anniversary 12c Platinum. The salesman said that the 17bII+ was out of stock and didn't know when they would get more, passingly mentioning that financial calculators were all but replaced by handheld organizer software and spreadsheets.I returned to my office and tried to get a 17 from the Office Depot internet portal, only to find it was also out-of-stock.Since I live in Mexico and then in a small place, and while my trades are new car distribution and real-state developement, I cannot live without a good financial calc at hand. I do have some .prc calcs for my Palm but they're just not the real thing.Thus, I returned to OD and -reasoning that I had previously used and enjoyed my original 12c- I got the 25th anniversary Platinum and headed back to my office to relearn it.So far, it's been an excercise in frustration. It doesn't display operators, CF solving, that in the 17 was a breeze, is a true bitch, forcing me to go for Excel instead (if I have a computer at hand). Depreciation idem. The only thing that is fairly straightforward are the TVM calcs. I've checked again and OD has the 17bII+ in stock now (on their web portal, not locally). It means an expense of over USD $220, including shipping. Since Ive just spent about $150 on the 12c Pt, I wonder if I should plough on trying to relearn it, or I should bite the bullet and write it off to a necessary but transitory evil.Any comments on the matter much appreciated.Jorge (Mxico) Re: Reasons for choosing a 12c Platinum over the 17bII+?

Message #2 Posted by Steve Perkins on 1 Apr 2008, 5:18 p.m.,

in response to message #1 by Jorge M. Trevio

Quote:I am aware that the 12c is the best selling HP calculator ever and also the longest in production; however, I cannot fathom the reasons for this. I'd like your opinions.I have the 25th anniversary Platinum and use it as my regular calculator for the RPN, for its professional appearance, and for its easier display readability compared to that of the HP 17BII. (BTW, I prefer the 25th anniversary's silver trim over the gold trim of the original 12c). However for TVM and cashflow calculations, I find the HP 17BII much easier to use due to the same reason you gave: its softkey menus. To perform the same calculations on the HP 12c that I can perform easily on the HP 17BII, I need to refer to the 12C manual (or to the notes I've taped to the back of the 12c) e.g. Quick: calculate the effective monthly interest rate for a 6% Canadian mortgage, which is compounded semi-annually rather than, US-style, monthly.The easiest to use financial calculator is my Infinity Software PowerOne calculator on my Treo 680, thanks to its use of templates for TVM and cashflow calculations. But for entering more than a few figures, I much prefer the feel of real keys on an HP calculator over my Treo's 'virtual' HP calculator....btPS. There's a newer, silver HP 17BII+ (aka HP 17BII++) with a double-width input key, introduced in Europe 6-months ago, which will eventually arrive in North America.Edited: 1 Apr 2008, 11:03 p.m. Re: Reasons for choosing a 12c Platinum over the 17bII+?

Message #4 Posted by Frank Rottgardt on 3 Apr 2008, 4:04 p.m.,

in response to message #3 by bt_schmidt

If you had asked "Which is better? A 12C or 17bii+?", then I think you would have heard that the 17bii+ is better. At least from me. ;-)I was very surprised, when I originally got my hands on a 17bii+, by the power, functionality and flexibility of that model. It quickly rose to the the Top 5 of my favorite HP calculators. Today, I own three different versions of the 17b family, and I love each of them.Take back the 12c and trade it for a 17bii+.The new silver one is way cool, BTWthanks,bruce Re: Reasons for choosing a 12c Platinum over the 17bII+?

Message #6 Posted by Gene Wright on 1 Apr 2008, 9:54 p.m.,

in response to message #5 by Bruce Bergman

Guys, many thanks for the insightful replies. The price of the 17b2+ here in Mexico is outrageous --due to its Chinese origin duties mainly- but I think I'll bite the bullet and order one from OD tomorrow. I work regularly with complex cash-flows, perverse TVM calculations the go from 7 day capitalization schemes to 30 day equivalencies, in addition to ordinary statistical forecasts, for which I need at least STD.DEV analysis.Relearning the 12c has been a fine mental workout, something a >61yo guy badly needs, but for day to day number crunching, it pales besides the understated but more able siblings.Excel will probably be here to stay, and for serious calculations a spreadsheet is a must. However, for a Q&D calculation when an idea or problem comes along, just to check feasibility, a (HP) calculator plus a squared paper block is hard to beat; at least for me, an oldtimer who went through financial calc in college with the aid of a slide-rule, a log table and a Curta crank calculator. I just hope this iteration of HP calcs last me until my retirement.Cheers,Jorge.PS, I still wonder why people prefer the 12c... Re: Reasons for choosing a 12c Platinum over the 17bII+?

Message #9 Posted by Walter Lam on 2 Apr 2008, 12:51 p.m.,

in response to message #8 by Jorge M. Trevio

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