Compute Present Value of Future Payments Using an HP12c Platinum

[ColdGambler]

wait a second ,you´re answer is incomplete isn´t it ? you calculated how much money is needed at the start of the 4 years , but this "start" is in 14 years from today . So you have to calculate how much you need to put today to achieve this amount in 14 years . its quite simple , just wanted to say that its missing this part . Nice vid , im learning how to use Hp for college now , thx , u helped me

[coronet]

What a badass thing to calculate right there from a calculator you can fit in a shirt pocket. Just being able to pull out one of these and perform a financial equation right in front of someone is serious genius credit right there.

[zw0ecool]

anyone who can use the 12c hp calculator with superb ability should get hired at any bank or financial job on the spot, this calculator is awesome

[KimballAtBYUHawaii]

@zw0ecool Naturally, it is not just knowing how to use the calculator, which is a valuable skill in and of itself, but it is the ability to listen to a financial situation and be able to know which functions in the calculator relate to the problem at hand. It is this latter skill that is the most difficult to teach and for which people really get paid.

[zw0ecool]

@KimballAtBYUHawaii agreed, that is what i meant.

[zw0ecool]

this hp calculator owns

[KimballAtBYUHawaii]

See my video response to your question in a new video I just created named: Computation of Loan Amount Using HP12-C and Excel 2007's =PMT() Function

[cuevanomics]

wow this is really helpful. I am trying to learn how to use the HP12c for real estate practices. Right now I am trying to solve this problem;

The loan amount is $348,750

Amortization is for 30 years

Fixed rate interest is 7.25%

I need to solve for the monthly payment.

[shlayma]

@cuevanomics

Enter it like this on calculator :

PV = $348760

n = (30 x 12) = 360

i = (7.25 / 360) = 0.02

PMT per month = $1004.17

i hope that is correct:)

[tdawg611]

@shlayma

While you have the right idea, figuring the amount of months, you are slightly off on your interest rate. 7.25 is the yearly interest rate, so 7.25 should be divided by 12, not 360.

i=.6042

PMT month= $2,379.16

[shlayma]

@tdawg611 Duhhh!!!

lol dunno why i divided by 360??!!!

stupid mistake :D

[lambent123]

I just begun taking a real estate fiance course at univ level. I am getting familiar with the calculator and the PV, FV etc terminologies.

Anyhow, my point is, you mentioned $21, 396.61 is the amount the dad needs before the daughter begins to college but that is 14 years from now. In other words, shouldn't you be also showing what's the amount the dad needs NOW to get to $21,396.61 in 14yrs in consideration of the inflation etc?

[KimballAtBYUHawaii]

Correct. The Hp12-c user's guide breaks this question in to two parts. 1) compute the present value at the start of the daughter's education of the amounts she will be withdrawing (offset by interest earned) over four years. My video describes this solution. 2) Compute the amount that you would have to save each month (assuming a given interest rate) such that you have $21,396.61 14 years from now (a future value question). The User's Guide explains this in Examples 2-4.

[lambent123]

Woww, that was very quick response, thank you, greatly appreciated.

[marcel911]

Nice HP12C emulator. What's it called? Where do you get it? I use a 12C app on my iPhone, but I'd love one for my PC at work.

[KimballAtBYUHawaii]

Sorry, I just now saw your question, so here is my response ( a little delayed).

If you are an educator, you can contact HP directly in the education department and ask for an emulator. I believe they have emulator software for all their calculators so teachers can use their PCs and a computer projector.

[1mouseman]

$6,000 a year for college? Where Where????

Nice video by the way, very helpful

[KimballAtBYUHawaii]

Thank you. A first attempt at using Camtasia (a screen capture software) and my brand-new HP 12C (I used a different model in school).

Yes where in deed can you get a full year of education for only $6,000? Per a recent ranking, BYU-Hawaii was ranked the number 1 best value private university in the US, but that is still ~$14,000 for LDS members and ~$18,000 for non-members. Maybe the $6,000 a year example was included in the manual when the HP 12C was created a few decades ago.

[aegisforex]

Simple. Don't go to a private school. USF or UCF in Florida, $130/credit. You can CLEP, AP, or Dantes 45 of the 120 credits and theoretically complete a 4 year degree for about $10k, not including books and living expenses.

[KimballAtBYUHawaii]

Certainly an option.