Transcript File

HP 12C CALCULATOR BASICS
DIFFERENCES 12C & REG. CALCULATOR
• Note there is no = sign on the HP 12C
calculator. This is because it is Reverse Polish
Notation (RPN).
• RPN is a mathematical notation in which every
operator follows all of its operands. Basically
you have to think somewhat in reverse of
what is normal. There is no = sign, the last
entry will result in an answer in the display.
Is Learning HP 12C Worth It?
• It depends.
• Most older professional appraisers use this
calculator. Newer WSU Real Estate majors,
were taught using TI BAII.
• People have passed this class with a normal
calculator, but an HP 12C is much easier when
you get to advanced problems and the
instructor will be using the HP 12C .
Ex. Cash Equivalency with Balloon
Buyer A purchased a property for
$120,000, and assumed a mortgage
that was 80% of the purchase price
with 20 years remaining at 3% and 7year balloon. The market rate is 80%
LTV, 20 years, 7.5%, 7-year balloon
($99,421 Cash Equiv.)
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IMPORTANT KEYS - Clearing
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Good practice to
always clear
calculator at start
of every problem.
To Clear –
or
Hit , then hit
do same for
IMPORTANT KEYS ENTER
1) Enter – Used
at the beginning
of simple
calculations.
Example 1 Enter 2
+ 3 + will give a
display of 6
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IMPORTANT KEYS - Memory
Use Numbers 1
through 9 to
store numbers.
Example: Store
430 in Register 1
430
1
To Recall 1
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Display
CHANGING DECIMALS
1 Decimal
1
2 Decimals 2
Etc. etc.
8
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Clear Screen
Other Odds & Ends
• The HP is programmed so that if the PV is + then FV
is displayed as – and visa versa, because the HP
assumes that one is an inflow and other is an
outflow. When entering both PV and FV, one must
be entered as negative and other positive, or ignore
the – sign.
• Also, I have several .pdfs from the Appraisal
Institute, HP including the original owner’s manual
with practice problems and instructions.
• To change display of numbers after decimal use
and then press number like 2, 3, etc. for the
numbers after the decimal.
BASICS – Addition, Subtraction,
Division, Multiplication
Clear Register
Addition = 12 13 16 Display is
Clear Register
Subtraction= 25 13 16
Display is
Clear Register
Multiplication = 25 3
Display is
Clear Register
Division = 25 3
Display is
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MY DEAR AUNT SALLY RULE
• REMEMBER “Please Excuse My Dear Aunt
Sally” STILL APPLIES "Parentheses, Exponents,
Multiplication and Division, and Addition and
Subtraction". Do multiplication and division
first, then addition and subtraction. Use the
register to store and recall sets of numbers.
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Examples of Mixed Problems
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Ex. (36 /12) + (3 x 6) - 5 = 16
1) Clear Register
or 1st # and
Display
2) 36
3) .
4) 3
5) .
6) 5
12
1 If you want to test
6
1
1
Practice Mixed Use Problems
1) (15 x 45) + 35 + (12/3) + 18 =
Solution:
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Another Mixed Problem
Main Financial Buttons
Note use
button for top
functions,
for bottom
functions, and
none for
figures in
white
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Mortgage Payment - Annual
• Ex. What is the annual payment for a 20-year
loan of $1,280,000 at 7.5% using 1 payment
per year.
Solution:
Steps in 12C
1) Clear
2) 1,280,000
3)
4) 7.5
5) 20
6) Solve Hit
Display
Mortgage Payment - Monthly
• Ex. What is the annual payment for a 20-year
loan of $1,280,000 at 7.5% paid on monthly
basis. Solution:
Steps in 12C
Display
1) Clear
2) 1,280,000
3)
4) 7.5
(7.5/12)
5) 20
(20*12)
6) Solve Hit
7) 12
(Annual)
(Monthly)
NPV – Uneven Cash Flows
Example: A property has the following income – Year 1 $14,600, Year 2 - $15,100, Year 3 - $16,000, Year 4 - $17,200.
The investor wants a 9% Yield Rate.
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NPV – Uneven Cash Flows & Reversion
Example: A property has the following income – Year 1 - $14,600,
Year 2 - $15,100, Year 3 - $16,000, Year 4 - $17,200 along with
$400,000 reversion. The investor wants a 9% Yield Rate.
Solution:
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Steps in 12C
1) Clear
2) 14,600
3) 15,100
4) 16,000
5) 17200
400,000
6)
7) 9
8)
or NPV
Display
MISC. ON ANDROID APP. – All Commas
v
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Cash Equivalency
A recent $1,600,000 sale was seller financed at a rate of
7.5% for 20-years with a 80% loan ratio, monthly
payments. What is cash equivalency if market rate is 9%?
Note – Mo. Payment, Annual Loan or 12 PMTs Per Year
Clear Register
.80
1,600,000 Display
Loan Amt.
This Enters Loan Amount
20
For 12 Pmts in 20 years, 7.5
for interest
Hit
Display
9
Hit
m
PV =Loan 320,000
(cash)
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Gives Display