- CFA Exams
- General Forum
- Topic: Effective Annual Rate
|Author||Topic: Effective Annual Rate|
|Hi, wish to know anyone know how to calculate the Effective Annual Rate (EAR) using HP-12C? I kept getting the error message, despite following the steps.
I'm stuck here. Please help. Many thanks.
|Have the TI, but possibly similar programming? For EAR, you program into the calculator the number of payments per year. So if semiannual coupons, P/Y is 2. If monthly compounding, P/Y=12, and so on. Then when entering N, the number of years, you enter the number, then push the 'xP/Y' button, to find N. Ex. A 30 year mortgage has 360 payments, rather than 30. P/Y=12.|