HP 12C Platinum: Present Value of a Fractional Year

 HP 12C Platinum: Present Value of a Fractional Year

This blog features the HP 12C Platinum, HP 10BII+, and HP 22S calculators.

Short Term Transactions

Here is the scenario: A bank offers a short term bond, which last less than one year, which pays $100.00 at maturity date. The interest rate stated is an annual interest rate. While determining a pricing schedule, one banker uses an HP 12C Platinum calculator while another uses the HP 10BII+ calculator. They both use the TVM (time value of money) keys. A 365-day year is used.

FV = -100, I% (see table), N (see table), PMT = 0, Solve for PV, P/Y = 1

Term (days)	N = term ÷ 365 (to five decimal places) (for reference)	I%	HP 12C Platinum (to 5 decimal places)	HP 10BII+ (to 5 decimal places)
89	0.24384	5	98.79551	98.81737
141	0.38630	5	97.99973	98.02800
181	0.49589	5	97.58054	97.60958
365	1	5	95.23810	95.23810
89	0.24384	8	98.08664	98.14091
141	0.38630	8	96.83753	96.90714
181	0.49589	8	96.18425	96.25548
365	1	8	92.59259	92.59259

As you can see, the results are different! Why?

According to HP-12C Solutions Handbook (see the Source section), when it comes to fractional periods, simple interest is used instead of compound interest in the TVM solver. Most financial calculators, such as HP 10BII+ always uses compound interest.

Cash flow convention states that:

1. Cash inflows, such as deposits, are positive.

2. Cash outflows, such as payments, are negative.

3. In most problems, the present value and future value have opposite signs.

Respecting cash flow convention, the formulas for present value are:

Simple Interest:

P = -F ÷ (1 + D ÷ 365 × I ÷ 100)

Compound Interest:

P = -F ÷ (1 + I ÷ 100) ^ (D ÷ 365)

where:

P = present value (PV)

F = future value (FV)

I = annual interest rate

D = number of days

If leap years, substitute 366 for 365. If we are working with 30/360 day years, substitute 360 for 365.

These formulas are set up to be entered in calculators with equation solvers such as the HP 22S. I have used the HP 22S to verify each of the results above.

Now why is the results the say when the term exactly 365? It’s pretty simple to prove:

Simple Interest:

P_simple = -F ÷ (1 + 365 ÷ 365 × I ÷ 100) = -F ÷ (1 + I ÷ 100)

Compound Interest:

P_compound = -F ÷ (1 + I ÷ 100) ^ (365 ÷ 365) = -F ÷ (1 + I ÷ 100) = P_simple

When the Term Exceeds One Year

Let’s say the $100.00 bond lasts for 545 days, about one year and a half. This time the interest rate is 7%.

On the HP 12C, any fractional period is treated with simple interest. The HP 12C’s TVM solver (and the HP 12C Platinum) treats the timeline as such.

365 days: full period, compound interest	180 days: partial year, simple interest
PV	FV = -$100.00

To break it down, the HP 12C starts determining the value after 365 days.

N = 180 ÷ 365

I = 7

FV = -100

PV ≈ 96.66314

P = -(-100) ÷ (1 + 180 ÷ 365 × 7 ÷ 100) ≈ 96.66314

365 days: full period, compound interest	180 days: partial year, simple interest
PV	FV = -$100.00
	96.66314

From here, the HP 12C uses that value to calculate final present value. Since we are now working with a full period (one year in this case), compound interest is used with n = 1:

N = 1

I = 7

FV ≈ -96.66314 (treated as an outflow and becoming the acting future value)

PV ≈ -(-96.6314 ÷ (1 + 7 ÷ 100) ^ (1) ≈ 90.33938

The final present value (and price) of this bond is 90.33938.

If we enter following the HP 12C Platinum:

N: 545 [ ENTER ] 365 [ ÷ ] [ N ] (≈ 1.49315)

I: 7 [ i ]

FV: 100 [ CHS ] [ FV ]

PMT: 0 [ PMT ]

[ PV ] → PV ≈ 90.33938

Enter the same problem on most other financial calculators, like the HP 10BII+, will result in a final present value of 90.39108. (P/Y = 1) This is because compounding interest is used for the entire time:

P = -(-100) ÷ (1 + 7 ÷ 100) ^ (545 ÷ 365) ≈ 90.39108

HP 12C Program: Present Value Using Compounding Interest Including Fractional Periods

The program calculates present value given the future value, interest, and the number of days using compounding interest for the entire period. A 365 day year is assumed.

Code: Key; Key Code

ENTER; 36

3; 3

6; 6

5; 5

÷; 10

1; 1

RCL i; 45, 12

%; 25

+; 40

x<>y; 34

y^x; 21

RCL FV; 45, 15

x<>y; 34

÷; 10

CHS; 16

GTO 000; 43,33,000 (GTO 00; 43, 33,00 for HP 12C Classic)

Future value is stored in FV and interest rate is stored in i. The number of days is on the X stack.

Source

Hewlett Packard. HP-12C Solutions Handbook. 2004. pg. 45 https://literature.hpcalc.org/official/hp12c-sh-en.pdf

Eddie

All original content copyright, © 2011-2026. Edward Shore. Unauthorized use and/or unauthorized distribution for commercial purposes without express and written permission from the author is strictly prohibited. This blog entry may be distributed for noncommercial purposes, provided that full credit is given to the author.

TI-84 Plus CE, HP 15C, and HP 12C: Decoding the Gradematic 100

TI-84 Plus CE, HP 15C, and HP 12C: Decoding the Gradematic 100

GPA as a function of grade

Last December, we have gave a spotlight on the Calculated Industries 100 from 1983. The Gradematic 100 was a specialty calculator that determines the GPA average for a student or a bunch of students in a class. We can either use numerical grades, where the maximum total score and the minimum passing grade (better than E (or F)) are set, or letter grades, where the letters are given an approximated. To see the review, click the link below:

https://edspi31415.blogspot.com/2025/12/spotlight-calculated-industries.html

Using the standard grade scale for a single assignment, with a perfect score being 100 and the minimum passing grade is 60, the following scores are given the GPA:

GRADE (0 – 100)	GPA	Letter Grade Given by Gradematic 100
0	0.00	E (can stand for F)
10	0.08	E (can stand for F)
20	0.16	E (can stand for F)
30	0.25	E (can stand for F)
40	0.33	E (can stand for F)
50	0.41	E (can stand for F)
55	0.45	E (can stand for F)
60	0.50	D-
65	1.00	D
70	1.50	C-
75	2.00	C
80	2.50	B-
85	3.00	B
90	3.50	A-
95	4.00	A
100	4.50	A+

Plot of values (using a TI-84 Plus CE):

As we can see, the plot consists of two line segments: one where grades value from 0 to 60, and one where grades value from 60 and higher. It is apparent that that the two parts makes a piece-wise function consisting of two lines.

Note: the graphs and statistics were done with the TI-84 Plus CE Python (will work with any TI-84 CE family). The piecewise function is from the math-math menu.

The Gradematic 100 distributes the GPA as:

E: 0.00 (or F)	D+: 1.33	C+: 2.33	B+: 3.33	A+: 4.33
D-: 0.66	C-: 1.66	B-: 2.66	A-: 3.66
D: 1.00	C: 2.00	B: 3.00	A: 4.00

Note: The distributed GPA scales will vary among the school districts and systems. However, we will assume the system that matches the default 60/100 system.

HP 15C and HP 12C: Find the GPA given numeric grade

HP 15C Code:

LBL C	001	42, 21, 13
6	002	6
0	003	0
x≤y	004	43, 10
GTO 1	005	22, 1
2	006	2
×	007	20
÷	008	10
RTN	009	43, 32
LBL 1	010	42, 21, 1
CL x	011	43, 35
1	012	1
0	013	0
÷	014	10
5	015	5
.	016	48
5	017	5
-	018	30
RTN	019	43, 32

HP 12C Code:

6	01	6
0	02	0
x≤y	03	43, 34
GTO 09	04	43, 33, 09
2	05	2
×	06	20
÷	07	10
GTO 00	08	43, 33, 00
CL x	09	35
1	10	1
0	11	0
÷	12	10
5	13	5
.	14	48
5	15	5
-	16	30
GTO 00	17	43, 33, 00

Eddie

All original content copyright, © 2011-2026. Edward Shore. Unauthorized use and/or unauthorized distribution for commercial purposes without express and written permission from the author is strictly prohibited. This blog entry may be distributed for noncommercial purposes, provided that full credit is given to the author.