User talk:Jpsst44

Jpsst44 (talk) 13:29, 5 September 2018 (UTC)When computing the number of payments, the HP 12c rounds up to the next highest n value when the number of periods for a non-integer number has a decimal value greater than or equal to 0.005. This is well explained in the HP 12C manual(See HP 12C User's Guide). For example, if one borrows PV dollars from a bank, which charges a nominal interest rate on the loan of R%, and the borrower pays monthly payments in order to repay the bank loan then the number of monthly payments that need to be made will probably not be an integer value (Amortization Table). The HP 12C will return a whole number for n. This is exactly how any financial institution would do it. In this example, the borrower would pay equal payments for n-1 periods and one more payment, less that the normal monthly payment, for the last and final nth payment. Consider the following numerical example: PV=25000Jpsst44 (talk) 17:23, 5 September 2018 (UTC), R=6.7% and the borrower wants to pay $500 a month. Enter 25000 for PV, enter 6.7/12 for i, and enter -500 for PMTS. Press n to get 59. Press FV to get 103.32. This says that if the borrow pays $500 each month for 59 months then he/she will be overpaying by $103.324. Therefore, the borrower will need to pay $500 for 58 months and a final payment of 396.68 for the 59th month. The HP 12C has been around since 1981. Does anyone really believe that a "bug" of this magnitude could or would still exist knowing that most financial institutions consider the HP 12C to be the gold standard for financial calculators? In fact, although the HP 12C rounds up to the nearest n may in theory be mathematically inaccurate, it returns a value of n which is more financially correct. In other words, the HP 12C is telling the user that there will be n total payments(this has to be integer number). However, it is up to the user to know that the nth payment will be different than the (n-1)th payment. This is EXACTLY what an amortization table would predict. There will be n-1 equal payments and one final nth payment which is less than any previous monthly payment. All this should be well understood to anyone working in the financial sector.