The HP 12C guided self-study consists of a series of questions/problems that are to be answered using the calculator and manual. The goal of this self-study is to gain familiarity with the common uses of the HP 12C and identify areas that require further study. The layout follows the chapters in the HP 12C Owner’s Handbook and Problem-Solving Guide. After reading each chapter, there is a summary and review test. The answer to each question is available on a separate key.

The objectives of this guided self-study training are:

  • Gain a basic understanding of the layout of the HP 12C keyboard and where keys/functional areas are located.
  • Calculate mortgage payments
  • Calculate balloon payments
  • Calculate interest rates and yields
  • Create amortization schedules
  • Determine an investment’s IRR (internal rate of return)
  • Perform basic business/finance mathematics

Sections

1. Getting Started

2. Percentage and Calendar Functions

3. Basic Financial Functions

4. Additional Financial Functions

5. Additional Operating Functions

6. Statistics Functions

7. Mathematics and Number-Alterations

8. Programming Basics

9. Branching and Looping

10. Program Editing

11. Multiple Programs

12. Real Estate and Lending

13. Investment Analysis

14. Leasing

15. Savings

16. Bonds

Chapter 1 Summary (top)

* The digit entry keys are used to key in numbers as they would be written down.
* [CHS] is used to key in a negative number.
* [CLx] clears the display.
* The [ENTER] key is used to separate two numbers.
* When an arithmetic key is pressed, the HP 12C performs the operation immediately.
* The results of prior calculations are stored inside the calculator on the stack.
* Contrast is adjusted by holding down the [ON] key and pressing plus [+] or minus [-].
* Turning the calculator OFF doesn’t erase the memory.
* Twenty data storage registers designated R0 through R9 and R.0 through R.9 are available.
* Numbers are stored in the storage registers with the [STO] key.
* Numbers are recalled from the storage registers with the [RCL] key.
* [f] CLEAR [REG] clears all storage registers.
* The [f] and [g] shift keys are used to access the alternate (or shifted) functions on the HP 12C.

Review Questions for Chapter 1

Please record answers on a separate piece of paper, grouping answers by chapter number.

1. Write the keystrokes to add 21 and 47. Record the result.

2. Write the keystrokes to subtract 52 from -8. Record the result.

3. List the keystrokes and the result for:

5.92 x 8.13
------------- =
2.3

4. Write the keystrokes to divide the previous result by 3.15. Record the result.

5. Write the keystrokes to set the display to 4 decimal places.

6. Write the keystrokes to store the result of question 2 in register 3. Write the keystrokes to divide the content of register 3 by 0.45 and store the result in register 4.

7. Write the keystrokes to store the result of question 4 in register 2.

8. Multiply register 2 by register 3. List the keystrokes and the result.

Chapter 2 Summary (top)

* [%] is used to find the percentage of a number.
* [?%] calculates the percent difference between two numbers.
* [%T] find what percentage a number is of the total.
* [g] [D.MY] set the calendar format to day, month, year.
* [g] [M.DY] sets the calendar format to month, day, year.
* [g] [?DYS] calculates the number of days between two dates.
* [g] [DATE] determines the date that is a specific number of days from a given date.

Review Questions for Chapter 2

1. What is 30.5% of $80,000?

2. A piece of furniture costs $700 with an additional 7.5% sales tax. What is the total cost (price plus sales tax)?

3. If a tenant’s rent jumps from $350 a month to $600 a month, what is the percent increase?

4. An investor owns XYZ Industries stock worth $1300, Idylwild Aircraft stock worth $1500, and Kaplan Pharmaceuticals stock worth $250. What percent of the total value of her portfolio does each stock represent?

5. Write the keystrokes for question 4.

6. How many days are there between November 13, 2000, and April 7, 2004?

7. A 90-day option was purchased on September 1, 2000. What is the expiration date* What will be the day of the week?

8. Write the keystrokes for question 7.

9. If today is September 13, how many days until Christmas?

10. Again, if today is September 13, what will be the date 100 days from today* Its day of the week?

Chapter 3 Summary (top)

* [f] CLEAR [FIN] clears the financial registers.
* A cash flow diagram is the pictorial representation of a financial problem.
* End means payments are made at the end of the payment period, while Begin means payments are made at the beginning of the payment period.
* In a TVM problem, [n] and [i] must correspond to the same period of time.
* In a TVM problem, both [n] and [i] must appear in the problem.
* A valid financial transaction must have at least one positive cash flow and one negative cash flow.
* [g] [12x] multiples the number in the display by 12 and stores the result in [n].
* [g] [12/] divides the number in the display by 12 and stores the result in [i].

Review Questions for Chapter 3

1. What monthly payment amount is necessary to repay a 30-year, $50,000 mortgage with an annual interest rate of 13.5%?

2. What would be the monthly payment in question 1 if the interest rate were increase to 14%?

3. What is the remaining balance on the mortgage in question 2 at the end of year 5?

4. If a student deposits $100 in a 6% saving account, how long will it take him to double his funds if the interest is paid monthly* If the interest is paid quarterly?

5. If the same student deposits an additional $100 at the beginning of each month and the 6% interest is compounded monthly, how much will he have in his account after one year?

6. Write the keystrokes for question 5.

Chapter 4 Summary (top)

* [f] [AMORT] calculates the amount of interest and principal for each payment.
* [f] [NPV] determines the net present value of a series of uneven cash flows.
* [g] [CFo] is used to enter the intial cash flow.
* [g] [CFj] is used to enter cash flows 1 to j.
* [g] [Nj] is used to enter the number of times each cash flow occurs.
* [f] [IRR] calculates the internal rate of return of a series of uneven cash flows.
* Bond prices and yields can be calculated on an "actual-actual" basis of 365-days or a "30-360" basis of a 30-day month and a 360-day year.
* Depreciation can be calculated via the straight-line, sum-of-the-years-digits, or declining balance method.

Review Questions for Chapter 4

1. Generate an amortization table for the fifth payment of an $80,000 loan with monthly payments (made at the end of the month) of $916.33 at an annual interest rate of 7.9%. Then find the remaining balance after the fifth payment.

2. An investor has the opportunity to purchase a duplex for $80,000 and wants at least a 13% return. She expects to keep the duplex for 5 years and then sell it for $125,000. Assuming the following yearly cash flows, calculate the NPV to determine whether the investment meets her 13% profit objective.

Year (j) Cash Flow (CFj)
1 -80,000
2 -500
3 4,500
4 5,500
5 4,500
6 5,000 + 125,000 (property sold)

3. In the previous example, what is the internal rate of return?

4. What price should an investor pay on April 28, 2001, for a 6.75% corporate bond that matures on June 4, 2014, if he wants a yield of 8%* (Use month-day-year format for the dates.)

5. The Market is quoting 74.5 for the bond described in question 4. What yield will that provide?

6. Write the keystrokes for question 5.

7. A piece of equipment has been purchased for $45,000. Its remaining useful life is 7 years with an estimated salvage value of $1,000. Calculate the amount of depreciation and the remaining depreciable value after two years assuming 150% declining balance.

Chapter 5 Summary (top)

* All information in the HP 12C’s continuous memory is preserved even while the calculator is powered off.
* Pressing [f] then a single digit (0 to 9) specifies the number of decimal places displayed.
* Press [f] [.] to set the display format to scientific notation.
* Regardless of which display format is selected, calculations inside the calculator are performed with full 10-digit numbers unless the operator uses the [RND] or [AMORT] function.
* [LSTx] recalls to the display the number that was there before an operation was performed.

Review Questions for Chapter 5

1. List the keystrokes to display 4 decimal places.

2. Perform the following calculation: 3345698 / 45903829 + 3849 x 12.45. Write the result to 4-digit decimal accuracy. Write the result in scientific notation.

3. Write the result, with three-digit decimal precision, of:

The result of question 2 multiplied by 36.
The result of question 2 divided by 2.7563.
The result of question 2 less 210.

4. List the keystrokes for question 3.

Chapter 6 Summary (top)

* Before beginning statistical calculations for a new set of data, clear the registers by pressing [f] CLEAR [S].
* To enter two-variable data, key the y-value into the display, press [ENTER], key in the x-value, then press [S+].
* [S-] allows the correction of entered statistical data.
* Pressing [g] [s] calculates the standard deviation of the x- and y-values.
* A correlation coefficient close to 1 or -1 indicates the data closely matches a straight line.
* A correlation coefficient close to zero indicates the data does not match a straight line and a linear estimate using that data is not very reliable.

Review Questions for Chapter 6

1. Sue sells Amway products to five of her neighbors and makes $400 in sales each month. Tom sells products to two customers and makes $50 in monthly sales. Adam makes $1,000 in sales each month to 15 customers. Jim has seven regular customers and makes $350 in monthly sales. How many customers do these salespeople average* How much does the average salesperson sell each month?

2. Tom just announced he had a banner month with 13 customers and $165 in sales for the month. Using this updated information, now how many customers do these salespeople average* How much does the average salesperson sell each month?

3. What is the standard deviation of sales for the salespeople above?

4. If a new person were to join the team above and she expected 10 regular customers, what would be her expected sales figure using a linear estimation* What is the correlation coefficient of this estimate* How reliable is the estimate?

Chapter 7 Summary (top)

* Pressing [f] [RND] changes the number inside the calculator to match its displayed version.
* [g] [INTG] replaces the number in the display and inside the calculator with only its integer portion
* [g] [FRAC] replace the number in the display and inside the calculator with only its fractional portion
* Like the arithmetic function [+], [yx] requires two numbers to be entered prior to calculation.
* The HP 12C performs basic mathematics, but is primarily a business/finance model.

Review Questions for Chapter 7

1. Find the reciprocal of 0.4578.

2. Find the square root of 4578.25

3. Calculate 42!

4. Write the keystrokes for questions 1, 2 and 3.

Chapter 8 Summary (top)

* An HP 12C program is essentially a keystroke macro.
* The PRGM annunciator is lit when the calculator is in program mode.
* Pressing [f] CLEAR [PRGM] will erase any previously stored programs.
* While programming, the number to the left of the display denotes the program line.
* While in program mode, [SST] allows the user to single step through a program.
* [R/S] is a toggle key that will run (execute) a program or stop a program.

Review Questions for Chapter 8

Please review all additional examples listed in Chapter 8. These problems should be understood but do not need to be keystroked as programming questions on the HP 12C are minimal.

Chapter 9 Summary (top)

Although most HP 12C programs execute in order of the program lines, the program can include branch and loop structures.

Review Questions for Chapter 9

Please review all additional examples listed in Chapter 9. These problems should be understood but do not need to be keystroked as programming questions on the HP 12C are minimal.

Chapter 10 Summary (top)

* HP 12C program lines can be modified or edited by setting the calculator to program line preceding the line to be edited, then keying in the new program line.
* New instructions entered while editing a program replace the previous program line; the new line is not inserted and the previous line is not "bumped" to the next line.

Review Questions for Chapter 10

Please review all additional examples listed in Chapter 10. These problems should be understood but do not need to be keystroked as programming questions on the HP 12C are minimal.

Chapter 11 Summary (top)

* HP 12C can store multiple programs, but they should be separated by instructions to halt program execution after each program is run.
* To run a program that does not begin at line 01, press [g] [GTO] followed by the two digits that specify the first line of the program, then press [R/S].

Review Questions for Chapter 11

Please review all additional examples listed in Chapter 11. These problems should be understood but do not need to be keystroked as programming questions on the HP 12C are minimal.

Chapter 12 Summary (top)

* Fees paid in connection with a mortgage effectively raise the interest rate and reduce the amount of money the borrower receives (PV) IF the fees are financed with the mortgage.
* Some investors buy mortgages at prices lower - discounted - or prices higher - at a premium - than the remaining balance of the loan.
* The NPV of a deferred annuity may be calculated by assuming zero for the first cash flow(s).

Review Questions for Chapter 12

Please review all additional examples listed in Chapter 12. These problems should be understood but do not need to be keystroked as questions of this nature on the HP 12C are minimal.

Chapter 13 Summary (top)

* The HP 12C can calculate straight-line, declining-balance, and sum-of-the-years-digits depreciation amounts with the aid of provided programs.

Review Questions for Chapter 13

Please review all additional examples listed in Chapter 13. These problems should be understood but do not need to be keystroked as questions of this nature on the HP 12C are minimal.

Chapter 14 Summary (top)

* Leasing involves making payments in advance and calls for extra payments to be made when the transaction is closed.
* Similarly, some financial transactions have advance payments and a residual or salvage value at the end of the normal term.

Review Questions for Chapter 14

Please review all additional examples listed in Chapter 14. These problems should be understood but do not need to be keystroked as questions of this nature on the HP 12C are minimal.

Chapter 15 Summary (top)

* Given a nominal interest rate and the number of compounding periods per year, a user can compute the effective interest rate with the HP 12C.
* Likewise, with an effective interest rate and the number of compounding periods per year, a user can compute the nominal interest rate with the HP 12C.

Review Questions for Chapter 15

1. What is the effective annual interest rate if the annual nominal rate of 7.85% is compounded quarterly?

2. What is the effective annual interest rate if the interest is compounded monthly?

3. If the effective interest rate is 4.5% and it is compounded monthly, what is the nominal annual rate?

Chapter 16 Summary (top)

* A bond is a contract to pay interest at a given rate and to pay the principal of the bond at some specified future date.
* A bond that is calculated on a 30/360 basis is one in which the day count basis is computed using 30 days in a month and 360 days in a year.
* A bond that is calculated on an actual/actual basis is one in which the day count basis is computed using 365 days in a year.

Review Questions for Chapter 16

Please review all additional examples listed in Chapter 16. These problems should be understood but do not need to be keystroked as questions of this nature on the HP 12C are minimal; most customers just want to know where the keystroke procedures are located in the HP 12C Owner’s Handbook and Problem-Solving Guide.

Review Appendix A through Appendix of the HP 12C Owner’s Handbook and Problem-Solving Guide for error condition explanations, the formulas used, and additional information.


  1. On 15-Dec-2013, Anonymous wrote: 
    how do you clear out (aka remove) programs in the HP 12 C gold?
    Your reply to Anonymous

  2. On 15-Dec-2013, Anonymous wrote: 
    what are the keystrokes to calculate a balloon payment?
    Your reply to Anonymous

  3. On 15-Dec-2013, Anonymous wrote: 
    what are the keystrokes for the following question?
    Review Questions for Chapter 4
    1. Generate an amortization table for the fifth payment of an $80,000 loan with monthly payments (made at the end of the month) of $916.33 at an annual interest rate of 7.9%. Then find the remaining balance after the fifth payment.
    Your reply to Anonymous

  4. On 15-Dec-2013, Anonymous wrote: 
    what are keystrokes to get the answer to the question in chapter 3, 3. What is the remaining balance on the mortgage in question 2 at the end of year 5?
    Your reply to Anonymous

  5. On 15-Dec-2013, Anonymous wrote: 
    where are the answers to the answers to the review questions for HP12c gold?
    Your reply to Anonymous

  6. On 29-Jul-2013, Virginia wrote: 
    "The answer to each question is available on a separate key" -- please kindly see the last sentence in the guided self-study for HP 12C herein above.
    What is meant by this "separate key"?
    And How do I find it please?
    Your reply to Virginia

  7. On 13-Mar-2013, Art wrote: 
    Where is the answer key located?
    Your reply to Art

  8. On 23-Feb-2013, Vincent.g.araiza@wellsfargo.com wrote: 
    I am tring to look for a program that I can use with the HP 12c Calculater that was titled H P 12 C Qualifying Program. I can only find one part it is a two part formula. Can you direct me to where i can get the entire program?
    Your reply to Vincent.g.araiza@wellsfargo.com

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