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Using the financial calculator for deferred annuities

+1 vote
asked Jul 26, 2017 in BUS 2016H - Financial Mathematics by anonymous

How do I do Q10.2 from the ACT-ED notes using the financial calculator? I understand a good deal of this question and the basic time value keys, but I cant seem to understand how to deal with the deferred payment. I figured it would be easier to present value the cash flows and then find the future value, but this will only work out if I can understand how to deal with the deferred cash flows using the HP12c Platinum.

1 Answer

+1 vote
answered Aug 24, 2017 by Rowan (4,010 points)
selected Sep 14, 2017 by Richard van Gysen
Best answer

Hi Annonymous

The HP12c does allow for deferred payments using the CFo, CFj and Nj keys. (The blue alts for the PV, PMT and FV keys). For an example of how these keys work please see page 134 of the user guide which came with your calculator. If this example doesn't help you then please comment on this answer and I will give a keystroke answer to the question you mentioned from the Act Ed notes.