Modified Internal Rate Of Return; Advance Payments; Interest Rate Conversions; Finite Compounding - HP 12C User Manual

256 Appendix E: Formulas Used
=
DPN RBV
−
j j

Modified Internal Rate of Return

n = number of compounding periods.
NFV = Net future value of the positive cash flows.
P
NPV = Net present value of the negative cash flows.
N
⎡
⎛
⎢
⎜
=
MIRR 100
⎢
⎜
⎝
⎢
⎣

Advance Payments

A = number of payments made in advance.
PV
=
PMT
⎡
−
1 1 (
⎢
⎢
⎣

Interest Rate Conversions

C = number of compounding periods per year.
EFF = the effective annual interest rate as a decimal.
NOM = the nominal annual interest rate as a decimal.

Finite Compounding

⎛
NOM
= +
⎜
EFF 1
⎝
C

Continuous Compounding

NOM
=
EFF ( e
File name: hp 12c pt_user's guide_English_HDPMF123E27
Printed Date: 2005/8/1
FACT
⋅
for j ≠ 1
1
100 L
⎤
1
⎞
⎥
NFV
n
⎟
−
P
1
⎥
⎟
−
NPV
⎠
⎥
N
⎦
−
n
− +
FV 1 ( i )
⎤
− −
+ ( n A )
i )
+
A ⎥
i ⎥
⎦
C
⎞
−
⎟
1
⎠
−
) 1
Page: 256 of 275
Dimension: 14.8 cm x 21 cm