Owners Guide
V12 Financial Calculator
VICTOR TECHNOLOGY
Preface
Congratulations on your purchase of the V12 financial
calculator from Victor Technology. Victor has been serving
customers since 1918. Today, Victor offers a complete line
of printing, handheld, desktop, scientific, and financial
calculators. For more information please see our website
at www.victortech.com
Victor: The Choice of Professionals
or call us at 1-800-628-2420.
Copyright © 2007 by Victor Technology LLC
All rights reserved.
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Table of Contents
Chapter 1: Where to Start .................................. 6
Powering On and Off .............................................6
Controlling screen contrast .................................... 6
Keyboard Dynamics............................................... 6
Entering Digits .......................................................6
Decimal Placement................................................ 6
Entering Large Amounts ........................................7
Entering Small Amounts ........................................7
Changing the Sign of a Number............................. 7
Using the Clear Function .......................................8
ALG and RPN Setting Functions ...........................8
RPN method .......................................................... 9
Sequential Calculations in RPN method ................9
Storage Capacity and Recalling Entered Data....... 9
Chapter 2: The First Steps to Financial Functions11
Using the Financial Storage Registers.................11
Saving to a Register ............................................11
Resetting Saved Data.......................................... 11
Basic Interest Calculations................................... 11
Basic Financial Calculations ................................ 14
Positive and Negative Cash Flows ......................14
Payment Function................................................ 14
The special relationship between i. and n. ........ 15
Determining Interest Rate: Solving for i. ............ 15
Determining Present Value: Solving for PV ........16
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Determining Payment Amount: Solving for PMT 17
Determining Future Value: Solving for FV ......... 18
Determining Number of Periods: Solving for n.. 19
Loan With Balloon Payment................................. 19
Amortization Function ..........................................20
Chapter 3: Other Financial Calculations......... 22
NPV (Net Present Value)..................................... 22
Grouped Cash Flows ...........................................23
Replacing Current Cash Flow Value Data ...........25
Determining Values with Depreciation .................26
Determining Bond Values .................................... 28
Percentages......................................................... 30
Calendar Operations............................................ 32
Determining Number of Days Between Dates .....33
Chapter 4: Other Operational Features............ 35
Full Figure Display ...............................................37
Other Display Settings .........................................37
LST X...................................................................38
x ↔ y.................................................................... 39
Statistical Features and Functions....................... 39
Recovering Incorrectly Entered Statistical Data...40
Standard Deviation Entries .................................. 41
Mean Values........................................................ 41
Linear Estimates for x and y ................................42
Weighted Mean Values........................................43
Mathematical Features and Functions................. 44
Power Features in ALG method........................... 49
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Power Features in RPN method .......................... 49
Chapter 5: The Basics of Programming ........... 50
Creating Your Own Program................................ 50
Executing Your Own Program .............................53
Program Memory Basics...................................... 54
Determining Program Line Instructions................ 54
Program line 000 and the GTO 000 instruction:... 56
Performing a Program One Line at a Time ..........56
Setting the Calculator to a Specific Program Line 59
Interrupting a Program During Execution.............59
Stopping a Program During Execution................. 61
Chapter 6: Branch & Loop Programs ............... 63
Branching with Conditions ...................................63
Storing More Than One Program......................... 66
Chapter 7: Editing Your Programs ................... 67
Inserting Instructions Into a Program ...................68
Inserting Instructions at the End of a Program.....70
Chapter 8: Error Messages .............................. 72
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Chapter 1: Where to Start
Powering On and Off
Turn the unit on by touching the ON button. To turn the unit off, touch the ON
button again. The calculator will automatically power off after 7 minutes if not
used.
When the calculator is experiencing a low battery charge, a battery icon will
appear in the top left corner of the display screen.
Controlling screen contrast
To change the contrast of the display screen for optimal viewing, hold down the
.b button and touch X or ÷ keys until desired contrast is reached.
Keyboard Dynamics
Most buttons perform multiple functions. The primary function is displayed on
the center of the button, while alternative functions of the same button are
imprinted on the bottom side of the button, below the button, or above the
button. Alternate functions are obtainable by using one of two colored prefix
buttons prior to entering the function desired. The colors of the prefix buttons
match the alternative functions. The prefix buttons are b (blue) and r (red).
Entering Digits
To enter a digit, touch the number buttons and decimal place .. button in the
same order as they would appear on paper.
Decimal Placement
On the display, digits are separated with commas left of the decimal place. To
change the decimal point period icon to a comma and the comma icon to a
decimal point, turn the V12 off, touch and hold the decimal point button . , and
touch the ON button. Repeat this process again to reset these placements to
the standard display.
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Entering Large Amounts
The V12 displays numbers up to 10 digits. Scientific notation allows numbers
longer than 10 digits to be entered. To perform this function, enter the number
with the decimal point moved to the left. Keep track of how many positions the
decimal point moved. Next touch the EEX button and enter the number of
positions the decimal point was moved. Touch the ENTER key to complete the
entry.
Example
To enter a value of 7,894,300,000,000 the decimal place should move 12
spaces to the left leaving a mantissa of 7.8943 with an exponent of 12.
ENTRIES DISPLAY
7.8943 EEX 12
7.894300 12
Displays the figure in scientific notation.
These scientific notation numbers can be used in calculations the same as any
number.
Entering Small Amounts
Scientific notation allows numbers more than 10 decimal places below zero to
be entered. To perform this function, enter the number with the decimal point
moved to the right. Keep track of how many positions the decimal point moved.
Next touch the EEX button and enter the number of positions the decimal point
was moved. Touch the CHS key to make the number negative. Touch the
ENTER key to complete the entry. For example, to enter the number
.00000000047823456 we move the decimal point 10 positions. We enter
4.7823456, touch EEX, enter 10, touch CHS, and touch ENTER The display
will show 4.782345 -10.
Changing the Sign of a Number
The CHS button allows a changing of the sign of a number. If a negative value
is entered, or comes as a solution, touching the CHS button will make it a
positive. Likewise, touching the CHS button after a positive value is displayed
on the screen will change its sign to a negative.
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Using the Clear Function
Clearing replaces the displayed value with zero and replaces the previous
instruction with the r GTO 000 instruction when programming. There are
many ways of clearing data, outlined here:
BUTTONS WILL CLEAR
.b CLEAR REG
.b CLEAR FIN
.b CLEAR ∑
.b CLEAR
PRGM
CLX
Storage registers, block and last x register,
and display screen
Financial registers
Statistical registers (121- R)
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block registers and display screen
Program memory (when touched in program
mode)
Display screen and x register
ALG and RPN Setting Functions
RPN MODE ALG MODE
4 ENTER 2 X. 4 X 2 =
The ALG method enables calculations for addition, subtraction, multiplication,
and division (with or without parentheses) in the standard method.
To select the ALG method. Touch b ALG , and the ALG icon will appear.
Sequential Calculations in ALG method
To complete a sequential calculation, touch = at the end of your entries and
not after every entry.
Example: 5 X 2 + 3 – 4 ÷ 3 = 3.00
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RPN method
To select the RPN method, touch b RPN , and the RPN icon appears.
With RPN method enabled, you can perform basic calculations with two
numbers and with multiplication, addition, division, or subtraction. It is
necessary to enter both numbers in the equation, and then select the
mathematical operation to be used.
Touching ENTER between number entries allows a separation of the different
values within the calculator, and after entering the second value, selecting the
mathematical operation completes the calculation.
Sequential Calculations in RPN method
Once a solution from a previous entry has been found and is on the display
screen, enter the next value and select the mathematical operation to be
performed.
Example: 5 ENTER 2 X 3 + 4 - 3 ÷ .
Note: The display will show the answer: 3.00
Storage Capacity and Recalling Entered Data
Information entered into the calculator is stored to memory in different registers
within the calculator. There are registers for data storage during calculations
called blocks (covered later in this manual) and also a LST X register that
stores the value last on the display screen before an operation when using the
RPN method.
In addition to these storage registers, up to 20 more information registers are
available for storing values manually. The registers are called R0 through R9,
and R . 0 through R . 9 (with the decimal point in front of the number). Note:
In this manual, .. represents the decimal point key.
To store numbers into a register, touch STO , and then touch the register
number desired [either (0, 1, 2, 3, 4, 5, 6, 7, 8, or 9), or ( .. 0, . 1, . 2, . 3, .
4, . 5, . 6, . 7, . 8, . 9) ].
To recall a previously stored value, touch RCL , and similarly select the
desired stored value number, R0 through R9, and R ... 0 through R . 9.
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To delete stored values, enter zero, touch STO , and select the register to be
deleted, R0 through R9, and R .. 0 through R .. 9. (Note: Designating a new
value instead of 0 also replaces the old value set to the register)
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Chapter 2: The First Steps to Financial
Functions
Using the Financial Storage Registers
Five specialty registers are used for financial calculations only. These are n ,
i , PV , PMT , and FV and are located along the top row of buttons. Saving
data to these storage registers makes it possible to calculate financial problems
such as loan payments.
Saving to a Register
To set the numbers into the registers, enter the number to be stored, and touch
the button to which the number is to be stored. To recall the number, touch
RCL followed by the register you would like to recall ( n , i , PV , PMT , or
FV )
Resetting Saved Data
To replace current financial register values simply enter the new value and
press the register key. To clear all financial registers at once, touch b clear
FIN. Financial storage registers are also reset when b REG is entered, or
when the continuous memory is reset.
Basic Interest Calculations
Simple interest can be calculated with either 365-day or 360-day cycles. Either
can be displayed and the total amounts of principal plus the accrued interest
may be found by touching +. in RPN method, or +. x ↔ y = in ALG
method.
To perform this operation on a 365-day cycle, touch R↓ x ↔ y to find and
show interest accrued after determining the 360 day interest.
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Example
Calculate the simple interest on a 100,000 amount with 12% annual interest for
180 days using the 360 day cycle and the 365 day cycle.
ENTRIES DISPLAY
100000 CHS PV
-100,000.00
Displays the amount.
180.00
180 n.
Displays the number of days for which interest will
be calculated
12 i.
.b INT
R↓ x↔y
12.00
Displays the annual interest rate
6,000.00
Displays the simple interest on a 360 day basis
5,917.81
Displays the simple interest on a 360 day basis
In RPN method, touching + after the calculation places the total principal and
interest accrued into the display.
To display total principal and interest accrued in ALG method, touch + x ↔ y
.= .
Example
You take out a loan of $900, which you have 90 days to repay. You are lent the
money at 4.3% simple interest, which is calculated on a 360-day cycle. You
want to find the total amount of accrued interest you will owe in 90 days, the
total amount you will owe including principal.
ENTRIES (ALG) DISPLAY
900 CHS PV
-900.00
Displays the amount.
90.00
90 n.
Displays the number of days for which interest will
be calculated
4.3 i.
4.30
Displays the annual interest rate
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b INT
9.68
Displays the simple interest on a 360 day basis
909.68
.+ x ↔ y =
Displays the simple interest plus principal due on a
360 day basis
ENTRIES (RPN) DISPLAY
900 CHS PV
-900.00
Displays the amount.
90.00
90 n.
Displays the number of days for which interest will
be calculated
4.3 i.
b INT
4.30
Displays the annual interest rate
9.68
Displays the simple interest on a 360 day basis
909.68
+.
Displays the simple interest plus principal due on a
360 day basis
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Basic Financial Calculations
Before describing Basic Financial Calculations, it is important to review and
understand five basic terms and keys used with the V12.
TERM /
KEY
DEFINITION
The number of periods in the financial loan, often
n.
expressed in days, months, or years. The interest
rate must be defined per period.
The interest rate per period. Often an annual rate
i.
is converted to monthly by dividing by 12, weekly
by dividing by 52, or daily by dividing by 365.
The initial cash value received or paid or the
PV
present value of a series of future payments when
discounted at an interest rate.
PMT
The payment made each period.
The final cash value received or paid or the future
FV
value of a series of payments assuming an interest
rate.
When using the V12, four of these five variables must be known to perform a
calculation. The unknown variable can then be solved.
Positive and Negative Cash Flows
When performing financial calculations special care must be taken to enter
values with the proper sign. A payment or outflow of cash must have a
negative sign. A receipt of cash must have a positive sign. For example, the
initial cash received in a loan is a positive amount. The payments are negative
amounts.
Payment Function
Payments in compounding periods may be made either at the beginning of a
period (such as payments in advance, and annuities due), or at the end of a
period (such as regular annuities or payments in arrears).
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To select payment type:
Touch r END if the payment will be made at the end of the period.
Touch r BEG if the payment will be made at the beginning of the period.
Most transactions utilize an End of the period payment. Note: This manual will
only show examples using End of the period payments.
If the BEGIN icon is not showing on the display, the payment function is set to
END.
The special relationship between i. and n.
In compound interest problems, the interest rate entered into i must correlate
to the compounding period n in time (as in years, days, months, etc.)
Determining Interest Rate: Solving for i.
¾ Touch b CLEAR FIN to reset financial registers
¾ Enter the number of payment periods and touch n.
¾ Enter the present value of the loan and touch PV.
¾ Enter the payment value per period (a negative number) and touch
PMT.
¾ Enter the future value of the amount owed at the end of the payment
periods, touch CHS to make the number negative, and touch FV.
Note: If the amount owed at the end of the loan period will be zero, this
step can be skipped.
¾ Touch the i key to calculate the interest rate per period.
Example
ENTRIES (RPN) DISPLAY
b FIN
360 n.
400000 PV
2398.202 CHS PMT
0.00
Clears the financial registers.
360.00
Enters 360 months for a 30 year loan.
400,000.00
Enters the loan amount of $400,000.
-2,398.20
Displays the monthly payment
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------------
.i.
The V12 is calculating the value.
0.50
Displays the monthly interest rate.
Example
8 % annual interest, which is compounded quarterly for 3 years:
n is number of quarters (3 * 4=12)
i is interest rate per quarter (8% ÷ 4 = 0.02%)
If interest rate was compounded monthly, n would be 8% ÷ 12 =0.006
Since many financial calculations utilize an annual interest rate compounded
monthly, the V12 has two functions to simplify the entry of interest rate and
periods. The r 12÷ function will divide an annual interest rate by 12 and
enter the result as the monthly interest rate.
Example
24% annual interest which is compounded monthly
24 r 12÷ will enter an interest rate of 2% into the i. register.
The r 12x function will multiply a number of years by 12 and enter the result
as the number of monthly periods.
Example
30 year loan which is compounded monthly
30 r 12x will enter 360 periods into the n. register.
Determining Present Value: Solving for PV
¾ Touch b CLEAR FIN to reset financial registers
¾ Enter the number of payment periods and touch n.
¾ Enter the interest rate and touch i..
¾ Enter the payment value per period (a negative number) and touch
PMT.
¾ Enter the future value of the amount owed at the end of the payment
periods, touch CHS to make the number negative, and touch FV.
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Note: If the amount owed at the end of the loan period will be zero, this
step can be skipped.
¾ Touch the PV key to calculate the present value.
Example
ENTRIES DISPLAY
.b FIN
360 n.
0.00
Clears the financial registers.
360.00
Displays 360 months for a 30 year loan.
0.50
6 r i.
Displays the interest rate of 6% per year or 0.5%
per month.
2398.202 CHS PMT
-2,398.20
Displays the monthly payment
-----------The V12 is calculating the value.
PV
400,000.00
Displays the loan amount or present value. Actual
amount may vary slightly due to rounding
Determining Payment Amount: Solving for PMT
¾ Touch b CLEAR FIN to reset financial registers
¾ Use n or r 12x to enter number of periods or payments
¾ Use i or r 12÷ to enter periodic interest rate
¾ Enter values for PV and FV
¾ Touch r BEG or r END to select payment function
¾ Touch PMT to calculate the amount of the payment
Example
ENTRIES DISPLAY
b FIN
360 n.
0.00
Clears the financial registers.
360.00
Displays 360 months for a 30 year loan.
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0.50
6 r i.
Displays the interest rate of 6% per year or 0.5%
per month.
400000 PV
PMT
400.000.00
Displays the loan amount or present value.
-2,398.20
Displays the monthly payment
Determining Future Value: Solving for FV
¾ Touch b CLEAR FIN to reset financial registers
¾ Use n or r 12x to enter number of periods or payments
¾ Use i or r 12÷ to enter annual interest rate
¾ Enter values for PV and PMT
¾ Touch r BEG or r END to select payment function
¾ Touch FV to calculate the future value
Example
ENTRIES (RPN) DISPLAY
b FIN
360 n.
0.00
Clears the financial registers.
360.00
Displays 360 months for a 30 year loan.
0.50
6 r i.
Displays the interest rate of 6% per year or 0.5%
per month.
400000 PV
400.000.00
Displays the loan amount or present value.
-2,397.20
2397.202 CHS PMT
Displays the monthly payment. Notice the amount
is reduced by $1 from previous examples.
-1,004.62
FV
Displays the amount still owed at the end of the
loan period. In this example, the payments over 30
years did not pay off the entire loan.
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Determining Number of Periods: Solving for n.
To determine the number of compounding periods and the number of
payments:
¾ Touch b CLEAR FIN to reset financial registers
¾ Use i or r 12÷ to enter periodic interest rate.
¾ Enter values for PV(present value), PMT (amount of payment), FV
(future value)
¾ Select payment function by touching r BEG or r. END
¾ Touch n to calculate number of periods or payments
Example
ENTRIES (RPN) DISPLAY
b FIN
0.00
Clears the financial registers.
0.50
6 r i.
Displays the interest rate of 6% per year or 0.5%
per month.
400000 PV
2398.202 CHS PMT
400.000.00
Displays the loan amount or present value.
-2,398.20
Displays the monthly payment.
360.00
n.
Displays the number of periods (months) required
to pay off the loan.
Loan With Balloon Payment
A common transaction is a loan with a balloon payment. In this case, the
borrower makes a fixed payment each period until the end of the loan term. At
the end of the term, the borrower makes one large final payment. The example
below illustrates a $400,000 loan, at 6% annual interest paid monthly for 30
years with a balloon payment of $70,000.
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Example
ENTRIES (RPN) DISPLAY
b FIN
360 n.
0.00
Clears the financial registers.
360.00
Displays 360 months for a 30 year loan.
0.50
6 r i.
Displays the interest rate of 6% per year or 0.5%
per month.
400000 PV
400.000.00
Displays the loan amount or present value.
-70,000.00
-70000 FV
Displays the future value required to pay off the
loan (the balloon payment)
-2,328.52
PMT
Displays the monthly payment required to reach a
$70.000 balloon payment.
Amortization Function
To Amortize is to liquidate a debt, such as a mortgage by installment payments.
Amortization is the gradual elimination of a liability, such as a mortgage, in
regular payments over a specified period of time. Such payments must be
sufficient to cover both principal and interest. With the Amortization Function
the V12 can calculate the total amount of principle (liability) and interest paid
after a specified number of installments.
The following steps are required to determine the Amortization status of a loan:
• Push b CLEAR FIN first to reset financial registers of previous data
• Using i or r 12÷ , enter periodic interest rate
• Enter the principal using PV
• Enter the periodic payment, then push CHS PMT
• Select r BEG or r END to set the payment function
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• Enter the number of payments that will be amortized using n.
• Push b AMORT (will display amount from payments that will be
applied to interest)
• Push x↔y (will display amount from payments that will be applied to
principal)
• Push R↓ R↓ (will display number of payments to be amortized)
• Push RCL PV (will display remaining balance)
• Push RCL n (will display total number of payments amortized
If you repeat the Amortization function after an initial calculation, the V12 picks
up where you left off. In other words, after you calculate the interest and
principle paid after one year, the V12 resets the present value of the loan to the
principle after one year. Calculation of Amortization will start from this point.
A common application of the Amortization function is to determine the amount
of interest and principle paid on a mortgage for a given time period. The
example below illustrates a 30 year loan with a principle of $400,000, a 6%
annual interest rate, and monthly payment of $2,398.20. The task is to
determine the interest and principle paid after 5 years or 60 months.
Example
ENTRIES (RPN) DISPLAY
.b FIN
6 r i.
400000 PV
2398.20 CHS PMT
60 b AMORT
x ↔ y
0.00
Clears the financial registers.
0.50
Displays the interest rate of 6% per year or 0.5%
per month.
400.000.00
Displays the loan amount or present value.
-2,398.20
Displays the payment required to pay off the loan
in 30 years (calculated in an earlier example)
-116,109.58
Displays the total interest paid after 60 months.
-27,782.42
Displays the total principle paid after 60 months
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372,217.58
RCL PV
RCL n
12 b AMORT
x ↔ y
Displays the remaining principle after 60 months of
payments
60.00
Displays the number of payments amortized (60
months)
-22,152.81
Displays the amount of interest paid in the next 12
months of payments (after the initial 60 months
already amortized)
-6,625.59
Displays the amount of principle paid in the next 12
months of payments (after the initial 60 months
already amortized)
Chapter 3: Other Financial Calculations
NPV (Net Present Value)
b NPV (net present value) represents the value of a series of future cash
flows discounted at a specified rate of return to reflect the present value.
¾ When NPV is positive, financial value increases.
¾ When NPV is 0, financial value stays the same.
¾ When NPV is negative, financial value decreases.
Therefore, the greater the value of NPV, the greater the increase in financial
value.
To find NPV, add the initial deposit (a negative cash flow) to present value of
future cash flow. (Here, i will describe the rate of return, and NPV describes
the result of the investment.)
Two keys not yet discussed in this manual are required to perform NPV
calculations. The CFo key is used to store the initial cash flow. When
touched, the contents of the x-register are stored in R0. The CFj key is used
to store additional cash flows. When touched, the contents of the x-register are
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