Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized for You

we will pick new questions that match your level based on your Timer History

Track Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 500,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

Platinum edition 12c (which allows you to enter in stuff in algebraic mode rather than reverse polish notation) and a TI-85.

The TI-85 is great for long chain calculations like 1000*(1.2)*(1.16)*(1.08)*(.97) etc... to make sure you didnt miss something - and nothing beats hitting "N=12, PMT = 800, I = 10, PV" to solve a problem that would otherwise require a lot more time and effort.

Note however that I think there's more to the problem than that. Caveat: I'm hungover so I might be wrong... but the above will give you the PV of those streams at age 60 - you want the PV of that today. So now take that $243,045 (assuming thats right) and do:

FV = 243,045 N = 420 (60-25 * 12) I = 1 PMT = ?

Which gives you $37.79

Alternatively you can figure the PV of $243 and redo it - which gives you $3,721 i think -- so you can also solve it by doing:

I am trying to solve the tasks on the time value of money (designed for 12c) but can't find the right keys on the calculator. Does anybody know how to solve it on 12c, general or platinum?

The problem and its suggested solution are attached.

Attachments

Suggested Solution.JPG [ 11.58 KiB | Viewed 1258 times ]

I am trying to solve the tasks on the time value of money (designed for 12c) but can't find the right keys on the calculator. Does anybody know how to solve it on 12c, general or platinum?

The problem and its suggested solution are attached.

That seems to be the right solution. The thing to understand about simple interest is that it isn't compounded - so its just 5000 * .06 * 10 = $3000 in interest. There is no way to solve for that directly on the 12c as far as i know - its just basic math. Principal * rate * period = amount accrued. I dont believe that the 12c has a "simple interest" function, although it might.

Whereas - for the annual compounding - the $5000 PLUS the interest gains interest every year.

N = 10 I = 6% PV = 5000 PMT = 0 FV = ?

means FV = $8,954

Two ways to compare it now:

Either (A) compare the totals or (B) compare the interest

(A) Compare $8,954 to your simple interest - $5000 plus $3000 in interest = $8000. So you get $954 in difference.

(B) Alternatively, compare just the interest parts -- $8,954 minus your original $5000 investment means you made $3,954 in interest with annual compounding .As compared to the $3,000 you made under simple interest - you made $954 more. Either way you get to $954.

Not sure that there's any faster way of solving it on a 12c other than manually figuring out the simple interest and then comparing that using n=, pv=, etc.

By the way, why in the world are you doing these problems?

Wow, I did not add "0" before PMT and for that reason it didn't work. I am just trying to get used to some things that will come into my life once the studies begin

Wow, I did not add "0" before PMT and for that reason it didn't work. I am just trying to get used to some things that will come into my life once the studies begin

It should work without that -- make sure you are clearing the financial registers before each problem. Turning it on and off doesn't do that. Press f CLEAR FIN to clear the financial registers. ... Otherwise you probably had PMT = 37.78 in there from the last problem, so not setting PMT=0 would have caused some problems. I always clear the register before every problem.

How soon does one need to get these? I was wondering if outgoing students tend to get rid of these as they graduate..true/false?

any recommended stores to buy these from?

I guess it depends on what you go into. Personally, I find it a great calculator and I absolutely intend to keep it. Next time you wanna buy a car and negotiate financing terms.... whip this puppy out and make the sales guy sweat

Don't worry about getting these early. Its not that hard to learn (except reverse polish notation is, so if you want to learn that, get started early... otherwise get the 12c platinum which supports algebraic).

As for where to buy it - I bought mine from some local store - I forget where, compusa or something. The pricing seems to be pretty similar everywhere. I think I dropped about $80 for it with tax.

Reverse Polish is really strange to adjust to. If you are a logic/technical/quant/numbers type of person then don't worry, it will click after a few days of use and be WAY easier. If you have tend towards the non-numbers mindset.. be wary =)

you guys are evil. because of this thread, i bought the HP 12C yesterday from amazon and I got overnight shipping so i have it in my hand right now. i got the 25th anniversary edition (hp 12c platinum).

wow, this is a nice calculator. it works in rpn like most people here said but there is also ALG mode if you really want to use it in regular mode (3+2 instead of 3 2 +).

i think the hp 17bII+ is a bit more friendly but the 12c is way cooler.

I am surprised that you bought "another" calculator for school knowing well that the HP 17bII+ would be enough.

The HP website lists the HP 17bII+ at 100 bucks while the 12c platinum at 80. Does the 17bII offer something significantly more than the 12c?

I see some statistical functions listed for the 17bII that aren't listed for the 12c I have to buy a new one so am wondering if throwing in that 20 extra bucks in there gets me something substantial.

Any thoughts, anybody?

RVD wrote:

you guys are evil. because of this thread, i bought the HP 12C yesterday from amazon and I got overnight shipping so i have it in my hand right now. i got the 25th anniversary edition (hp 12c platinum).

wow, this is a nice calculator. it works in rpn like most people here said but there is also ALG mode if you really want to use it in regular mode (3+2 instead of 3 2 +).

i think the hp 17bII+ is a bit more friendly but the 12c is way cooler.

So I am choosing between the 12c Platinum AE ($71 on amazon) and TI BA II plus pro ($37 on amazon)...

What I am confused about are the meanings of the different entry modes... Algebraic Vs RPN Vs Chain Vs normal

I've never used RPN before and am an accounting newbie...

What would be the easiest to get used to? I know RPN is very efficient...however, it is more important for me to get to the right answer rather than getting to "an" answer using a mode I am not comfortable with. I am just worried that I may not adapt to the calculator in time for shool.

95% of CFA candidates will choose TI BA II+ over HP12c and I'm one of them. Even Schweser notes suggest, in the opening paragraphs of the Quantitative methods book, page VIII: "If you've never used 12c before I'm going to save you a lot of headaches - buy TI BAII plus". The author of this sentence is Doug Van Eaton, PhD in finance and CFA, so if it's good for him - should be for me also. Besides that, fellow of mine, who is also CFA and was some kind of CFA guru in my company had HP12c. When I asked him, before my first exam, what calculator should I buy he gave me a straight answer: "Don't buy 12c!". _________________