Calculating Present Value in Today’s Dollars

What is the present value of $100 in today’s dollars in three years, if you assume inflation at a 3.5% rate and that the annual average after-tax rate investment is 9% (assuming a yearly compound rate)? There are two ways of computing the answer. Read More

Calculating Amortization of a Loan

Assume you purchase a car for $20,000 at an 8% interest rate over a five-year period. What is the monthly payment? I use the following grid to visualize the keystrokes on the HP-12C. As you see, the items are the same from left to right on your calculator. Enter the following to get a monthly payment of $405.52. Read More

Pell Grant: Expected Family Contribution

The awarding of a Pell Grant is based on the cost of attending a college, the expected family contribution amount, and whether student attendance is based on a full academic year as a part-time or full-time student. Read More

The HP 12C Financial Calculator

Which financial calculator should I buy? There are many financial calculators available and which calculator you choose to use is largely a matter of preference. However, the keystrokes provided throughout the Bryant University’s Online Certificate in Financial Planning are written specifically for the HP 12C financial calculator. Read More

Calculating the Real Rate of Return

When calculating the real rate of return, follow these steps: Read More