Making financial computations is quick and simple if you have the appropriate electronic device to help with the task. In the days before specialized calculators, students and professionals had to write out long formulas by hand, input the numbers, and then manually make the calculation. There also existed (and still exist) financial tables that could be used for making approximate computations of present value, future values, annuities, etc.
But today, we live in the electronic age and this has led to vast improvements in the way we make financial computations. Now, by pressing a few buttons on a small, hand- held electronic device, we can quickly compute net present value, cash flow analysis, future value, effective interest rates, and other assorted financial data. And one calculator that helps with these computations is the
Hewlett Packard HP 12c, a pocket- style calculator.
Features of This Calculator:
This calculator is a hand- held device, like other calculators. However, the keys are arranged opposite of most calculators. There are ten keys going across and four keys going up and down and the calculator is about five inches (12.5 cm) in width and 3 inches (7.5 cm) in length. The liquid crystal display holds up to ten characters. HP arranges the keys on this calculator with the numbered keys and operations (add, subtract, multiply, and divide) on the right side and the financial keys (PV, PMT, n, FV, etc) to the left, with the “enter” key located in the center, at the bottom.
With the HP 12c, you can compute all sorts of financial computations, like loan amortizations, net present value, internal rate of return, time value of money, cash flow analysis, bond pricing, bond yield to maturity, standard deviation, compound interest, etc. The keys are similar to other financial calculators, but the functions are more numerous. All together, Hewlett Packard HP 12c has about 120 pre- programmed functions.
This calculator is powered by 3 LR44 batteries. If you buy this calculator new, it comes complete with a set of batteries and they last a good long time. I haven’t needed to replace mine in over two years of limited use.
Pricing:
This calculator is priced in the $60 to $80 range. It can be found in many retail stores and some college supply stores. On- line, you can find this calculator for sale only in a few electronic stores, but I was able to find it in several different general- purpose types of on- line stores. The median price seems to be about $72.
Customer Service:
If you have questions about this or any other Hewlett- Packard calculator, you can find answers by calling 800-474-6836, 24 hours per day, seven days per week. You can also consult the company web site, hp.com/calculators, where you can find out more information about this and other HP products.
Final Thoughts:
Hewlett- Packard manufactures a long line of calculators with specialty devices to satisfy all sorts of different academic and professional needs. The company makes a few different financial calculators and this model is a pretty good one when you consider the price.
With this type of calculator, a student or professional can utilize the pre- programmed functions to solve a multitude of financial problems. I teach finance myself and I have used many different brands and models of financial calculators. I have found that finding the best financial calculator is a matter of preference and a matter of need. Many different calculators exist that make similar computations, but the required input is slightly different from one to the next. In this regard, it’s a matter of preference when you decide which one you like best. Then, there are some financial calculators that offer more available functions that others and in this regard, choosing the right calculator is a matter of need.
Hewlett- Packard’s 12c calculator offers a better than average number of pre- programmed calculations. However, the required input may not be to everyone’s liking. The key strokes required to solve a problem are a little different from other financial calculators. For example, say you are trying to figure out the monthly payment amount on a $24,000 new car with a five year loan and an interest rate of 8 percent. You would enter this into the calculator by pressing the following keys: 24000, PV, 8, g, 12, divided by, 5, g, 12x, 0, FV, PMT. Once you get the routine memorized, this and other computations are routine and easy. Still, I know there are some users who will not like this method of input. Some will prefer the simpler method that other financial calculators utilize, which often require fewer keystrokes then this model.
Speaking of the input, there is one fact about this calculator that makes its input a little more obsolete than newer models. Besides the greater number of keystrokes required to make longer computations, the input necessary for basic computations is a little awkward. This calculator uses what it called Reverse Polish Notation, or RPN. Developed in 1920, this method of notation is preferred mostly by older professors and other professionals who grew up using it before the modern electronic age. The way it works is a little different, and many people will not like it. For example, let’s say you want to find the answer to a basic math question, like 750 divided by 5. On most calculators, you would enter 750, press the division key, press 5, and then press enter. On this calculator, you press 750, then enter, then 5, and then the division key. The correct answer would then display. It’s simple, once you get the hang of it. But many people will not like this at first. It should be noted that, in more complex problems, RPN actually requires
fewer key strokes for the majority of problems. However, the mere fact that it’s different from what most people are accustomed to will make more people dislike it than prefer it.
Another problem I have with this calculator is that it’s a little slower than some of the more modern devices. Once you have pressed the necessary keys to make a calculation, you must sit and wait for a response, like expected. But this calculator takes a little longer than others to compute the final answer. Don’t get the wrong idea- I’m not suggesting that you will be sitting there at your desk for a minute or longer waiting for an answer. It’s not
that slow. But if you have used lots of different calculators like I have, you will notice a difference. This one is noticeably slower than more modern machines.
Rubber grips on the bottom of the calculator help prevent it from sliding around on your desk as you input numbers, which is a nice addition to the physical qualities of this device. The size makes it easy to fit into your shirt pocket, but I don’t prefer the reverse direction of the keys. As you can see from the image, the keys are arranged the opposite way of most calculators. I prefer the traditional arrangement because I think it fits more easily into you hand and it just feels better to use.
Overall, the HP 12c Financial Calculator is a mixed blessing. It does offer more pre- programmed calculations than other financial calculators, which means you can let the machine do the work for you with a minimal number of manual computations. However, the RPN entry system logic is awkward and takes time getting used to. Also, there are many better calculators on the market today with more advanced technology for a cost of about $10 to $30 more.
So, my bottom line on this calculator is that it’s good and it will perform the necessary functions for students of finance and for financial professionals. It isn’t the best on the market, and not even the best offered by Hewlett- Packard. But it is pretty good nonetheless, and it will prove to be satisfactory to most people who use it.
Be Sure to Click the Links Below to Read More Reviews on Other Calculators:
Texas Instruments TI-89
Hewlett- Packard 10bII
Texas Instruments BA-II Plus
Texas Instruments TI- 83 Plus
Hewlett- Packard 49G+
