Test Cases for the Basic Financial Functions
(Test cases for the advanced functions are listed afterwards, at the
bottom of this page.)

I)  Calculate Number of Periods
1)	I = 5		(Saving with an initial balance)
	PV= -100
	PMT = -5
	FV = 200
	?N (9)

2)	I = 5		(Saving with no initial balance)
	PV = 0
	PMT = -5
	FV = 200
	?N (23)

3)	I = 5		(Income from an annuity)
	PV = -10,000
	PMT = 50	(Periodic interest = 500 > PMT)
	FV = 0
	?N (HP12C says "Error 5"; FinCalc says "Annuity will not expire."

4)	I = 5		(Income from an annuity)
	PV = -1,000
	PMT = 100
	FV = 0
	?N (15)

5)	I = 5		(Payoff a loan)
	PV = 1,000
	PMT = -45	(insufficient payment)
	FV = 0
	?N (HP-12C says "Error 5"; FinCalc says "Periodic payment is insufficient."

6) You owe your credit card company a total of $4,888 and you would
like to pay off the balance.  How long will it take you to do this if
the credit card company charges 16.99% annual interest and you can
afford to pay $100 per month?
	I = 16.99 / 12
	PV = 4888
	PMT = -100
	FV = 0
	?N (84)

7)	I = 5		(Payoff a loan)
	PV = 1,000
	PMT = 80	(Debt increases)
	FV = 0
	?N (HP12C says "Error 5"; FinCalc says "Debt accumulates without bound.")

II) Calculate Future Value
1) You are starting a savings account with an initial deposit of $100.
The account pays interest of 2.5% annually, compounded monthly.  You
are able to contribute an additional $25 each month.  What will be the
balance in the account at the end of one year?
	N = 12
	I= (2.5/12)
	PV = -100
	PMT = -25
	?FV (405.9903)

2) You are borrowing $12,000 at an annual rate of 5.99% to buy a car.
The terms of the loan require you to pay $250 per month for 48 months
and then pay a balloon payment at the end of four years.  What will be
the amount of the balloon payment?
	N = 48
	I = (5.99/12)
	PV = 12,000
	PMT = -250.00
	?FV (-1718.08733)	(leaving a remaining balance of $1,718.09)

3) You invest $15,000 in an annuity that pays 7.8% annually.  You would
like to withdraw $250 monthly from this account for the next five years.
What will be the remaining balance in the account at the end of the five
years?
	N = 60
	I = 7.8/12
	PV = -15000
	PMT = 250
	?FV (3853.0015)

III) Calculate Present Value
1)  You can afford to contribute $25 per month to a savings
plan that pays 2.8% annually, compounded monthly.  How much
must you deposit initially in order to save $400 in one year?
	N = 12
	I = 2.8/12
	PMT = -25
	FV = 400
	?PV = -93.468919

2) You are interested in buying a new car.  You would like to
pay off the loan in 48 months.  Current interest rates are
5.99% annual, and you are able to pay $300 per month.  How
much can you borrow?
	N = 48
	I = 5.99/12
	PMT = -300
	FV = 0
	?PV = 12776.589	($12,776.59) (HP-12C says 12,776.5895)

3) You would like to establish an annuity for yourself that will
pay you monthly for the next 20 years.  An insurance company
offers you an investment plan paying 7.8% annually, compounded
monthly.  How much must you invest to collect $800 monthly?
	N = 12*20
	I = 7.8/12
	PMT = 800
	FV = 0
	?PV = -97083.132 ($97,083.13) (HP-12C says -97,083.13245)

IV) Calculate Interest
1) An insurance agent offers you an investment plan that requires
you to contribute $200 monthly for 10 years.  At the end of 10
years, the plan will pay you $30,000.  What is the rate of return
that is offered in this plan?
	N = 12*10
	PV = 0
	PMT = -200
	FV = 30000
	?I = .36250473 (monthly, annual rate = 12*0.3625 = 4.35%)

2) You bought a duplex apartment house for $50,000.  You were able
to realize income (rent less maintenance) of $8000 per year for 10
years.  At the end of two years, you were forced to demolish the
building at a cost of $15,000 and sell the lot for $10,000.  What
was your annual rate of return?
	N = 10
	PV = -50000
	PMT = 8000
	FV = 10,000 - 15,000 = -5000
	?I = 8.631414028

3) You bought a duplex apartment house for $50,000.  You were able
to realize income (rent less maintenance) of $5300 per year for 10
years.  At the end of two years, you were forced to demolish the
building at a cost of $15,000 and sell the lot for $10,000.  What
was your annual rate of return?
	N = 10
	PV = -50000
	PMT = 5300
	FV = 10,000 - 15,000 = -5000
	?I = -0.803733419

4) You are adding a swimming pool to your back yard.  A sales
representative for the company has offered you a choice of two
payment plans.  You can either pay $18,000 cash or $442 per month
for the next four years.  What would be the difference in cost if
you select the monthly installment plan instead of the single
payment?  What is the interest rate that is being charged for
the installment plan?
	N = 48
	PV = 18000
	PMT = -442
	FV = 0
	?I = 0.69194401 (annual rate = 8.3033281%)


V) Calculate Payments
1) You are interested in buying a car.  The car that you would like to
buy has a total price tag of $18,998.  You have $2,500 that you can use
for a downpayment.  The dealer is offering a finance rate of 5.75% on
4 year loans.  What will be your monthly car payment?
	N = 4 * 12
	I = 5.75 / 12
	PV = 18998 - 2500
	FV = 0
	?PMT (HP-12C: -385.5678412; FinCalc: -385.56784) = $385.57
2) You are ready for retirement.  You have $245,000 that you would like
to invest in an annuity to provide you with an income for the next 30
years.  An insurance company is offering you an annuity that promises
an 8% annual rate of return (compounded monthly).  What will be your
monthly income from this annuity?
	N = 30 * 12
	I = 8 / 12
	PV = -245000
	FV = 0
	?PMT (HP-12C: 1,797.723206; Fincalc: 1797.7232) = $1,797.72
3) You are considering the purchase of a bond with a face value of
$1,000.  The price of the bond is $923.14 with a remaining term of
fifteen years.  You wish to earn a nominal rate of 10% return on
your investment.  What must the semi-annual coupon payment be in
order to justify your purchase of the bond?
	N = 15 * 2
	I = 10 / 2
	PV = -923.14
	FV = 1000
	? PMT = 45.000147	($45)

4) You are saving to buy yourself a wide-screen TV for Christmas.  You
are saving for this purpose in your checking account,
which pays no interest, but charges no fee if you maintain a $1000
balance (and you do).  There are sixteen weeks to Christmas, and the
TV that you want costs $1,500.  How much must you put away each week
to have your TV if you are willing to spend the entire balance of your
checking account?
	N = 16
	I = 0
	PV = -1000
	FV = 1500
	? PMT = -31.25
	
Test Cases for the Advanced Financial Functions

VI) Annuity Due
1) Suppose you have been approached by an insurance salesman who would like
to sell you a $100,000 whole-life policy.  The terms of the policy require
you to pay monthly premiums of $120 at the beginning of each month for 30
years.  Your coverage begins with your first payment.  At the end of the
30 year period, your policy will have a cash value of $65,000.  What is the
rate of return that the insurance company is offering on the maturity value?
	Payment Mode = B
	N = (30 * 12) = 360
	PV = 0
	PMT = -120
	FV = 65000
	? I = 0.21307991 (monthly, EAR = 2.58714%, 2.55696% nominal annual rate)

2) Suppose a competing insurance salesman is offering a similar policy that
provides the same $100,000 death benefit.  The monthly payments are $120,
coverage begins with the first payment and the policy matures in 30 years.
But this salesman is promising a nominal annual return of 4%.  What will be
the cash value of this policy at maturity?
	Payment Mode = B
	N = (30 * 12) = 360
	I = (4 / 12)
	PV = 0
	PMT = -120
	? FV = $83,563.548

VII) Net Present Value
1) You have an opportunity to purchase a small apartment building for a price
of $565,465.  The net income that you anticipate from this investment is
$56,000 in the first year,
$58,240 in the second year,
$60,270 in the third year,
$62,700 in the fourth year,
$59,200 in the fifth year, and
$67,800 in the sixth year.
At the end of the sixth year, you expect to resell the building for a price
of $961,200.  Your banker will loan you the money to make this purchase at
a nominal rate of 12% annual interest.  What is the increase in your net
worth that would accrue this investment?
	I = 12
	CF0 = -565465
	CF1 = 56000
	CF2 = 58240
	CF3 = 60270
	CF4 = 62700
	CF5 = 59200
	CF6 = 67800 + 961200 = 1029000
	? NPV = $168,624.64

VIII) Internal Rate of Return
1) You have an opportunity to purchase a small apartment building for a price
of $565,465.  The net income that you anticipate from this investment is
$56,000 in the first year,
$58,240 in the second year,
$60,270 in the third year,
$62,700 in the fourth year,
$59,200 in the fifth year, and
$67,800 in the sixth year.
At the end of the sixth year, you expect to resell the building for a price
of $961,200.  Your banker will loan you the money to make this purchase at
a nominal rate of 12% annual interest.  What is the rate of return on this
investment?
	CF0 = -565465
	CF1 = 56000
	CF2 = 58240
	CF3 = 60270
	CF4 = 62700
	CF5 = 59200
	CF6 = 67800 + 961200 = 1029000
	? IRR = 17.99546%