Victor Technology V12 Manual Do Utilizador

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 

 n

.

 

The number of periods in the financial loan, often 
expressed in days, months, or years.  The interest 
rate must be defined per period.  

 i

.

 

The interest rate per period.  Often an annual rate 
is converted to monthly by dividing by 12, weekly 
by dividing by 52, or daily by dividing by 365. 

PV 

The initial cash value received or paid or the 
present value of a series of future payments when 
discounted at an interest rate. 

PMT 

The payment made each period. 

FV 

The final cash value received or paid or the future 
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).