HP 10bII+ Financial manual Begin and End Modes, Loan Calculations

Page 70

Table 6-1 Keys for performing TVM calculations

Keys

Stores or Calculates

 

 

\¯

Switches between Begin and End mode. In Begin mode, the BEGIN

annunciator is displayed.

 

 

\Ê

Calculates an amortization table.

 

To verify values, press vÙ, vÒ, vÏ, vÌ, and vÉ.

Pressing v\Úrecalls the total number of payments in years and v\Í

shows you the number of payments per year. Recalling these numbers does not change the content of the registers.

Begin and End Modes

Before you start a TVM calculation, identify whether the first periodic payment occurs at the beginning or end of the first period. If the first payment occurs at the end of the first period, set your HP 10bII+ to End mode; if it occurs at the beginning of the first period, set your calculator to Begin mode.

To switch between modes, press \¯. The BEGIN annunciator is displayed when your calculator is in Begin mode. No annunciator is displayed when you are in End mode.

Mortgages and loans typically use End mode. Leases and savings plans typically use Begin mode.

Loan Calculations

Example: A Car Loan

You are financing a new car with a three year loan at 10.5% annual nominal interest, compounded monthly. The price of the car is 14,500. Your down payment is 1,500.

Part 1

What are your monthly payments at 10.5% interest? (Assume your payments start one month after the purchase or at the end of the first period.)

62 Time Value of Money Calculations

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Contents HP 10bII+ Financial Calculator User’s Guide HP Part Number NW239-90001 Edition 1, MayLegal Notice HP 10bII+ Financial Calculator Keyboard Map Legend NumberTable of Contents Page Page III At a Glance JGDBasics of Key Functions Shift Keys Boxed Key FunctionsPercentages Jj7V1JV§4 Add 15% toDDà JVÀGG¼ Memory KeysGV4 GG4J7GV JYÏ JG\ÍDSÙ Time Value of Money TVMTVM What if JyÌD7VÒ How much can you borrow at a 9.5% interest rate?Amortization JæjgAmortize the 1 st through 24 th loan payments Depreciation Interest Rate Conversion \½\« Cash Flows, IRR/YR, NPV, and NFVJÆG¤ Yy¤Yj¤ GD¤VG4 G7GgGJDate and Calendar Bonds Y7jVÔ S7jVÎFor more information on bond calculations, refer to , Bonds Break-even \h \« \k \«\T \« \e \«SÆJS¡ GÆV¡YÆd¡ \T\«17GV4 \5V7VF ProbabilityTrigonometric Functions 7SGFind Sin θ =.62 in degrees. If RAD is displayed, press Convert the results to radians using Pi \aJgAt a Glance Manual Conventions and Examples Power On and OffGetting Started Displayed textItem before the / is the alternate Shift Keys Simple Arithmetic Calculations GY7jJ1SG7Yj4JdPJG7Sg4 Operating ModesS7dPV7DVa Calculations in Chain Mode1JJV7V4 7dJ4Da\qgVA Calculations in Algebraic ModeUsing Parentheses in Calculations JG\nUnderstanding the Display and Keyboard Cursor JVyAD4 Clearing the CalculatorClear All AnnunciatorsClearing Messages INV Statistics Keys Input KeySwap Key Same as pressingMath Functions Gd7GV\BD7Vj1G7DS\b One-Number FunctionsGetting Started J1SC \5YJVc 7DVoRYP\ A7SGoR\5G PY7V\2Two-Number Functions J7GVrc17VdrC In-line FunctionsGd\¨ Jj\¨JjÆ Gd1DDArithmetic with One-and Two-number Functions -23below lists the two-number functions of the calculatorG7V\K JGV\QD4GG1JY\¨ VAJ7GV4\Qv4 Last Answer7JGVS4 \5DYV7SP Specifying Displayed Decimal Places\54 Jaj4\zyJG D7gjSVYD MessagesBusiness Percentage Keys GV§Business Percentages Percent keyDJS7g4 JGV1j§GdJ7j\¨ JgpvæMargin and Markup Calculations GvvàJdÀ Margin CalculationsD7SÀ Using Margin and Markup TogetherJVà V1Gª Using Stored Numbers in CalculationsUsing Constants Number Storage and Storage Register ArithmeticExample Calculate 10 + 10%, 11 + 10%, and 25 + 10% J1J§ª\QDª Example Calculate 23VV\¨DGª Using the M RegisterYV4 JY7GVm Using Numbered RegistersJjs JS7dVmVS7J1 YjV7S\w7Y ADd7JV \wG V7YG7V YV7j \wD\wPD Picturing Financial Problems How to approach a Financial ProblemSimple and Compound Interest Signs of Cash FlowsPeriods and Cash Flows Simple InterestInterest Rates Compound InterestTwo Types of Financial Problems Recognizing a TVM ProblemRecognizing a Cash Flow Problem Cash flow diagram Borrower’s perspectiveCash flow diagram Investment in a mutual fund Time Value of Money Calculations Using the TVM ApplicationTVM Keys Begin and End Modes Loan CalculationsJyva DpjgùJ7VÒ JVÏDjVyÌ 1VÌ1JV4 DDyÌ J7VÒ1JG4 JjGVÏ GV\ÚG7gÒ 1vÌ4 YgÙSavings Calculations GyÏ J7GÒGY\Í GyÌJV\Ú S7DÒYyÏ Cash flow diagram Calculate the monthly lease payment Lease CalculationsCash flow diagram Calculate PV of the lease JVÉ1vÌy4 YjÙGYyÌ Step Find the present value of the buy option1p4 JVyÉStep Add the results of ’ ’ and ’ ’ To Amortize Amort key on the HP 10bII+ allows you to calculateJ7jVÒ JJ7VÒ JdægyJygvï VYÆ GVÆAmortize the 1st, 25th, and 54th payments Investments With Different Compounding Periods S7j\ÓInterest Rate Conversions First BankDS\Í S7SV\ÓS7SD\Ó Compounding and Payment Periods DifferDSV\Í GVyÌResetting the TVM Keys Depreciation Depreciation KeysItem in the selected format Inputs 5 for the expected useful life Depreciation example using Declining Balance Keys How to Use the Cash Flow Application Cash Flow CalculationsClearing the Cash Flow Memory Number1 ¤Cash Flow Calculations Gy¤ Vy¤Calculating Internal Rate of Return NPV and IRR/YR Discounting Cash Flows JJjSV7Gd¤AJG Organizing Cash FlowsJJy¤ Initial cash flow and cash flow groupsViewing and Editing Cash Flows 11GÆ 1JGyÆ1G JVÆ1GÆCalculating Net Present Value and Net Future Value VÆJ¤ ÆY¤VÆG¤ JÆJ¤ JVÆJ¤Æd¤ JVÒCash flow diagram Calculates NPV Automatic Storage of IRR/YR and NPVCalendar Format Calendar Formats and Date CalculationsDate Format Using the Input key Date Calculations and Number of Days Date Calculation\ÇJ4 To enter the data for this example using the ÆkeyJG7JgGJJ ÆJ\ÇDJ7JGJ4 \5SY7SGJ\Ä J7JjGJGJ7JjGJGÆ Using the ÆkeyS7YGJV\Ä Bonds Bond KeysY7GgGJ JYË S7YGGV7VÎ JJÑJ7JVGG Resetting the bond keysY7JVGJG Break-even Break-even KeysBreak-even example Calculating the projected maximum fixed cost Resetting the Break-even keys \e\« \k\«\h\« \Z\«Clearing Statistical Data Entering Statistical DataTwo-Variable Statistics and Weighted Mean One-Variable StatisticsViewing and Editing Statistical Data DVÆVJV¡ DGÆYJV¡YD\W\5G DjÆSgV¡ YDÆJGD¡YV\W Summary of Statistical Calculations D7V¡ Y7V¡D7GV¡ D7jV¡JjjÆgD¡ JdDÆd¡JgGÆgJ¡ JgVÆjj¡400 DÆJJ¡ VÆGGSV¡ GÆJY¡JÆdG¡ VÆGgd¡Weighted Mean VJÆgg¡ VÆVY¡VVÆDG¡ VJSÆdG¡Factorial Probability CalculationsPermutations V9D4 VD4VÆD VÆD9YG\w6 Advanced Probability DistributionsJ7jyF Normal Lower Tail Probability7GVoF Inverse of Normal Lower Tail ProbabilityGÆJ7gSyI GIJ7gSy4Students T Probability Lower Tail GSÆ7VoI GSoI7V4Inverse of Student’s t Probability Lower Tail Y1J4 Conversions from Lower TailJ7GyF PG4Returns desired value of z Statistical Calculations Additional Examples Setting a Sales Price\qJ1\q GaJ4 Business ApplicationsDÆJDS¡ JÆJ¡GÆJJGJ¡ YÆJSjV¡ VÆGVd¡\qDA Gpdspj\q\qJ AG\n YVsPJ§AJPJ4 Jg§YVjG7gy Yield of a Discounted or Premium Mortgage G7VÒ VÙAYGÙJdyÏ Annual Percentage Rate for a Loan With FeesJGÒ JSÏAG§Ï AD§ÏYV\«§4 AJGPJSaDP 1YVÏPvÙ4 JgvïD7VÒ JjvïÉD\Ú JG\ÓJDÏ Canadian MortgagesDVVVyÌ JJ7GÒWhat if … TVM Calculations VÏ4 GS\ÍPvÙ1 SavingsStores effective rate as annual Jyyù Gains That Go Untaxed Until WithdrawalPJV§4 DVÙYòìï Cash Flow Examples G7JjVAGgDyÌ Wrap-Around MortgagesCash flow diagram Wrap-around mortgage GGVJ7GGGG\¥ DVy¤VÌyAjVY VÌy¤Installing Batteries Power and BatteriesLow Power Annunciator Appendix a Batteries and Answers to Common QuestionsCalculator won’t turn on Determining if the Calculator Requires ServiceResetting the calculator Erasing the calculator’s memorySee Determining If the Calculator Requires Service Answers to Common QuestionsEnvironmental Limits IRR/YR Calculations Appendix B More About CalculationsEquations Amortization Payment Mode Factor S = 0 for End mode 1 for Begin modeTime Value of Money TVM Interest Rate ConversionsCash-Flow Calculations Bonds For more than one coupon period to redemptionDepreciation StatisticsForecasting Cashflow memory was cleared Appendix C MessagesMemory has been erased Ch Tvm registers were clearedBond registers were cleared Statistical memory and registers were clearedLimited Hardware Warranty Period Warranty, Regulatory, and Contact InformationHP Limited Hardware Warranty and Customer Care Replacing the BatteriesGeneral Terms ExclusionsModifications Avis Canadien Canadian NoticeEuropean Union Regulatory Notice Germany Perchlorate Material special handling may apply Customer Care Contact Information香港特別行 ไทย Tobago Tunisia Turkey Türkiye Turks 01-800-711-2884Warranty, Regulatory, and Contact Information Warranty, Regulatory, and Contact Information Chain mode Advance payments Algebraic modeBattery Error messages FactorialKeyboard In-line functions InterestInterest rate conversions Investments KeysModes Trigonometric functions TroubleshootingWarranty Operating modes Parentheses
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10bII+ Financial specifications

The HP 10bII+ Financial Calculator is a versatile and powerful tool designed to meet the needs of finance students, professionals, and anyone involved in financial planning and analysis. Known for its compactness and user-friendly interface, this calculator incorporates a range of features specifically tailored for financial calculations, making it an essential gadget for banking, real estate, and investment analysis.

At the heart of the HP 10bII+ is its ability to perform a wide variety of financial functions, including time value of money calculations, cash flow analysis, bond pricing, and depreciation. Its built-in functions facilitate the computation of interest rates, present and future values, net present value (NPV), internal rate of return (IRR), and annuities. This array of functionalities allows users to tackle complex financial problems with ease.

One of the standout technologies in the HP 10bII+ is its RPN (Reverse Polish Notation) input system, which allows for efficient data entry and calculation. Users can perform consecutive calculations without the need for parentheses, streamlining the process significantly. Alternatively, the calculator can also function with a standard algebraic input, catering to different user preferences.

The design of the HP 10bII+ is sleek and compact, making it highly portable and easy to handle. With a large, easy-to-read display, it ensures that users can view their calculations clearly, even in low-light environments. The keys are well-spaced and tactile, allowing for a comfortable typing experience during intensive calculations.

The calculator also offers a range of memory functions, enabling users to store and recall important values easily. This is particularly useful for financial professionals who must deal with multiple calculations and refer back to previous results frequently.

Additionally, the HP 10bII+ is powered by two AAA batteries, providing a long battery life that ensures reliability during extended use. It also features an automatic shut-off function, which conserves battery life when the calculator is not in use.

In summary, the HP 10bII+ Financial Calculator is a high-performance device that combines essential financial functions with user-friendly design and robust technology. Whether for educational purposes or professional finance work, its capabilities make it an invaluable asset for anyone dealing with financial calculations and decision-making.
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