HP 10bII+ Financial instruction

HP 10bII+ Financial Calculator User’s Guide

HP Part Number: NW239-90001

Edition 1, May 2010

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HP manual HP 10bII+ Financial Calculator User’s Guide, HP Part Number NW239-90001 Edition 1, May

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.

Contents

HP Part Number NW239-90001 Edition 1, May HP 10bII+ Financial Calculator User’s Guide Legal Notice HP 10bII+ Financial Calculator Number Keyboard Map Legend Table of Contents Page Page III At a Glance JGDBasics of Key Functions Boxed Key Functions Shift Keys JV§4 Jj7V1Percentages Add 15% to GG¼ JVÀDDÃ Memory Keys GV4 GG4J7GV DSÙ JG\ÍJYÏ Time Value of Money TVM D7VÒ JyÌTVM What if 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 Cash Flows, IRR/YR, NPV, and NFV \½\« Yj¤ Yy¤JÆG¤ GD¤ VG4 G7GgGJDate and Calendar Bonds Y7jVÔ S7jVÎFor more information on bond calculations, refer to , Bonds Break-even \T \« \k \«\h \« \e \« YÆd¡ GÆV¡SÆJS¡ \T\« 7VF \5V17GV4 Probability Trigonometric Functions 7SGFind Sin θ =.62 in degrees. If RAD is displayed, press \aJg Convert the results to radians using Pi At a Glance Getting Started Power On and OffManual Conventions and Examples Displayed text Item before the / is the alternate Shift Keys JdPJG7Sg4 GY7jJ1SG7Yj4Simple Arithmetic Calculations Operating Modes 1JJV7V4 Calculations in Chain ModeS7dPV7DVa 7dJ4 Using Parentheses in Calculations Calculations in Algebraic ModeDa\qgVA JG\n AD4 JVyUnderstanding the Display and Keyboard Cursor Clearing the Calculator Clear All AnnunciatorsClearing Messages INV Swap Key Input KeyStatistics Keys Same as pressing D7Vj1G7DS\b Gd7GV\BMath Functions One-Number Functions Getting Started JVc \5YJ1SC 7DVoR \5G A7SGoRYP\ PY7V\2 17VdrC J7GVrcTwo-Number Functions In-line Functions JjÆ Jj\¨Gd\¨ Gd1DD -23below lists the two-number functions of the calculator Arithmetic with One-and Two-number Functions JGV\QD4 G7V\K \Qv4 VAJ7GV4GG1JY\¨ Last Answer YV7SP \5D7JGVS4 Specifying Displayed Decimal Places \54 Jaj4\zyJG Messages D7gjSVYD Business Percentages GV§Business Percentage Keys Percent key GdJ7j\¨ JGV1j§DJS7g4 Jgpvæ JdÀ GvvàMargin and Markup Calculations Margin Calculations D7SÀ Using Margin and Markup TogetherJVÃ Using Constants Using Stored Numbers in CalculationsV1Gª Number Storage and Storage Register Arithmetic \QDª J1J§ªExample Calculate 10 + 10%, 11 + 10%, and 25 + 10% Example Calculate 23 VV\¨DGª Using the M RegisterYV4 Jjs Using Numbered RegistersJY7GVm JS7dVm \w7Y ADd7JV \wG YjV7SVS7J1 V7Y G7V YV7j \wD\wPD How to approach a Financial Problem Picturing Financial Problems Periods and Cash Flows Signs of Cash FlowsSimple and Compound Interest Simple Interest Compound Interest Interest Rates Recognizing a TVM Problem Two Types of Financial Problems Cash flow diagram Borrower’s perspective Recognizing a Cash Flow Problem Cash flow diagram Investment in a mutual fund Time Value of Money Calculations Using the TVM ApplicationTVM Keys Loan Calculations Begin and End Modes J7VÒ DpjgùJyva JVÏ DjVyÌ 1VÌ1JV4 DDyÌ J7VÒ1JG4 JjGVÏ GV\ÚG7gÒ 1vÌ4 YgÙSavings Calculations J7GÒ GyÏ GyÌ GY\Í JV\Ú S7DÒYyÏ Lease Calculations Cash flow diagram Calculate the monthly lease payment JVÉ Cash flow diagram Calculate PV of the lease GYyÌ YjÙ1vÌy4 Step Find the present value of the buy option 1p4 JVyÉStep Add the results of ’ ’ and ’ ’ Amort key on the HP 10bII+ allows you to calculate To Amortize J7jVÒ JJ7VÒ JdægyJygvï VYÆ GVÆAmortize the 1st, 25th, and 54th payments Interest Rate Conversions S7j\ÓInvestments With Different Compounding Periods First Bank S7SD\Ó S7SV\ÓDS\Í Compounding and Payment Periods Differ GVyÌ DSV\Í Resetting the TVM Keys Depreciation Keys Depreciation Item in the selected format Inputs 5 for the expected useful life Depreciation example using Declining Balance Keys Cash Flow Calculations How to Use the Cash Flow Application Number1 ¤ Clearing the Cash Flow Memory Cash Flow Calculations Gy¤ Vy¤Calculating Internal Rate of Return AJG JJjSV7Gd¤NPV and IRR/YR Discounting Cash Flows Organizing Cash Flows Initial cash flow and cash flow groups JJy¤ Viewing and Editing Cash Flows 11GÆ 1JGyÆ1G JVÆ1GÆCalculating Net Present Value and Net Future Value VÆJ¤ ÆY¤VÆG¤ Æd¤ JVÆJ¤JÆJ¤ JVÒ Automatic Storage of IRR/YR and NPV Cash flow diagram Calculates NPV Calendar Format Calendar Formats and Date CalculationsDate Format Using the Input key Date Calculation Date Calculations and Number of Days JG7JgGJJ To enter the data for this example using the Ækey\ÇJ4 ÆJ\Ç Y7SGJ\Ä \5SDJ7JGJ4 J7JjGJG J7JjGJGÆ Using the ÆkeyS7YGJV\Ä Bond Keys Bonds Y7GgGJ V7VÎ S7YGGJYË JJÑ J7JVGG Resetting the bond keysY7JVGJG Break-even Keys Break-even Break-even example Calculating the projected maximum fixed cost Resetting the Break-even keys \h\« \k\«\e\« \Z\« Entering Statistical Data Clearing Statistical Data One-Variable Statistics Two-Variable Statistics and Weighted Mean Viewing and Editing Statistical Data DVÆVJV¡ DGÆYJV¡YD\W\5G DjÆSgV¡ YDÆJGD¡YV\W Summary of Statistical Calculations D7GV¡ Y7V¡D7V¡ D7jV¡ JgGÆgJ¡ JdDÆd¡JjjÆgD¡ JgVÆjj¡ 400 JÆdG¡ GÆJY¡DÆJJ¡ VÆGGSV¡ VÆGgd¡ Weighted Mean VVÆDG¡ VÆVY¡VJÆgg¡ VJSÆdG¡ Factorial Probability CalculationsPermutations VÆD VD4V9D4 VÆD9 Advanced Probability Distributions YG\w6 Normal Lower Tail Probability J7jyF Inverse of Normal Lower Tail Probability 7GVoF GÆJ7gSyI GIJ7gSy4Students T Probability Lower Tail GSÆ7VoI GSoI7V4Inverse of Student’s t Probability Lower Tail Conversions from Lower Tail Y1J4 PG4 J7GyF Returns desired value of z Statistical Calculations \qJ1\q GaJ4 Setting a Sales PriceAdditional Examples Business Applications GÆJJGJ¡ JÆJ¡DÆJDS¡ YÆJSjV¡ VÆGVd¡ \q\qJ AG\n Gpdspj\qDA YVsPJ§ AJPJ4 Jg§YVjG7gy Yield of a Discounted or Premium Mortgage JdyÏ VÙAYGÙG7VÒ Annual Percentage Rate for a Loan With Fees AG§Ï JSÏJGÒ AD§Ï JSaDP AJGPYV\«§4 1YVÏ D7VÒ JgvïPvÙ4 Jjvï JDÏ JG\ÓÉD\Ú Canadian Mortgages DVVVyÌ JJ7GÒWhat if … TVM Calculations PvÙ1 GS\ÍVÏ4 Savings Stores effective rate as annual Gains That Go Untaxed Until Withdrawal Jyyù PJV§4 DVÙYòìï DyÌ G7JjVAGgCash Flow Examples Wrap-Around Mortgages GGVJ7GG Cash flow diagram Wrap-around mortgage VÌyAjVY DVy¤GG\¥ VÌy¤ Low Power Annunciator Power and BatteriesInstalling Batteries Appendix a Batteries and Answers to Common Questions Resetting the calculator Determining if the Calculator Requires ServiceCalculator won’t turn on Erasing the calculator’s memory Answers to Common Questions See Determining If the Calculator Requires Service Environmental Limits IRR/YR Calculations Appendix B More About CalculationsEquations Time Value of Money TVM Payment Mode Factor S = 0 for End mode 1 for Begin modeAmortization Interest Rate Conversions Cash-Flow Calculations For more than one coupon period to redemption Bonds Statistics Depreciation Forecasting Memory has been erased Ch Appendix C MessagesCashflow memory was cleared Tvm registers were cleared Statistical memory and registers were cleared Bond registers were cleared HP Limited Hardware Warranty and Customer Care Warranty, Regulatory, and Contact InformationLimited Hardware Warranty Period Replacing the Batteries Exclusions General Terms Modifications Avis Canadien Canadian NoticeEuropean Union Regulatory Notice Germany Customer Care Contact Information Perchlorate Material special handling may apply 香港特別行 Tobago Tunisia Turkey Türkiye Turks 01-800-711-2884 ไทย Warranty, Regulatory, and Contact Information Warranty, Regulatory, and Contact Information Battery Advance payments Algebraic modeChain mode Error messages Factorial Interest rate conversions Investments In-line functions InterestKeyboard Keys Warranty Trigonometric functions TroubleshootingModes Operating modes Parentheses