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