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