Set to End mode. Press \¯if BEGIN annunciator is displayed.

Table 6-5 Calculating the maximum purchase price

KeysDisplay Description

JG\Í

12.00

Sets periods per year.

 

 

 

 

D:\Ú

 

mortgage (30 × 12).

 

360.00

Stores the length of the

 

 

 

:É

0.00

Pays mortgage off in 30 years.

 

 

 

 

j7VÒ

7.50

Stores interest rate.

 

 

 

 

dD:yÌ

 

paid out is negative).

 

-930.00

Stores desired payment (money

 

 

 

Ï

133,006.39

Calculates the loan you can

 

afford with a 930 payment.

 

 

 

1JG:::4

 

for the total purchase price.

 

145,006.39

Adds 12,000 down payment

 

 

 

Example: A Mortgage With a Balloon Payment

You’ve obtained a 25 year, 172,500 mortgage at 8.8% annual interest. You anticipate that you will own the house for four years and then sell it, repaying the loan with a balloon payment. What will your balloon payment be?

Solve this problem using two steps:

1.Calculate the loan payment using a 25 year term.

2.Calculate the remaining balance after 4 years.

Step 1

First calculate the loan payment using a 25 year term.

Time Value of Money Calculations 65

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HP 10bII+ Financial manual J7VÒ, DDyÌ, 1JG4
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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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