GyÏ, J7GÒ | HP 10bII+ Financial instruction

Figure 11 Cash flow diagram (Calculate the number of years)

Since this account has no regular payments (PMT = 0), the payment mode (End or Begin) is irrelevant.

Table 6-8 Calculating the number of years

KeysDisplay Description

]OJ	0.00	Clears TVM memory.
	0.00	Clears TVM memory.

J\Í	1.00	Sets P/YR to 1 since interest is
J\Í		compounded annually.

G:::yÏ		first deposit.
	-2,000.00	Stores amount paid out for the

D:::É	3,000.00	Stores the amount you wish to
D:::É		accumulate.

j7GÒ	7.20	Stores annual interest rate.
	7.20	Stores annual interest rate.

Ù	5.83	Calculates the number of years it
Ù		takes to reach 3,000.

Since the calculated value of N is between 5 and 6, it will take six years of annual compounding to achieve a balance of at least 3,000. Calculate the actual balance at the end of six years.

68 Time Value of Money 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.

Contents

HP 10bII+ Financial Calculator User’s Guide HP Part Number NW239-90001 Edition 1, May Legal Notice HP 10bII+ Financial Calculator Keyboard Map Legend Number Table of Contents Page Page III At a Glance JGDBasics of Key Functions Shift Keys Boxed Key Functions Jj7V1 JV§4Percentages Add 15% to JVÀ GG¼DDÃ Memory Keys GV4 GG4J7GV JG\Í DSÙJYÏ Time Value of Money TVM JyÌ D7VÒTVM 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 \½\« Cash Flows, IRR/YR, NPV, and NFV Yy¤ Yj¤JÆG¤ GD¤ VG4 G7GgGJDate and Calendar Bonds Y7jVÔ S7jVÎFor more information on bond calculations, refer to , Bonds Break-even \k \« \T \«\h \« \e \« GÆV¡ YÆd¡SÆJS¡ \T\« \5V 7VF17GV4 Probability Trigonometric Functions 7SGFind Sin θ =.62 in degrees. If RAD is displayed, press Convert the results to radians using Pi \aJg At a Glance Power On and Off Getting StartedManual Conventions and Examples Displayed text Item before the / is the alternate Shift Keys GY7jJ1SG7Yj4 JdPJG7Sg4Simple Arithmetic Calculations Operating Modes Calculations in Chain Mode 1JJV7V4S7dPV7DVa 7dJ4 Calculations in Algebraic Mode Using Parentheses in CalculationsDa\qgVA JG\n JVy AD4Understanding the Display and Keyboard Cursor Clearing the Calculator Clear All AnnunciatorsClearing Messages INV Input Key Swap KeyStatistics Keys Same as pressing Gd7GV\B D7Vj1G7DS\bMath Functions One-Number Functions Getting Started \5Y JVcJ1SC 7DVoR A7SGoR \5GYP\ PY7V\2 J7GVrc 17VdrCTwo-Number Functions In-line Functions Jj\¨ JjÆGd\¨ Gd1DD Arithmetic with One-and Two-number Functions -23below lists the two-number functions of the calculator G7V\K JGV\QD4 VAJ7GV4 \Qv4GG1JY\¨ Last Answer \5D YV7SP7JGVS4 Specifying Displayed Decimal Places \54 Jaj4\zyJG D7gjSVYD Messages GV§ Business PercentagesBusiness Percentage Keys Percent key JGV1j§ GdJ7j\¨DJS7g4 Jgpvæ Gvvà JdÀMargin and Markup Calculations Margin Calculations D7SÀ Using Margin and Markup TogetherJVÃ Using Stored Numbers in Calculations Using ConstantsV1Gª Number Storage and Storage Register Arithmetic J1J§ª \QDªExample Calculate 10 + 10%, 11 + 10%, and 25 + 10% Example Calculate 23 VV\¨DGª Using the M RegisterYV4 Using Numbered Registers JjsJY7GVm JS7dVm YjV7S \w7Y ADd7JV \wGVS7J1 V7Y G7V YV7j \wD\wPD Picturing Financial Problems How to approach a Financial Problem Signs of Cash Flows Periods and Cash FlowsSimple and Compound Interest Simple Interest Interest Rates Compound Interest Two Types of Financial Problems Recognizing a TVM Problem Recognizing a Cash Flow Problem Cash flow diagram Borrower’s perspective Cash flow diagram Investment in a mutual fund Time Value of Money Calculations Using the TVM ApplicationTVM Keys Begin and End Modes Loan Calculations Dpjgù J7VÒJyva JVÏ DjVyÌ 1VÌ1JV4 DDyÌ J7VÒ1JG4 JjGVÏ GV\ÚG7gÒ 1vÌ4 YgÙSavings Calculations GyÏ J7GÒ GY\Í GyÌ JV\Ú S7DÒYyÏ Cash flow diagram Calculate the monthly lease payment Lease Calculations Cash flow diagram Calculate PV of the lease JVÉ YjÙ GYyÌ1vÌy4 Step Find the present value of the buy option 1p4 JVyÉStep Add the results of ’ ’ and ’ ’ To Amortize Amort key on the HP 10bII+ allows you to calculate J7jVÒ JJ7VÒ JdægyJygvï VYÆ GVÆAmortize the 1st, 25th, and 54th payments S7j\Ó Interest Rate ConversionsInvestments With Different Compounding Periods First Bank S7SV\Ó S7SD\ÓDS\Í Compounding and Payment Periods Differ DSV\Í GVyÌ Resetting the TVM Keys Depreciation Depreciation Keys Item 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 Calculations Clearing the Cash Flow Memory Number1 ¤ Cash Flow Calculations Gy¤ Vy¤Calculating Internal Rate of Return JJjSV7Gd¤ AJGNPV and IRR/YR Discounting Cash Flows Organizing Cash Flows JJy¤ Initial cash flow and cash flow groups Viewing and Editing Cash Flows 11GÆ 1JGyÆ1G JVÆ1GÆCalculating Net Present Value and Net Future Value VÆJ¤ ÆY¤VÆG¤ JVÆJ¤ Æd¤JÆJ¤ JVÒ Cash flow diagram Calculates NPV Automatic Storage of IRR/YR and NPV Calendar Format Calendar Formats and Date CalculationsDate Format Using the Input key Date Calculations and Number of Days Date Calculation To enter the data for this example using the Ækey JG7JgGJJ\ÇJ4 ÆJ\Ç \5S Y7SGJ\ÄDJ7JGJ4 J7JjGJG J7JjGJGÆ Using the ÆkeyS7YGJV\Ä Bonds Bond Keys Y7GgGJ S7YGG V7VÎJYË JJÑ J7JVGG Resetting the bond keysY7JVGJG Break-even Break-even Keys Break-even example Calculating the projected maximum fixed cost Resetting the Break-even keys \k\« \h\«\e\« \Z\« Clearing Statistical Data Entering Statistical Data Two-Variable Statistics and Weighted Mean One-Variable Statistics Viewing and Editing Statistical Data DVÆVJV¡ DGÆYJV¡YD\W\5G DjÆSgV¡ YDÆJGD¡YV\W Summary of Statistical Calculations Y7V¡ D7GV¡D7V¡ D7jV¡ JdDÆd¡ JgGÆgJ¡JjjÆgD¡ JgVÆjj¡ 400 GÆJY¡ JÆdG¡DÆJJ¡ VÆGGSV¡ VÆGgd¡ Weighted Mean VÆVY¡ VVÆDG¡VJÆgg¡ VJSÆdG¡ Factorial Probability CalculationsPermutations VD4 VÆDV9D4 VÆD9 YG\w6 Advanced Probability Distributions J7jyF Normal Lower Tail Probability 7GVoF Inverse of Normal Lower Tail Probability GÆJ7gSyI GIJ7gSy4Students T Probability Lower Tail GSÆ7VoI GSoI7V4Inverse of Student’s t Probability Lower Tail Y1J4 Conversions from Lower Tail J7GyF PG4 Returns desired value of z Statistical Calculations Setting a Sales Price \qJ1\q GaJ4Additional Examples Business Applications JÆJ¡ GÆJJGJ¡DÆJDS¡ YÆJSjV¡ VÆGVd¡ Gpdspj \q\qJ AG\n\qDA YVsPJ§ AJPJ4 Jg§YVjG7gy Yield of a Discounted or Premium Mortgage VÙAYGÙ JdyÏG7VÒ Annual Percentage Rate for a Loan With Fees JSÏ AG§ÏJGÒ AD§Ï AJGP JSaDPYV\«§4 1YVÏ Jgvï D7VÒPvÙ4 Jjvï JG\Ó JDÏÉD\Ú Canadian Mortgages DVVVyÌ JJ7GÒWhat if … TVM Calculations GS\Í PvÙ1VÏ4 Savings Stores effective rate as annual Jyyù Gains That Go Untaxed Until Withdrawal PJV§4 DVÙYòìï G7JjVAGg DyÌCash Flow Examples Wrap-Around Mortgages Cash flow diagram Wrap-around mortgage GGVJ7GG DVy¤ VÌyAjVYGG\¥ VÌy¤ Power and Batteries Low Power AnnunciatorInstalling Batteries Appendix a Batteries and Answers to Common Questions Determining if the Calculator Requires Service Resetting the calculatorCalculator won’t turn on Erasing the calculator’s memory See Determining If the Calculator Requires Service Answers to Common Questions Environmental Limits IRR/YR Calculations Appendix B More About CalculationsEquations Payment Mode Factor S = 0 for End mode 1 for Begin mode Time Value of Money TVMAmortization Interest Rate Conversions Cash-Flow Calculations Bonds For more than one coupon period to redemption Depreciation Statistics Forecasting Appendix C Messages Memory has been erased ChCashflow memory was cleared Tvm registers were cleared Bond registers were cleared Statistical memory and registers were cleared Warranty, Regulatory, and Contact Information HP Limited Hardware Warranty and Customer CareLimited Hardware Warranty Period Replacing the Batteries General Terms Exclusions Modifications 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 01-800-711-2884 Warranty, Regulatory, and Contact Information Warranty, Regulatory, and Contact Information Advance payments Algebraic mode BatteryChain mode Error messages Factorial In-line functions Interest Interest rate conversions InvestmentsKeyboard Keys Trigonometric functions Troubleshooting WarrantyModes Operating modes Parentheses

HP 10bII+ Financial manual GyÏ, J7GÒ

Models: 10bII+ Financial

Figure 11 Cash flow diagram (Calculate the number of years)

G:::yÏ

j7GÒ

10bII+ Financial specifications