HP 17bII manual TVM Menu Labels, Menu Label Description First Level, Second Level

					Table 5-1. TVM Menu Labels
Menu Label					Description
					First Level
					Stores (or calculates) the total number of payments or
	S
			!
					compounding periods.*† (For a 30-year loan with
					monthly payments, N＝12 x 30＝360.)
@				Shortcut for N: Multiplies the number in the display by
		T
					P/YR, and stores the result in N. (If P/YR were 12, then

30 @ Twould set N＝360.)

UStoresas a percentage.(or calculates) the nominal annual interest rate

VStores (or calculates) the present value―an initial cash flow or a discounted value of a series of future cash flows (PMTs + FV). To a lender or borrower, PV is the amount of the loan; to an investor, PV is the initial

investment. If PV paid out, it is negative. PV always occurs at the beginning of the first period.

WStores (or calculates) the dollar amount of each periodic payment. All payments are equal, and no payments are skipped. (If the payments are unequal, use CFLO, not TVM.) Payments can occur at the beginning or end of

each period. If PMT represents money paid out, it is negative.

XStores (or calculates) the future value―a final cash flow or a compounded value of a series of previous cash flows (PV + PMTs). FV always occurs at the end of the last period. If FV is paid out, it is negative.

.e

Second Level

YSpecifies the number of payments or compounding periods per year.† (it must be an integer, 1 through 999.)

* When a non-integer N (an “odd period”) is calculated, the answer must be interpreted carefully. See the savings account example on page 71. Calculations using a stored, non-integer N produce a mathematically correct result, but this result has no simple interpretation. The example on page 172 uses the Solver to do a partial-period (non-integer) calculation in which interest begins to accrue prior to the beginning of the first regular payment period.

†The number of payment periods must equal the number of compounding periods. If this is not true, see page 87. For Canadian mortgages, see page 197.

	5: Time Value of Money	63
File name : 17BII-Plus-Manual-E-PRINT-030709	Print data : 2003/7/11