Loan Calculations | HP 17bII specification

4.Store the values you know. (Enter each number and press its menu key.)

5.To calculate a value, press the appropriate menu key.

You must give every variable―except the one you will calculate―a value, even if that value is zero. For example, FV must be set to zero when you are calculating the periodic payment (PMT) required to

fully pay back a loan. There are two ways to set values to zero:

!Before storing any TVM values, press @cto clear the previous TVM values.

!Store zero; for example, pressing 0 Xsets FV to zero.

Loan Calculations

Three examples illustrate common loan calculations. (For amortization of loan payments, see page 77.) Loan calculations typically use End mode for payments.

Example:A Car Loan. You are financing the purchase of a new car with a 3-year loan at 10.5% annual interest, compounded monthly. The purchase price of the car is $7,250. Your down payment is $1,500. What are your monthly payments? (Assume payments start one month after purchase ― in other words, at the end of the first period.) What interest rate would reduce your monthly payment by $10?

7,250 _ 1,500

0

																					10.5


																	3 X 12


														12; End mode





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	5: Time Value of Money	67
File name : 17BII-Plus-Manual-E-PRINT-030709	Print data : 2003/7/11

Image 67

HP 17bII manual Loan Calculations

Contents

HP 17bII+ Financial Calculator Edition June Printing History Welcome to the hp17bII+ Welcome to the HP 17bII+ Contents Saving and Reusing Numbers Error MessagesUsing Parentheses in Calculations Power Function Exponentiation Interest Rate Conversions Time Value of MoneyCash Flow Calculations 11 141 Time, Appointments, and Date Arithmetic BondsDepreciation 10 121 Running Total and Statistics 12 153 The Equation Solver 14 190 Additional Examples More About Calculations Assistance, Batteries, Memory, and Service RPN The Stack Menu Maps RPN Summary RPN Selected Examples Error Messages Index Currency Exchange Calculations List of ExamplesList of Examples General Business Calculations Interest Rate Conversions Running Total and Statistical Calculations Time, Alarms, and Date ArithmeticHow to Use the Equation Solver Bonds and Notes Important Information Important Information Getting Started Power On and Off Continuous MemoryAdjusting the Display Contrast Getting Started 18 1 Getting Started Setting the LanguageWhat You See in the Display Keys for language Key Description Backspacing and Clearing Shift Key @ Keys Display Description Keys for Clearing20 1 Getting Started KeysDisplayDescription Doing Arithmetic Keying in Negative Numbers Using the Menu Keys22 1 Getting Started Menu Labels Menu Keys Main Menu 24 1 Getting Started Main Menu Menu Label Operations Done Covered This Category Choosing Menus and Reading Menu Maps 26 1 Getting Started Using the MU%C menuDisplaying the MU%C menu Calculations Using Menus Clearing Values in Menus Exiting Menus e28 1 Getting Started = Cost Solving Your Own Equations Solve 30 1 Getting Started Typing Words and Characters the ALPHAbetic Menu Characters Editing ALPHAbetic TextKeys 34 5? 32 1 Getting Started Calculating the Answer CalcAlphabetic Editing Operation Label or Key to Press Keyboard Menu for carpeting Temporarily SHOWing ALL Controlling the Display FormatDecimal Places Internal Precision Exchanging Periods and Commas in Numbers Rounding a Number Modes Error Messages36 1 Getting Started Memory still free Calculator Memory @M 38 2 Arithmetic ArithmeticCalculator Line VDoing Calculations 30 x VUsing Parentheses in Calculations456 75 × 18.5 Keys Display Mathematical Functions VThe Percent Key40 2 Arithmetic Shifted Math Functions VThe Power Function ExponentiationKey 42 2 Arithmetic Math MenuMath Menu Labels KeysDisplay Description History Stack of Numbers Saving and Reusing Numbers VKeys Display VReusing the Last Result @L44 2 Arithmetic 475.6 560.1 + 39.15 Storing and Recalling NumbersVKeys Display Description Doing Arithmetic Inside Registers and Variables Keys New Register ContentsArithmetic in Registers Scientific Notation 48 2 Arithmetic Range of Numbers Percentage Calculations in Business Percentage Calculations BusinessBusiness Percentages BUS Menus Menu Description 50 3 Percentage Calculations in Business Using the BUS MenusExamples Using the BUS Menus Percent Change %CHG Percent of Total %TOTL Markup as a Percent of Price MU%P Markup as a Percent of Cost MU%C52 3 Percentage Calculations in Business Cost Price M%C Cost Price M%P Sharing Variables Between Menus Currx Menu Currency Exchange Calculations54 4 Currency Exchange Calculation Currx Menu Selecting a Set of CurrenciesCurrency Exchange Calculation Currencies Entering a Rate United States Conversion Chart in US$Currency Rate Select CAN$ as currency 58 4 Currency Exchange CalculationSelect HK$ as currency Storing and Recalling Sets of Currencies Converting Between Two CurrenciesExample Converting between Hong Kong and U.S Dollars 60 4 Currency Exchange Calculation Clearing the Currency Variables TVM Menu Time Value of MoneyTime Value of Money Second Level of TVM First Level of TVM Menu Label Description First Level TVM Menu LabelsSecond Level 64 5 Time Value of Money Cash Flow Diagrams and Signs of Numbers PMT 66 5 Time Value of Money Using the TVM Menu Loan Calculations Figures and stores number 68 5 Time Value of Money 11.5 Figures and stores 70 5 Time Value of Money 000 Savings Calculations 72 5 Time Value of Money 15X 12X 359 360 74 5 Time Value of Money Leasing Calculations @28#+ 76 5 Time Value of Money Amortization Amrt 78 5 Time Value of Money Displaying an Amortization ScheduleAmrt Menu Labels Label Number of payments Next successive set of payments authorized 80 5 Time Value of Money Printing an Amortization Table Table 82 5 Time Value of Money 508 /,%&-$ GO8 84 6 Interest Rate Conversions Interest Rate Conversions Converting Interest Rates Icnv MenuInterest Rate Conversions 86 6 Interest Rate Conversions Compounding Periods Different from Payment Periods 88 6 Interest Rate Conversions Per year 90 6 Interest Rate Conversions Cflo menu Cash Flow CalculationsCash Flow Calculations 92 7 Cash Flow Calculations Cflo Menu Labels Cash Flows Ungrouped 94 7 Cash Flow Calculations Creating a Cash-Flow List For grouped cash flows The display now shows Entering Cash Flows 96 7 Cash Flow Calculations Prompting for #TIMES #T?. When the calculator displays EGG Viewing and Correcting the List Deleting Cash Flows from a List. Pressing ndeletes both Copying a Number from a List to the Calculator LineNaming and Renaming a Cash-Flow List 98 7 Cash Flow Calculations Starting or GETting Another List Clearing a Cash-Flow List and Its NameViewing the Name of the Current List. Press o, then e 100 7 Cash Flow Calculations Cash-Flow Calculations IRR, NPV, NUS, NFV Calc Menu for Cflo Lists Menu Label 115,000 500 102 7 Cash Flow Calculations G9ECL#T8U 104 7 Cash Flow Calculations Group Number Amount G9ECL.T8U 50 50 50 106 7 Cash Flow Calculations Doing Other Calculations with Cflo Data Bond Menu Bonds108 8 Bonds Menu Description Label Bond Menu LabelsBonds 110 8 Bonds Doing Bond CalculationsTo calculate the price or yield of a bond Since there is no call on 112 8 Bonds MM.DDYYYY format Deprc Menu Depreciation114 9 Depreciation Depreciation Deprc Menu Labels To calculate the depreciation for an asset Doing Depreciation CalculationsDB, SOYD, and SL Methods 116 9 Depreciation Basis Salv 4,000 KeysDisplay Year Percentage Deductible Keys Display Description Acrs Method118 9 Depreciation Partial-Year Depreciation 120 9 Depreciation Calendar Year Depreciation Value Running Total and Statistics Running Total and Statistics SUM Menu Labels SUM Menu122 10 Running Total and Statistics Entering Numbers and Viewing the Total Creating a SUM List 124 10 Running Total and Statistics Amount Date DateTransaction 126 10 Running Total and Statistics Naming and Renaming a SUM List Doing Statistical Calculations Calc Clearing a SUM List and Its Name Calc Menu for SUM Lists Menu Key Calculations with One Variable128 10 Running Total and Statistics Expense Month Phone 130 10 Running Total and Statistics Calculations with Two Variables Frcst Calc Total 132 10 Running Total and Statistics Frcst Menu Labels Logarithmic Curve Fit Curve Fitting and Forecasting To do curve fitting and forecasting 134 10 Running Total and Statistics Radio Dollar Sales Advertising Values Number of Minutes Minutes 136 10 Running Total and Statistics Minutes 138 10 Running Total and Statistics Weighted Mean and Grouped Standard Deviation Summation Statistics 140 10 Running Total and Statistics Doing Other Calculations with SUM Data Viewing the Time and Date Time, Appointments, Date ArithmeticTime, Appointments, and Date Arithmetic 142 11 Time, Appointments, and Date Arithmetic Time MenuTime Menu Labels Menu Label Description To set the date Setting the Time and Date SETSET Menu Labels Or DD.MMYYYY Changing the Time and Date Formats SET Adjusting the Clock Setting Adjst144 11 Time, Appointments, and Date Arithmetic Menu Labels for Setting Appointments Description Viewing or Setting an Appointment APT1-APT10Appointments Appt 146 11 Time, Appointments, and Date Arithmetic To set an appointment or view its current settingAppointment message optional To set, change, or just view a Acknowledging an Appointment To acknowledge a past-due appointment Unacknowledged AppointmentsClearing Appointments 148 11 Time, Appointments, and Date Arithmetic Date Arithmetic Calc 150 11 Time, Appointments, and Date Arithmetic Determining the Day of the Week for Any DateCalculating the Number of Days between Dates Calc Menu Labels for Date Arithmetic Calculating Past or Future Dates DATE2 152 11 Time, Appointments, and Date Arithmetic Solver Example Sales Forecasts Equation SolverEquation Solver Next =OLD 154 12 The Equation Solver Menu Label Display Description 156 12 The Equation Solver Solve MenuKeys Solve Menu Labels Entering EquationsTo make an entry into the Solver list To do a calculation using a Solver menu Calculating Using Solver Menus Calc158 12 The Equation Solver Rmenu label Eqty 160 12 The Equation Solver Naming an Equation Editing an Equation Edit 162 12 The Equation Solver Finding an Equation in the Solver ListShared Variables Clearing Variables Deleting a variable is quite different from clearing it Deleting Variables and Equations 164 12 The Equation Solver Writing EquationsDeleting One Equation or Its Variables Delet Deleting All Equations or All Variables in the Solver @c × C Could be entered as 100× E 166 12 The Equation Solver What Can Appear in an Equation Using the Alpha Menu Solver Functions Using a Typing Aid168 12 The Equation Solver DDAYSd1d2cal Solver Functions for Equations Description ITEMSUM-listnameitem# 170 12 The Equation SolverHH.MMSS format IFcond expr 1 expr #TCFLO-listnameflow# Σcfr c 1 c 2 s exprSIZECCFLO-listname SIZESSUM-listname 172 12 The Equation Solver Days 174 12 The Equation Solver Conditional Expressions with ifOperatorKeys ≥ ³= VALUE＝FIRST＋1 ÷ FIRST. If FIRST＝0, then VALUE＝FIRST Examples of Conditional EquationsRating Percent Salary Increase 176 12 The Equation Solver Summation Function ∑HC8E9AL#GL28#I&%IGL28$I&I&#TTT Accessing Cflo and SUM Lists from the Solver 178 12 The Equation Solver Creating Menus for Multiple Equations S Function How the Solver Works 180 12 The Equation Solver Halting and Restarting the Iterative Search Entering Guesses 52EG8527H Y@/O127EF Y@/GX7EF Keys 182 12 The Equation Solver @I$&/Solves for QTY iteratively 184 13 Printing Printing Printing Printer’s Power SourceDouble Space Printing Printing the DisplayP 186 13 Printing Printing Other Information @pPrinting Variables, Lists, and Appointments List Printer Menu Labels Except IRR%. Instead, press tPto print the value for IRR% Trace Printing Trace Printing Descriptive Messages MSG188 13 Printing KeysPrint-out How to Interrupt the Printer 190 14 Additional Examples Additional ExamplesLoans Simple Annual Interest Additional Examples Yield of a Discounted or Premium Mortgage Figures and stores total 192 14 Additional Examples See appendix F for RPN keystrokes for the next two examples Annual Percentage Rate for a Loan with Fees 194 14 Additional Examples Loan with an Odd Partial First Period @c e Solver Equation for Odd-Period Calculations 196 14 Additional Examples Canadian Mortgages Solver Equation for Canadian Mortgages 198 14 Additional Examples Solver Equation for Advance Payments Advance Payments Leasing Value of a Fund with Regular Withdrawals Savings200 14 Additional Examples Displays periodic 202 14 Additional Examples Deposits Needed for a Child’s College Account Additional Examples 204 14 Additional Examples Flow of Withdrawals For FLOW1 206 14 Additional Examples Value of a Tax-Free Account # 5?@2 JH= 0EAH 208 14 Additional Examples Value of a Taxable Retirement Account Modified Internal Rate of Return Group No. of Months Cash Flow, $ Flow no 210 14 Additional Examples 100000 V8 /12 V13 /12 200000212 14 Additional Examples Solver Equation for Insurance Price Price of an Insurance Policy 214 14 Additional Examples Bonds 216 14 Additional Examples Discounted Notes Moving Average Statistics Solver Equation for Moving Averages 218 14 Additional Examples If necessary Chi-Squared χ2 Statistics If the expected values vary 220 14 Additional Examples Number Keystroke Display DescriptionUse Obtaining Help in Operating the Calculator Assistance, Batteries Memory, and ServiceAssistance, Batteries, Memory, and Service Answers to Common Questions Assistance, Batteries, Memory, and Service Low-Power Indications Power and BatteriesDo not use rechargeable batteries Installing Batteries Assistance, Batteries, Memory, and Service Managing Calculator Memory Reset hole Resetting the Calculator For selecting English language For the other languages Erasing Continuous MemoryFor selecting the other languages For English language Clock Accuracy Determining If the Calculator Requires ServiceEnvironmental Limits If the calculator won’t turn on Confirming Calculator Operation Self-TestIf the calculator doesn’t respond to keystrokes Warranty Assistance, Batteries, Memory, and Service Europe Country Telephone numbers Asia Pacific Country Telephone numbers Regulatory informationAmerica Country Telephone numbers Japan Canada More About Calculations More About CalculationsIRR% Calculations Possible Outcomes of Calculating IRR% Storing a Guess for IRR% Halting and Restarting the IRR% Calculation S T = P R I C E － P R O F I T Direct SolutionsSolver Calculations O F I T = P R I C E － C O S T ＝ a R E a ÷ W E a ＝L x W Iterative Solutions Case 1a Case 1b Is exactly Is not exactly More About Calculations J1A =4HFFHFI 100  Equations Used by Built-in MenusActuarial Functions  － n Time Value of Money TVM Percentage Calculations in Business BUSAmortization NPV ＝ CF0 + ∑CFj x Uspv i% nj x Sppv i% Nj Interest Rate ConversionsCash-Flow Calculations NOM %  P NUS ＝ Uspv i% N Total ＝ ∑nj × CFj Bond Calculations DB ＝ Basis × Fact % /100 Depreciation Calculations Forecasting Sum and StatisticsModel Transformation PV = − PMT Equations Used in ChapterSXY = Σ SX 2 × SY Advance Payments Odd-Period CalculationsModified Internal Rate of Return Menu Maps Menu Maps Figure C-2. Currx Menu Figure C-3. FIN Menu Figure C-3 . FIN Menu Figure C-4. SUM Menu Figure C-5. Time Menu Figure C-6. Solve Menu RPN Summary RPN SummaryAbout RPN About RPN on the HP 17bII+ To select RPN mode Press @ Setting RPN Mode Same as Where the RPN Functions AreFunction Definition Key to Use Name ~ same as Doing Calculations in RPN Arithmetic Topics Affected by RPN ModeSimple Arithmetic To Calculate Press Display 27 % Calculations with STO and RCL RPN Mode ALG ModeChain Calculations－No Parentheses + 5 E 6 + What the Stack Is RPN The StackRPN The Stack Exchanging the X- and Y-Registers in the Stack Reviewing the Stack Roll Down Arithmetic－How the Stack Does It ＋ 6 ： How Enter Works Clearing Numbers Last X Register Reusing NumbersRetrieving Numbers from Last Chain Calculations Exercises Solution 23 @w13 E9 *-7@t+ RPN Selected Examples RPN Selected Examples RPN Selected Examples #$ 5?@2 HA 0EAH 10 @ Stores total number Payments 1000000 E #TIMES1 for FLOW1 For E, press =, not I11 I G9ECLT8U # 5?@2 JH= # 5?@2 JH= Begin mode Error Messages Error Messages H22E2I EOH2G9EC Error Messages Error Messages EOH2G9EC Error Messages 143 2, 42 -,150 Index#Special Characters Index 147 169 166 56 ›, 132 a, 78 Z 156 74-75 =, F 174-76 31-3285-87 145 115 ?, 32 ª, 150 «, 150 ¬149 64 I 144162-64 116 133 181-83 138-39 168-71 213-15 72-73239 \, 143 N 132 k, 186 o, 42 3, 42 L132-34 132 , 109 +, 49, 53 6, 52, 128 ‘, 128 146 Memory. See also Continuous Memory143-44 92-94 101 w, 101 x, 101 /, 157 @, 56 B, 56 J, 56 4, 42 j175 56 5, 42 , 18 @p, 186 P PMT. See also Payments in TVM, 63 rounded amortization 85-8680-81 115 146-47 Using56 Q, 56 l, 186 ¡ 128 176 243-46 171 178 148132 L 109 ‹, 115 M This regulation applies only to The Netherlands