Figure 1 illustrates a cash flow diagram and how the data in the diagram corresponds to the TVM keys. For a complete list of keys used for TVM problems, along with their descriptions, see Table 3-1.

To save values for the TVM variables, enter the desired number, followed by the corresponding TVM key. To calculate an unknown value, enter all known values and press the key of the item you want solved.

Table 3-1 TVM Keys

Keys

Description

 

 

N

Stores or calculates the number of payments or compounding periods.

 

 

:^

Multiplies a value by the number of payments per year and stores as N.

 

 

Y

Stores or calculates the nominal, annual interest rate.

 

 

V

Stores or calculates the present value (PV). To a lender or borrower, PV is the amount of a

loan; to an investor, PV is the initial investment. PV always occurs at the beginning of the first

 

period.

 

 

M

Stores or calculates the amount of each periodic payment.

 

 

:[

Stores the number of payments or compounding periods per year. This value is 12 by default,

but it maintains its current entered value when TVM Reset is used.

 

 

F

Stores or calculates the future value (FV), a final cash flow. FV always occurs at the end of the

last compounding period.

 

 

:?

Sets Begin mode (BEG). Payments occur at the beginning of each compounding period.

 

 

:]

Sets End mode (END). Payments occur at the end of each compounding period.

 

 

Calculating Payments on a Loan

You borrow 140,000.00 for 30 years (360 months) at 6.5% annual interest, compounded monthly. What is your monthly payment to the lender? Note: the following example is calculated with RPN set as the operating mode.

At the end of the 30 years, you expect to have a zero balance (FV=0). The example is calculated with RPN set as the operating mode

28 Time Value of Money

Page 35 Page 37
Page 36
Image 36
HP 20b Consultant Financial manual Calculating Payments on a Loan, Stores or calculates the amount of each periodic payment
Page 35 Page 37

30b Professional, 20b Consultant Financial specifications

The HP 30b Professional calculator is a versatile tool designed specifically for business professionals, engineers, and educators. This reliable calculator merges advanced technologies with user-friendly features, enabling users to perform complex calculations with ease. The HP 30b is appreciated for its robust design and functionality, making it a top choice among those who require a dependable calculating device for various applications.

One of the standout features of the HP 30b is its capability to handle both RPN (Reverse Polish Notation) and algebraic entry modes. This flexibility allows users to choose the input method that best suits their preferences, enhancing productivity and minimizing calculation errors. The calculator also boasts a large, high-resolution display that ensures clarity when navigating through calculations and results.

The HP 30b comes equipped with essential business functions that include financial calculations, cash flow analysis, and statistical functions, all of which are invaluable in professional settings. Users can seamlessly compute interest rates, perform amortization schedules, and evaluate loan payments, making it an indispensable asset for finance-oriented individuals.

Another key characteristic is its programmable functionality. The HP 30b allows users to create custom programs tailored to specific tasks, which can save time and reduce manual entry errors. This programmable capability is especially beneficial for repetitive calculations, providing a significant efficiency boost in ambiguous or multi-step operations.

The durable construction of the HP 30b ensures longevity while the compact design makes it portable and convenient for on-the-go calculations. Additionally, the calculator features an energy-efficient design, which includes a long-lasting battery life, reducing the need for frequent replacements.

With a straightforward key layout and intuitive interface, the HP 30b is designed with user experience in mind. Whether in a classroom, office, or fieldwork scenario, users can easily navigate functions and access the features they need quickly. The HP 30b Professional calculator is truly an impressive blend of technology and practicality, making it an essential tool for anyone needing reliable performance in their daily calculations.
Top Page Image Contents