Manuals / HP / Computer Equipment / Calculator

HP F1902-90001 manual Compounding and Payment Periods Differ, 6WRUHVQRPLQDOUDWH

Models: F1902-90001

1 144

Page 73

First Bank
Keys:*	Display:
*b	6.70
	4.00
*Z
	6.87
*
Second Bank
*b	6.65
	12.00
*Z
	6.86
*
Third Bank
*b	6.63
	360.00
*Z
	6.85

Description:

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5: Time Value of Money Calculations 73

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$HP F1902-90001 manual Compounding and Payment Periods Differ, 6WRUHVQRPLQDOUDWH 6WRUHVTXDUWHUO\ FRPSRXQGLQJSHULRGV$

Contents

Edition HP part number F1902-90001 Hp 10BII financial calculatorEdition May Hewlett-Packard Quality Welcome to the HP 10BIIZRUOGZLGHVHUYLFH FDOFXODWRU$ODUJHFKDUDFWHUGLVSOD\ FeaturesVFKHGXOHV FDOFXODWLRQVContents 33 3HUFHQW.H\ 54 &OHDULQJ790 53 8VLQJWKH790$SSOLFDWLRQ73 &RPSRXQGLQJDQG3D\PHQW3HULRGV’LIIHU 84 $XWRPDWLF6WRUDJHRI,555DQG139123 &RQVXPHU7UDQVDFWLRQVLQWKH8QLWHG.LQJGRP 101 $QQXDO3HUFHQWDJH5DWHIRUD/RDQLWKHHV130 +DOWLQJDQG5HVWDUWLQJ,555 129 ,555&DOFXODWLRQVQWHULQJD*XHVVIRU,555 132 7LPH9DOXHRI0RQH\790Page Basics-At a Glance At a GlanceFRQFHSWVSUHVHQWHGLQWKLVVHFWLRQ 7XUQVFDOFXODWRURQ7D 3HUFHQW Percentages-At a GlanceRVW 3ULFH $GGWR6WRUHVDFRQVWDQWRSHUDWLRQ Memory Keys-At a Glance…6WRUHV·ïµDVD OHDUVGLVSOD\3D\PHQW Time Value of Money TVM-At a Glance…1XPEHURISD\PHQWVSHU\HDUPRGH 6HWVSD\PHQWVSHU\HDUDOFXODWHVDPRXQW\RX TVM What if…-At a Glance…FDQERUURZ +RZPXFKFDQ\RXERUURZDWDLQWHUHVWUDWHDQGBALDQQXQFLDWRUVUHVSHFWLYHO\ Amortization-At a Glance…’LVSOD\VSULQFLSDO ’LVSOD\VEDODQFHWKHQVROYHIRUWKHXQNQRZQUDWH Interest Rate Conversion-At a Glance…3HULRGVSHU\HDU FRPSRXQGHGPRQWKO\1HWSUHVHQWYDOXH IRR/YR and NPV-At a Glance…QWHUVQXPEHURIFRQVHF QWHUV ,5OHDUVWDWLVWLFDOUHJLVWHUV Statistics-At a Glance…55.68 10.00 27.50 420.00 Key memory Backspace Accumulate statistical data Cash flows Keyboard MapPage Adjusting the Display Contrast Power On and OffGetting Started Simple Arithmetic CalculationsDOFXODWHVUHVXOW KDQJHVWKHVLJQRICursor Understanding the Display and KeyboardClearing the Calculator Clearing Memory26 1 Getting Started AnnunciatorsStatistics Key Shift KeyEHHQSHUIRUPHG DJDLQInput Key Math FunctionsSwap Key $GGVDQGQWHUV QXPEHU Display Format of NumbersDOFXODWHVWKHSHUFHQW FKDQJHScientific Notation Specifying Displayed Decimal PlacesDIWHUWKHGHFLPDOSRLQW SODFHVInterchanging the Period and Comma Displaying the Full Precision of NumbersGHFLPDOSRLQWLVQRWVKRZQ ’LYLGHVRounding Numbers MessagesPercent Key Business PercentagesFinding a Percent Percent Change Adding or Subtracting a PercentMargin Calculations Margin and Markup CalculationsMarkup on Cost Calculations GLVSOD\HG6WRUHVPDUNXS Using Margin and Markup TogetherDOFXODWHVWKHSULFHRQ FDVHRIVRXSUsing Constants Using Stored Numbers in CalculationsNumber Storage and Arithmetic RSHUDWLRQVVWDQW FRQVWDQWUHJLVWHU Using the M Register5HFDOOVFRQWHQWVRIWKH UHJLVWHUIROORZLQJ Using Numbered Registers5HFDOOV5 RPSOHWHVILUVW0XOWLSOLHVLQ5 E\ Doing Arithmetic Inside RegistersDQGVWRUHVUHVXOW LQ5 Doing Arithmetic Using Parentheses in Calculations Power OperatorFDOFXODWH ⋅ DOFXODWHV DOFXODWHV†0XOWLSOLHVWKHUHVXOWE\ 1RFDOFXODWLRQ\HWHow to approach a Financial Problem Picturing Financial ProblemsPicturing Financial Problems WRVROYLQJDILQDQFLDOSUREOHPSigns of Cash Flows 46 4 Picturing Financial ProblemsDERXWWKHWUDQVDFWLRQ 000.00Simple and Compound Interest Periods and Cash FlowsSimple Interest NQRZQEHIRUH\RXFDQEHJLQFDOFXODWLQJCompound Interest 48 4 Picturing Financial ProblemsDUHEDVHGRQFRPSRXQGLQWHUHVW 005.00 010.03 015.08 020.16 025.26Recognizing a TVM Problem Two Types of Financial ProblemsInterest Rates = 360 30 PV = 150,000.00357 358 359 PMT = -1,041.40 FV = -10,000.00000.00 Recognizing a Cash Flow ProblemPage Time Value of Money Calculations Using the TVM Application7RXVH790VHYHUDOSUHUHTXLVLWHVPXVWEHPHW 3D\PHQWVPXVWRFFXUDWUHJXODULQWHUYDOVDOFXODWHVDQDPRUWLDWLRQWDEOH Clearing TVMRFFXUVDWWKHEHJLQQLQJRIWKHILUVWSHULRG RFFXUDWWKHEHJLQQLQJRUHQGRIHDFKSHULRGLoan Calculations Begin and End ModesERUURZHG 6WRUHVDPRXQW6WRUHVWKHDPRXQWOHIW WRSD\DIWHU\HDUVSXUFKDVHSULFH PV = ? YR = 7.5% = 30 356 357 358 359 360 PMT = End Mode6HWVSHULRGVSHU\HDU 6WRUHVLQWHUHVWUDWH6WRUHVORDQEDODQFH 6ROYHWKLVSUREOHPXVLQJWZRVWHSVDIWHU\HDUV 6WRUHVRULJLQDOORDQPV = 172,500.00 YR = 8.8% = 4 WKHQVWRUHVOHDUVDOOUHJLVWHUV Savings CalculationsILUVWGHSRVLW WRDFFXPXODWHYR = FV= ? YR = 6.3%PMT = PV = -2,000.00 SHU\HDU FV = YR = 7% = 600 50 PV = -400,000.00 Begin Mode6WRUHVQXPEHURI GHSRVLWVZLWKGUDZDOV Lease CalculationsWZRFRPPRQOHDVHFDOFXODWLRQV WKHEHJLQQLQJRIHDFK\LHOG FV = 7,500.00 PMT = ? YR = 10% PV = -13,500.00 Begin ModeYDOXH LQPRQWKV7KLVVROXWLRQUHTXLUHVIRXUVWHSV Begin Mode PV = ?PMT = -2,400.00 48th payment due up front FV = -15,000.00 DOFXODWHVSUHVHQW SD\PHQWVYDOXHRIPRQWKO\ $GGVDGGLWLRQDOPayment $ AmortizationPrincipal $ Interest $ Time DQGEDODQFH WKHVDPHYDOXHVDJDLQ\WKHVWDUWLQJDQGHQGLQJSD\PHQWVWKDWZLOOEHDPRUWLHG 68 5 Time Value of Money Calculations13,894.66’LVSOD\VWKH,17 579.82’LVSOD\VWKH35,1178,420.18’LVSOD\VWKH%$/ HQGLQJSHULRGV’LVSOD\V35,1DQGWKH $PRUWLHWKHVHFRQG\HDU6HWVSD\PHQWVSHU\HDU 70 5 Time Value of Money Calculations’LVSOD\V,17DQGWKHLQWHU HVW SULQFLSDOSD\PHQWInvestments With Different Compounding Periods Interest Rate ConversionsSHULRGGLIIHU IDYRUDEOHLQWHUHVWUDWH6WRUHVQRPLQDOUDWH 6WRUHVTXDUWHUO\ FRPSRXQGLQJSHULRGV Compounding and Payment Periods Differ6WRUHVQRPLQDOUDWH 6WRUHVPRQWKO\FRP SRXQGLQJSHULRGV 6WRUHVQRPLQDOUDWH6WRUHVSD\PHQW Step . &DOFXODWHWKHIXWXUHYD XH6WRUHVWRWDOQXPEHURI DOFXODWHVEDODQFHDIWHUCash Flow Calculations How to Use the Cash Flow ApplicationWKH+3%,, QWHUWKHQXPEHURISHULRGVSHU\HDUQWHUVILQDOFDVKIORZ QWHUVQHWFDVKIORZQRPLQDO\LHOG 0RQWKO\\LHOGOrganizing Cash Flows NPV and IRR/YR Discontinuing Cash FlowsIORZVXVLQJWKHIROORZLQJVWHSV Entering Cash FlowsEHHQHQWHUHG 3UHVV*&WRFOHDUWKHUHVLVWHUVJURXSDPRXQW QWHUVQXPEHURI UHSHWLWLRQV Viewing and Replacing Cash FlowsIORZJURXSDPRXQW QWHUVQXPEHURI UHSHWLWLRQV 7RYLHZDFDVKIORZSUHVV7RUHSODFHDFDVKIORZDPRXQWSUHVV Calculating Net Present Value7KHVHVWHSVGHVFULEHKRZWRFDOFXODWH139 QWHUVQXPEHURI RFFXUUHQFHV OHDUVUHJLVWHUVYR = 15% 10,000 500 82 6 Cash Flow Calculations FDOFXODWHWKHQHWSUHVHQWYDOXH 3UHVV*9 Calculating Internal Rate of ReturnSUHYLRXVHDPSOH 000 10,000 500 28,000 11 13 15 17 IRR/YR = ? 19 21 2384 6 Cash Flow Calculations Automatic Storage of IRR/YR and NPVClearing Statistical Data Statistical CalculationsHLJKWHGPHDQ Statistical CalculationsEntering Statistical Data Two-Variable Statistics and Weighted MeanOne-Variable Statistics VWDWLVWLFDOUHJLVWHUVSummary of Statistical Calculations Correcting Statistical DataCorrecting One-Variable Data Correcting Two-Variable Data6XPRIWKHYDOXHV LI\RXHQWHUHG\GDWD6XPRIWKH\YDOXHV 88 7 Statistical CalculationsDOFXODWHVWKHURRWPHDQ VTXDUH82.75 ’LVSOD\VPHDQRIZHLJKWV\ Linear Regression and EstimationIROORZV 90 7 Statistical Calculations FRHIILFLHQW ’LVSOD\VVORSHPLQXWHVRIDGYHUWLVLQJ 357.38VWLPDWHVVDOHVLI 783.25VWLPDWHVVDOHVLIWeighted Mean Page Additional Examples Setting a Sales PriceBusiness Applications SURGXFWVHYHQ Forecasting Based on HistoryVWLPDWHVVDOHVIRU\HDU OHDUVVWDWLVWLFVUHJLVWHUVCost of Not Taking a Cash Discount Simple Annual Interest Loans and MortgagesContinuous Compounding 17567Yield of a Discounted or Premium Mortgage QWHUVDPRXQWOHIWWRSD\ PRUWJDJHDIWHU\HDUV DOFXODWHVUHJXODUAnnual Percentage Rate for a Loan With Fees FRQVLGHULQJIHHV 72&DOFXODWHV$35LQWHUHVWD HPDGH GXHLoan With a Partial Odd First Period DPRXQW Automobile LoanGHDOHULVRIIHULQJWZRFKRLFHVIRUILQDQFLQJ UHEDWH LWKZKLFKFKRLFHGR\RXSD\OHVVIRUWKHFDUCanadian Mortgages IROORZV What if … TVM Calculations106 8 Additional Examples WRSD\RIIORDQ LQWHUHVWSDLGRQWKHFRQWUDFWELZHHNO\SD\PHQWV 6WRUHVQHZWHUPSaving for College Costs Savings$15,000 YR = 9% YearFV from 6WRUHVDQQXDO ZLWKGUDZDO 6WRUHVQXPEHURI ZLWKGUDZDOVPrevious 142 143 144 PMT = ?QHHG Gains That Go Untaxed Until WithdrawalVWDUWLQJZLWK 110 8 Additional ExamplesUHWLUHPHQW VWDUWZLWK 6WRUHVDPRXQWRI DQQXDOSD\PHQWRILQWHUHVW LQIODWLRQUDWHVWDUWLQJZLWK 6WRUHVDPRXQWRI DQQXDOSD\PHQW Value of a Taxable Retirement Account6WRUHVDPRXQW\RXDUH DFFRXQWDWUHWLUHPHQWWrap-Around Mortgages Cash Flow ExamplesQWHUVQHWSD\PHQWIRU KHQ\RXJURXSWKHDERYHFDVKIORZV\RXOOILQGWKDWQHWPRQWKV WLPHVSD\PHQWRFFXUVFXUUHQWEDODQFHRIWKHDFFRXQW Net Future ValueJURXS JURXS116 8 Additional Examples YDOXH139Assistance, Batteries, and Service Assistance, Batteries, and ServiceAnswers to Common Questions 3UHVV*SDJH KDWGRHVDQ·µLQDQXPEHUIRUHDPSOH†PHDQ Environmental LimitsKDWGRHVPENDLQWKHGLVSOD\PHDQ 6WRUDJHWHPSHUDWXUH†ƒWRƒ&†ƒWRƒLow Power Annunciator Power and BatteriesBattery Specifications Installing BatteriesVHFWLRQ 5HPRYHERWKEDWWHULHVQVWDOOQHZEDWWHULHV Determining if the Calculator Requires Service HUDVHWKHPHPRU\VHHEHORZ FDVHWKHFDOFXODWRUUHTXLUHVDVHUYLFHWhat Is Covered Limited One-Year WarrantyWhat Is Not Covered EDWWHU\DQGEDWWHU\OHDNDJHZDUUDQWLHVObtaining Service If the Calculator Requires ServiceConsumer Transactions in the United Kingdom XSGDWHSURGXFWVRQFHVROGWarranty on Service Service ChargeShipping Instructions Regulatory Information Service AgreementsRSHUDWHWKLVHTXLSPHQW End-user terms and conditions Assistance, Batteries, and Service Page IRR/YR Calculations More About CalculationsPossible Outcomes of Calculating IRR/YR KHOS\RXLQWHUSUHWZKDWKDVKDSSHQHGTering a Guess for IRR/YR Halting and Restarting IRR/YRRQHQHJDWLYHFDVKIORZ $IWHU\RXYHLQWHUUXSWHGWKHFDOFXODWLRQRange of Numbers Effect of Using Σ- to Correct DataIROORZLQJWKLVDSSHQGL WRFOHDUWKHVWDWLVWLFDOUHJLVWHUVDQGUHHQWHUWKHGDWDMargin and Markup Calculations EquationsTime Value of Money TVM AmortizationRUHDFKSD\PHQWDPRUWLHG Interest Rate Conversions Cash-Flow CalculationsWKHJURXSQXPEHURIWKHODVWJURXSRIFDVKIORZV Σx = StatisticsPage 0HPRU\KDVEHHQHUDVHGSDJH MessagesRS\ULJKWPHVVDJH FRQGLWLRQUflo 5XQQLQJ$FDOFXODWLRQLVLQSURFHVVSpecial Keys IndexGldjudpv Glvfrxqw Hqwhulqj Htxdwlrqv HJLQPRGH RUURZLQJHTXLW\ \RXWYDOXH Uhsodflqj Xqhyhq Ylhzlqj KDLQFDOFXODWLRQV LQHDUUHJUHVVLRQ , Uhvwduwlqj Rjdulwkp Zhljkwhg , 0HPRU\3HUFHQW DWDJODQFH 5DWH Hiihfwlyh , DULWKPHWLFLQ Qxpehuhg Hvwlpdwlrq 6LJQFKDQJLQJ Uhjlvwhuv Vxppdwlrq

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5: Time Value of Money Calculations 73

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