Contents

Page lO At a 'lane

21 1: Getting Started

31 2: Business Percentages

35 3: Number Storage and Arithmetic. 43 4: Picturing Financial Problems

51 5: Time Valu of Money Calculations 75 6: Cash Flow Calculations

85 7: Statistical C ale ulations

9,5 8: Additional Examples

116 A: Assistance, Batteries, and Service 127 B: More A bou lalculation.

133 Messages

136 Index

Fhdl He:WLETT ~e.. PACKARD

English

Printed til Singapore 11/94

(P)

0([)Q)10-90037

Business Calculator Owner's Manual

HP-IOB

Fhifl HEWLETT .... f.!.t PACKARD

1 ~~~_J

2

~~~

3'~~~~L!

4,,~~~~~~_

5 "1IIIJIIIIi!iI -....,___....~PI,

6---------=~~~~ 7

,8- ........... ...---:

~-~---1i'7

16 L-_,__.~-

1.5 ~~~

'--_iiiiiiiiiiiiiiiiiiiiiiii~ 14

~--~_,._13

-

~N'PUT'

'9-----:

~---~12

1., I nte.re:st conversion (page 71) .. 2", Ti m,e va1 us of m,lo:ney ,(,page .s 1l" 3. Oash lows (pag,e 7.5),.,

,4., S:lore' and (ecaJ~ (pa[ge' 38)~ ,5", :Percent (paige, 31)~,

,6"" C~le'a[r aU memory (pa'g,e 23l"

74 Separal,e two number,s (pag,a as)" ,B,., Chan,ge sl[g,n (paige 22l!,

91,. C'Q"nslant (p,a,gs' 35)~,

1 0", ,ShUI~ aClival'8 ye~!ow labeled funcUons (pa'9's' 2,4)[,!,

1; 1 ,', 'On. clear dis"p~l,ay.~ncel

op',eration (page' 21: l~, ,. ,

12'~ n through Exy: :st',atis1i',csl summatEon

regis.,ers (p1ags' 89)[~

1,3"" ,S:tatisUcal "unctions I(palge 88) ~

1:4~ BaCkspace (pa'ge 2'3).

15", ,~key mo'm,lo,ry (pag[e37),~

116"" IMargin and markup (page 33) .. 11 ~ ,Accumula'te statis1i:caJ data

(pa[ge 86 and a'rl"

1 ,8"" ,Amoll'iz,atio"n (p,age 66) ~

1i 9'~, Annullcia'lo[r lUna (pag,s :24) ~

iHE'WLE'T'T ;PAC'i(AR"O

Edition 6

P,art Number 00010·90037

, :ic

0- w'a.r:ra,'nty and re ulatory infortnation ro,r 'Ibis, caleuletor.. 'C pa es 1 ' , n,', 126~

his manual and an,), ~xamples contained hcr'cin or" provided "as ls" and are subject to hange ,without noti -'. _ I tt~ 'f!' rd C lOp ny m _,k[ s 0,0 WalTRDty o:f any d - - th egar - tOI lhls ma,u'U,al, Inc'ludln ,,' .ut ,,0" nm:it '1[;, 't'he Impl_ d wa -- - _ o,t _ ' 0 ,-' , " ',al~tabir ty ,and .l tD 5 pa, icull ,r' purpose'l Hew~ctt~, a kard CO[I hall not be U,abll' or ,any

rr f- or fo inei : Rial or -on ,equ ali ldam I ',-, in . nncclion 'with (be

furnishing, p - :, Iormance, or use 0 [Ihis[ man,ual r th _ keYSl :Ie pr ~ am cont,ained, herein,

. Hewlett Packard COi 19 -,j All rights[ resewed. R, p [OdUCt10D,

od,aptali ,[I, r II, ;,' I li: n 0, I" i, anual j p'f hibit d. wi,th ut p: j. r written permi - ion of H[c'w~ct, Pa a d Company, 'x _ ept ,as al~o,wed under the oop,righala ' '~

Th programs[ that eontr :1 your caleuleto ar eopyri hoed and all rights

re r ' 'C' 'd.'I' Re due 'ion" d ptati :0., Of' Iran ~ _l~, n f tho: r 'ram

without prior \wi,~[~[en permlssioa f _ 'ew'lell I'a ka'rd. -,o~, is ids

rohiblted.

I 'onal ,s Dlvi,! ,on

~ '~ i ele B-1- d'I'

'e na,1 Js, 0[" 73,- 0" U,SiA'1l

P inti,n, ~

,ry

Edl[Uo,n Edi.lo,n 2 [ dl 'Io:n '"

E _1'"0:- 4 [ l'lo[

0' r l ' " Jun L 9' Jun [99

A u l 199'2 ,'v 'Oil er 19

•

Your H ~lO, r 11ed.s th superio qualilY and att ntion to detail in

en ~n,eerin, .and manu ' ,duri' ,_ thai have dis.tin [isbed ewl It'"' aek rell

products for SO ye ars I' 'CW') tt-Paekard stands b hin.-d thls ealeulator-e-we

0,(11 l' . '"_ rt is t sup rl its u ' (s ms'id:- h '" aek ,c,Q,ver) I'nd \yor'ld~

- - _ed" ii'

'WI, 'u service.

c

ur Icalcul t rs ar_ m a _' .'c I[ _ as)' [I, use,

! This leulator ls designed :L,o wilbs(,aJld th d'_ 01"1' yibrl/lio,ns" POli'lu, .. tants ( m 0 oeon ' ) , I ',m '_ ra tu r ext em j and hu _ - -idi'Ly VI'ria'liorL5 that it m"ay eaeoueter ln ve:ry<iay work n:rc~

• The '(tul[al, rand i s -'_ _ - _ al h ve n "n desi'ncd '_ nd test d for case

of us' -i e add d many xamples, to bi· "1[1, '"t the va i d 'US[Wi of'lh

cal ~ ~ r. A [- - n 'd m 'I, rlal and r- ncnt, molde -, k '~c'llc,r-.i.n_

. r'owd ,8 lon k ybo'ard ore and a p sh~ve fe I '10 the k _ ybDDrd~

• . , ,OS 101 -power) e tro ,j,[cs and a Ii 'ui ,. -', 'ta:~ disp~a)' ,allow data to' be 'r taiaed lad riu,it[ -I and l'h·. batt ries to, last a lon - time"

• The micro[p'ro __ . or has,' .. en, ,optlmt .. 'd for fast and r Hall,), 'c[ mpu~ tat ions usi n lS di, its i nt r'n ally feu:" pr 'ise res u:lls~

Ext n ivc research has created a desi ,(b,at has minima 'd 1"11. adverse effects of static e~ectricjlYI a potential cause or m,alfunct'ions,

nd d al lo . in eeleulators,

~

O .. m a ny customers:

. A large 12;"'cbaractct display~

• An Al-a .. Glance section in I,be manual [or quick reference, Appli ea tJ ons 1,[0 solve business a:nd fin anci al task s::

;' T[I':, ," ..•.. 'V' ".1 [ [-," .' ;-oneY'ii' Loans, sa'Yings~ 1[£;.(15c5, and amertiza ..

'I h d- 'I

110n SC. ,,:t ~ U . CSii'

[. 'Inl"" rest 'C"-"'o"'n- [ .. ~ r '~Io"n~' Nomi ~I!"·I and . rtl-C't."'u.n _. tes

:: [ .. '.: .: :';, .. '. <, :' 10,-:, ,gO [cue [~I,,,"'~ 'ra tes,

- :C: sh 'FI-'o····w~~' ' .. ·N.······'e~' present value and i'n:~'D'r"n'[a'l rate 0, ····r': return

.. ", __ .- _ ~ . _" "./._ .' _.. :~, " .:'L [: l.":' ~'PiF.,::l '! .. :_ '[~ ' __ .~ , .. _. [. . _ .~ ~" .. IL.~ . ~' :' .' ~ I.. _ ' .• "-1 I ~.:: ~. ~ ". _>~ [~ _ I!!!J

81' h k d !I,

• ,1[:,',:'.,' -:"",.-: i ":_' ,,·,r:·'i~····r .. :. ~ .. ',' ···.1···:-··,·-. "','.', li'-"'~', I [.··:i·:-I';':~-i·.·,~:I .... - ·-I··:··~-··(,·I ..... ! ~J :'[""j" '.', 'm::,"-'·[rl:·f ... ,I~tn

· usn,s ... e_ c,nl, ~ge, ... , Percent c ,nn"gc, m .. lf,op. an ~~,_(L g, _

I 1 -

C'3 ,eu: :~U,110:n.S ~

: SI_'II:.'tl'c '. Mean, standard dC'viutionl, eorrelarion eoefficient, and li,n,ear regression [orcC3_sU,:nB, plus other statistical calcula ...

...

"1;'''1[0·''''0-''5

I" ... ' . r! ::_'1

• Enougb memory to store an i:n:hial' cash [lovl,B,nd 14 cash now groups whb up to [99 cash rlo,W'S per group,

FIIi"r<I" . ~ .. ". ' _ r . "d: . t- i" t· .. 's.

I .. ,CC'D n 'U moe _: c··. 51 orage F[CS-,Sd: rs,

• E,a~y.: access ·'0····. ':u.[-~t:~o·_' ·-.~·S: saves 'ke'yst,roke' s and adds eenvenieacc.

__ iiJi ., _ ~ S l_ DC J n gil ~a '_' ~ i.~ .. ' '_ ~. ... ,... ..~, • ~ ~ . ..

'" :.'

. A U' I' o' ~ -II' ra, ~ ~ c.- - t j'Ij a' pofi 'b~ · r f y' I"O·~ ~ m' ort '!'''1'at~ ion sr; h ed u- lei S

~, "lll~, ; e m n '. '",:-~I,;I,,~I h.~, :I! r ,i]1 . ;,u-~>,' <,~,~, -: c _. ~~I I. ;' '~~

• Labels for ~:ln),orli7:AU,ion a nd cash ,nOIW,S,~ · . Automatic constant.

iii 3 ... :k,ey memory,

:.; 'Many [examples, are i:ncl.uded in the manual so y .. u can eemblne c'-h[em

~ 'if-i d

;: or your specmc nee, .... s ..

'0 1.··· '11 1'2,

13 14 1,5,

["8 17 1,9

-

··~J!'iIi~IPC

.·ua~1

A ,~.,t

'. ~nl0r U zauon

I~ ~:R- - C" t

- .. .' ~ _'. . '.) I ::' I • .'. [: ·~l ••.•... : .,[ [1"""

ntercst " . ale, .. _ onvc,r.s,~on

'I'RR/'YR d '-N~'P'V-

:HI/;~_' an', I.. . ..• r

S- _i' ii

, ':". I'; .' ',; :. :' "

I,al list ICS,

1 21

2,1 21 2,1 23 :2······3~'

'.~ .' ..

23':

. ":.,

~. 3~"

.' "- .. :

2::,

24 25,

25

2:···:,

- .

'~2·~··6··:

[~~"'.".

'2""7'

.": ::.'

G .. 'n" .• -.. S-'" ~ rt· ... d

" "._ , ' .',' ••..• ,:[, •• ' I •. • ••

~ . : .'. I"ng , .' . .Ie

'[p ..... ~ ,-.- " .' 0"" ". .' [ - d 1 '0'1["-

._[Qw[c,r .... ·>0, an'[ .. ··.·~.iIl

A~ diu .. ,", the ·D·,!I!: - '1,-,'" 'C':' '_""C -~ ... ~ ',',

'~ .:'~ usn n[K I. e .' .. ISp a,y : ontrast

Sll; 1i A' '.' 'I . iii C···· i :1 -~'

rmpte Arunmcuc •..•.... il!LCU l,iltl0n.S

U' ndersta n ding.··· .. I he Disp 1·1,' a nd Kevboard

. • . .. _. _ ... III... .. .. _.. , .' .. - _' - iI<. ,",' . ~ - ... ,I I - •

:C'iIII"'Sj"~["

.... ·.UII' [· ·,.,-',1

C''!!'I- Ii .. ~ I'h-"" C'·' -~ .. ]-, .-. )- .,( .,-.

·.·_.c a,r ling:, ~ C. : .. ,3,: ~CU, a : or

Clearing :M'em'ory. (" _"':

.~~ "~. I~ •.. ~.I

. .

Annuncia tors 'S;':"h' ~'r-" K-·"····

(.!~~ .I.,[cy

:I'N"PU'T Key

S~'l,I' ·P·:I 'K''--' '_-'-.

.i_I'IY,._cy

':Mi ~'h'- F~) . ·tli - ,~,~'"in _ ~, ) U n C J,ons

'O-!Ii 1 'F' - r"N-' b

-t ". [ '[1" ,],-, - ... ::, .. , . - -. ,:__, .l ,J .~ • .•.• :" " • "" b! ._'

:~ .. >Isp,a,.i' ,~·orm,a{, o,~ " um.' e"f,S

e. . # .. ~'r· ,.t' .".' 'D' .. !Ii [ ·1":," ~ ed '0' ··pc!li[-·· .'( P'I~-' :- n .. s·

[~'),p,c ~C,t· ,\'!ng; . <ISp. ·~_:dVC·· . ·· .. [~"lnl,iI!J ,.', [dC\J~,:'

'" '.' _ ,I

S·' 'i! "'fi' liN - ~ i

.. :-C u: n ' .. J:~ I,e u •..... 10'1. an on

Disnlavi n (I' ·')'1 C"" Fu II Precision of roN, .lii·u-·m· ,·b·.· en

: ···~~IIJI!. ~J.JI DJ ,." .... / t •. iii " .J'.,~ iI~Ii.·,~,: ~"" .' l .l·¥ !II'

Conl,1s ,S

2

.

'._ .

31"

[ . '_

31 31

32'"

~ .

,~~

3~"2~'

.~[. :1

' .. I .'

33'"

~ . '. '~.'

3,3 3,4

34"

, .

,~

85~···'

'~"-. :

8~'

ill

8,8

8~"'6"

: .. -:-'" ....

86

8'7

· ..

8'7-:-':

[ :.

87- '

I I:'

8"'8'

.:~/.~.,:

891 '8'1

84i

.

· ' .

5

51:

6"11

· ,' .. 1

ss

U'_""

5,3

53"

: ....

5"8-:-':

]' :

.' .

IS2 [B6

7'1 71' '73

BU81':I1 ••• Perc:e:nlage:I' ,P~;f'ceID(, Key

Fi~';~ - d' ~:[~ '.' . "P" ":", " ~. '.'

, " In;'~JDg ,a, :' [, erCBn,,"

Addin,g,' or Subtracting a Percent Pereent Chanae

"." .. D .. ""-,c>~

:Ma:rgin and 'Mllrkup[ Calculations

Margi;n Calculations

M'a:, II k'~!' .~: p o .... ~ Co st C.'. '~~Ia;" I)'C' --'~ ~!'I"a- t ::O'~D·IS· :

U5ih;Ma~~D;'dM8"ik~~Togelher

6

,

7'5 7'5 7'7

7~-:'~7':

, ...

:~: .~.-

7~ '8'"

'~ ,

78 80

8-:'3~··

, - .:.~. I

84,

3~

.

3":"5""

['.'~ .J, ':',,1

35

3'5""

~ ..

, :.--.:

37

3··,····8···

"', I -,

• j ',_ "

3':9"

':'_. "[ "',

40 41 41

:7"

..

. '

4,3

43,,-:'·

~ ','

j' - •

44

45-'

-:

, 't':.':

45·~-1

- I, ',','

45":

~~ • I '

.. ~

48 ,4·,i·7~·

\_' '.:

47"-'

_ l:_

47~~'

[ .' .

,4"':'~

. J;'

6

C"'A;n' ~'I~~I·;iIII;,

" .. v ... L~ll[.'"

- 'I' ~'-' .. " 'I~'" . P-I'- '.' [~ .. ~ - '1'[ 'p"'[ ",-,cb'-"III' m·:··.··· p:~:clu:r:ing .;·~!·n,an.cl:a::.l .:~ro .. ·.":.·· .. ·~~,·.·

'R A' h '~' Ii I P' 'be, 1 .'_~[Ow' to Approaen.a r~nan.'Cla:, rO,~[lc:m.

S·t, '.. ,( .. , ·C·; .~ .. '[h- 'iF;1 ,'''I'''' ;.. ~gns 0, •.. : . as!, . ~ ~·~.OWS

Pe·~:r'~o· ····,d, IS": '3" nd C·"§! ~'h: I 'Fnl[o" 'WS

' '.' .' .' IP :.. . Ii .. J " _ J' 11 J ',' -'_',. 'U~: .l ' _,-' J ._11._

S- i'mp-~n. and C,omp: .' . .'o'u:od. 'I':nle f'cSI

' .. [ .,[.'1, __ ".~ · ... 1·.'.' ••• ', .',,',', •. ',_,', • _. l, ] •• _l ••• , ,_J

,~

S'I' 1-"1 ~ .-

. ,I .. .,. _. • ...

,,:lm p' e , .nrerest

[C·- ~iO- "m' I I'P' :0'" U' . '0: d In tere e('

. .... ..,1; .... "~' '.'.' ..I, .~' .. ' .. ~' Vt.'1.

In re rest 'R' ', •.... iII:J.I'c S

II, '. .~ """ ,.(1 ,.i!i-_

"T;-'~"-" 'T' I:' '.'!ii,' .. ' ··r~· I !Ii, ',jC [-[~;iI-I'1 Pr "0·'[' 1-1],"'1' ,,n; m rs

'=' "YO ,. y(lCS (1, "ln~ln,C~a"" '.~'_' .U",.~

R·- -.., - . e, .. ''' .. ~ .. ' 'T,i,V·[M·· :': I ': I ':1'1' . "

ecOgDl,z'lng a c, ...... , ... ,1, .• rOl.[8m,

'R' H D'Lr<'Q'~"'[S:D" il!1' ~:: '011 '0. Ca ~b' I" F;,Jo'''~' Pro .:. blem

l!."_~ ··,'_.-.-"_"=i ...... J._:_:_.c g '.-~ ~:_J [ ~'.", .. " ',',~,',' .

c· .. ·· ' ... ····h·· 'Fe "1' - " 'C·~··~ '1" .... '1--1"0' ""ns

" •• ,j I . :Iow~a'a.ua, '. ' ..... '

H O"j-W'" '0' Use the Cash Flow Ap plication

I " .:::_:. " 'I," . l~.,~. ~".,.~ ~~' ,- ~" l, • ~ ~ ,. l ',I' • ~

-N'" :-:P:"V:~ ii' td 'I"R': R:··,··-'Y··'··'R'''' 'D' ':.' iseoe n iii -,":0'" r;r Cash [r::'~jO),WS

"',~~-< u.n.., I" .I.,~ • ,'[~ ,- .·'~U.': "'" «:) .... ~I,. rJiu~,.'

O· r:'O.' ',a~[n~I'li'''';;'n'·8··: Cash 'Flows,

'0"'- .: " " .. ,E"!II11 . ,.I" .' '. ... r, • ~ , ~ - .,

'E~ :~'n·:'t·i[~'r·I·~n·l·g··'" Cash Flows

Vie;'~g andieplacing Calih Flows Calculating N'et Pr~~enll, Value

C'O lc '1"11- ~~'I :n:·8······ 'I' nl ernal Rate ,or Rei urn

- ~,)Il"':' ,'_ ','101, I'. ,[ [ :'" I, ,. l. ,'. ., .. ,- .. , [,'. I' _" I, .,.~.,' ~ ~ ~ ~

AutomatlcStorage of'IR:R,/YR and, N',PV'

1:2,5 1:2,8, 126, 12,8

85 95 '95 '95 '96 .'7'

97 9,8

9;9

101 10,2

104 105;

1:06 1:07' '1:[07' 1,08

11:1 11:,2 11:2 11,,4

,Add ili,oln:a I: E,.8:mp111es Business Appllcatlons

Settlng ,3 Sales P ri ee f;o'l'ccasling Based on History

Cost of Not 'T,aki,Dg a Cash Discount

LOB,ns and Mor'tgages Sinlp~c Annual :~ ntcrcst Continuous Compaund'irl,g

Yield of a Discounted (or Premium] Morlgagc Annual Percentage Rate for a Loan 'Wilb Fees, Loan Wllh ,8 Partial (Odd) First Period Automobile Loan

Canadian M'orlga,gcs

What ~r ,!! ~"" TV'M Calculations

Savings

S,avi'ng for College CIQ'5:tS _ Gains That Go U"nhlxed Unti.l 'Withd.r.aw,al Value :of ,I Taxable Retirement Account

Cash Flow Examples

W'r'op, .. Around :Mor'lgag',cs N'Cl Future 'V'alue

Sblppi:ng Inst ructions, W'a'f'ran ty' 0:0 SC'Mce Serviee Agreements

Rcg,ulat,lory I nformatlon

12'7 1:2,7 12'7 1:2:8 128 129 129 121 12,g

130 130 13,1:

1:31: 1,32

'More A'b,o'uI, 'C,alco:lallo:n:!

IRR/YR Calculations 'i". , _ .

Possible Outcomes or C,al,culal:lng I R,R/VR

Halting and Restarting I R R/YR

E:ulcr,ing a 'Guess for IRR/YR

E,lJect of Us~ng :E'-' to Correct Dal,a Range or ,N'umbers

Equarions

M:argin and Markup Calculations Time Value of :Money (T'VM)

,II! _ '.

Amorrlzation

Interest Rate, Co:n-vcr,sions Cash .. FI,Qw Calculetions Statistics

133 1,3,6,

A

'116 1'16 117' 118 1 '1:-8 11,9

120 121 12,3 12,3 1:23, 1:2,4 12,4 12,4 '1,2,5

A's'sistanc,e'i' Bat'e:ri"B's" B,nd S,ervlle,. Answers (0 'COnl~mUrl Oucstleus

'I I LJIo '.

Envlr,on mental ; I rmts

Power and Baueries

Low' Power Annuneiater lost,alling Bauerles

Dcte,r'mi,nin,g if' the CD lculator Req uires Servi ce Conflrmlng Calculatoe Operation -- the s,c~r~ Tcs,1 Limited One .. Year 'W'arranty

W'hat Is Covered What Is No,l 'Covered

Consumer' Tr ansact ions i:n tbc 'U' nlted Kin,gdorn If the Cakul utor Rcquir'cs, Servi ce

Obtalni:ng, Service

Service Charge

lIessagel Ind:ex

This section is, designed for Y'DU if ,'Du'lre already ram,War 'wilh calculator

operatio,D [Of' [m,ancial eoaeepts, You can usc It for' ,quick, reference. The '(%~

rest of the mannal is filled wil,h explanations and examples of the concepts,

[lC,ST)

presented in this section ii'

B,aaies At Glan,c:e,. 'Ii •

L

cecoo[ acceDe _.'-0.[

000- OCU:JC,

DCO .'000

:Ke,':

IQ1I

Di':s:pl' ',:

In,IO"O"

U1" •..

Turns, ,calcu:!ator on, Displays shirl annuneia ... [lor (~.,~

Di,sconlinues shlft~ Erases, I:ul eharacter .. , Clear's display,

'Clears ,st.alistic.~, memory .. Clears a) l me mo r)".~ Tutus, calculator 0,([

0.00

• 123i~

r&l 'ItCL E)

<L1[AR .

IIQ]

aeo '1.2

--

0.,00

0.00 [0.:00

10 ,-, '.' GI~nc '.iiio

p ,'rcent'a'gas ~ At '

Cost,

IfAQ] Price.

Ma:rgin,

M,3'r:kup'.

Add 15% to $17 .. ,50.,

Key, : 1"1.60 :[£1 151 li1 !13

_' 'ilp'I_' y: '17'~50'

20~ 13,

l " no _ .. II

De c'fiplion:

Enters number ~ Adds 15 '%,"

1 ,5 [C:-SY-) 22 [~I1C~ [M:A ,FI]

15",010 22~O!OI 31 ~,B2

Enters cost.

Enl ers pr i oc~, Calculates margin,

If the cost is ' 2O~OO and the markup, ls 33, 'I "I'hal is the selling pricc~'

20 ID,STI 3:3 '1(M:ul [p'Re]

2D",OCI 33",00 26~,60

Enters cost. Emers markup, Calculates price ..

,AI: ., Gin, ,' •. ""., 1, t

(Rl liM)

Stores a value in the 'M register (me:m,ory location). Recalls a value frm ~,h.e M rezister.

-,~dds a valu.e to the number stored in, the M' rezistcr ~ S,tares D, value in a. numbered register,

Recalls a 'value from a nu 'm, be red, resister,

K·-

:.", j'- .1

e,.,

St r ~ S UX, T" as a constant " "p" .. ".lcir-:', .... ;(::o·"'n

". '.' u~: a·. ·1· . ," l~

. .

M'ullip'lics 1'7)( '74'

'M-"'f'u,Jlip'··,U~,e, 22, ,X 7

.~ ~ ~., _._~~ ~ . it

• ,_,:ul:t i:p1 its 25' x 7"

119, .. 00

1--4' 00

5',;

._ I_ • ,. I

~ . I! ~

,2213

2"5(3'

. . . .

'~~-f._.' '. _~ r

51:91' [~'

5'1' 91~OO' '. ,I

....

00"0"

" , "

S teres in l'cgi:st,e,r 2~ Clears di,spla:y~ Recalls ., ,c:,Jste, '2,~

1m nlvijl

(FV]i

•

A· , ',' ',,'iIi:II' ',~ .. ' it .. tbe d-It".I!- --" "e-" "-'1-" '." '-, ,:.-- sid out;

~ .' negad,v ,5,1811. 1,11 ,~,~,~, ' '~S',PJ,ay r epresems m,O',DC;Y pal~' oui;

· d· ...

, -- ", -""-,-,, ' , -" . , IV' - .. -.",' """,'

m,oney reeeweo IS POI!,I,I,YeIl'

N'umbe;r of pa,yments,t

] mere ~,t p I' '\1\ ar

: " III' . :: I ~~ _. ";l~ .'". ':'] J"~':'~'; "Ii!

P- eser '1-' "" l ,

resenr vatue,

, ~. ayml',n,t"t ',o'uture va~u"t

B[c;gin or End mod ',~

N'u~:m"; b: IC' r O-I~' 'P,/I'~ly' ",m:! ",I"'n'~:C'" p:, er '1'"., ea r n)[o'lde-

._ .' I. g . " 'IIo.!i ,,1!.~ ",!!!;,oP, ,c ~ " " " ~

. : .'

"'r'- - - - ,., b , - - ~l-" 000' "".,' ("P'", f' ''')..t=n,· "-'h- - (",._., - - 1-·Dl._ I' . - , -, '(I' 'I'V:H)~"

,I., you. ,'"".,rroW' ,;J,j _*, ,.<'.'-'~. ,_' tor ..lOU monl, :.S,,~I at '." ,70 &:nt"resl.~ l,n,

w'h.at, is the mODlhly paym1cnt?

g,:.·'::e_(: ('.0,'" '[ '::o',d- m

W._, ~., .. ,[,:, .II.

1,2t,QO

360' 0"'0"

< ~.' .. ' . :~J :

S'81-'5 n,~,vrn D ts 'Plc"'-r 'VP.lar'

.~~~ __ t'Q:Jr~=~~~ll"":__ ",f" 1i-·v.:~.~~.iI

- ber of .:-ntc,rs num oer O[ ~

pa',vr;ne,n'i\,' ~,

_ " .1 ",,",II!! . . , ., -

10.,001 14':f.OOOI~OO [0,""0"'0:"1

... '. '.

. _. .

" :-nicrs i,ni,e,re"Si, per :"ear ~ Bnters P' ',r',Ifi.~,e,n.t y,a~ue-

, ,(:.1 ~ _" ""'~" .. ~ _"'. '"

E'nters fll:tu.r,e value,

, "'~:II,~,U- -'I':~lt-" ~.f!." 'p'aym-'" ,.', 1[~,·n'I' i'(:'

. M""hf. ~ .. I_,,: . ., _,~ . J(:., .. ,,~,,". ] ".1,.

'-p,a,id at end '.:f nerlod.

[] '.'V'

",.,,1,,:'" G: :nClliili~ 13,

K

Iii! '!it

It is DO'( necessary '10' r. enl,er TVM values ro:r' each example, Usin the vaJ'UCSI you just entered (page:' ), 'DW' much, can )fO'D, borrow if yo' '~! \V,ant a payment ofS1OO.OO?'

...... 100.00

.... m:-iil

14000 u::u

9.,50 '111,892.67'

- nt r 'Dew i:1 ter ' t r,3'1 c. _ aleulates n "w present value for $l00~,OO pay ...

m nt and '9~S'% iat _ rest,

R HI~' ~ 'Ii iii, I~ 't t l

[ "III "~r oil o':r:I' Ini "In',' "

r te,

R, enters o'figin I, present value,

akul tes ori ":D;81 p ymen,ti

10',~OO

122' 86'

1I!II!!IWl' . " . .,..1 .. :. ..

1-~

I, 'G nl: '", ..

After' c'aiculatmg a p'syme t u ing I ime Value or Money (TVM)[I eater th'e perlods to a.mor~ thea press ['~~~'I

Usin the p[revi us TVM cxampl_ (Pile 13)" am,or'lize a siDsJ ,P ym, mt and then [I range of p _ ,yln,CDI 1

Amortize tbe 2Ot'h_ paymcD't [ r tbe loan.

.

D'I pi V:"~

, -, -c ~ - pl'lo:n,:, Bnle ~ s paym[ nt l

'I

amorl'l:ze,

Dis,plays paymen.t to,

II-

amortize,

- ispla ~ in'te'r II' (Money p'aid out 'i, n , ,at ivel)

D'isplays prmcipal~

- nters new' paym,cn,l am uat" (Mon, paid tit 20 '~~

Ii' I'

IS, DI~, . ~.t,lW~

Calculates ',ount you [ ;' , borrow,

Pl!r20- 20

'lilt -115,~'6,1

Prln ,_7't,25

bAl,

_ 31865~B3,

isp,l ays 'balsa . ~

Amorrlze th ~ tst throus th loae pa,ymenl ,t

12 Eolers, rani" [ r paym ~ nts

-

'to' amortize,

Ell

PE,r 1 ~ 1,2,

D:isplays ra:n ' r', ~ riods (paymcnts)i'

Dlsplays iu,l. r ' t, (M n·· y paid out is negalive,t)

Dis plays princi aI.

I nit

1 39650

!E3> _ .' .

~ ,'. . ... t·· .

Pri'n ~77.B2'

bAL 13~9,2:2t,,' 8

DiS,pla,)'R balan .. ~

"'--'1'" -, 'C--

I. ',.. .' I'

··.·····1: ·8- [!' [.' '" -.:~ .~ ,~

. - ~ - ",. __ iIII!I • II

·'n-':_· ····1···

. _': [i , ._ ~: .•

~_.._....,__r-l T:·.· convert between uominal and [crre,cl.ivc· inle:rest rates. enter tbe knowa rate and the number of periods. per year, then solve for the uaknown rate,

_:_/':

:Nominal, interest percent .. ER'I CI~vc hitorest percent, Pier lods per ye.a r-."

[,EFF%]

: .. , . :._

D '1 II!Iio

. _·,,··-.Cf_ip:,lon::

10iOO '1~tOO

Ente -"f- S .8 .. 0·' .·m:·n, ·,·a··· ['J- '~r' ate

~ ~ _·"l.,' ."_,' .:i.,,_,' "'L,!I!ll" .• _) 1 '1 ~ __ v~,

:Enlcr's payments per vca r I·~.

J .. _ ..•

Calculates annual effec I iv~' ··I~ ter 'n.~,!ii'

. .' .. " _' ,"" .~. w ,:~ IIIl\.s!1 : ~~ ~

[1'0 ..... : ,'7·:'

, . '~ '.

,·t·-

'_''.. .

. '.~ G'[I

.:l, _' "~:' nc c ...... ~

·NI'i'liim.,b~·· ~r' ·of perio ids per [Y··I'Ii:a,-"r' (d c[a-'ld' is' '12'-·' :.).-.

,_I -u .. [_~._ ~_l _._ .:.~ •• ,I .. ·· .. _."' ~:.~._. ( .... , V. ',_ I .... _. ~. ,,·IIi]_')'l II", .... _: .. ~.

['~"~[I.sh flO\'lSi' up' 10 lS: (II iU' id In ifi es the cash no';'Y' .UllI',nb'cr).,

Number e ··,r conseeu ti \11-.r:" times r.:1i'~'L·5,~" :~I,f":\-y IliIliJ:'~ ~ 0 .. eeurs,

_ ~-_ .f"'_ " ..... ~ ~. ~_~:I."'._ .. ~ .. [t.~_""!Ii~ . 1i,1 .. _I·1! 1 .. '1' ~ ...... ~ ~!I

Internal rate ,of return per )1'.ar.~ ',' I'·e,t present, ~la'~ ue~

.' .•• i:'~ - . '1[<· ~'.iII.

. .1i!3!'" ~1·iIi·

- . ... ,- .. ;;,

' - .' i ~'.' . '. •.

e.ler.p" on:

.. '1 ~ I

. , . !jj'-. - -.'" ""-'1 ~J .. 'II~·~ . - I'

.' .:.3 rs II..... In uno rv~·

'I!'

S-··: I~~' p- ~l)~' n:, mts n ... ~ r ,- t-,~ .. alr·

.", .• !!I .. -, .: "L' _ I" _ .,'. _ .• '1' I·,· " .,'. 4:11 .. Ii!

, . , "

': --'n~ :- ... !I; . '·I:~ "I ,', : '[~ 'f" 1-'0·\' [. ~~ _'_f.,cr.s, nu J.a" ou .. " ,._'1 ...

O~O[O '1'2'-" '0-'-'0'·'

~ .. _ iii ... , ...... :

C,FO

.... ,:0,.1000 alOD

CF'11

4- t 700 ~r(1-0

CF'2: '7'I[OC-D~,OO

n [2

2['0:-"0:"',

~ ",_', :_. .

Enters number of ·c[on .. seeu '1-, ~v~, I:i 11111. ts. cash n'il')-W'

~~, .... ,I '\,;I ., _ !!!i;.;M;_ .. ~ ",,-,

occurs,

12" 1

............ ~

40000 ['18 [OF ]]-

2 . [~JI

'17

.. - '000'" [UC"F'J11

23"i~" '.,_.'- .. ~

li[EF(RlV·.FU.

. IIi& .

- ~

. . - .

i[tl 12: .• ~~'"

'C'F'3

,2--,··',3·", 0.0' ·-·O~OO

- , , ~. "., _ _

15196···.···]

~ . I!!! _"

11,~33,

W-: : 'h' "l~' the N·· ~:p:::___iV:'" ~'r' [~h'.' n discoun It ra ""0: is lOU}.' ~I'

,.' __ ,3: lS ,,~.c :J,: ,,' J l, .,v ", I~ ''!!w-.' '" ,I, ',,':.' " ,_+"- ~'.;_ r'O,;,

10 01tRl

1,[O~,IOO

622'-'" 85"" .

[ '_ ' .. ' .,',1. "

- - '... . ... . .

Ent ers (h,·'·I'·r·,-d·:1 cash 'n"o-"w:"

~ I • I.' I [I ... 1,. ~I.~ •• _~. ~4~~lk, _' .. j' . I!!!I

C 'I 'I' IR" R/'"'R '8 eu alcs,·,·.·' J~:: .. ,

Calculates ['DR:.-· per

['~~. " '_.Ul ~,'l IA., " .:"¥'

month,

Enters, IlYR~,

C~ ,.~ leu I' 3: (' p,~ N P'V:

_ a ", ,~_ _" _

r' .

:-[Qt~ numbe» IIi] number ' ' . II:,_:I

n umber l' nNPuT J 1I.rJ'll,iber2' 1,!2J numoer] [UN P:UITI "ul,tiber2' .

~. ~I

__ ,[B) [S,x,,!llJ ·

Isw'APl Y"'Villl,lll'· r:~:tJ X,-VQ'l,,,,e (tmli

.~~ • JS~A,pJI

Clear st,atist,ical registers,

Enter ene-v ar-i:(),blc stat i sC, leal dal, a,

Mean. of _l~ a,n d J',j

:M'ean. DC ~\. "~eigh ted :by y.

Sam ~'I[e standard deviation of.1~ and U'"

. a p .,3; ~ .. ~ .. _.. ~"~ , .. _ -- J _

Po 'niu· ~'a' t -. o n st "'l< nd'j !fa,' 'd·i devi ~I" io 11 n.f"~ "!& ~ld·~ J'

:_: ' _ I~ : .1· : ,', > I. -u .. ' ~1I., iLl :_; _'[ ·_'i::.k· .".' ! .... : .. 'l.~:._ '1_'(,.11 I .. :, ' __ :_: ,._, _ .... -Ii U I_!,_ [,'" _ l_'~": i

C..-i1 lm ue of ,~';'

,~"I.._ "a.,e 0, ) ~'

y'~,inler,cepl, and slope"

,AI . ~ Gi 'n,c e'~ ~,~ "I: •

Usm,g the foUowimg, data, fmd, the mean of x and. "I' the sample st,and,ard deviation of:t, and ,'I' and the ,y·,mterce,pt and the slope of t'be llnear regression fOf'eeas'llinCII Th '0:; use sum'Dl,atio,n statlsti ~ . Co rind D, and nyc.

I x~a'ta ,2 4 6
I [
~
I
! ,y-data 50 90 I '100
I e''1~ ''!

'.' ", ~ ,

~ I pI ~":

O,~OD 11Q'0 ~~tOD 3,~OO

4~OO 100',.,00 2iOO

Clears statistlcs rcgistcrs,~ ':nt e rs rirst x~JJ poi r,

Eote rs second x;y' pair ~ E,ntcrs, third li)' pair ~

. Displays mean of X'i' Displays mean OCYI' Di.spllays snmp~c slandard denallon of x~

Di.sp~a:ys s~mp]e standard deviation ofy,

Di,s p~8yS " .. intercept of res _ ,iOD, line (pr·. d ieted

,; value ,for x c 'O)li

Displays slope of regres ..

• I"

51'0'0 I nee.

Disp~ay n, number ,of data polnts entered,

Disp~,ay," lAy, sum at [tbe products. of x- and

, .. values.

2' IlBPDII 50 ;IEI ~~90[[[fj ~~! 160 (it)

55.68

2'7£n

, iiJiI

..

To turn 0'0 your HP .. 10B~ press [£I (Ibe key' above the "ON" label). To tum. tb ' calculator off, press the ycUo,w s'bifl key ( )t Chen i[Q] (also wri'lte'lI; • .' ::).

Since the caleuletor bas continuous m,cm,ory" turnin it olf does, not affect the informatlo:n you've stored, To conserve en,erlYt the calculator turns itself off',apP'f"oxim,arel,y 10 min,u:tes, after you· stop usin, i'l .. The ·ealculato',~I, three ,1~kaJi,ne . arteries last a,pproxi·male'~y one ye,lt, I r you see the low~baltcry sym'boJ (.:; II) in the disp~,ay; replace lb batteries, Refer to appendix A (or more informati,onl

lontra - t

To CbiUl, e tb brigblness of lbe dh;,play:, hold, down l[g and press [!J 0

81,

AriI:hm . ,I'ie '0 _ - ., t,o ~ ~,~ The foUowin,g examples demonstrate using 'the

arithmetic operators t B'Jl I[!]; and m'~

ICyou press more Ihan, one operator eonseeuti ' ~,y for exampl ' @ EJ l±I ~ ,(1)., all are i,goored except the last OD,e~

211

Ir y,QU, make a typj,Dg, mistake wbile entering a number, press [!] to erase the ineorrect digits,

K[eys:

24~,'71 ttl 6,2~4'7 E1

D'I:I,p,lay: ,B,7~,1'8

'W'ben a calculation has boon completed (by pressing 8),.pr.essing a

number key starts a new calculatlon. .

ts (!] 12.68 13

24'[0912

' "I [

If you press an ,opCrlttor key art,er co;mpleting a calculat~on, the ealeulation

• '!I! d

IS, eonnnue ''i

Completes calcul at,i'DIl of 240.92 + 11S~,S~,

,356.,42

6,~,9· (!] 5.35 m

Pressing [±] displays interm ediate r'C$,U It (6.9 x

.5t3S}!I!'

Completes calculation,

.91 @

Chain caJeulatioDs are iDterpr[eted in, the order in which they are entered, Calculate 4 ..... 9 X 3"i

4,'[E9 :~ ,3 Ell

Adds, 4 + 9',. MU(liplies 13 x 3'1

13.00 :3'9i'OO

Negat'lve N'umbera,~ Enter the number and press ("'l~]l to ,ch.an,ge the sign, Calculate -75 + 3.

Keys: 75 ll:ti.:. ) I[±] 3(3

DI's,play,:

D,I'I,c:rlpllon:

Changes the ,sign of 7S~, Caleu lates result,

-25J):O

f

Cur,sor

The cursor -( _) is, visible 'when you are e'Dterlog, a number ~

C,I,ear'ing th,e' Calc'ulato,r'

When (be cursor is OOJ' [~ crases the last d,igi1t you entered, Otherwise, (!) clears the dIsplay and cancels the calculation,

Wblle you are entering· a number, pr,essin,g 'IQ) clears lt to zero .. Otherwise, (g) clears tbe d:isplay of' its current cootenrs QD,d cancels the current calcu 1 at ion.t

'CI'ea!r~lng :M'e."g[ •• - Whe:D the HP-IOB is d15pl~yi'n,g an error message, (!]l or [QI clears the message aad restores the ori,gi,n,a,1 contents of'the disp'lay. Refer to ''''Messages,:i'' on page 13,3 for a complete lis,'l or messages

d "

an, meanmgs,

i 00000

[000000

=~.DCC , j[OOD

'0000

CJ,ooo ,ocoo

~ ~
~_ - ~
Key. • D'escrlpll,on
,
.. _ ~
I -
IrCLEltFl, ,A[L) , 'CI,ears ,all memory., Does not f'e,set modes, *'
,

.W~,t]: Clears slaUstlcal memo[ry'i'
~
- -
*_ INld"G, on 'yaur flP-10B ,are' nun1ber of ,paymenls per year (page 52 I. Bagln ,and
lend (page, 53) i 8 .. nd the display formata (page 26)~ -
~ - ~ 1:: GeWn'l S:lartad' ,23

T elear aU m mry Drld reset calculator DIodes. press and hold, d YIn (gJ, then press-and bold down both [BJ and [I'E'~I:,~ Wb,e:n "OU releaseall thre , all memo!) is cleared. n[e ALL, C:Lr message is disp1ayed.

Annunclators, are symbols in th,e disp18\Y that mdi,eate tb status of the calculator,

:11 __ .. _

II III

,0' [

S:hlft ts s[ctlvs': w,hen a [icilY 'Is pressed, th,s ,'un,cllon, labs,:f,ed: fn yeUow a,b;ove the :keYI IS,lex,sculed, (below).

IINPU [ I has bo'en pressed, or' two v,slues h[8V[8 been entsired· or iretiUmed (page 25).~

An arfthm:sUc o,pIsra'tor ~s pend::lng ([B'I for exam .. ph1)~,

.egl'n mode Is ,active 1('pa,g[8 53),~ ['attery paw,s'r' ls low ,(paige 118)~

[

AU of the ~,P-IOB keys have a second . r e; 'shifted" functlon print .. ' d In yeUow, boy th k~Y'1 The ycno'w' shift k,cy is used to aeeess l'kes· fu netions,

For example, press fo]lowed by Ix'll (aI5'0 shown Dumber in tbe display by its III

'To p[crro'rm ,c,oDsecutive shilted op ratio,]]!s,'bold do'YIQ the shlrt key'whUe pressing, the desired ke)'S~

2

Tbe NPtJT key is used t'o separate two numbers, when USi,Dg, two ,number functions o,r lwQ'Bvariable slatis',icst,

The :: annunelator is d:isplayed if IIINPUTI h,as boon pressed. If' J"="!i'i!'=tiI0cr- a nnmber is in the ,dis,p,lay, press [g] to erase th'e : aD'DUna,ltor and Idear tll,e d:ispl~y. If'the CU'fS,O,f' or ,aR, error message is visible in the ,display, p,ress,IC' twice to erase (he :

'ill

anaunctator "'

• The last two numbers that you cD1l[cr,ed,; for instance, to ebange the ord _ r of d~visioD 'Olr' su ·tract iOD.,

The esults of funcLioDS that return two vaJu 5'1 The : annuneiatoe indicates that tWOI results have 'been return d';, press [S,WAP) to see the hidd n result t

The X,- and y Y,alu-es when usin statistics,

'ne-, - -mb r F' - nell' I' .. 'II' Math [unctions 'in:\lolvi:n o,n.

Du:m'ber use the number ~m 'the disp'-,ay.

- ~ .

89~25 3~57 ~l ,2,,:36 [;I

cc .coooo [_000

00000 occce cecco cooco

·'·Y _:

29 l'5cHal

i-pIE y: 9~,,4S

OJ;4,2

3,99

, , cirlpl'i:onl:

Cruel,'lates square root, /2t-' is ealcu,~ated first, Adds 3.5,' and /2/36i'

, I' _ :0- er F'Ui~cl __ ,~ _ iii When.a fUI,Cti,OD, requires 'two

Dumbers the Dtu:obers are entered, :like this; numberl !lliNPUJ] ",I,l/Iflb'er2 foUowed by the op r,ation,t Prcssin ~ , IINII:Y!]1 evaluates lh, - ' ,curr'cnt expression and, displa 5, the : ano'UDci ator ~

or example, lbe foUowin, k,cystr,okcs, calculate the percent ehange 'between 17 and 29~

'i - p-'l. :

17~[DO

De- ~ 'c~ r~ -II' '0-- n-'

[. 1'.1:.

~ oters numbe» 1':; dispia,ys

'II

• 100 U D"'1i ato r

oI!!i" _ \,;!-J, . - , 'Ii

Enters IIlun1',b'er2!; Calcu~ates the pc cent chan e,

,2r9

,~J

70~,5'9

'Whe you tura O'D the P~lOB, fa ,- the first tlme, numb rs are displayed 'with 'two decimal p'~ac'es and a period ~l the decimal po,:in,t. The d:i.sp'~ay formal eontrols how ma:n,Y digits ap':pear' in the displlay~

If (he rc.sult of ,8 ealculatlon is a .num,'bcr oonlain,ing mar si,gnfficanl digirs than can be ,displayed in, the current displ ay- form,a:t; the number' is, rounded to fit 'the current disp:lay settingt

Re ardless of th current dis,play format, each num,ber :is ,st',of'cd, internidl,y' as a signed, Ib-d:i 4( aumber with a ,si8Ded~ lbre~digil exponent,

To speci:fy the aumber of displayed d cimal places;

1 P- (,111.1:'1:. I .

II! ~ I ........ ~

•

2. Bnter th number or di its ( through (9) that you wisb to appear

arler the decimal pomt

,K'., :

DII', _ ~ _ y::

O~OO Q,tOOO

lea rs d iospla,y,~

u i p,1 ays three deei mal p~ac i'

~

[D1-SP~ ,3

45~8 1fR) ,~'12S:6 8 [DLS!J 9

5,~'7:27 5,~,7'27,360000

DI ,pIa, .nlne d c'lma) pia - ',~

Re tares two de imal pl t,CS and rounds

n u mber In, d'isp'lay~

When, a nu.mber is too, ~8r c Of' too, small to be display d in D[ISP format, ~'l aut m al ica~ I y d'i - pl,ays in seienti ric n olal loa,

[DISP] 2

5 .. 73

S'ci - ntiric nolalioll is u . ed to repre .. nt num - ~ tho,t arc too la'r e or' too, sm,oU to fit in the disp[ay~ For examp[e; i,: ,-u enter the number 1'O,tOOO'$ODD ~ 101000'~OQO (3, the r 1.11 Is .OOE14, wbi,cb means "one times len, to ('be fourteenth

pO"t~iI""III~ or '~1 .. 00· , with the decimal point moved [o-urlecn

c~ I n"",11 ~ ~ ~ ~ ~ ~

~~~=V~ places l 'the right," You cen en,l. r !Ihiis, numl erby pr ·in

1 ' ,4,. T.h E stands for "expenent or ten,"

Expeaents can also ~ e n.egative for v' ry sm all num rs, The nu_m ber

O nlVVV'tnnf1lnt'W1A I d t '( - d 4 OOE~ l' 2' u,;1 • rw;h - ~ I'n e- _II; r.oo. (;: m CiIC" ,t n '1'0

.,\.IUUUUV\JV\IV\M' 'IS' :ms,p ayte as, ~ '. ' .'...... i ~ ,",IU~, m, ' ~.~ II .. I ',. . ~ . ~ ~ ,

th ,,,egati'V(! twel th pow rU or It, ,~O with the dedmal p int moved 2

places to (he len~J~ You ean ent r (hi. number bypressln ,4 i ~ 12",

.. era

T~o set your calcul:ato,r to, display n,umbers as pr _ clse~,Y as p s .. ,

sible, press .. (trailmg zeros are not dis,p'la,ed,~.) 'To

temporarUy view all 12 d:igits offhe DUm:- er in 'the ,dis,pla,y

I I( regardless [I)r the current displ a,y form at sell ing).. press

D~SP· a'Dd bold ',~ he uumbee l .displa d as long, as, you eont laue holdina ,~ The decimal point ,is not shown.

Start with 'two decimal, places

10 +! 7 [I[orsel [3

t. 3, 14,,2,BS,'714,2,B5[7

ivid s

D[ispJays, an 12 digi'ISt,

-

The ea],culato-r stores and calculates usi n. 12 di · it numbers.

C !:logO" When digit aeeuraey is not desiral Ie, use [ , . D (,0 round

o CJ~g~: the number to the ,displayed format before usin,g it in a, eaku ...

o ceo lation, Roundhlg numbers is us ful when ),'OU '~I'ant 'the ctual

a DODD (d II - d ts) t.,,:

o DOD I ., o ars an _ ,0 nts 'monlu~ paym,e:ml.

t'h

To switcb between II e p _ rlad, and eomma Unlted States and Internatio,nal disp[lay) 'Used ,as the dleclm al :p. int a:nd di _ ir separa t r, press [iJ,~

~-Of exam, le, one milllon ean be d:isp,'layed as 110'00'11000.00 or 1.000,~OOOt 001•

'n'L rs I num b 'r with more than two, non .. zer[o

d ,.. l el

ecanal p, aces,

Displays, 'two' decimal pla _ .. "

; ispl ays aU d:i its 'without the decim,aI 'while you

p r'D>I:' e r;1

J~~"J

2

98785,432'1000

Rounds to (w,o decimal Jdaces (~pec:lricd, by

pr sin [DISP~ 2),

Shows rounded, stored number,

(DI,SP) f3

9B8000000000

he p'. - 'OB ,displays messages about the status, of U1C calculator Of' imanns )'OU tbal you 'bavc attempted an incorrc t op r,alio[DI To clear a

m essaae fr-om, th 'dl play, press (QI or '.' + .... efer to ,~~ essa es" on pa

133 ror ,3 !isl or m anings,

The avai.~able memory in the HP-10B[ consists of:: ,--~ T D business ,applical'ioD regist rs,

:- A cO"D'vcnienl' {m,em,ory) re ister,

-~fle '0 re lsters ro,r st[Dr~ng numl ers, cash flows, and sum'mary

,iii _ ,II

s:t at'lsbcs'i

[ ~ ")1 ,I 11

PV PMT FV IC "J

Ml

t" I III t I I"" ] I! II

CST PRC ,MAR, P R EFF
'or
","U 'I·

Gener~ St'OI ~ ge and C'ash IFI'cws

[


i I
,
I
[
~
I
I
I " II
I
[ , "
[


~ ~
[ -

INum "" Ma. ,ory' R," [ .. " ,fiefS,

You, n piCIt1,re eaeh m "'m,ory r "gill:, 'r '. " , panl x I,ba'l h nam '

and can hold 'OD,C 'Dum'ber at " ' tim ~ ~ If you 510re a number in a regi ter

yo'u ~te 0',' 'r th :nu:m" that", ',' p'rc' "o,usl "st1orled 'Ih re,

200, [iJ NOli, ~ tb,ot l/YR aDd ,NO,M% share the same r,egis~ ~ r, and. that MAR and ,2,5(i) MU share ch'e same regist, r,

+

You can us" the HP~ 10 ,t,o calculate simp] pereen t per' , nC eh n,ge"

"I

If up'~

l",~:rcen 'K, :y

The [i) key 'has two functions: indios a percent and R,dding, or B,u'btr,aahl,g a p " ':rccnl"

F~," ,d'I"~ gl ,p ,rc~ ,n'l

The ' ~ k r divid a Dum' , r b,y 100 unl ' ,it I' .preeeded b,y ,M addition, [or subtractlon S ': D.

IDI pi', ',II

, . , I _ [_. _ '"

~OO" , 00

Gi, ',~

,D,t25

~[

50'.00

You can ad· or subtract a, percent in one caleulation,

Kia, : ,2008

,2,5 _

Ii

D : ,pI' Y': ,2(Ull~IOD 60~IOO 1,5()~OO

E:a1[crs 200.

Multi,plies 200 by 01251 '. ubtraers SO from 200~

'E'I-.mpll'~ You 'borr'DwSl,2S0 from a, relative, and, you, agree to re,pay the 108D. in ,8 year 'Mtb 7% slmp~e interest. How muel '[Doney win you Qlwe7

K y :

1250 ... 7[~ I[i]

D _ - ctlptlo -:

D'_i pl,_ y: 8'7'~50 11337150

Caleulat '. loaa '~I terest, Adds ,S87',tSOI and

,.' '11,2S0~IOO to shew r,epa,y-

m. n't ameunt ~

~........,.._----t;I1~1 Caleu lat the p _ reent change between t\'I,O numbers (n 1 and "'2~' expressed, as a p reent or 111) 'by 'olefin. III UHf ltr 111:b tb n press' 11''l.CHGt

Ex ~' Ip,le~ Calcu~ate the percent change between 291.7 and 316~8'i

'K yl,:

29,1:,.7 UNPUfl

3,":6·' ,8,

i~. •. .

Di pI y: 291.7,0 ,8"i,60

Entler's nl~ Calcu~a~es peroent change,

Ex m I,e. Cakulate the percent chang _' between (12)( S) and, (65 + lS)j,

!Ke, :

0'1' p,y: 6O~OO' 38~33

Calculates ,and 'CDt rs PI. Caleula res perce nt cha,n,gc.

12 x 5 'IN' 65 [i] 1,8

..

App:llc ~I'ion

I

Key,

1m) , [f_s:Ql, . M:argli I ts marku:p exp1r'8ssed as a percent o'f price~

MSlrk'up ca.l:cu~,atloins are

expr, ssed as a per,c',s,nt lof COS'i

Margl'n

I

I I I I I

, Marku:p

To sec any valu· used b,y the Margin and Markup applieaticn, press [BeLl and then the key y'OD, wisb to see, For example, 10 see the value stored as CS'T, press RCLCS,T '. Mar ~n and Markup share the same storaa

:r ~ isle r . For exam ple, i r you store 20 in I 'A'· i 'l he n pr'css; :" "!"'ft"'t"i

you 'Mil see 20,.,00 displayed.

E,x' ,mp_e,~ Kilowatt E', (Ironies purchases televisions for" _ . 5~ The tetevisions ar .sold r or S30ct W.h at 10 the I'UJIgi n'?

Ke' :

Dis;;pl_ 'y: 255tOD 30010.00

Stores cost in CST,., Store self ng price 'in [ 'RC~

Calculates mar in!l

Example. The standar,d nlam'lpl on costume ,jewelry at, Klelner's Kosmetique is, 6O%~, Tbey just received a shipment ,or chokers costing ,1191,.00 each. .. What :is the r,clail pr'ice per' cho'kcr?

Key.,: 191'0,8TI [60

IPRC)

DI'I'p[la'y: 19t[OO 60.[00 3O~,40

Stores cost.

Stores markup" Calculates retail price,

E'xam;p:l[e. A food cooperatlve 'buys, cases of canned soup, with an lnvoiee cost or S9[,~60 per case. Ir the co-op rout i,nely uses a, 1.5% ",IQTkl,'p[. rOF what price should it sell a case of soup? What is tbe ma:rgin?

Key.: :9~6ICs'T] 1.5 (PWC.)

DiSpll.'Y:· 9~60 15[~OO 11,04

Stores invoice CQS[I •. Stores markup, Calculates the price on [I case or S[Q'U,PI

Calcu 1 ales ",6rgi',I,1

IMARl

3

Number Storage and Arith,metic

You call store numbers, fo,r' reuse. in, several different ways:

• U',58 E): (Constant) to store a number and ilS, operator for' r[cpctitivc

I

operations.

'. Use 3 K,ey Memo.ry (ttW; fJfMI, and [~) (0 store, recall, and sum numbers with a single keys,trokc'l

• Use Il819 1 and (RCLI to store and recall the 15 numbered registers,

Usc 00 to store a Dumber and arithmetic operator for repetl-

.. III .... 1· 0 h· • I' d

live ,C3u;tI, ations ' __ nee t~ _e constant operanon is store _ ", enter

a aumber and press, GJII! The storied. operation is, p-errormed (lID the number to the displIY,~

" ~
:Key. Operali'on
l±J lUII'I,ber (g] til Stor,ea • f, + numaer" as constam, [
Eli number [[KJ EI Sl- ~ s u 1I.rl'",r.ber •• as constant.
,"ore, -
@ nu mbe: ~ EI i I Stores If,fX """ ~ ~be .t as constant
[ , "".,~' 'I,IUI,l,r', ,. ~.', [~' ': '" ,t [ [
(±J "umber 1m [E] StofEr C'II. be ". ~ - orr t - nt
"'." ~'IS +,nU'm ser a's, [0: ~,l sa ,Ii,
I[i!) x 'value (g]l :13 Stores ~>'. ,.'N II as constant.
(±] ,u",,',rber [[I) (K] ~ S'tores u+ '''''tn'l,be, C}(,U as constant,
[I
I EJ number Ii] (KJ 13 Sto;res n n um ber %,1. as, constant
......
,
@ numbe« [iJ (g][ E][ SIO res, • IX II ""lb,T' ,%,tl as c:onst;ant~
I!l ,u'""ber (IJ lm 'El ,Star'9',s jI jI + "",I'r.,be.r' %,"11 as constant. Keys:: 5@,211l iE]

[6 (3

7~

DISpl,.,': 2'~OO

7~OO

8t[OO

9~IOO

Sto res cc + 2 ,,~ as eonst an t.1I Adds,S + 2~

,Adds 6 + 21

Adds 7 + 2~

'Keys,:

1'0 ttl 10 ~I [K)

Dlap'la,: 1,~OO

Dal,cripllon:

Stores "+ 10%"" as 'C,OD'" stant,

Adds 10% to 10 .. Adds, 10% (0 Ilj Adds 10% to 25t

@

L1 t:J

,25 EJ

11 ~IOO '12~ 10 ,27i5D

Keys:

Dls:pl[ay: 3~OO

8~[OO

64.00

Descrlp'I'lon:

Stores "'Tn as co:nst.a'ot .. , C,alcu~a~es 2' ~ Calcu:lates ,4".

2'.[~ 3 lKI (;)

48

The [~MJ'1 IRM]], and IM,_tj keys perform memory' operations, 0,0 a single storage register called the M registe r, In m ost cases, it is lI.nn,ecessary to C lea r the M n~:gi:sterJ s i nee [~'M) re places the previous contents. H owevcr, ,you can clear t, he M register by pressing 0 1iM1,~ T[D add, a series of numbers

to- the M register, usc [[+M'I to store the first number and lM+1 to add subsequent numbers. To subtract the displayed number Crom the number in the M register, press 1+:/-1 followed by [iM+lt

D·' .,el,Crlp',IOn:

I.,MII I":R:Y:I [M+~li

St.ores dlspla,yed number In the M register'i' Recails number trom this' M reg:isteri'

Adds, dl:s,played number to th'B M regi's,[I[e'r~

E:xaim,ple',~ Use the M register to add 17, 14'125, ,B,nd 1-61951 Then subtract 4~6S and, r'ceaD 'the result.

Keys:

1'7' (.+,MI 14'i25IM+1 16:i9SIM+1

DI'lap,lay:: 17~,OO 14'i,,25 16j95,

S'l,ores 17 in M register, Ad ds 14~25 '10 M register .. Add's l6,.95 10 M register.

Add,s - 4~6S to, M register,

Recall's CCU1:t'6nts, of the M register,

The and tRCll keys aeeess storage rep'£crs R,o

throu.gh R, and R~o thrOu.ah R,A~ (RJefer to "Pic1lurimg Memory'" om page 29'",) The I [8YOJ k,ey is used to copy the ,di,sp1a,yed~ number tOI a dcsign,a:t,ed register, The (flcLl key is] used to; cOlpy' a Dumber' from ,I register to 'Ibe dis"p'lay~

To, store or recall a Dumber in two steps:

11!' Pre&cs lSI ~ I ,or D:rct'I", (To cancel this sllep', press, 1[!]1 or lQ]li)

2,. Bnter the I'cglster' number (0 '[ltrol,gb 9 fo'r registers RID t hrough R, or 8 0: through El 4 for r,egist'Brs R~o 'lb.r,oluih RA),~

In the foUovno,g example, two stlor,a,ge r,esisters are used, 'Calculal,e (be foU.o'\Vin,g:

KIIYs:: 47S~6

475.16 and 39ilS

Di'sp,IIY::

47Si60

Stores 4,7S,~60 (dis:p:la.yed aumber) in Ril",

Stores 3'9~15 in R2~' 'Compl~etes, fj,rst ,calc1illa(:ion,~

Recalls R .. ·· 1

~ ~n ~lll~ " til!

RecaUsRl'~ IComple'tcs, sCloon,d ealeolation ~,

S60,~l + 47S,~16 3,9'115

[i) 391151 E1l

560i 1 I±II>'C- , l' [±J I RCl:JI 2

8

47,5J30 ,3'9~,1:5 26,~45

YOU, can also u:s'e and IRC,[] for applleation registers, For exam-

ple, ; : . IU'vIR) stores the Dumber from (he display in. the IIlYAl1 regis-

ter, ~R;CL,I UZVR] copies, the contents Irom nlVIR) to the d,i,sp~'.Y'1

1:11 most eases, it is UM cessary to clear a storage repter smce storlna, a number replaces (he pr'cvions coetears. However, you can clear a single Flegis:t,cr by star'in,S, 0 in it To clear au the registers at once, press .[ClEAR A[[I~,

Doln'g Ari:lb:mietilc l'nl,S,i'dle Ragi'ste:r,I,

YIOIU. can d,o arithmetic iaside storage regist'ers Ro through R',I The resu,~t is. storied in, the r,e,pstler.

.

INIIW' I'umb.r :lin R'.'g'I'Sler

,~~ (±J "9g:/8'18r num'b',er' Old contents + disp~ayed number ,~~ EJI reglstef',n,umbe', Old contents .... display'ed number !'~~ (i]j reglsler ,n,umbs'r QII!d c'Oln'tenls,)( dlt;s,pllaYled num'b;s'r !'~""" [±) regfs,ter number Olld contents + disp'Jayed number

Ke',s,:,

45i 7 ISTa) ,3 2'~,5, [s1'OI ~ 3,

DI'is,pll,:

45~- '7, 0:-: I

~ .~. til "

2- 5~'O"1

!ill ," ",

Descrip,lion:

Stores 4,5, .. 7' 'in R3'i M'U:lt:ipUes, 4Si1' in R3, by 2!l,l and stories result (114., .. 25) in R'3"~

Dlispia:ys R3i

," alh functi;ons op srate OD the number in the dl-pl:ay,~

-," , p,1 y:' O~25

'Delcrlpt'lon:

Calculates 'til reciprocal o:f 4.

Calculates V20~ Calctdatcs,J20 ,- 47~-201 Cal cu ~!ates 1 t, ,21, Com,plete.s th. - ealcl1la~

iii,

liORi'

,2:0 I±!: 47'~ 2' I±JI 1,,11

13

4~,47'· 5,1~67 '1.21 5,2~88

[Ex"

- ',~ Calcu.~ate natural logarithm (cU) .. Then calculate 7 I + 4!,

K :y :

D' , "'ri,pl'lon::

- alcubites e2.S iii C,alc~dates n aturalloga .. rithm of the result ..

Calcu,lalcs 4 f aetorial. Completes ea lculat io,n.

12~ 1-8 2,50

7:90 'i14'

- ~ ,

24100 814jQO

The plower OPI rator. , raises the preceding Du:m'ber' (ycOO'

vaJue) , ,0 th,c po,wer [or ,tbe fol.-owWg Du:m'bcr (x-value).

'D'ispl,I,,:

1 ~9531 12,5~OO ~ 0 ,5~,OO

De cr pilon:

Calculates 129~ Calculates ube ' 0'( of 125, w'hich is 'the same '~_' -25:1/3•

Use, parentheses to POStPOl1 calculating an intermediate result until

,-ou lye eat 'd, ore ItU In be rs, For example, SU IIp ·sc :),0'" want to

calculate

30

(85 - 12) x

:f )'G'o enter 30 (i) ,85' El~, the calculator displays t'h ' lot ·-f'm,ediatc result, O~-3,S. This is b reause calculations, without parentheses are performed C! om len to right as ,you enter them, 0 d,clay the di'Yisio'o until you' e subtraeted 12, f om 85, 'Use aareethcses, Clos:ing parentheses at the, end or tbe espressioa can be omltted, or cXI'm:plci, ent _rlng, "25 + (3 x (9 12 ~:~,,~,

is, equivaJe:ot to '''25 + (3 x (91 12», --- ",

Ke ~',:

30~ 1.2 '~

9(3

851E]

Dl~'pl' y: 85~,IOO 73~DD O~41

3~7'D

,DJ lcrlpl:lon:::

N ealeulat iOln yet, Calc:ulatcs 85 - 2i' C,al,c~da(es, 30 + 1J,t M'ulUplics the F'" tdt by g~

..

Ie

I ""

,

he rWaDcial vocabulary of the HP .. 10B, is simpUncd t,o apply' to all, rin,o:ncia] fields, Fot exam,plc; your profession may' use the t,crm b,alatlc"J' bal'- 100',' paymentl; rfU';dll,a.l'i' tna,h't,rity value, or RmII'Qln;ng amoun: to des:ignatc ,I ya~LlC that the HP ... I0B knows, as im (futur value),

The sbnpUfied tcrmmo'iogy' or (he HP'- OB IS, 'based on leash fI,QW diagrams. 'Casb flow dia,gr,am,s, ,are pictures of financial problems that show cash flows over time, D,raYlin,g a cash flow diagram is the :tirst step to so'~Yin,l, a

finanelal prall) 01'1 .

The ro:llowiul, cash now diagram represents invcs1Im,cn,ls in a .Rt'Utlla1 und, Th,B original investment was "7,OlXl,OO. CoUowed by :m,vcslmellls or S:S,I,OOO~OO and Sti"OOOJXJ at the end of tbe third amd 5mb months, At the end ,of ttl lIt month, SS,OOCtOO WIS, \¥ilbdra'WDI At the end of the 16th mo,nth., ~ 6,567,.,20 was 'withdra'wn,~

The horiz,[Q! .. allinG· "'pr[EUJents

'Iime~ I:t· ~ s divmded ii nto r,.g·ular ~ ,:

periods", 5~[OOO·~OO

•• r. • .. -'1 • '\ '.. 'I.. _... ~. I" I ~ - ~ I .. ~ •

~ Dovm~arrows:=t'·p· ... ~rftsent' n ~·n~:tive

_ ." _ . .' ~ _' _' '. _ ~. _ ~ '_' .. ' :. ," [,I . _. . _. ~ _. _ . l~' •• I. -_ • • •

:[Cash 'HoWs '·n<olley pa'_,'oU1')~

• - ;.: - - -."'. • .~ L _... ~ p' '. • I' I - I. J

... : . · 5~tOOO.OO

I

[ I [ ]

- - - - 00'

, I, _ ~\"", :: I., _", ': I'J

6~,OOO" .....

. - .. -. 00-' -'.

" . '.' -'1 . "

, 00 7-000 ....

_' ~I • -, ii" -,_.

-. weash 'fl' ' "'" -.-. 'iIi.- ,. 'L_ [ .,,' .', ~'. - .•.. [ f'· ··d- bv .. ' .. sh n'[-] '.- d,-··iI .. " ':-'i:'·] A···· ·s· '\Pi 'UI

An;y ·CI,,', ~__ow exam PIC, ean ue r presen e·[ .... y a, C ..:. ow .1.8L_ r _m .. , -.~ ~ s> .'

d - -.. . -. h ·n··· ...... d' t:. . - ,- 41: ... 11.- iii t;'" . :-h' -. t: .. ~~"" c. , .. --'. , .. ' d··- .- -[:- [-k' - -: - ... - ',' b .'. ' 1-' th '.'

_ raw a easr ,ow_,u, _ram, au n~hy w"al. ~s snown an unlno,wn "QU" ...

t- ea "0':' s a C: "1-'1';;' :::0::

.II! :.':~.: .· .• ~_...~- ... ".O ._ ~.

.. .

,

P-;:ri,· ..... ,:0 .. addition ~.'O l'b si,n convenl.iO.n (caS[l nowi,n~' out is, :nc,-_:ativc~ cash. noVlin~, in. is POi.i't.:vc.) on. cash flow d~ a~: ams, there Dr) several more consideratiom .:

-: The, time 11 ie is divided into equal thne intervals, The most, common period is a month, but days, quarters, and annual periods 8:fC· also com' '0101 .. Tbe pe:riod :i~. :nor'm"ally deflne -:. in a contract and III ust be :kUOWD before :you can begin ca]cullti:n,g~

. : T10 solve ,~. flI18ncial.problc,'m wil.h •. be, :H::P, .. -,o. .... : ,aU cash (I'O'M, must occur at ,ci'·,b,er t:le 'begln:nlng ocr end of a. :pc:r'lod, ..

_I If . ii, . r·c than o:nc cash flo'w occu:rs &1: til: SI,rn,e, :pls,cc o~ :i:he cash Dow d'iagr:: : · ,. they.are .added lQ'Ol.hcr or netted, ,eior example, ii1J: : •. e,g,ativc cash :0 W of ~ •. ·2S0.~OO and a posUIe eash Dow [D[f S750,tO(J.0 ceurrin . at the, same tbu,e o.n the cash fl,QW diagra:.: are entered as a:]S(MlOO cash flow' (7:50' ~-, 2SO :: 5" .:- ),'

• A. Y,B'nd, fi:na:nclall,r.i .. nsaction must. have at. lC,8St. one nositive and one

Ir'~

:n· '.Ap,i!:lil- ive cash flow ..

"' ~DJlIl HI] . ~ "-~. , . I

-

im ·1 " _'n~~_1 .•.. ··.·0] :U_: ' 1- - sl

'Comp[Dund In:terast

A ,oom pound -interest contract is, Im(l~) a series of simpi&ointerest cont F',aC:£5 that are connected, The Icng,(b [of ea'ch simple-interest contract ~s, equal to one compound ing period, At the end of each period the interest earned

o,n [each simple-interest contract is added to the principal. For example, j,[ you, deposit $11[000.00 ln a savings, account th,at pays 6%1 annual inter'e5t, eorapounded monthly, your e,M'Dings for (he first month look like a simple-interest contract written for 1 month at 1./2% (6% + 12)~ At 'the end or the first month the balance 0.£ the account is Sl,OOS~,OO (5 irs, 1/2% of 1,000).,.

The second month, th,e same process takes place on the new balance of

Sl,OO$,~OO .. The amount [of int,erest paid at the end or the second month is 1/2,% of Sl;OOSJXJil or $51031 The compounding process, continues for the third, fourtb, and fifth months. The intcf'medial,c results in this illustration are rounded to dal'lar,s and cents,

1

2

1 [015- OS-

I - - -' ,,", -

·"1 " ..

I 1,020 .. 16: [

4 !

[

3

Tbe financlal problems in this, manual use CQ[II],poWJd, interest 'unless

1t[025,!26 sp'ccificaHy stated as simple interest ealcolatioes, rmanchtl pro'blems are ,m,vided into two grou:ps': TVM problems, and casb flow problems,

1 - ~ 00

- --

.• ;-

: .(Ji()5.'iI! - -

5

The word, [C'()II'IPOU'I'd' in compound inter,est comes from (he idea that interest :preVious~y earned or owed is added to the prlneipal, Thus. it can

I ~ ~h fi · at cal lati bi 1[·' Iii[ b HP 1~ OB

ear'D more interest, T e man'CI': - _: - ,cu. non caP,B ·l~itles on t ,e "~, _ l,~:_ ,

are 'based OD compound. lnt[erest.~

WhOD you approach a ,financlal problem, It is important to :rccognize that '(he ieterest rate or rate of return can be described in at least three dilerea,t w,ays:

• As a periodic rate, This, is, tbe rate that is apP'li,[cd 'to' ,our m,Olley from period to period,

• As am annual nominal rate .. This is, the 'periodic rate multiplied 'b,Y the Dumber of periods in a year.,

• As, an annual ,effective rate. 'This is an annual rate that considers com-

'pouodh1,ga

In th.e previous exam,ple [or a Sl,OO]"OO f1aviogs, account, the periodic rate LS, 1/2% (per' M[OD'th), quoted, as [aD annual nominal rate o£,(j,'% (1/2)( 12)~ Thls same periodi,c rate could be quoted as an annual effecti'Ye rate, which [considers compouDdin,S~ The balance after 12 months 01,£ compounding is, Sl;06l,~68, which means [the annual effective interest rate is 6 . .168%~

Examples of convertio,g between nominal, and annual [elective rates arc OD pages 71 through '2~

Racognl'zl'ng ,8 1V:M Pr'ob[lem

If uniform cash flows occur between I'he firs,[t and last periods 0:0 the C8S,h flow di.agram" the flnaneial problem is, a TVM (timtc value of mon,ey) pr[ob'leml There are five main keys, used to solve a TVM problem.

lID

[

I

Number of peri-ods or paymcnts,j

Annual percentage interest rate (usually tbe annual nomi .. D oJ r,al,e).

Present value (the cash flow at tbe 'beginning of the time line).

Periodic p',lyme:Dt.

FuL:ure value (the casb flOW' at tbe end [of the cash flow' diagram, in addition (01 ,any regular periodic paym[on,t)'i

~!

IPMTI (f2];

You can calculate any value after' enteriD,g, the ether Iour, Cash flo'W diagrams Ior loaes, mortgages. leases. saviDp accounts, or ,any contract witb regular cash £lows [of the same amount are D,orDl,aUy treated as TVM problems, For [example. folloMng ls ,8 cash :t10'W diagram1 from tbe 'borrower's perspective, for 8, 3O-,car" S7S"OO(tOO m[o:rtgasc" with a paymeat of' ,S - 684~07.[ at 10.5% amU.lam mtuest. With a S5,000' balloon pa)'-, me'utl'

,PV 7.5 ~OO(l,OO

~/yR a 10,.,5% .

N B ,360 (30 X 12)

308 359 360

1,

2

3

5 351

'One of tbe values for PV, PMT, FV can 'be zero, for' example, roUowin,g is a casb fIo'w diagram, (fr,om the saver's perspective) ror' a savin,gs, aeeount 'wilb a sm,gle deposit and OJ sm,glc 'withdraw,a] five, ye,Hs, later, Interest compounds mODlbly., I'D this example.PMT'is zero,

I./VR a 8~00% PMl 1]1 [Oi[OO

60

N == 60

Time value ,or money calculations arc deserlbed in the next chapter.

A finaaclal problem (hat does not have regular, unilorm paynU!DIS (somelimes called U/le'VCl1 casb Ilows) i,s, a cash flow problem rather than a TVM problem,

A cash flo'w dia,gram for an investment in a mutua] fund ronows", This, is ,M example or a problem that is, solved using either il,INPV]1 (Net Present V',alua) or IUA,AlY'RI (Internal Rate ,of Return per Year).

7 O"~"'O'~""'C":"" O:;:·O~·

1_ r I . ,I I :

I!,": "~'':<,'iii,'< ",:"

" '

" '

4:

,

a, ""i U I'

", ... .,

'c'

c1'-'I~' ,5--:'6-;7·'" '. ~2··:',O::1

c g", ," .. c ~'c J ..

,-,

CTI <;.,,: 'liJ'ii[P~ :T' ·-~V'/-M.·"i"" ~~.~~~'i:i!"~1,1" 'P~ Ir)~r~'.l!Ii;nl'l'~:'~:l~·~,~,;r!i lft'i;ili'~l~~ ' .... ~ '-I~'I~

'~!l ,_Ii lu Q~ ~~ '_ I .. '" ,~I J ~"iJ·~,lj • J I r .. J ~ J~' .~_,ll.~}~~~~ lIJ~./U~~ UG 1.~.1I! v .... ~

,~, ~T' 'b~ :~lmnUln~lt' 0'"'' ,p,g,t"h ip-:!1i'um]l~'~iA'l m mst be the same 1[>I'~I'~ navment

'c' "-c'lIW,!< UJd~'~"'':::''~' ',', ">~ !I!iof:U"",~~, il:c'u","c"J,.,C!l!{I.~ "'_"'.:""_""; , . ...:,~, .j.~:"'_ Q,:.·'.i:-,.CIi!" r- .)I.,w ;I;.J!'''':,I' .P,. ,.,"

a~1II0ulJ.~l_s, 'var,', 'Use the :p':£'oc.:edu:r'ci dlescrJbed, :io, C:b.ap(,e:r 6:,-] ,f,~Casb F~o,w

C'a:]~~iu: ;'1- ~jj l-' :.i'O"":' ns, J,'

~ T.~' _~ ~J. ~ .'[ lUJ' _:'! J"_'" "_' __ ~!II!

•. ! Pa:ym,~:nts, must occur ,It rc,gular la,terv~t~'i

-I The p1oy,m,e:nt period must etli~nJci:de vri:lh the :intcI.(}st e01m,:po:urnd:i_nl

" , :~~. ··d (.iJ..']]F, ~"-" .,.1]" '. c.' ," ...... ,'. ,~.c~,~ '.' ']11~' "', ""'I'~ '. r., ['" ' •• "f 'iiOl'fj""1I ~"'~:~~"'~' ·1·iI;··.... 'Iiifril" .:,

penod. 1.1.~,1 ,~t: \lIOOS, ,IlO~"~1 cou\:"et t tne u~I,lureil,r ate os,l,ns] b;~e >'1Yllil1l~J~

[ 11·:El :'1 ~ 8~nd ':[1Plll. • i te,Ys described ,0:0 page, 7l~)

• There must be ,at Ieasr lo'n.e~ positi.ve and, OD,e D,ega,l,jve, cash :f10'l'ii

.

11

lrfl]

'Tlhe nurnbar ,Of paym's:nt,s or com:poun,[dlng perloda

'Th,e ,annual nom~~nal I'nter:est rats,

l!he present value, of future cashl fl:owSt PV is, ~us'ua[ny an InlUa~ lnvestlment or loan amount and aJway.s occurs [B't t'he [beginnIng of' the f:lr,s't per'led.

The, ,amount of !p8'riodlc ipa'ym,e,nts~, AU pa'yments ,ars' equal, and none are' skl'pp,eci': payments can. occur at the bI8Ig'lnn:lng or' end of 'Ba,ch, :pleri:od~

The f1uture va'lu:e~ ,FV ts eUh,s,r a f'ina'i cash 'flow or

,. c:ompounded value, ot a serles of prsvlous cash floW8'1 ,FV' occurs at the~ end of this, !llast period.

S[t'Of'8S the numbe:r [of petlod,s, per y[ear,~ The de'f'aull iJs 1 :2~ Reset only 'when you wish 10 'cha[nge~

OiPUon.a[1 shortcut ior- s'torlin[g N': 'Nlumlber 'in dl:spla,y :is mUltiplied 'by' the value :In P fiR ano s,tor,ss result :lnN~,

,S,W'it'Ch[9S, betY/e[8'n :e,eg[ln and End mode, [in Beg'lin ,I mode, thiEl' BEGIN a,nlnlJncl'a,tor Is ,d:ispray[ed~

Cal,eulalea an amonlzatlon tabla

UlY~R,1 Ip'v'll

'lhcp7VR]

To vc:r'ify values, press 1[90L,1 aD. IRCLI OlYR1, met] ~, (ReLI [P'MT'I, and fR,Ct,II[FVI~ Pressing (ReO [xp79fRJ recalls the total number or paym,c'l1(s in 'years, and IRCLII[pZVRI shows ,'ollllh,[e number Dr p',aymc:nls per yc,ar,~ Recalling these numbers [does not change (be content ot Ihe registers,

52: 5: 'nme Value Gil IIon,a, C.lculatlons

Press, rete,l,R, At'll to clear the 'TVM registers, Thi.s sets HI I/YR', PV1, PMT, and, FV'to[ zero and, bricrJy displays the current value in P IYR',

IL~--' I Before you start a TVM calculatloa. iden('i:£y' whether the Iirst periodic payment occurs at the begtnn:ing, or end of (be Ilrst period, If the ri rst pa,ym,c nt occurs at the end or the first period, set yo,or Hp ... I0B to End mode; i,f it eeeurs .at the beginning, of l he £ir,st period. set YOUf caleu I ator t B egin mode,

To, svnt,ch betwccn modes, press, IBEGlE,N01'i The BEGI'N annunciator is displayed when your calculator is in Begin. mode, No nnnunelatoe is displayed when you are ln End. mode,

M,ortgages, IB,d loans typically use End mode, Leases and savings plans typically use Begin mode,

EI:,.'m::ple:, ,A C8:r Lal,n .. You are ri.nancing, a new car wh.h a three yc,ar ~o[,an at IOtS% annual nominal intcresl, compounded monthly, The price of the car is, $7,2501 Your down paymcn,t is $,1,500.

Part 1 ~ What are your monthly payments at 10.5% lntcrest? (Assume :your paym,ents, start one month after the purchase or at the end of the rust period.)

5,:: nm,. V.I.,. of .one, c.r,cu'l.tI,o:nI, 13

PV m 7~' .2:·',··50','···:,~ '1' :C:fV\

- ~ :~"= ," " 1VU'V

. [ . i

[

2

'-

iii· • !!Ii'

,

~--- -

1

E ~ 'd' M" .. ' "''''e''' IlL ,·.'UU ".

~ 1 I

~ ,

35

,36

[ !

, I

[···.1 ":

K··

~.'" ~::

"_"j _-"._

DI:'"I' ~iy: 1,2,,00 ,36~,OO

1.2 IflY'R) ,3 (!] '12[1\1.

10 ... 50

7250 [3 '15;00 IJ!:V]

O.··.···'·p . I!::.:!J

'_._'

51.7,5;O~,OO 10,)0'····0,:··

..... iI!' __ ~.

186--" '89-

iIiiiiI '. : ,._ " . - ~ : _', .. : I

- '. ~ .. ' .. ,~, . ". ~

D,:·· 's-:c··-:· r·'I··~·P·'·i.';O,'· n':[!'

", ~ .:__ .. ,:"" ,I. _'"'''' "ii'

Sets periods per '~:ar.

l ' . II ~

Stores number of' periods ~'n' loan ' .

.. 1. • ~ 1.1111.

~ ill, '(

Stores annual 1l0;m~D8.:

ilit.er'cslt. r ate.

Stores amounl. borrowed, St.'or'e,s, the amount lcfl 1[0 P!lY after- 3 ycars'l

Cakulates (he monthly pa vmC"n' The '0: eeative

'I' ~.'.l. '_ - \'.' I .. ,'.' 1 "U. Ill._ V

'~,,'" .: d"" l~ ~. " e·Y ~ a' id

SIgn in '·U:4i'lCS Juon')' :P1~J,[.

out,

176 SQ ..

lilillilil ". : .~. :" : ..

- -- . .' t.:...' i . .:_. .... -~ .

6 .. 75

Deer sases ·paym.c.nt: .rom

,_, '1··86"-····:,: 8·':·'10

'. Iii· j:1,.

Calculates annual interest

,~. .. d" d

.". ." '.~ ,. ..

rate ~ or the re ... ~ ,uee.·_

P· avmen 't··

gl/""~J" ... ,"it.

10·'1,5: OZ.·. v:RI

~ !I! _. l. ~

Stores o:r':igi-nal :i,n terest

r~a;' te :. •

_ ::l ,: I

Stores de sired p' ·nJ~ nent

.. '.':.:111 ~-j) .' ..... i.1I... ·.,~·U, ,J 1,-. n'."

C·a~lil"ula·' ~ C!! a' 'I'MiI QU' nr o f'

1 :_ .I~l ~ :1 .: .. ~iL[w :.~, >I,~I: ..:' I I;.~I. .' .. _.

m ~·o··'ney·· ·'0' flna nco e

'_.>.:,: I.' [II.'~ ,11 ..... ·., , .. '"

Add '5 ('h~:'e' down 'p: .•.... ym',.~ . 'e"~"nt

.' .! .. ~'.' ... :< '.:_:: . I .' '.~J.~. : I~ I I' • "'.' •• ' I .. : ..... "~I :.:'

to t.h'~ amount financed

for total. price of the calf.

Ew,· -~p;I·-.·iI!!I ... ' .. ·H·'o:···m-·~~· .. ![a""lrI·"g:"I-~'~ You deeld 'e~ that the maxlmum

.~~._ .. ~~.;_""'"". l_' ~J .•. ! , .' .. _ .. '~ '~ '('.: .~l,:. " 1. I_.' ':"'_' _." '~_""_'" 1~./luJlll', .. , " .. O'UI., _ ,~J_

'monthly mort ',8 -.e p'8yro;cnt you can afford is $6',:30 .. 00 .. You can, make a "~-l2"OOO down payment, and 8,fI 0.u3,·1 interest rates are [co:r',F'cnlly 11 .. 5%~ If "ou. obtain a 30 :year mortgage, what is the maximum purchase price you

Coli) ·D~ a- "0',:-', rd ?

Ui_ .. rill.· ___: ._)!II'

10.5'0

175 (~I~J (P~ ~Il I [fm-"'",

, '.

I. . • .

' .... ' 17-.fZ_ O· _. ·0." •

, . oU, ..

5 384' . 2'

. :~' ~.. [·..1

6 OO'd '2~ '1'

.• ()CJ1.i!'_ .

PV : ''1."

I I I.

.,

lirv R :~ 11 t.5°L

N : " 30: 'X··~ '1"2'

, . . . .

.' '.' .. ~".1 . '. ~l

p,fY.····R -·12

• • .' ~ •• .~ ~l

I '1

.-- ._-[ ~~ ,,-

I.~ __ ~l __ .

I _ [

3 J 4 -I

'1. 1 .",

1 ,iii!

PiMl' . ,- - sao~oo 'E':nd M!ode

S:e. ~ .0· c.n, d mod I. .• Press [

.... "'1 l.·.·. ~. I ~. I_~.· •••• _'!!!II ~l .l~

'D-"'-r p'l 'I.

i ..: '~~.,.. , .•

D,·' ···c. _>··r:i··.·p·· '.1· i o·.·.·n····. [.

, " --:' ,., . '" ".

1"1'2--":"'0":"0:::'

I .. i, ' ...•..

Sets. periods 'p' c ·y.·.·.e·a:r·,jj

. l " .

,1:'11:: ~

Stores in( crest f',D te, 25

St,or'e5 desired p',aymcnt

(money paid, out is 0 (!f'V]

negative )~,

Calculates the la',an yOlu 725001 [~

can, afford with a S630

pSymlent.,

13,B, nlv'FU

Adds Sl2,fO] down

payment Cor the total

purchase price. lI~MIJ

,30

Stores Ibe Jen,8th of the mOlrtgage (30 x 12l~

Pa,Ys mortgage ,off in 30 ye,ars,.

11.5 [I/VB] 630 t!l:~J [[PMT1

11 i501 -630~,OOI

~ '1200013

,Example,: A, MOrlala'g. W,lt'h '. a8110,an Paym'e'nl., You've ob.'la~'n,ed a 25 year. S72,SOO mortgage at 13t8% anaual in'l,eres,l .. Y,OU antlcipate that you will own the house for four years and, then, sell lr, rlcpayj,ng 'the loan

\Yi:lh 8, balloon payment. Wh,Rl will your balloon payment be? .

Solve this problem usin.g lwo steps;

t~ Calculate the loan payn1,eDl using a 25 year term, 2~ Cakulate the remaining balance att,er 4 yearsi,

,S'lap 1. Fi.rst calculate the loan payment usi,ng a 2S year term,

I,/YR, 2 13Jl%

N :25,K 12

P/yR .. 1'2

300

1----- ----+--- - -+' ---- ,i, ,it iii, '-~----I----t

2

1

PMT 7 E,nd Mode

Sets 'pe riods :pe'r year I S,to,res, length or mOI"'lgage [(25 x 12 :: 300 months),

StOlres 1080, balance artier 25 year.s ..

S_Of'e5 ,or'l,gin,al, loan b',aIan ee,

Stores annual interest

rate,

Calculates monthly p,aym,cnl.

S'lep 2. Since the paymeDt is at the end o.r tbe month, (he ~,as,1 payment and I,be baUOOD p,aym,cnt oecus at the same time, The n.n,al p,ayme:nl is the su.m or PMT and MI.

1.2

86165

~ I .'_

~ !i . _ .

PV m 72~500.00

IfV:R 1,a,.,:B',%

N=4xt2 PlYR 12

I I

- -- - - - - - _. - - _.

1- !

47' ~ 48

46

1: 2 3, 4

44 . 45

PMT D "" 861,.,65 End Mode

5: 'T1:m,.' 'V.lu. Q:I' Mone, 'e_lou1s'Don,s ,57

The value in ,PMT,shouJd, always be rounded to two decim,a'i places WhCD, calcu:~ _ ling FV r PV to ,avoid - mall, accumulative di-scrcpa-nc:ies between non-rounded numbers and ,lcLUa,1 (doll ars and cents) paym enlS'i I r tb d i- pl,ay is not set (01 two

decim,a) places) press : ;' 21

'Di ,~ _y: ~8e·1,!,65

R nods payment to two , ' ecimal places" then stores.

-- teres 4 year term (1 ~ )( 4) that you exp et (10 own l1DUSC'1

Calculates 100.n balance artier 4 years,

Cal ulates total ~-' 'th payment (PMTand FV)

10 pay oJr I an money paid out is negative) ..

~70172S,~90

:Ex: : - ,- : A, S, -~ vlng ~' A _~, _ eunt, If "QU deposit $2,000 'in ,8 savings

account that p'ays, 7t.2% annual inte est compounded annually, and mak no 0:( her deposi ts t 'I be account I' h 'W long ,wi I ~ it t.o k ~ r t h ' aceou n l 'l

grow to ~- 'I -"

II/YR = "1' .. 2% N l'

PfVR '1i

2

1

N ?

Since this account has, no reguJar paymenls (PMT ; 0)" the ,pa)'JDent mode (End or B'cgin) is, ir rel evan I I'

Key,.::

12: P 'Y:r

~

O:~IOO

Dlsp~ays. 8, 'lem"polrary mCMnlge and clears aU register,s, ·

SetsP/YR 10 1 in ~ interest is eompoundcd annually',

Stores, ,R'mount paid out . r or fi.rst deposit I'

Stores the amount yo;u wis.'b, '(01 aeeum U Intel

Stores aenual Int crest rate,

Calctda(cs number of years :it takes [0 reach S3~oort

1 I (eJj,BJ

2000 I+ld lfID

[[W

Since the calcul ated value of N is between. S and 6. :i L wiU tak .six years of annual compounding to achieve ,I balance of at Itast S31,QOO,t Calculate the a,CI'~a'l balance a1 the end of six ye'arsi'

Sets I '106 yc'arsj, Calculates amount you can 'Mlhdl'I,W alt[er

:yearsl

'Ex ~ mlpl : An In, _~:Ivldu ~ [II ,Retlr, :m,enl Acc:ount~ _ ou opened an 'indivi,dual ret irement aeceun t OD April15t 19,85, vAl h a deposit of .,000. Thereafter, you deposit $8O~OO o the 8:C'COU nl at the end. or each ha I:fcj; month, The account ,pa:ys ,8~3% annual interest compounded semimonthly, How muc h wil be in: the acco nt on. ,Apr'it ],51 2 ?

6~OO 3,.,[D35t28,

fV ?

I,{V':R . 8,~_

N a 360 (15 years, x 24 half~monlhs,) ,P(VR a 2,4

•

[ ,

• 'to -t,

12' 3

4

Sel to End mode, Press

Key,s:,

24

'D ~ ,p~l,a y: 24 .. 00

D,e'~ ctl'plionl:

Sets number of perlods per year.

Stores jnl(la~ deposlt,

8i30 36000

-." .. ' . ~. .

Stores regular semimonlhly dcp,os:itsi!

S,to'res interest rat ~ S(o,res, :numb ' r' or

+

deposlts.

Calculates balance"

Ex. mplle::: An An:nuil_ - eeoun • You opt ror an early r,cllrem,ent aftet a successful business cat. 'crt! You have aeeumulat d a savin,p, of ,$400,000 thet earns an average of 10i% annuaJ. interest, compounded :1J1,o;nthlY'I' What aml,uity (rcpclili've" UDiformt witbdr'lwai of funds) will you, r eeive at the beginning lor each month if you. wish that savings account to support 'you, for tbe D,ext SO years?

,2

I .

[

1

599

[

I,

I

Ity;R 1()%;

NI 600 (50 x, 12) P/YR 1'2

PV a "" 4001000~OO B in MI ~ . e'

,FV. 0

K 'J ":

12' U!lYBJ 400l);Q;O t+/=1 [(P01

DI_pl' y::: 12~OO -400,OOO,~OO

10 LVvRl

10 .. 00

De _ crlp,llon:,

Sets 'p~ym,en(s pc:r y. ar, Stores you:r nest egg as an out,going deposit,

Sto,rcs, [I uual l terest rate you[ expect to e am,

Stores number or vrithdrawals~,

Star s balaaee or ae ount IAcr ,so yea'rs~

- aleulates ,amoun~ that YOl]' can 'Mthd'ra'w ,at 'the beginning, of [each, month.

A lease is a loan or Y,alu,able pro 'e'rty (I~,ke reat estate, automobiles or

qu:ipw[cnt) f or 8. s,p 'ci ric amount ' f time, in x,ch.ange f Of' rcgu[ar pay,,,,

m COils" SOD1,C 1_ ases .a rc wri(( 'n ,as, pureh ase a, eemenrs, with an orH 100 to buy at l h - end of :th ~ lease (s'omc'l i mes for as liltl as. _ ,1,~OOli The dcfi ned fu tu re val ue (FV) of the propc rty at the end of a J! ase is, _ ometimes called the "residual valu *'~ or ,u'buy- out value,"

All, five TVM application k )'S, [can 'be used ~:n lease calculations. 'There are two common leas calculatioes.

iindin the leas pa,yment n eessary 1-0 ac hi ve ,I p,cclri:ed. yi eld,

- Findin tbe, resent value (capitalized valu[c)[, r ,8 ~ 1.50 ..

- : he fi,rs( pa ym en t OIl. a lease u u a~ I Y cceurs at the begi,n,ll1,i-n _' or l he (1 rs,t

p rio d, Thus, m sl lease caleu (ali ns use Bc,gi,n, m del!

Ex, ,m,p,le':: C' Ieul ~ ,-'ng _' LeIse Pa,ymenl,. A customer 'wishes to

~. - .

I ase a S13~SOO ear for three "eaf'51' 'The lease includes, an option to buy

the car for' $7,,500 at the end of (he lease. The flrst ·mo1nt'bly p,aymcnt :ts due the day the cu lC;lQl,er- drl'ves tbe car off the lot 1:£ you want to:yi ld

, - % annuall -, compouaded m,on1Ib[y what YlUI, lh ' paym,en,(s be? Caleulate the paym,cuts, from, you:r (lh. d aler's) point of vi: 'W'I

PMT l'

Mon.ey rl8ceived' , by lessor ~ s'

pos:i1iiv,@!I"

35

I/yR 14%, N 3S

P/V:R 1,2

,PV ,.. 131500.00

Beg,j:n Mode

M[o,ne'y pamd out , by 119SS0f s,

n gaUv9ii

S -'I 1,0 Be in, mod . Press

Ke

12 Ip/VRI

I pl'a,: 12~OO[ 14LOO

.' ii,

Se[ls payments per' y,ear., Stores desir - d annual yi'el.d,~,

Stores lease price, Stor'es, residual (buy' out va1.u· ) ..

St ores length of lease, In

months,

Calculates mom'ably I as payment~

Nolice that even, if-U~,c custom r chooses D .. ot to buy the ear, the] ss ,rstUl i'nclu,dc.s a, cash now comi,I1' in, a( (h. _ nd of' the lease [cqu,a I, 10 the resid ual value ,of (he ear .. Whether the customer bu,Ys the 'C8 or il ls sold on the open market th lessor' expects to recover $7,.5 :1

1,3500 ,+ -- [fj]! 7,500 IFVI

3,6 N,

,289~'19[

-x _mplle::' La-g,e _-,II:h " ~ van _",a _ym 011, ii, Yout,tOmp,a,DY:1 Oulek

Kit Pole.Barns, plans to lea. e a ~ r"klifl for the war house, The lease is written for a term of yea,rs with month~y ,p'[aYinents or S2,400,~ P,aym nts are due at the be innim of (be m nth with the first and, last paym,·. n'l due at the onset of tb l ase, You ha'y,e an ,option to buy the for:klift for lS~OOO at the end of the .Ieasin,g period,

If the annual interest rate is 18%t wh21~ is the capitalized value of the lease?

Begin Mode PV =?

~1/yB ~ 18% N = 48 PfYR ~ 12

44 45 46 47 48

2

3

PMT :::; - 2~400iOO (48th pavrnent due up fr,ont)

Sets payments per year ~ Stories number of payments,

Stores monthly payment

This solution req uires four steps,

1 ~ Calcul ate t hie present value of the 47 mom hly payments:

(4 x 12) -1 ~ 47.

2;;; Add the value or the additional advance payment, 311' Find! the present value of "{he buy option.

4. Sum the values calculated in steps 2 and 3~

Step 1 ~ Find [he present value of the monthly payments.

Set to Begin mode, Press IBEGl:ENiDI if annunciator is not displayed ..

Keys,:

12 [P/VR] 47 [ffi

. i"spl y: 12.00

47 .. 00

2400 [+/ ] IPMrl

Stores FY for step L Stores interest rate. Calculates present value of 47 mont h iy payments,

Step ~ Add the additional advance payrnent to PVt Store the answer ~

10 ~Fvl

1:8 UlVRI ~pvl

o.oo

1,8 e 00

a11735~5B

m IRCl~1 ~PMT~1 !~+;g

@ 84.1 ss.se

Adds additional advance payment,

Stories result in M register ..

Slep' 3. Find the present value of the buy option ...

1[+M)

48 rHJ

·48.00

Stores month wh.en buy opt i on oecu r s.

Stores zero payment for this step of solution,

Stores. value to discount, Calculates present value of last cash flow.

o [[PMTI

151000 1+/-] [fY). ~

-15~O·OO .. OO 7,~340.43

SI! ' 4~ Add the results of steps 2 and 3,~

~.I' c cription:

"eys:

DI's,play: '911' ,476.00

Calculates present (capitalized) value of lease. (Rounding

di screpancies are

exp ~ a [ned 0 n page .58 ~)

PAY,M,E,NT $

'TlME' -)i-

, . •

'The' . lAM[QiB'T I :k[ey on the :H"P,·lOB allows you to ca'~cu']at:e" • The amount l.p'pUed to interes: :io ,I raaze of p",'"a~eDtS[I'

i., ~.). •• _ D '1 J'l!!!~!!!!!L!!!

!. The amount . ,a:pplied, ~t-o,pril,cfpQl' in a, range of p,ayme'nls~

'. 'The 10,(1:tt ha,lat,ice ,i,l\er ,8 ,s,peclfi,eJd, number ,of :p,a:ym[e'nts, are made,

'5'~ n"" '~.' t, V,",'.: '-[I;iili[." '-"D' ',I,'., ' 'o"n-','''': [Co:. "Ic"'-u' I'.'·o"n'.' "

' '~ .[_._I.I'I.,~1 ';" !:U :. -. -./. ~U:: ~ .. : _~: iU ~.:'"

nZYF!1

, ,

H'-[MJj 1:IF;!ZvIjJ

. ( .

T-~'h, ," - ,"" ibe ',-'" -, d"'~ -~,'f" , d- t, ,-, ~'" I"'" "", 'I'" '" 'i!i, "~' 'J'" -", id bal -,' ", ~'" "d" ad -

... 0 ,D,u,m,,"',rs ': n;p,aayc,,: I.O:f UI, .. crest, 'p.rlDCI'p,'8, anc oarance are, rouncec t.o

'the eurrent [d'is.p,]ay sett~ng~ , , [ , '

H-' ' .. ,,'Id" r=l de ",","-, " dL,,,.,~, 'I, ,:" "'h'" 1 'be-' "~I f;' '--'::h-"" """,),,,,-, .'h"" "" ,,'I' " "" , ,'II;., _' ,-"', "'" Ii",

, ,o~ . L:J cown to ls.p~a:y t e "I, 0= tne ·va )ue tnat you are 8IUOUt, to Vlew,~

P t="II " I' " ('I"" ,'C, "" r=1 'I, - " 'I! I' [ - -, ' -, -,

ress ~ to see ,I:ntc'res.t [ ... :nt)~ Press ~ [D,g,Qllll to see the prinelpal (Prin)

'7 ",- d ,-;--c-;-:i"" ·1'" :" ." '," , th .h :----1······~ -(, b A'-"L" \ 'C" -, ." iti '111 • '.' " .. ,.... ._ ~ I'" '''-1''-''1' .. ''

aa , agtl,~,n,.,o see ne .,'Jl.,a,n,ce-~> ;/~ onnnue p,rCSS1D,g eJ :-[0 C:YC.,,'C

tbro,ug'b, the same 'values, again.

'''p_'''' ..... i. . .. ' ... "~,, ,t'" I'"~ " - ' .. ,t" 't'b- '[ , ..... _, .. , iii, -"'f;" iod - -T· 'bi --: ",,~,

~,ress, .' . aga~n, .0 move ,0 '. [ e ,D,~!I. ,se" 0 <pe:rID_ Sii' , :,1$ a,u Ill, 0'"

,I', -', ,-,,' - -" .". ~ ... ·t- ... ", -,', ,~""~,, "" ' ,- .. ' ',.-", ",'h'" 'k'- '-' ',' -'" ',,"" "k" ' .. h .. "F: ,.". ·'Ii,"'h- . . . _. .'," [',Ii' .. ,

~ncre"m,e,n[" rearure saves you tbe ,,~c;ys[t,ro~~es 0" entenng u e :new ,staru:ng

, nd - ~ d'iI" _. .'~ 'd-

a,!],,, . 0:0: J,ng penoe S~"

, "

If you, ,S 1,0 r'[C,1 recall, or ,perfor.m an,), other calculations durlng amortization, pressing 13 will. ,D,O ]o:nget [tycl'B tbr,Q'u.gh i.nt[eres,[t,' principal, la,'nd balance, To rcsu:me amortization wit:h~the .same setof periods, .press ·fRtfl..l

·.·.0[.··.

!.!!" ~

iii. 11" ·,v'_.' '[I':' - ," -, r'" -II'~· - - ",,- - c·· .... ,,- I" - -I ~IU-: - "." ~. , .. i .• e ' .• lII'e [G"oner : .. :8,OIU:"Bion.

'~'=;":-I'~lp'~,:I'::-:~: ,A':-\.:mla~:-·rI; 1_:.'~lz<·'I-iln:~-1 r-' '~:c -'n-':I~ ~:' ~- '~·'I··-: 1;···~,'~.I11~ i -:~-(IIII]I-':.-!.- :-"-'.r.lU-,-;iI-I'~.'I,;.-1 I~~L.··~·

,~ ••• h,_ !"'!Hle e- r- _ ..... i!!I ',' ,~".I ... ""._. _. '~h~ _', ""'_." '---,' '.' '. _""',,_) U,. ..' ," ". ,_. __ 'J~ i!!!l ',~ U:lv,~1 ~.' . ,.JJI"

l'~~ , '~~ l~· :;~ .. ::f~r'li=~'-\") I' "R~l"i;'nl (II Im-:- ~,::;ni~rl·:7:'i":liiIi·t'[I'nR-~'I;~;h-'..a:IIU-~-I·la ',Ai[, l-'~" iJ'\,:--~1 . j' __ : •..... _., _iillIioII~

,,~:lp- ,' .. ~ •. ~~.... '." !ldl~I.~ ' __ 11' •... ~ ' __ ,,)~ ~")l~ .~~r'JJ~~.j · .. ·--·UU.~ .. ~I}~ ~)Vc-.l ',_. I~"'~ '-'I

:~~,;-'or .. ,,_~-,:;~, IJI C:)~~;/S% '_ "o,n,"(t] :in'i:':_';:f1~; ',' '.1.'1,'& :mIOIJlbl,: ":'o,~iaai~L

l_ ~ l_~ i_I [II l!!!Ih!l!!I!t!11!

:1:1 i '~,,~.u :.lr~a:cI,""'~~LD; ·W [I,h,,~,. :l1o.rl~ :',1i~' I"Uym 'co'l: 'II '~"'~ :UJ ;: .• WDI ,:~':l'nl.::,~~'r Iljnrd: ,_l~'~~l ;~t li:o 'I,

~IJ II -e .~ lt~ l_, .p. .,' l_,.

:1[,(,.' YOII~:IIO(i::l I,b,~l l:"h'~:~i (ClUlr v,a:lue:·'\~ ,_<:>, ,1 •. I:nl/~" llh:? ::~bi' ~~, '~'~c~~~:r'(Ij

[P'IE'I~ 'I ... '1"!,2 I;nl:

- 7', ,'7'71\t(-:,:2

:,"'''':':'31:r

. l"~, .i)li;i;.

l'_::'. '_' - •• '_'

Ii]

[Pllin

_" ". '1116~ ',: 7

lbA·' .. ···:··'··IL"·'

" .

' ..... -

',~'-= .. - •

'lp"aYll~' ',1il'~Dlii\~<

I.~ U,r J._- J'._ l_l,jI!lL. !Ill

,_) _'

(;'~'U'· Cor .' ~:, '''''I~;I'I-:'M.:~r ,:;-, I '-:-~ 'r· rL~'Ji:iI!Prl_

,~· .. I,-.·._l.~. ,~_.~.,~~~,)l.,_. -,' I,,' -,_,,} llj~~Jill!'

...

i:'i:"D, ;:-r~ ~._. nr~.,'~~" "'-:"n-~'~' ~~t-~'II,--,.

.~!Ii"I·I .. ","-- iI)!!- .,."'-..,,"_'_I'''[AlIU~ .

O- OD'~'-"'-""

, I

.' . , .. ,

~'.-j'.~.

Amortize the Ist, 25lll" and S4tb p,a'Dlcn'ls,~

'1' IINPOT] ('6M,gBJJ

1~OOI

:P:Er '1- 1

lInt

O~OO'

Prfn -310j,42

;b,Al 13~939.,58

,2,5~OOI

PEr 25,- ,25

;Int

902-1

...... ,t

54 .DApuf)

~P,r:ln

-2- -2~-- -0 2- '1~

. ".[jl [

bAL

9. 193't28

,54,.001

Int -20'iO,5

,Ptln ~290j37

bAL

l' ,B'01j57

. - - ~

Bnters first paym en 1,,, D'ispla.ys ,amortized, payment period,

Displays, interest,

Disp~ays, rirst principal 'p,a,ym,ent,

Displays loan balance an~er one payment.

Enters payment to amortize,

Dis plo'-ys onlortized p"aymen.t period.

D'ispls,.)'S i:nt[crest pa-id 0,:0 2S1,h, paymlcnt

D[ispl.a,Ys principal paid [D[n 2S'rh - ~,aym~ c:n~'

- p -~- ~~"I

Displ,ays balance after 2S'lh payment"

Enters :p,aym,ent to

,iI

amorttze,

Dljs,pla,),s amortized pa,ymcnl period.

Djs,p1ays interest paid on 54th. paym ent,

Displa,ys principal paid [OD 54,I,h p[,ayment

Dis,pla,ys balance art,er S4-'1h payment,

The Interest Conversion application uses three keys:

I'IN'OM",I, l'[fFF%I, and ,~ Tb,cy' convert between Dominal and annual effecli'y,e interest raees, No,:minaJ and effective interest rates are described on page ,47'1

,,0 •• '.0 [iODOOO

~ 000 [! o[elc·

[ cleo coo oeo

If you know an annual nominal interest rate and )'O'U, wisb to solve for th,e corresponding ,annual effecti've rate:

"I. Enter- the IJomin,al rate and press IINOM%I.,

z~ Enter the number of compoundieg periods ,aD,d, press .lplYR)~, 3. Cal culate the effective rate 'by pressing IIEFF"J~

To calculate a nominal rate from ,I known elfect:i'vc rate: t. ED'ter- the effective rate and press [ IEFF%I.

2~ EDter the number of ccmpouading periods ,and. press IP/VRII' 3. Calculate the nom~Qal rale by pressing IINOMll~,

]'0 the TVM appllcatioa, I~NOM"I and nlY-RI share the same register, Interest conversions are used primarily- for two 1)pCS [of problems;

'.' Comp,ar-ing investm,ents MI'h, ,di,ffer'cnt compounding periods,

• S:olvin,g TVM problems, where (be payment period and the interest period differ'~

lE'.ample:: Co[mp'ar'I'ng Ilnv[est,m'e:nls. You are considering lopemug a saVings account in one of three banks, W'bi,cb bank has the most favorable interest r'sle?

YJtSl B,an.k Second Bank TbirdBaDk

6~70% ,8onlud 'm,le:rcsC;. compounded 'qu.arte.rly" 6,.6:5% annual interest, •. compounded m'ontblYI 6,.,63% annual iDtcre5I,., compounded 360 (i,mes, per jear,

F'llrat :B,.nlc,~, K.',.,:

[DI.p'I',I,: [6,.'70

4~OO

St10res Dom'in.aI rare, Stores quarterly com, .. pounding periods.

[C.dculatcs annu al erredJve :ra~c!!,

6.87

6.65 INM) 12 .'PlY,eli

6~65 12'~OO

Stores Domin,al rate. Stores mo:nt'hly eompo,nndi n,8 pe riods"

Qdcula,'1cs annua] [e(fec~ive rate,

6~63 360~[OO

Slares no,:minal: 1.[I[c",

,

Stores, co:rn.poulldins

periods.

CaI!culaI CSI annual e:rrccli.vc ral CI

'21~ ~

The TVM apP'U[Cltj,on, assumes, tbal tbc compoundi,ng peri-ods aod 'the, p',lymcnt pcrhJds, are the samCI Some loan inslan~ m,enls or aYimgs deposhs and 'with-dra'walS do Dol coined,a 9litb the b'IDk"s compounding periods, 1'£ the :pa'ymenl period dilfers rrom the compo'uuding peried, ,adjust the iu[lcrest rale to m,ltell, the 'paymeDt pe:ri[od, 'before so'hUg the prob:lem~

To adjust ,an mlercst rate wben 'the compo11D[ding, period dirJers from the paym,en.t period [com:plete the foltowiD,g s'lops:

1 •. Enter tbe aemlnal rate and, press 'M·. Enter the number or

cDmpoundil'B' periods in ,I year and press . . I. So~vc for the

effective rate by pressin,g ~

2. Entc:r 'the number ,or p[ayn[11f!/1'I' periods in I yea,r and press, 1Wi..~ - ...........:i ... '1

Solve for .he ,adj'usled, nominal raCe by' presslu,B, ,[ I

E .. :mp'l ': M[Onl:blJ pl[.ym:.'nl.~ •. , Dilly Compolumllnlg., Starting today, you m,ak:c m:onlbly deposits, 0" S2S to an account ,p,I'yiDa 590 mt,er1csC, compounded d,aUy (using, ,I 36S da" year). What wiU the balance be in seVCD y[ears?

'SI.p 1" Calcula't[e, the equiva1:eDl rate wilb mO'DlhI.)" 'compotlDdi.ng.,

K.,.:

5 I:rAC>Jit1i:1

,D.fICiril p'I,lo n:

S'[or'cs nomin,al perceD[.agc rate.

Stores, bank's compoundinS periods, pe'r year.,

Ca:lculaI1e5 ann ual clrce'iYe rsre,

Sto'res, mo[nth Iy per'iod.'ii Calculalcs [equiyalent nominal per[ccn'tage rate

for mo'a'tb~y eompo,'UmdinB~

Since NOM% and: ItyR share the aam,c replier, this value is, ready for use iu :thc rest of ithe prOblem'l

Displ.y:, 6100

1;2,~OO 5,.01

'~~~. if annunciator is not dis:pJayed, Stores present value. Stores pa.ym[cnt~ Slor,es Dumber of pa,,~·

ments per yearl

Calculates balance afler 7 years".

S,'I,.p 2. Calculate the rUl'u.rc value .. Set to Begin mode, Press

:Q :-

~

25 ~ IPMt) 7

OJ'OO -25,00

84100

..

6

Haw to Use the Cash Fllow AppJ:ication

Tbe cash no,w' apptica'lIOD is, used 10 5D'lve pr:o'b~e'ms wber'c CIS,h flows ,occur' over regular iD,te'fwal:s but arc of Y8ryi,ng amounts, You [tan also use cash flow calculations :['0 solve plf'oblems Mlb regular, equal, periodic cash flows. bet these silu,olio'RS, arc handled more easUy using T'V·,M.

:0.0[.,0 . [.1.1

_000 C 0 Ieee

o Do,e ceo

In general" these are the steps ro[r cash [low calculations on the fIP',~10IB. 1. 'Organize :your cash :£loYlS OD papcr-a cash :l1ow diagram is userut. ,2:~ C'lc81 the registees,

,3,~ Enter tbe number of' periods per year~

,4. E'Dte"r the amount of the milia! investment. 5. Enl'er the amount ,of the next cash nOWt,

8. If the [amo1unt entered in step 5 occurs, more than [once c'ol'I's:e,c,,,.[tively, enter the number of times it occurs,

'7 II Repeat steps ,S and 6 Ior eaeh cash (Jo,w and group,

8. To cal cul:atc net prese nt value, enter the annual interest rate B,nd "

press (I/Y8.); "ben press; ~, O'rJ to ealculate ,annual intern al rate

or "retum,. press 1 I

EXlmple': ,A Sh,Gd 'T'Irm Inv.stm.·nt,~ 'Tbe roUowi'l,g cash now' ,diagram represents an investmeot in stock over three m,o:Dths,~. Pu,r[ch,ases were m,ade at the be,gi.n.n.ing of ca,d month, and the stock was sold at the end or the third month, Caleulate the annual internal J'a:lc ofreturn and the monthly rate of ret urn.

'1

oJ

I

: ,

" ... ' ~ IOO~'O 00 .. ·· .'.

'. "Ut·V~ .•

U~A:lj·B.J

[~; 1··2·····1~

. ~'" .. ': ' .. ' "~ .

2

. -

OI~OO

. ,. 2'-", 00 .. •···· .- ..

II : iii'. .. •.

CF:;'O'"

w1 ',_',

5~(]OO~OO

0[---=-'2'-"

[ l~:"" .,:

~4'-, ·0·: .. ··00-:-···-:-:·· "0-"'0-'

~ - ~.~ ,. ". --.

[

[ .

" -',

F· '1-' ~ _. - . "'. ~ .. yt.

• ••••• _. , ". ,".' , I

.:OWS pa, , '0 ,~_.

a', a n;itli'g:- 91··~v\·

:':' V ~: wg.:··_.~ ... ',_ ,",'[il

Clears : ~[, " e::jist~,rs~.

'._. "

-:- teres periods. per year, .

.- ., t Ii! it e it [I "1 n:'-'

cnre -. 'Inl[l'ti~1 . ~!:~~ '!II: : ::W

, ," f .. ·. , '.) ,t_ !Ii ~ _' I"U, .. ' ;;;g,. ... II; _ ' .. ' .. " '"

,~[ - .·is·p,:lays cash Ilow , : :-r'ou:p' o·u.!··_.b .. , 'whU:.·. ::' •. "_.0- hold down .' c~ .1,

: '<oters, 11::d: c:-,sh".,w:iII

,.'; "':'a' ;1·· ie. -.1 e'll-'ntii" .. ' .. ' . .- . '-I ,,;~uJa;~ .' :nnua .

nom 'i n 0:1 :ylfdd'l .

,M:onth1.y· yield,~

'Wb n 'a- '.:' ". h nw ii:~ ·d·-:·Ii ~. :.':- .-( (- •. d ~ .. ,,11 "1" r .. ,~(-:.- . f ' . .-"-" -··t· :.[ - .•. "':, '·-_,--'rt.. -. -:'.

~,'," -'. -' ..•. ':'" ~_>~, ~'~ . ,a~,~,LSCDU· .c·; .·.·.: u. ,caICUJI,a._·e .1.5 presn. va~u :,' '.'.,' ncn,

'm'll-:l-"I' _e ~ 'h' ·r··1 W .... ed-I, -." .. - - ., ... d,e . ... . ···--I[ e - ~ -~, .- L. .e_ .. .e. . '1.'- d,_~;,_,U, ~p_) easn :: .~~8 arc: 15·COU.0 "'_.,. ,Y'~u ca.ICUrL [. :-' hIe present 'YIJhUS an '

.-: d "'d-j th ... to - "-"(-':h': '.,~. .

,", ... '.' .:. [' [ . ,'. I,' ..

.~ ~. , -, .. ".' , " ",f ..

•

:-.~ •. c r •• ·xa:mpil~-,in the 'rollo'~:n ":. C'_I;. ,Dow' ·di,~:'-':lm., .. the :i.:lilial ,JI'-h. fl'w is.

1 [._ ~

,_ ,S:'I i,IOOO. The .D~xt~-,rou;· of eash Hows, consists ,of six £1,0'\1. of zero each,

foUo\ved 'by I, :-~ ou: of three ~-:'i ,~: .• ' •• , ~~a5h. fl>.': ::,t The : inal grou Pi eonsi sts of

O •. ······.D-.~ .'~'- .O-aOOO·.·'l-e~,:.e·lb-: 'O'-::-!,o:·w· .

~v. .~ ~.~ ... '.. ~'~~ __ ' '.'- "

Wh'D ~VCl' you enter ,B, series [of cash Ho'wsJ i:( is importa:nl (0 ac ount ror

,every' period on the eash flow' diagram, even per'mods, with cash now,s [or ODD rOFJ~

7~rOI,~

CF 3 a 10~OOOm N 3 ~ 1

. .,

6

10

1

'7 . ,8

9

,

II! ,", ~ - - [Ie. E'Dt[er the cash flo'WI, f: 'om the preeedin diagram and calculate 'the 1RR/YR. Then, ealeul te the effeetive int;erest rate. Assume there are 2:',~ riods er 'Ycar~

00'"'0'''

I!!

t2~OO CFO

.... 11 i[OOO"OOI

Cle ars all : [egis'L[, rs,

~~.

Sels:.lP7VR~[ to 12~

'n'lers initial cash now'~

I "Jsp'~a:ys cash now p,oup aumber for as long, as, you 'hold do,,", C -: I "

Eo,' ers first cash flo'w group amount,

Eulers number of

li!ti

repel I 10nSI'

Enters second cash now group amount,

nters numb ':r of

Ii; ,..

r,eJlel~t~ons~ ,

B:n~e:r's [In al cash fIOW't,

12: (PZYR]

l' 100·0 r.;:7'"1 ~

ll .... ~~

O rrqm l!!ElI

CF 1

O~OO

n1:

6~OO

IC,F'2, '1'110001,00

n2

3",00

'CF3 101000~OOI

21~22

Calculates ,annual aomlnal yield I'

: ~"~'ing Ca, ~ '- .~ ~ 0 ~. '~ ,S toooo ([FII

The HP~10Ba:n store an initial cash Ilow :p)us 1. addltlD~.al cash Ilow

, roups, Each cas). flow grou.p can have U ,', l ~ 99 C'8 h flo,ws" The casb r~DWS, are tored j n re .is'lers R t 1rou h R9 and 'R.o l h, ou II R.lt,,, En(. ".r ash Ilows usl n th foUo,\v:irl II ps;

1:. 'rcss, 'C: ~ EAR -ALL' to lear ('11 . re - is ' s,

~ ~_. '~'n r tb number '0£ p ri ds pier y,ear anc press i •

- [. Enter the m,Otlnl 0[' the init·ial inv stm nt, then press [Cli]~ (Til. ('1 ,. suu d·· f r the . a i flo'w ""11,1,.,,,,11 ~:r/~ I ~ tr ugh 4'~)

,.~, -~ nt :r:( h . 3,:nl,OU n l of 11'~ e n "x'i cas, '1 rtIO,\y ,8 nd press 'CF "

'., lr the am unt eut r d instep c rs, mor than nc c,f)nsecutivelj'"

ent r the numbce ,r times h occurs and press (:NJil'i

'~ Rep ,at steps Illd 5 ror nd ! 'uoln an cash nO\~

have b en, 'n' , ed,

•

To \~ew' a cash Dow' llst ress lb. rouowwS': 1., IOL, ' 0 to see tbe in it ial cash no-,w,. 2',.,II:tJ::t::j [c:I:)1 to see the DC flow.

.~'~ (R(~L1 to see the n umber of times the, cash flow' ocen I' ~ i

.

Repeal st . ps 2 and 3, until aU cash flOws are f'eYi swed.

You am aJsCI view cash ,flows mdividua11y by pressing ,'0 " Iellowed by ,I register number, Register numbers coincide wit.h cash llow aumbers, -'or ex8'mpie, press 031:0 4 to see cash flow 4'1 then tRCO :N: to ,51 e the number of consecutive oceurrences.

T--'o······ '''''1;10 pl a . t"iA a" ~H;S' 'b:·' D'·· 0'" ill_ill' e D" t\i\i.'r·· tLc" A "'W'" iIi'!!"n ;r!'h~ flow ft n' d·" p .. n,~,~

[',"" [~"";[~.' :,~ ~" ••• ~'~ • : •• ', ~_'~·'I ',.', ! :"_ < :,i,.. ... 'l [.'~ ~:_~J. .. ~[_; . ·,U .. '~01 ~.,1~ .~ I~.~., _"i. ,'_ .' UJ:: '1,_ :.~'.~ ~

foUow,ed bU th e easb ,~O"'\Y (re •. ~.·~i~,t:e·:_,·~)'·., Dlu:m.·I.b-':, " .~. -- ... ~ ,I .-.~ .. ~U tl ..r IPS r ..... --.~ ... er,

To replace the number of t imes a .pi)'r'l i,cul Dr cash now' occurs, lB:CLJ the casb flow whose :n1J:m,b~'r of oecurrences will cba.n"t Then, enter the

number of times it occurs and press .. '

Since cash ,n'ws cannoi, be deleted o,:r i.Dse, led, usc·I::C~E"IR _ AILLi 1:,0 " ta'rlt over.

'The net present •. alue (NPV) function ls, used '~,O discount all, cash Ilows 1.'0 (be fronl of the ~,im:e· line using ·8;0, annual nominal interest rate ~b8t you S,UP',P ly~.

These sleps. describe hlQIW to ealeulatc NP :,

11 p'" .,'" ". ,I'~C' ·L·~A·· "'iR'" A' L~·:L" I,· . . .... nb ... r" ...• od .. - .. _ .. '!II. p·'·'I··'-YR'~···'

I. '. ',ress- ._ I.~ __ .. -_·._._:_~_ '.h ,,' to,., l1,um ,e:[" .. :p:r:IOJi per ye,ar Ul.·, ..... ,.:':,.

2.~ :. -;:'nt,er I:'be cub 8o'm 'Usb),g [CEll and, I~Nn~

,;.~ Store the annual nominsl interestrate in. ·'IYR and-press [NP'Vlt

,--:,~·,m ·:1':: : .. ~: ,Dl.:c ,'g,nle '.·0:1,1 .cl, U.-:~/·,n ,e '~, .. : Fr',:',: .'. You :h,aY .' an op.po',rlunii'Y· to pu .. chase a c;o':nli: ,tU!Jt with the rol~o,Ylin,.·. cash rlows~

End :.··~··'f· ,' .. '0011.-:' . -. A· .. :ou-::'I

4 · ..•... 00

.,') 5,_·. .••.. ,,00

10 :S 2j

. -7'" 5' 00'" '00"'"

" . '1: .. ~ ,

. J.I .

: ,,~ 'c· ,...., .. .. :1'0 ' 'C' "lliiiIlifc,u 'I-IJ D n·· .-

.. i!i!ll .... 1 .... )'~:'.;,J ..... ~ .... , .... Ud!_.J.~ .... ~._ ~1.1_1._ ..

~/YR: :~ 15~

5,~".'· .. :·.··.·

~~

. " . ..

~., .. ~. :... '.1

I

K· :. y,., ,~

:', .

~ - - .': . OJ.

D-·· 'is' :.·'91".,:!IIIi

11_ .. Pi. tI!I

. . .

I '; :Ole-AR ALL.

'12: o (Cf]]]

000

I". "" .

1.2·' ·0: '.'0: ....

_ .. t ..

C· F' '0'

, "~ I

. .

0 .. 00

CF " O,~OOI

n1

3·0·.·.0·'11

Il." ..

CF2

5: ·010': ·0':· .. 0" .·0·'.'

'_ I!~ '.,,". ,'. ,','

CF' '3

: : .~.

4

:5000 [OF)]

2·

, .

n· .. '

. ,I ' .. '

2 .. 0'·,0···

'~'. ,. ,

10" 00'·""'"

':'" ::",' ", "1

'.' ~. . ..:.

• 1 • •

I

I ~

25

De -:crlpt'l:on,:

CI,c· a fS r,~ ~ is:'-,,, rs,

_ .. ~ __ t. "v ~_ """"" ,;;)._

,Enters in i,l. ial cash ,flOIW or zero, Th '~. cash ,now number is displayed as long as:O'IJ bald down the l~e,F'i·· .' key,

.~ :'-11 t c .5, n., s:l. ,.- a~~,h rlo\y i

'E:n.te'rs· num be r of oeeu rrenees.

'i·:n······ rs second ,~,'"lII .:. n,o"w::'

1_" ~ j,,. .. I ~_, ~!. ", '\.t.. ',: .... . _ ('_.f~:. ~l II I~.I.' '.' .' ~

:1 ~'n'lc s number 0 r oceu rrenees,

EI .... ,(': .... "., e .... rth c 'h' 'f·I'", , ' .. n .. ers ,lour_,n cas, ,;1 :·ow~.

Bnters number of .. c-· ~.;, .• r r C" n:' c··~'~

"'~ _·,_.·:l [',:: ,."[~iI!

1'1'.· .~~.: C. ': -:~ '··I~A··· .C·· '. te u·' ., iIIit',...:, 0·:,4:

. ~ _ .. , II " v, '. ". . ,,'. II ",.. _ I

OF,S o.eo

n5

41,00

e1F'6 1.,500~OO

CF7

IO~OO'

n,7

9~,OO

C:F8 '10~OOO .. OQI

E:DI"(~"rs aumb r of OCCUf't'c:nC'S,t

-nter,s, sixth cash ,Ilo'w.

Bnlers s ve,n('h easb now~,

mers n um er of cccurrences,

E:nterl next cesh now'~

9 lWJ

10000 iLCFJ)

he cash nOM tbat des rib _ your prospective in,' estment are now' :in t'he callculato I au am press _ ,C:L 0 roUo'wed, by -0:' ~_ (Of]) and (Bl!;D

,epea' dly (0, view the easb n'ows and number '01- Ita'mes, each occurs.

Now' that 'you have entered tbe casb H'Q,VIS, store tbe inte:rest rate and calculate ' he D t present value.

'ey- ::

.

1,51~ZrAl

Stores annual in terest rate,

C'alculatcs net pres -'nl value of stored cash no,\VS~ (See roundin

examp~e on page 58.)

Th:is resu It shows that i£ ,you want ,8 yi ld of 15% per' yea:r-, YO'u should p,a,'

, -·7,.199t,9,2, for the coatraet, N tic _ thallhis amount is posit""e. The nel preseot value is sim,p[y the S'- mmed (or net "cd) value lor a cries of 'C8s'h flow 'when they 11", discountec , to the front f the 'lime line,

7- 330···· ~A

:JI'" ,~"~

6 22_··' '. - 95

: •• 1 ."'

- I '. _ ., - .

1'% 15 per year

7~5'ODJ)O

1

7

9

11

3 1,5 17

23 25,

- ..

..

, t·,

'e,_'U:rin

11~ Pr'e5s-,L , store number ,DC periods per year in PIYR,t 2. Enlel' the ,caS'hl nows usJn,g (gE'jl and (fJ]]~,

3., Pr _ I[R,Rl'Y[RJ~

. ~

When _ ou calculate lRRIYR~ you'. ellhc annual nominsl rat, that: dves

_aA·NP,V'ofzero,.

T~e' following exam,ple, uses the cash ,nO,\Y5 that WC,f'C entered :in. the pr,eVi,ou5 exa:mple,~

,or than one IRR/'YR ean exist If'you zet the no ,So~lu1'lon m,cssage see, App,end,ix B (page 27) ..

'Ex'- mp,le~ If the seller of th"e contract :in the :re'vious example wan.ts

,,~'- OOfJ and, you ,a,ccept that price, 'wbat is, your yield? Ibis is an, lRR/YR caJculalio"n that r 'qll.~:res ,I, 11_ ht m'odUlc8'Un to the eurrentl stored. cash no,ws.

5000

' I

t "

,5:'1000 ~

7..5iOO

,I .

IIRRttR iii ?

2SnAn

"': ' 't'VV4.}

Ky.: 2,8000'~ I:[[RFJZYIBJ:

I, ~ ';p'I's,y:

~..., 01 '~2,8.0D'Oj,OO

1:2~,4'9

Changes iltid,aj cash flowl' I _ alcu Jales annual nom i ... nal ,yield,t,

More examples, (hat use NP'V' and IRR/'YR' ealcula i us arc given ,in ehapter 8J, "Additional E'xamp[es,i,t

~,/y

~'Wben you calculate NPV~ the result is, stored ln PV Io your convenience.

To recallthat result, press, 03'CL] -[P'v)" If'"ou haven't changed the - VM

- alues rr'om the last ,exalft:ple U,SiD'", . '1'V (pa,ge 82)J 'w'h-cn :y:ou press ['ACt.) LP~y) :lbe result is, 211199',~'92,~

Wben y,nu calculat . IRRlYR1, the r-esu,]:l is alsost " d in Il'YR,~ For Ihe p:reYious exampleJ, press [I R C Lj II/YA] to display '( he an.n.uaUzcd ~e 1.d, 12~,4'9"i

" fi:o' 'C 'cul',_ d'OR:

~~, M,ca'n, and t.and,ard deviatloa. ~~ u nea r regressio n st at 'i 51 ies,

~- Li nc,a r- est lm at 'i 011 and r orcc ' I:i n _-~'

W'ci,ghted mean,

• Su:m,l1\,alio,n statlstles; n, IX· n:a'I' :~, ~ ,aod Ety.,

Clea r the s,[l arlst ica Ire,' 'i.. tees bef or 'n ~ e ri ng new data 0 111.:,1 R4 through R, are zero when ,you be' in t, ] r you don't clear I he r'c gist C fS'J d ill a I U r re nl 1y sto red i.n R, I th rough 'R 9 is, au t o ..

m aJi co ~:Iy' i nduded in t he .su.m m. a lion ealcul ations, To clear

the stat ist ica~ regisl e rs, press , . I ~ The display i,s a'i s

cleared,

There is D,O lim'it to the, number ,of values YO'D; can accumulate in the

~ I • •

statistical regsters,

To, enter'x data lior one-variable stat'lst,ic.s, complete lhe 'following SI,Cps,: 1. Clear the contents of Rt through R9, b1y pressi.n,g II[[:L 'EI,~

,2. Enter- the ru,s' value and press [l.)~ The HP .. I0B disp]ays n, tbe number of items accumulated,

,a,. Continue accumulating values by entering the numbers and pr,essing

• '~I' The n .. ,v,aJue is incremented 'with each entrYI

J _

1\"o~Varl'abl:[a Stal'l,stl'cs and 'Weighll,edi Mean

To enter ,%3 pairs of statistical data complete these steps:

1'. Clear' the contents, of R4, thr[Qu,gh, R, 'by pr,esslng ~.' . ~""

•

2. Enter the Ii rst ~~'-v,llu.e and press [! [Nt - :UT .. 'The HP-IOB, disp'~a'ys, 'the, ~

.r, .. value and (be :: annunclator ,appears, in the display,

3. Enter' the correspondiegy-value and press It+l~ 'The HP·'lOB disp'~a:ys n, the :number of pairs of items accumulated"

4~ Conlin,tlc enle'rlng,x'3' pairs, The a-value is incremented 'wilh. each cntryi'

To, enter data for calcu.lating the 'we:i,gbted mean, enter each data value as ,x, and :irs corresponding wei,ght as y,.

,. II ,5unistirat d~,ua, C8'Use:s the wi ue or '. rc,gistc::r 10, cxc,ccd :t 9~'99999999999' x Uti99~, 'l.hc :HI),..,10B displa,)'S D l,cmpof8'ry ~dlow wamin,g (O'FLOI)"

Iaeorrect entries can be deleted usi"n,g • If either value of an XliV pair

is incorrect, you. m,lls,t delete and reenter 'both values.

C:orrecl'lng O:n~Vari'a,ble DB,tS

, To delete and reen ter statistieal data:

1. Key in the z-value (0 be deleted ..

2. Press I[EJ to delete (be val ue, The n .. v'a~ ue is de ceeased bY' 0 ne,

3. Enter the correct v,aluc us'ing, I!+I~-

ICorrectln,g Two~V,ar:ia,ble D,ata,_

To delete and reenter XI" pairs or statistical data:

1., Key i'n the x,,,'value, press UN p:u,rJ 8IJd then key in _ the )"-:valuc.

, , .

2:. Press to delete (he values, The n-value is decreased by DIU::",

3[. EnlCf' the correct xJI 'p,air using n~filPUT] and li±J~

7: Slal,stlcal taltulaHons 87

Some funetlons return two values, Tbc : annueclatoe indicates, that two

values have been returned, Press A~ to sec the hidden valae.

D.8crlpllo,n

A1!'Hhmetil'c mean (av'er,age) of the x~valuesj' .

M.ean of ·t.he x~va[hJes wel·g'ht.ed by the' y~va~uesi

.Mean [(ave:rage·) [of the ,y~valU'e's iI' Y[QU [entIB'red y-da'ta,.

SampllB st:andam d'8Vrlatlon of ·th[e x-values",·

Popula,llo:n standard d[9V:IaUoln o'f ·th e x""values,~'*'

Sam,pl,s ,slandalrd: d'evl'slion of the· y ... va~u:es 'if you: entle:red' y~a'la,!,*

Population standard deviation of' the y~va.[~ues 'If

you s·nla·red y~ala'i'*

Estimate of.x for a gh/en value ofy,

Correlat.ion cosff I c~:e'nt·f

x~value,

[I~

o 11[jJ"ml

Estimate of y tor a g'ive·n value of K~,

y .. fnterc1spt (lb) rOlf the, calcuiated II ne ~

Slope '(m)1 o'f ca,lcula,tled Unel

,SI'ope [(:m) of the ca[l!cu ... tated Une' ..

* The sample standard deviallo:n ,aS8U"'~8 that the data II a samp1ing of a larger. complete set ct' [data;, The popufatlon, standard deVliatlO[,n assumas 'lhat the d.i. eeeslftu1es the l'nUN[ popu~all1o"tO

t The' cattela'lion coelf [ols'm is s, nJUmbe F :1'lr1I, tha' range _, '11 throug,h + '1 ,that me',aS:UUI~S how' closely the da'la f ita tna caicu1at,.,d nne" A value' lot' + 1 rttdiCaie8 a perfect poshive cort[alatl1onlt and -1 Indicates a ,parleet: ,negative coue'~tion'! A value close to zero Indicall. the Un. Es ,8, poor fiit".

~ .
Key. I Da'lctipltlon
[
[R.[CL~
,4 (n) iN:umbe;r ,o·f data poInts entered,

I:R'Ctl 5 (1::<) ·Sum o'f the x .. valu ss. •

II-R,el) (Ey)
6 Sum of thiS y~valules",

IR:CL,I ~.)
7 I, ,Sumi of the squares of t:he'x~va~u,es,~

IRCLI 8 (DI) Sum of the squares of 1.he y~values~

IBICl,I,9
~) Sum [olf the products 10,' the' x- and y .. 'values.

-- - - - - - --
~ M[8'8'n" S'tandard D[levia't:'i[ons'i and' S[u'mlmation S,tI8'I'i,s,t'i',c:s[

You can calculate the mean (xlI sample standard deviation (5.), ,and population standard dcvi[al ion. (a z;),. and sura m a'iion statistics, D,. Dr, and ~ ofx-data, Fo'r.~r3 data, you can also calculate the mean, sample standard deviation, and population, st,and,ar,d deYiati.oll of the j-dara and :the summation ,statistics, 'Ey', W. and Thy.,

Example, 1~, A y,ac'l~t captain wants to' determine how long :it takes 10 change a sail, She r,lodomly chooses six members of ber crew, observes (hem as they carry out the sail, change, and records the number of minutes required; 4 .. 51, ,4, ~,3 .. ,25, 3.5, 3~75" Calculate the m'ean and sample standard deviation or the ti:mes'i Also, calculate the root mean square, using the formula VEtZ/t,I' ::

Desc!r:ipl'ion:

iD['isp[l,ay: '0 .. 00

Key.:

Iret %1

[Clears stat ist ieal

•

registers,

4~5, [t,tl 4[W 2(E1 3~25, lltJ 3t5 l+ 3i,7511±J

LUl IS'k,:SII

IA,Cg,7 [±iIR,cLI14

~

1i,IOO 2.,[00 3;~,IOO

4t'OQ 5~,IOO [6't:00 ,3t,50

o.es

E;nt[ers Iirst time, Ent,ers second, time, Enl,ers third time,

. nters rourth tim Ct, Ent,ers [i,Rh lime. E'Dt'ers soo~, lime. Calculates the mean, Calculates the sample sta ndard deviation,

Dj pla,Ys lJl2.

Displays ,1,1.

Calculates the root mean square,

n't,13 [61,.,00

35.91

[ ~I ".. .

The standard deviatio,ns, caJcul,a,ted, by , ~, and,

"~~. ',~, ItsWAPI are the sample standard deviations. They assume that the data, is, a ,s:3'm,pli,ng, of a larger, eomplete set 0:[ date.

If the dat,a constitutes the entire popul atioe, the true popula-

. Don standard deviations can be calculated, by pressing

..... (,u-·xiiliiliiiiii:"Q"'iiiiiiiiiiii,iiiiiiiiiiiJi,:.I ,and; j] S' .•

E'.' - 1[[ .' ,2'1i The coach has four Dew p]:ayers Q'R the tea'm with. heights of ~93,.18,2, 177'J and 18S ,cenlim,eters and. weights of 90;1 ,SIt 83,; and 77 kilo .. , grams, Fmd the mean and population standard deviation [of both their . helpts and weigb,ts" then sum the , .. data,

~CL II

'I. ,p '_, :

OI.O~O

Delc:rlpl,lon:

Clea rs s,( atlsti cal registers,

Enters 'h~:ight and we'ight of pi ayer 1.

.nters 'hci'ght an d. \veigh t of pl,oycr 2~

Ent[crs beight and welght of player 3,~

Elllers height and weigh. 0'( .pJa,ycr' 4",.

Caicuiales melD of' beights (z)~,

Displ~ys, mean of 'weights (,,)~

Calcul~les population standard deviation for b igbts (x ).~,

Displays, populati,oD s,taodard dcvlati,oD Cor wei,g'hl:s (y)~

Displays, tbe total of the

I,

.Y s,

,4,.71

nmD!6

,331~,OO

'Linear regressioD:t is ,8 slal,is,tical method for esrlmation an,d rOfccasl ing. It is used to rm,d ,8 slr'aight line t hat best fits set of,x,)' dala. 'There must 'be at least two dllTcr'CR'lX3 pairs, The sl:raiglll liRe provides a rc'~ali,ons'hi,p between I be x .. and

" .. variables: yR. mx b, w'hcr'c m is the slope and. b is the '=====r::!J j-intercept.

ILt'n -!r R - gr, - - - 10'_'_. Calculate m, b, and r (the correlation ,coefficient), in three steps,

1., Euter tbcx'J' data usin,g the mslr'uc:lions OD pa,ge 86,1

2',., To display' b (the,y .. Intercept), press 0 1[Effi)~ Then press to display m, (the slope of the tiDe),

Linear E'B,'t'I'malion .. The straight line calculated by linear' regression can 'be used to estimate aj-value for a giv[en,x,·vaJue~ [or' vice versa:

1., Enl,er (be x.y .. data usin.g the iost r'1!Jclio"D,S, on page 86[1

2'., E,n(,cr tbe. known ,x .. val ue Of' )''''181 II c.

• : To estimat e x r or th C given ,[, enter the j-value, then press.

Ittil,j

• To estimate y foJ"' the given x,~ enter the z-value, then press

I i'

E:X[II:mlp[l:e': 'Forecast:i:ng[., AU's Azaleas advertises on a local radio station. For 'the past ,s:b: weeks, the :man,agcr has kept records of the number ,of minutes of advertising that were purchased, and the sales (or (hal week,

~ ~ ~ ~ . ~- ~
We'e[k, .i'n,g,l,es ,01 ,A'd'v'eirl'i'li,n'g :S;.I'e':I,
~~:va'lu:e:.) I€y~,va~u:es,)
, I
~ ~
I' ['
W'eek 1 2 [ $,1,t400
[ :
I [
Wee:k ,2 1 $ 9,20 [
I
Was[k 3 3 $[11100
[ Week " 5 $:2~2'65
Weis[k' 5 5 $2'!B90
:
Week 6 4 $2:~200
~ ~ ~ ~ - , (forecast',s,d)

. ,/' . ,,,

. /'

" m: R 425tB8[

/' ,I:

."

,/'

b [-

I i

1,.:OOOt.OO

1:

iii].

a

5

6

-

7

B

4

Ke',I:

I[c'b~ Ell

DI'apI8'Y,: 0,.,00

Clea rs s:l a tist i ea I regi,sl ers,

E nters m 'i n utcs a nd sales for consecutive weeks,

1~,OO

1 UNPU'TI 920 IIi] 2,!,00

3, UNP~T) l' l' 00 '~' 34.'00

,5 UN[p:U,"1 2,265 [~:tl .51 IINPUT I 2890 Ix+,ll ,4 [NP.UT] 2200 i~ [0 1:[!irJJ~:

~t,OO ,6~,OO 6,~,OO 37[6~25

Calculates ,y·in(c recpt (b)~

D[~s..plays, S~OPC'I Calculat es correlation eoe fficicnt"

IrSwAI5)

;I[l,rl IrSWA,pl

,425,.88 [0--. ~,90~·- ~

"_ '1"_ _

Estimate what the level [of sales would, be ir (he business purchased 7 or' 8, min utes or advert ising,

'"~, Ii ~ '1- 'i'r"~ :,- :

Estimates ,sa cs I" -, '

~,!!'~ " , 'r:: 'd' ,.,Ii', iii, [

mmutes 0", 8:ve:fd1un,g

were pu rehased,

':;[~'n- imates sales 'i,r- 8

" ~ ilillill .... IIIIii#.!I._. ~ L .iii I ... _.

m ~ ; Jill utes 'we re p~' 'U reh a sed -

~ _1I'1i._::_:: ~~.~ ',: '~'" V : ~ ... _ -! _'l o __ II_';." . IIJ!l

81l!;m~J

' I' - ,

".' • J • ~.

".~ - - .

Ho '-W' r manv minutes [of adverti'sing'- should Allis buv to attain sales of

[" "/"~ _::I~~I,1 ._'_' _: l:'~-,:_' '_ ','_'_J '. " •• i._,I_ :.-: •. : •... [- '_' ..•• _J _._ .~)~ __ .. _ ~

S~-'3 000-" ~-,' .:?~.

'_: ,c, [:' ':' : [: r

:[ ': ",,__:,-:':,-', '!i'

30' '0" '0'" rn"":1r i I

',""',"" ~

FJ • ii' 'r

'."~i'!'I"I·m'·' "'I;~J~'C' m: un utes '0' ,

•• · r ' .-,1, _ '~II~ ~ gll.~ .. -, .. ,~', _~. '.:~ ... _j'.

advertising required fori

I,. '000:"" :''',' . :'" ~ sales

, _ :>. '" / .', I,n. .sa, ... _~[.

The rolloYlin,[g procedure calculates. tbe we.i.ghted mean or data pointsX:b

, . . . _., ~ _I. - ~.' ~ I h~" . ,''!! n 'b I"" "[ ," , '[

%2'. ~ !!' ~, x. ,occur,rulg WI.,_ : we,Jtyl,s')h Y2'~ '~ I!' , 1ft ~

1· U' \, r. 1'1, ~U NPu'tl and IE+'11 to e nt C,'I' X-'V 'p~ai rs ~ [Th C v-va 1 ues a re l he weiahts

'~I .·~·~,'W._.:~~.: .. ~.·I.I.,._,. __ , .. _._ .... r . •• ,-,-.~.[~ __ ltl:l···'~- _" "',J - _. - - D

( '-h 1~

r '~l, '!' -II t, :-IP-I~.I '.~ ]' [" .:- .... ~: ....

o [."c~r varues,

,,'-. p ~'SS Il-w]

.' . ',~ rc~ ••. ~. ; _'~r .. '. [!I!'

Ex : :- ~l . -I:. A survey [of '266, one .. bedroom rental apartments reveals that, 54, o:f (hem rent for ,$200 'p-,cr month, :32 for ,_~2{).s:~[ 88 .rOlF' ::~:210~, and 92 (or-

, ,

$21:6 .. W hat 'is; the average n"onl,h'l[y ,rent?·

Ke" "Y':-'"

',:. ". ' .. '

!II ' ,

, ·'·_:-,·I""_,·,· ,,: "'I~ - y" ,.

", -', ,: .

IIQ:l :El

,20iQ[ (IN,PUrl 54 en

SeUi_i[g[ a, S,ales [Price

o ne m,et h od ror seni n,g I be, (1 C r- unit sales price j s t,IO del erm inc I h e cost of product io n pe r unl I t and the n m, U Il.'i pl,.y' by the desi red rate of ret urn. ~F 0 r' I.'his metbod to be accurate, yOiU must identi.(y ,aU CD,SIS associated vrilh the

P[r"o: ' d· .. · ['u.· i~l:i

" . . "" Ii.!!,

The :roll:o\~ n.s C (I II a ( ion ealc ul a.1 es u n'i I, pr iee base d on I ot tI.~ cost and r a Ie

Of rC,!i;t·~~ u 'r:n.~:

~ ~'" , _, , ~ ~!II

'~"'C"'R' -·C··,,-~~ T:- -~O" ·'T· ~~, ·L C-""O''''''S'~'T'" .. 'N"U' '··'i'l-"'B··:E~··'C.R: '0' ""p'.:' ·:U' '·.-N····,'~T~' S~" C'; '1 +. (-·Dt~R~~"':rA'I~ ... '100"-':' ')")"

,P .. l:,B:::, ","~···'::,A,Lj~,_,,·I, TJ.!I,~.¥il.'·· .. ··fi!!:, .• _j.;. 1,:.:_I,_~I~ _,,--x:~.'" -.~ '_.7o.~,JI;Y 7' .... ,

E~ " .. '.' ~'[I: -, ·T·,,·,,··, ~", · .. du _,tt. "', n(lJlj ~[-, }' [t. -, ,." .. .., if :-:. i"'~ n ·000[: .' 'Y'~' '[n[,UI ·W'·· .. !ii '11" t~' :8'-,' '2·~····OJ()'_ ,. ...• "m,p[ [.. ." 0, pro],_ tH=C, r.."UUY lUll[,5" ,),(., ur CO~h. 1S, ~,..~ .. ~,~ .. u.. ~'. t;1" ,.. t ~ ~ I'Q

, , - ~d I ,iI J

rate of return, W l3l price shouk )''0'11 C iarge per unl r~

DI",:[p""" ·.,.,111

" ... '?": .. --.. [".!iIi

D 0'-"0'-'

I [:'" : ..••

Iii _".: ".:

CI,c Irs, statistics m emory, ,4' •• OOO·: •• ·· •. ·.····,O~·: f71

- I •• _" .' . _'._ l:!J

Bnters rOUf[I,h, rent and irs One method or forecasting sales, nl,anura:clurin.,g rates, or cx.pc.nse.~ is

weigh L . ,fe'vic win,g hi,s,t,Q,r:ic:'ul I f[ClI1 ds, [0 nee y()U have lds:lor-ica] d,~1 a, the data are fit

C· 1-'·" - 'f~· ... - - .. iIi ';h"[" -'d' to [I curve that bas, time on, thex .. axis and quantity on the ._"-, : .. axiSt,

atcutates WClgl_,_IU:·._ J

m,~a~l~n'l

.'-' _' . '.

1 00",,',',

, I· :

I • i@II' ._. '.~' •

'E-" 'r-'" '-' d[ Ii.

···ntcrs, 1,'lrst rcnl an: U,S

u~!j'Ii'~lg;h~. it

"~II~. '_'," )'dtl

[ . ~~nlc rs[ second rent and

'~~ '~ 'h'

, [ ,~. ~.' , 'J -'.[

11.5, WC.I.8-J'iI'

" :. "'11' , , : l~"h' ,'I!, d" ',~I[ .. tl,-~ '·'d· i'~

·-:0 I. e r,s . "';,(, , rC.DIL an.. _"S

\vei[g·.hl-,

- ~ • 'J"' ••••• _J IIJII

3 O~'O'···

[ ~" -.:

216 [JNPUT': 92 [l+J

4· ·0··[:0'"

-' .. ,Ii -.:_: _.'

ItRwl

2··:··'0····g·:·· '~4'~

-, .] ..

:', ," .'_.>' ,ljii!l: _ ','I

2000.················· ~X··il

, .. ~ ..•...... lrul

1111 11 !(!) l' 0,0: .-=1.' ,-:

., - ~

,.4· IIO-·~-· ['0'- ··'0·:0'···· 0"- '0"

.[ . 'I', ",:._ " .... ,.... _',

,20~OO

'Cn'le' ~ ~'S' c·n~I-'

l~ '. : ~: ",' lr~,': _. ~Jl.~)~

Calculates 'U' nit C .. ···o··.···.S.·I.

g_ .~.~_._.l .. ~ ',~ __ 'I . ~ ~~

m rn 2-0 ' ~-

. .. ,"' '.'

Calculates ualt sales price ..

• '110 add· 1'- '0' "n' .

,.: .. ~ . ,:,"_,'.

. ',' .:

e •• mpille. Given the foUowing sales data, what are the sates esnmates for years six and sey,en'?

Year 1

2

3

4

5

S- ~I~ " .,e., ,

IO"OQO

111,210 13,,060 16,,075 20,,590

K,e'y·: [ek I)

1 [(iNPOrll1100aO [Ell

'DI'ispl[IY:

O,~OO 1,~OO'

2[ UNPOD 11210 (t+J

3, UNPUTI1,3,[060 [fi) ·3iCO[

4 UNPUrI1607,5 D::+I 4~OO

5 l~lJPlJ"1 2·0590 lhl 5 .. 00

6 'It9,ml 2,2tOOO~50

7.lEffil

Clears 5'1 at isties registers, Enters first year and sales Ior that -year ~

En ters second )"ea.F"I'S data,

Continues data ,entry"

Estimates, sales for year

Ii

SLX,~

Est imat es sa les r or yea rseven,

A cash discount gives. a buyer a reduction in price if I,be payment is made 'within a specified time period. For example, "2/10, NET /30" means (hat the b-uye'r' can deduct 2 percent if pa:yrnen:t i:s made within 10 days, If' pay ... ment 15 not made 'wi.thhl 10 d[aYSt the fun amount must 'be paid b,y the 30th day~

You can, use the cqu3,tlon shown below' to ealeulate the cost of fail,in.g to, take the cash discount The cost is, calculated as an annual interest rate charged for del:ayin,g, payrne'n'I.,

DIS,C% is the discount pereeot if the paym,en'( is, made early, TOXAL DAYS[ is the tctal n,umber of days 'U:otil the bill. must be paid, DISC'DAYS 'is the number of days for 'wrucb (he discount j;s ,ayana'b~e,t

Ex.imp[I'e·,~, You receive a bill 'with the credit terms 2/10, NET/30, Whar

is, the cost ,of net 'taking, (be cash dIsco~,nt? .

Ke',.::

21 I!]' 3[60 IEJ' 1001 I±J;

Dllplay: '72:.,OOO'iOOI

Delc:ri,pllon::

Calculates numerator in

II!

eq U atioa,

Parentheses Ieree order of' caleu 1 a t loa,

Ca l:cidat'e5. ,DS an -1'0.0[\1 a~ percentage rate, cost of Dot t,a'i(in,g discount,

IW W 100 B2 101

lBl m 30 81;0 [[3

9BjOO 3i6~73

S'-I:mp'le Annuall Inl:eres·t

Eu:'mpl."., Your good friend needs a loan to start his latest enterprise and, h,as requested that )"ou lend bj'm $450 for 60 days~ You lend hlm 'Lh'e m1oncya,t 10% simple annual interest, to 'be calculated on a 36S-day' basis, How much interest wUl be owe you in ,6U days, and wb.at 'is the total amount owed?

This, equation is used :for calculating simple ann ual interest usi ng a 365 day year:

INTEREST;

LOAN ,AMO[UNT x INT'EREST% x TERM OF LOAN (~N' D[A Y'S) 365

.':: ,AddIUon,aI Examp.: .. , 17

250 l!l-J lmTO :rho equation for ca,lculat i'll,' ,3,0 ,c:fic,ctiy,e rate [o,r eontlauous com pounding 45,'7'2'.,8, [+/;J IPVj 'IS~'

.. (' !Ii.

'.""J"'"' ". ,"."'" .... ': ',';

Dr 'pl~ y:

O 1· [0"".·

_ III '",

'7'40:"

. II!I" ,I •. , ','

De.·'" c:r"pllo,n:

Stores intcr,cst. Calculates interest owed, Calculates total owed.

45'1::: ,4',.0' .',:,'

.' . III ..

, " , ',"" :< '(N" :O,'-iL,<" , ..:. 'fIM')"' ,", ,",,",

EFF~ :' (,',e'",':''' ,.,,,,,",,,' ".',II;UV - 1)~ :x '~OO

, ~". -Ta '" ": " .. ," '"'

• J • •

'To solee a continuou s eompoundlng problem com plcte t hese steps; 1'. Comnute (be annual c:iJccllvc rate usin,n the above equatlon,

l"1 D I~l

2,., 'Elther use this effective rate, in, your caleulat ions 'w:i l,h an annual period (P lYR =: 1) or convert this rate so that :il: app 1 les to your pay' ..

.. ent period, In the foll,owing eX3,: tple, P /'YR ~ 12 so ,you have lOI calculate a n :C·' 'VI ·N', '. : .. ,'Q·.··.'II:,Ot ~~'IIfI;:I~·g·~ the lntere sr 'r~ "a"I~III' ·C" "0,' '"n'"I"!!'r',5·· ;;0", tjII a t. ppllea ...

. .g,~ [U! I.. _IL,. .' ',"" ." 70 'U ;O!II;, iJ, 1;",", .Ii, ,I " ;;:mIL . .,1li0;ii < I" U 11;. I!I.;~: "" "'" ,

(io,n wilb P /YR equal to l2,~

E:x:·" ,"::m"'pl .1. y',' ou :c"':u'r"rc:"n,~~'I:v have ~'A'"S",~'2-""O~1 ln an aeeo · unt '8,"(: Drea m'l World

_'._. ,.,~. '!Ii' :' .. '. 1'.,'J[,.: ... ,.1\nl4' .,[.·)_",,~,.·.I-: .• 00[11: ",II ._'IIii!I'\i. ... : e= : " _._ '. I _'[~:[ _~·.··'Jl.·._

Investments (hal, earns l8,% annual :inlercs,t compounded continuously, AI

Ih nd c r" , . 'h' '. ,. l"'h : ' 'd'": .... sit ·""'C"O:'" '00····· .... ~'" tt. '" f 'W" ': 'I" '( \Y!I"'J· th , rne en or C,B,C .: moran, :youe:pOSl".I'-.J<L~' m tnc account. 1,8".:'1'[1 e

b a'ia ee 'be' aft" '1" 5': 'Y'''ea' ?

. ",if~·n'., ,~ r r 'CiI;r , ., ["'Ole r:s···'"~

• • ~ _ ~.. • . . I w ~ ," ' !!Ii.J w • ~

.. K:····.·'e··.·.·:y,·

, '. ..

D": ")pl',y': 01,1,8

(D' 'e'I'C' r:lp'II"on''''

'~ '.:> .. ':':.".: '_'. "I •.• ~.::.;_~ ..

(0) '!I! !i!'d • 'I " 'b

.. 1Vl'CS laom,1na . r,lle,',!

"100':' "

[ I:,. .I

I ..••• _' .i!!!1

1~,20 19~,72

(EFf.,j

1i2' It:P11VFU

19""'72[

:' iii::.' I

120'0' ; ..... \.:.:~.:::>.:.

[Ca,lcu~ates annue] [cffect"i'vc r atoll

S teres 'errect,ive, rate,

SCI',S· ..•. n'a'~~c· en I, 'S' , P" .·c. er vear ~

.. .. 1rF. ~,IIII"!II. .. . ,-' ,I -

Calculates annual nemi-

1 fi hl

' ' ,

Da~ rate "or a mont l"l

, ,t d

, . ',' - -' 'r· ~ . . ['"1 . [i I .': .'iIi. . '.~. I' .

payment perIO.··. ~,

1 SO'.· .... ,' [0·· •• ·0··.··

- -'.' - ._

Stores number of m " '0' m th IS:

__ I' ~~'l~ '_' .' _.: ~ __ l~

2- '5'·"0":' 0- 0-"

.... 1,,'[.:,[:':1'

, ) ... /iI.· .:.

SI~or[~15: :r[cgu[a r' payment .. , Stores current balance as a :ncgal.ivc value (Ii ke an. i nil,i al invest m,e,nt) ..

Celeulates ac[c:[OJUn[t bal .. , anec after 'J S years ,or payments with 18% interest com pounded

t'" I"

co"," I.rl uous ',Yi'

- ,4·· [5' '7' "2' 80'"' ','""

''. - :'11'- _' [" • _. 'I!'._:' ' .. ::_.:

Ex m · .• ·pl.~ AoD, m,vest"or wishes '10 purchase a S100~OOO, 'mor'tg,as,e taken out '!Sot", n(J~ to""'r' '~2-' 0'['[ 'U1'Ii'3 rs Since t"'h"'C' m "'0' rtg age ·W:'§~ issued 42- nlon'lhly"" 'p'.lIym~,",'ilnIS'"

g,., 7',16 It·,·~ ,", '. J'[~"~:)':":".~ ~'. ,.~ '.: ,_I~,: '.;' .1': .... '., 'l"[ .... :,.:.'~-_[:.·:, .. v "'L,-,.Jlii1i ~}.;,' u~/ '-'J . ,~"~.'_ .. ~._.~ ... ~'~ L,~ _:__ .. L·: :.:_·"_.l~: .. r~ _ ·V '_ .:_<.

have been made, The loan is[ 1,0 'be 'paid in, fun (a balloon paym,cnt) at the end of its rifl,h,)le ar, W hal is the yie:ld to the purchaser 'i r the prlee of' the mortgage is •• :19".,0007

s .,' 1" C' -,' 'I ')' P", J\"' (:T."'~ '"M""' k"' F" 'V"' ''C, 0"

.~' , ' • I " , .' L I '[' -:-- [ . '.~ r L ' ., " " ••• ~ , , , L • .' • , "

,I[ ":c[P i" ~ ···:,a"cu,~,ale,~ ~["~ '- t. <I""':[C ,su.re,' ..... =.1

s'c,( 1,0 End Mode, Press .~BE,!e;ZEND:11 i r ·,~~'G:I::N, annunciator is displayed,~

:8"1i' ::-"d,":d,< 1'~10,: 'R[ ~ ,:" ·m·"'p.",r •.. , .

.. "·'Ii, . .. . ILl IX. . .....

['K'" e~ ~ ...

; ... ,' ,'y:, .. :

. ' .. ', . ._

'D' ·[e····if!Ii'ril'·p'll,o~· ··n·'·

. . _.,.' 'IUI II I.: .J • ,~.·_.I "!II

12: .[plY,R] 9ulVRJ

20 [lfxplfF£l

[12' 00'

. ::'.':"':[~J _," '. ,: ... r-

,ScI,S pa,ymenl's, per year,

S~ or es : n "I~' i:'i re S~,·[ f[: ~.[ C"'· ", .

'Ii. _ ._ 'IW-~~ • _._ .,.... ~l,"_' .. lIPIIl . ~

'9'~:" 0':0",'

. '~ -'11"" • L.

S I' ores n 'U~ ~ 'I'!I'\ b ',C'·: r or: f;'

,-, .', ~ .~ ~ .~ ,I , 1,,1, '. '~ , ,

l' O···:-···O'···O'~'··:O··'··~ I,." (EV~

...... . ".:. ',- '_. U L:L:J :_ .~- ' r _ I

months"

Stores original amount ,of nl Of tgagc~,

:E utc rs a m Dun I, ~c rl [,0 P~"Y afl crl '20' ye,1 rs ..

Calculates regular

PaVfl1 en '. t~·,

1:··J·I.!lI~'-'" l~~

01'0'0" O' O' O' O' '0'

...... II,.: ' ...•.• v ....• , .

0·'· 1 o~· ·O~·'

" _ _'. "'.' .... "

Sl~.·:~. 2 Ellle'l:" the 'OC,\V value for N indicaUn,n [wh,;t.o the hD~lnnn oeeurs

.•. '.: .~ ••• _1_, 1 ]l ••• _ t •• ,'_'_ • __ 11' 1',,',1_'_' __ ·.·.~.---D· '_I_'W_ll l __ "_' [l~'" l.~··~·_· _' '.~" £_.~._.'l

1,1:;",01 ,nnd ,FV" the ,aOI,QnDi or the balloon,

K"'V" .'

".' :.

~' ... : ' .. ' -

ii" ~:.I,' ',"III!

, '- , '" .,.

~ . '

'Rounds, paym,en!l :(0 tW(l dcc~mal, pla ees f6r' accuracy,

St,OF'[CS number of navlr" ,J.

m :, e " n '1':~ unt ;,~! b . '8' ~I 0" --0: :n

'£.1 _." . .] ~. lilll ._ " __ ". 1 ,~I .. :. · .. JIl_J"_" <. :l '~'

C.'.:' aleu Iates be lloon

_ ~ liP 1._ "I . ...,.., . _)~ .. _.. J.

p~tyme'Dl (add to f:i na I pa'yn~e nll!,

~S,I,ep ~~ ti :: >nl,cr actual; cu rrent values fo:r Nand. ,P V:' t hen find (he, new .l/YR for tbe discounted m o'rtgag[G wi-l h bal~oon~,

,8,_-·'9····'9,,· 7"',:'3,:':

....• '. 'II!!! l_ .'.

60"""0'0'"

. > ... _ "Ii .:.'. <.;

88·•· . '7:0'· '6"< '7:4'

. ...• l I .

. ,. '. " :. :',;0, . ,.'

Ke"Y" ~',.

, l.~,' '.,.

DI["p .. y:,

18"",Q"--0"

_ l.' ~. ll' .' .. ' .'. ' ..

IAC:bl[ 'rUIN' .' El~ '4"'2"::" Ri'lN···'·' ;:'J II!! ,~- , . '.,: , ~

S ~ · b~

•• "J - ·.·_l J _,.' • " _... .-." •• - ._., ~.

teres rema I mng n um ··cr'

Of'p'avr:n ents,

", ._--J' _I. !II . . - _ ~

- 7,9,':' 00,"'--0' ". '00: ." :.".

-~ . '., tl'-:" ,. ,~' " .• :.

Stoees 'p' 'r'~iP" of m o Ir[I"S, ~8P

:I;._. ... : .. ~_:.. ~' .. iIi~._ ... _": Jl J".' ._ ...... ~ ',.,.1

~ . ','

20""7':2"

__ .... "Ii . : .:

1"00·'····

l .... : .. '

Remember the cash n'ow ;J,n~Olnvcnlionll' monev paid nul is nc"alivc"',1

.J .•.... __ ~ .•..... ll .... I _l. I t. .. ":. J •• I .' ... __ '. __ .. ·._l .I~, I .... '-'-"1 >·1.:. ' ... '.' ._'_' .~lJ :_ -9,1 .~: · .. ·.·!II

,money received ls positiv •.. ' ..

E'x' 'I ,p··[la·'· A:""'P' [AI ''''o'r' "1 0:: "'n", '~W'[·· -I'll' [F"'" .-, A' b ~~'"," .;". 'h", .'''~ dc~ .,~,,~ ',,'.' _,> ,[ d[~'. ',"[" " .'> I .... , '<~ ',. ,I, ,[ , '.'. ,I,. '., .··'orrow'cr I,S C ,D,re, .two

:points for the iSS'U,D'DCC of ,IJ mortgage, (One point is, equal. t[D 1%· of the mortgage amo un 'l )" .I·~r·· the .m, -- [t'\'!'l'~'~""" am "'O~ rii ;',1' ~ •....• 'oil:i'Ii 00.··· ····0···· "0':···, - '"21\ '.",}',,"':.', :-'.' :,,~: ·d·· th ,:' c,

. '" ~ . !L'DU~ " WL,~,t,~ .,,\oj',~ ~,U'~ , __ .~(., .'"" u" ".' un" 1"--., ~~ I,i~r '!il'U! Y ,ars an: ,[C,

.".. :" , •. ) 'i. I', •.. ~ ue I , ',: ''IIt'11 ",t ~'h" "'. ,'.' "'[1 h·" '. ~' •. ', ... s , ~ ~l 'I"·~ ~ A·'~·· 'P:"R"" i!!', 'h~ bo ~

annu a, ,I nt C re s" r,a ~ C ts iI,~,,,,· ·70 Wli .• , mont ~ .' ,_y po, me n [5 W l,al ' '~, '" _ ... "" as, I, . ·,C .... or-

rower p'."llIi:ng,,'

.,. ~". , .. (.,./'"' , , ,.

K

,.'.: . '!IIi

e'y· 1[.

OI"S,PI. y: '12",OO[

'1i 1[ .. ,50

~'60:- ~ '00::,'

U ... ·Ii ... _,~

D ~ .'~'. 'I' I''''. •

.. ' le'.·.c'". p.l,on~

S teres i nt erest f'a'. e .. SI,ores length or

m[n,r[i',rr'!!'I,n'c"~ u' 'l'O~llOili

30

6000~ 0····· r&mpu.' 'I· ...... ~ ... ~!J

S I CJ:r[C5 Q,r:i,gi,n.d a mou n I, of mortga ae,

The loan wi 11 be eom .. 'pl[c[lel:,), paid ofr in 30 years,

C ;;"'liIII" 'C'li[I~"'I"tijll!;f' 'p. '. 3 vm· ""1 en 'l

' ,11 ' ,!It: h;","-' ,(, ,I" I .' ,,'"

Recalls loan amount,

,S"~"u;[b'~' t·, r' ~'a~"'~'s~~: p' .. ' 0·" ~i nts

',,' " I·.. "_ . ' ",,[Ii. ... _ ,I,,, Ii. " .'.

o [FyI

0" "O~ 'O',~ .

- .. ~ .. _ .

(pM[T) [RclJ IPv'l

B 2····· [[i]iIl!IL ' ·~·v,,·

'J!I!I!!I!III! . ~ .•.•.

1 • _.' " •• _::__ __ .1 .' ••..

59'4 1[7

..... ~~ :.'.', '.: ~"I' .; i ,:.'

6O~ - 'O-:iO':O"'[ ['O;'Oi

~-..' '," ,'.,.' ,."

- - ~. . . . . .

sa 80':- "-:'''0' 00"

' .• ~'i.~··~ [_: •. _ •.. '

nZVAI

1: 1, ~76

t"iI,··JI., 'I'~'I~ .',. A'~'P' "R' .'. ", -" '

',"""a.:cu, a c". ~ .. ;f~'. ~I can ...

Ii ~ I .~

...... , .'. , f Ii '

siderin ..... ,c'c..~ .

S"d' 'I'd _' .' C'.' .' '.' iii .... , '~'" "on ~'.' I,;,.~~m.i.,.

If interest is, ,a,pplied to an odd first period. it is, usually calculated as sim-

pte interest, SOl 'using the HP' ... 10B to, do, a payment calculatlen with an odd, IP14fi: first period is a, two' step process:

E •• im[p:I'e: 1,:nI8r'8S1-0,nl, L'oan Wllhi F •• ~ A $1)000,.(K)o. lO·year, 12%, (annual interest) inlerest-OIl'1y loan bas an origination fee or three points, What is the yield to the lender? Assume that mo-nt'bl,y payments of lnterest are made.

Key.':

12 :lltP7V"F111 12 nlV'Rll

1 0 ~I.lXiP/VA I

.

De',licr'I'p'tion:

DI;.p,I'I,Y: 1'2iOOI 1:2~OOI 120,~OO

Sets paym,enls, per' year~ Stores inll[eresl rate .. , Stories :Ien.gith of m,o:rtgage,

Stores ori,ginal amount of morlg,ogc;

Enters amount due at

e .. nd of term, Payments _ are i'nler,est onl,y sc entire loan amount is due,

Calculates int crest -on]y paym,cnts~,

Recalls loan amount. . Subtracts points ..

Ca,'1cuJates APR,

1000000 lP"Vll

-1.0001000,~OOI

IPMfl

IRCC 1[f!J El31~]~ li7'v'Fn!

1 ~,OOO,tOOOliOO 970,,000,.00 1,2,j,53

TVM calculations app'lY to, financial transactions where each payment period, is the same len,gtb. HO'W8Y,er,t[ situations exis( where the first pay, .. ment period, is not the same length as the r,entai,nin,g periods, This fir,s( period is sometimes caned an odd or parti'a"l first peiod.

11. Calculate th[e amount or simple ~mtercs,t tbat accrues during the fractional first period and add it to' the loan amount, This is the new' p'V~ YIDU, must be aibl[c to, calculate the length of the 0 dd f1.rs't period as ,a fraction of (be wh,ole period, (~Dr example, a 15·,da:y odd first

period 'would. 'be IOI,j periods ,w;s'UBliog, a whole perlod to be a 3O-da,y

month.)

:2',. Calculate (he paymeot using the new P'V, with ,N equal to the number of fun periods, Use Begin mode iI'tbe number of d,ays 'DatU th,e first payment is less tb,aD, 30.; otherwise use End mode,

Ex.mp' •• A 36-m,onth loan, for $4;500 has an annual rate or lS'%~ If the first m,onthly papncnt is made in 46 d,I),S;, what is the mo:nthly payment amount 8SSu'ming30-,day' months?'

The [odd, first perilod in this example is, 16 days,

Set to Bnd, mode. Press Ifa,Ed/eNOII ~r 'BEGIN ann'Unciatlor ~s dis,p'la~d,~

Display,: 12,!,00 15,~OOI 1:125

'K'.',':I,: 12, 115, nINRI :~,1,2~,

Sets payments 'per year, S teres interest ra te .•

Ca leu 1 ales pe riod ic

'!Ii ~

mterest rate,

M'ullipUes by fr,a,ct,io'D of a period,

'Calculates amount of si:mp~c inle'fest owed for odd period.

Adds this simple interest to present value,

SlOf'CS term or loan, Enters amount ([ert to paY'

. arter' 36 payments,

Calculates p'ayment am,ounl~,

4500.

36m) 01 Ifi)

,36,,~OO O,~OIO

8: Addltl'on.1 Examp.,.. 103

· 'm:p·1 _. You are buyin ~'. a ne . ,1' 4:;(x)oJlO sedan, Your down :p,a,ymcnt is ,500 and you are going to, finance the re'maini.n,g :.~ 12.,S(Xt The ,car deale is o:lIerm . '["vo choices for fin anein .:

• . 3",),[e,ar I an with an annual iute'rest rate [of 3,tS%"jj

~: A, 3 .. y.e.ar ]'0,111 with ,1.0 annual iDte'rest rate, of 9[.5%1 and a [1, ~OO

rebate,

With which ehoiea do ,you' ay less (or' the car?

Set to Eod mod . Pross

Calculate the, first option:

D'~ -'I: . ,p,llo'n:

t 2: ~ rPlVfAl 361H1'

11 250[D leY]

01 fE'm:

I!:.!.JI

Sets :pa.ymcn.(s per ye r ~ Stores known valees,

coo ,3,.50

-368,.28

-'13,'185.94

,8:( aires, n rst 'i n l . 'rest rate a lcu.~a(es pa:yment.~ Calculates to,tal in[t[crest and principal.

C'aJculatc the second oprio'n:

K."I:, 11500 ~

St res loan, amount with rebate,

Stores seeo lid int 'r ~ st rate,

Calculates p . ymen't. Calculates tot al i-nt[e,res.t and prlneipal ~

IPMITI

i[i) (R~CL) '81 8

-,368~,38 '13,,261 ~[64

The fast option costs s~jghlly less,

iii!

, ',,,

C:a,n'_ dl,·

III Canadian, ortgages, tb .. e eompounding and paym,cnt periods, are not 'the same, Interest is compounded, semi-a ,nn'ually while pa:ym,enls, are made 'm .nt'h]'Yi' To use the TVM application :in the HP lOB; you need to' ealeulate ,I CQlltl:diQII ,rJ'I',ongogefactor (which is 80 adj~usted in:ler,est 'r,ate) to stor 'in llYR~

For additional Wor,mation 'OD interest rate conversions, so th section "Interest Rate Conversions" m ehapter S",

Ex'· R1: .1:1" What Is the monthly p,aymc'Q requi:rcd, to fuUy amortize a 30 year, . '0,000 anadlan mort ase if the annual interest rate is 12%·1

De' cr'iption:

ey~:

12 [IfOM'EJL I 2[

200····

J • _".

,iii .

Sto,res, :k.no'\Yn nominnl percenta .·'[0 and number of compounding periods,

Calculates annual effecli've rate,

SCIS paym, nts p r y[carll' [Ca,~cu].ates COII[(,I'dio,,, l'Ilol1gage ,la'ctoT' (adjusted interest rate)"

1.2

t2~'OO 11~71

,30000 :~iO ,0 l[~

,3'O~' ~~~~

teMIJ

Stores other k:no,wR y,;ducs for mortg ge,

360~,OO[

,_ 3,01 ~,912

Calculates mOlnth.~y pa,ym,ent for Canadian morlgagCI

,. ... [

One of th· most valuable asp ~ cts 0'£ the H:P'·10B1's TVM ,app'lication is, the

ase with whleh it handles th uesti n I'wh,al if I~' ~" :in financial ealeulalions, Per [example, O'DC of the:,' ,osl popular "what i:[ • ,jU questioas ]S,~ "What if I he interest rate ch ~ n.gcs ([0 ~ .' ,,? How will that aff cet my pay ... menl?'1 To answer 'this question, oaee ,you have ealeelated a paym,cnt based OlD ene interest ' rate, aU, yO'u need to do is enter the new interest rate and recaleulete PMT~

Some of the examples earlier i,n (h'ils manual ha~. included some b ief enecunt rs 'With "wha ir I. I~' questions, but i more complet . example raUUM·,i

~-~ "'m:'le"li' 'You acre about to sign on the-dotted nne for a 3O, .. ,ycar,

ms, mortr ege, on a vacation hamel Th . annual interest rat is 1112,%["

, ~,.~-, '. What will you, plymcn,ts be at the end or the m,o,:nlh?

annu uel ator is d i, pla,yed~

D'I'pl. ,V: 12.00

Sets :paym,cnts pcr ye ~ 'r ~ Stores known values,

1:2 735000 (f!) l' 1;~2 , y

30 (j=" ~. ~. ~

0' ,

uoo

.... 7~ 110~88[

Ca.J ulates pia . menl, •

[ ';, '2:. Your' com,pan:y,!; r'eguiar payroU is ge nera ted, every other PrldaYI, Tbe bank 8,gtees to, aut,omaticaUy draw payments of $3,.;555'100 oct of each pay'c1heck (app,roXima'lcly half of 'what a monthly p,aym,e:nl wou~d 'be) and adjust th. "p'8ymenl period ace rdin .ly (26, compoundin, periods per year). What 'would 'be I'be a 'W t· rim 0'" 1'11- loan?

3555 ~ IPMTJ

28'"

, ,

Ent <f,S 'n W' payment Sets pay,m '" lots :p ·'r yea'r COf' every two weeks,

Calculates number of bi\veekly payments,

Dlspla:ys yCar,s 'req'u:b-ed to pay' off lO8J]'I'

p -'" ~ ~, [Wheat if ,.ou, had, moua:bly' paYOlcllh:; as In part ! 'I' but chose a lSI_year' te ? W'hat WOUld, your :u.cw' payme,nt be? 'Wh :'t would be the (,o'tal interest paid 'OD th ,CODua,ct?

51'4~B',',2'"

, ~'~.!I ~

~~. 'I' ~, 1[, y: t2~DOI 180,,00

,BI . 'iBt53

Sets paymcD'ts, . ~ r y .'ar ~ Stores D'ew' term,

C ~cubltes :paym,cnt for silo te term,

Calculates total paid, Displays total interest paid on contract,

1'.2

1~15"~"

[' .

IBl ;_8 ........ ......., '- E±O~[J n~v J a

-1 5-:'2"'0": 3~· 7-~4~ '·7··~O·[

.. ~ . ~,,"

-'7[851374~70

Suppose you star savin . a,'ow 1 aeeomm dale Ii future series of eash ,outflows. An xample ,of this, is, s,aYiug mOD[ey for college, To det,er~me how mueh you need t,o save . aeh period, yo'u must know' when o,u~U need the mo:oc:y, bow mu,ch J:ou·U need I' and at 'what Interest rate 0'0 can m'vcst your deposits,

,-·:X.···~ , ,p,I[,. Your oldest daughter 'will anead college in 12 ye.ars and :yo'u are starOn,! ,8 [~d, for er ,educati,O':D'1 She will need 515,000 at the beginning of each year for four years .. The fund earns 9% annual 'interest, oo:m~, pounded m,onthly~, and, :you plan (OJ make monthly' de posits, starting at 'the end ,of the [cur'rcnt month, J1C d "piosits cease when she b "gins college,

[ 'O[\y much do y,on need to d ~p<os:it eaeh month?

07

This problem is solved, ill two steps, First calculate the amount you ']1, need a IE21 when she starts college, Star't willi. an interest rate conversion because of

the 'monthly eompoundieg. D!2l

IJYR 2:2 9%

V.,ar 1

Year 3

Keys:

9 1:(8(51490 I

Displ[I,Y: 9~OO

S t orcs annual nom~nal rate,

Stores number or com"!" pounding periods used with. Ibis nomlnal rate,

'Clllculo:L,cs 8 nnual

e rrective rate.

12

IIE£EiJ

Wh.en compouadlng occurs o[o:ly once 'per ye,ar, the e'f'fect,lv,e rate and the n[ominal rate are (be same.

011(0

Stores ,crre,cliv,c rate as annuls) ra[ c.

Set to Begin mode, Press rB,EGjl~D] if :a,E[Q'IN annuaelatcr is not displ,ayed.

1,jOO, 1,5.000'~OO 4~OO

Set s 1 payment per yca'r'l SI'ores annual wilhdrawal .. Stores number of with. drawals,

St,ores 'balance ,at end of four years,~

C'a]cu'i:alcs, amount required. 'wbe:D ~our

daughter starts co'Uc,ge!

Th,en, use that PVas the W'OD tbe following cash flow diagr'am". aad calculate the PMT.

FV'fro[m previous caJculat:io,nii

I/yR D 9%

1

2

3

4

PMT '1

~~~ if'I'EO,IIIM anaunclator is dls"playcd~, Stores amount you need, Statcs am,o,uBI you are starting wi th,

Sels payrneO[IS per ~c,arl

Stores Dumber of dcposits~,

SIOII"e,s, mtcrest rate, Calculates ,monthly deposit required,

r:rTl Il!m L:l.:J I.UJ

52~713~28 01,00

'0 '(9],

12 l·pZvn,1 1-44 em

12:~:OO 1,44~'OO

9 nIJVR) IPMT]

[9t,DO

.... 204,154

081:n8, Tha·t Go Un'laxed U'nlll Withdrawal

You tan use tbe TVM application to calculate the future value ,of a taxrree or tax-deferred account, (Current tax laws ,and your income determme whether 'both laterest and pr',m,cipal are lax .. fr[cel' You cam. solve fo·r ei[ther case . .)

Stores a,010Un[( you start Wilh~,

Stores amount of annual playm,cnt,,,

Calcuhalcs amount in aeeeunt at ret i rement,

Calculates 1111'QUn t :you

h ave paid into account by

'.'

renrern cOil .. ,

CD I cu lares i nte rest account has, earned by 'rcti,rlemcn'l~

Calculates taxes at 15:% .at i nterest,

Calculates after .. tax F,Vj 3000 [+1-1 [PM'T)

The ,purcha,sm,g power [o[r :tbal future value depends, 'upon, [he inflation rate and, the dur arion of the account.

Ex: "m,ple,. You arc eonsidcring opening a tax-deferred aceount v.rilh a dividend rate or 8" . .l7S%,~ If you lavest [, .000 ,at tbe beginning [or each year for' 3S years, ho'w' much win be ln the account at f[el'ir'c'm,cnl? How 'much will you 'have paid into the ,aCC[QIUDt? How much int[crest wiU )to'U. bave you earned? I r your posr-retlrement ([ax rate is 15%, W'hlot wi II the ,8 n er ... tax future value or the aCCDU n t, be'? Assu me tha I only t he in terest is I,Rxed [assume the prlncipa~ was taxed before dlc,pOS1'1)1 What i_s, lite purchasing power or that amount, in lodays dollars, assum,:tng an 8% infiati,o:n rate?'

Set to Begln mode" Press illlE_GIE8Q]: if BE:GI:IN annunciator is not dlsplayed~

K',/ ':'

1~ :liP1i:EU 351 1Rl

8~ 175 [~nb~Y'B~a

D ' 'C· Ipllon:,

Dlap., . ': 1,.,00

Sets 1 payrncn ' p C' year ~ Stores number of periods and interest rate,

8~18 O~OO

2000 (~l;1 [P,MTI

(R[cL) lp~. '11 [[i] lHtLJ lID (;JI

li1 m:cIJ ~ @I

[[ij 15 ffiI E1

,St[DrICS a£t,er .. tax: future value in FVt,

Calcul at es p rese nf -va lue pur'chus'inS power of a!fcler-'Iax FV, assu m.:in.g, an 8%, i'OClad-on rate,

This problem uses the TVM application to calculate the rulurc value of a 'taxable rctlremeat account that receives regular t ann ual ps,ym[cnls beginnine tod[a), (B[eli,n mode)" The annual tax on, the interest is paid [QuI of '[he account. (Assume (be deposits have [been, (axed a~:r,cad 'J;o)

:Ex' ' m p [ .. '., I r .yO u i nvest .' 3,,000 each. ycur for 35 year,s, with d i,Y'id[cnds, taxed as ordinary income, how' much win you have in the account at retireme'n[l? Assume an, annual di"ldend rate or8~17'S'%'t' a tax: rate of 28%'t and ;[,hal payments begin tad a". W hail ls the P ul'chas:in,g power of l hat amount in tadars, dollars, ,ass'Um,:ing, [8% inllalion~l

Set to Begin mode, Press 1:IBEG7iENll~ if ;aEG][[N annuneiator is nol displayed,

,I, ~:

1 IPJV'R,]I ,35 i[[J

Sets 1 pa ynl[C nl: per ycar co' S([D[f'CS, number or pil,Y'''' ment periods until

I

ret I rem cnl ~

Cakulates interest rate d imi nish c d hy' lax r,il!1 e.

Stores adjusted in l erest rate,

Stores amount you are stu r U D,g wil I, i,

Stores amount [or annual pay,mc11l~

8~ 17,5 IE] 2,8 ~' [[3

:, Add.don' I Ex mp •• ' 11,1

A wra:~arou'n,d mortgage is, ,8 eombmation of refinancing a m,o'rtpgc and borrOlwi,ng again 1 rea I estate equit ~ '. U uaUy the I wo' u n'kn,own q uant ities in, the wrapped m,oflgage are ILhe new paymc:nl and the rate or return to

the lender. 0 arr'ive at a solution, you need '(01 use both the TVM and the

cash flow appUcatio,ns"

Ex, _ ,mp'~ ~ • You hay 82 :m,on.thly paymen.ts, or _' '54 Jen on. your 8% mortgo e, ~c8'yjn,8 a remaining balance of' ~ ,7.- 1[0,22., '('IOU would 'like to 'wrap tblt mor{pge and borrow an additional: " for another invcs.tm[cnt. You fiod, a lender who is wiU:m& to "wrap" 8n2~S10122 mortgage at 9,.5% for 15' :years" What are your n IW "aymcD,ts, and w'hat return is the lender aC'ltm, 0[0 this wrap-around mertgage?

Th paym,ent ealeulation is a' rraigluforward TVM paym,c-n.t calculati-on,

~, h-' 'h-' pv. Wbcn :you group the, above cash flo,ws, you'U find that:

uSiDg( ,~c new amount as I" e :~~,

Ca,~c'U~,a~es amount in account at retirement ~

Calculates present-value purcbasi,n.g, ower or Fv, assuming an 8% inflation, rate,

-23.368~11

914,6, nlYBJ

o (E!J

1.5··· , [["

- [l~~.w

Stores in'terest rate, StOlfCS final 'ba],IDCCI Stires, lumber or mon:th],y' paymle'Dts you

wm1Dake~

Calculates your new paymeDt~

Tb;CD" to calculate (be 'lender's return, enter 'C8S,'h flows that represent the compllre pleture IO{ tbe 'wra~ar,oulld ID,OrtgagC frlom th' 'icod,cr" ,. t o:f view:

9~50 01:00

IPMTl

-861.59

...... - ..... - ...... -...-- ... ,iI iii .. J!!iii!!iii~ ~ .~I lIIIIIIIIIIIIII_"iiiiiiii!I!!!!!-t~iI!!!!IL__~1 'I!!i '. '1l!I '_'_~-I

II 82 83 S4 SO

1 ,2 'I 3

y-

~ -"

..754.00

S -t to Bnd, mode, Press IIB,EG/END]' jf! ,EOIN ennunclator is displayed. CPo = 47,slO~22 -- nS10I22 = -3S.0CKtrfJO!

.

IK " :'

I: ..... ' ~ ........... ..-......:;;~

1:2 825,10122 fiPiV)

IDI' 'pi' - 'y::

O,~OO' 1,2,~OO 82'1,51101~22

Clears all registe rs,

Sets p ymen'ls per' y.earl' Stores loan amount on whi,ch your new pa,ym,enl is I aleelared,

De:lcri- ,Iio'n:

'CP1 == 861~S-9' ~ 7S4iOO = 101,59

NI ,82

CP2 == ,861.59'

N,! = 180 .- 82 = 98

I : .- .dd:lidon .~ Ex.~mpl

Key.::

35000 (+{-I m

DI:s:p,lay::

IC!F:O -35,OOOi[OO

, ,I, ,,"

D •• crl'pll'on:,

EDte:r,s $35,:.000 ro,r loaD amount,

E,nlcrs net payment for first ,82 mo""·~ "" ..

_ , DUJ:I,

~ ~,CL,I (p_Mn 1'+I~,"11 El '754 (,9!FJ)

CF'1 "07,.,59

n1 82~OO

ICF2 861,~5,9

n2 98~OO

10.16

Enters number [of times paym,ent occurs,

Enlers net p,ayment for next [9a, .cadls.

Enters, aumber [of times paym,c:nt occurs,

,Calcul,a,t,es annual return,

8211fID

Net F'utu:re V,alue'

The net future value can be calculated 'by us.img, the TVM keys, to ~JI~de' the net present value (NPV) forward on [he cash flow diagram,

Exaimple,: Va'lue of '. Fund~ Yeu 111'[6 made the follow,1 deposits over the past (w,o years into a mOD,ey market fund eaming 8t8%. What is '(he current balance of the account?'

,·2· 000

~.' .'.

.. 7.500

Current IDate

Ke,y.,:

Display:

D'escrlpll'o,n:

. '

Clears all registers,

Sets p[aym,e:nts per yeM'i E'oters initi,am cash fIow~

1:,2 IP/VRI t2000 II*Z-IICFII

12.00 C,FO

.... '210QO,~OO

C,F1'

O~,OO

Enters amount in group 1"

But[ers number oftimes payment [D'CCU~rs..

Bnters amount i:n group 2i

Enters number of limes, payrn'ent [occurs"

Enters number of tim,es, payment occurs.

Enters easb flow group' 4~

om

nt

2'1001

CF,2: -3~OOOiIOIO

n2

3,.00

n3

9~OO

'C[F4 -7t500~OO

n5 3, .. 00

CF6,

- 2'.IOOO~,OO[

8~80

SlOl'M annual mll,crest rate,

Calculates net present value (NPJI)." au.(o,m,atically stored ,as PV~,

Stores known values,

3000 l~l~1 rCA]

o rem 31[w]

Enter.s, number lof times payment occurs.

Enters eash flow' group 6"

2000 1+7-1 1m!

,8,~8 nZYRl

24 I[ID o 'IPMT~

If V)

IQi,QO 341,eOO,~,5 8

Caleulatea net future value,

I::: Add.'lonal ••• pl.. 11:5

We ,at Hewlett-Packard are commhted tOI pr'ovid.ing you witb [00, oing sUP'POla1. You can obtain answers to questions abou.t using 'your calculator f,[om, our Calculat[Q[r' Support department,

Please read C Answ[e,:rs to Common Q'u:cslions," before oonlaclmg us. Our experience b,1S shOVllJ, that many of our customers bave simi~ar' questloes about our products, If you. dOD't find an answer to your' question, you can ,oool.a us usmg the address or phone uumber list,cd on the inside back ,cover'~

Q:: I'[m not sure if the caleulater is ma~fun[clionina 'Of if I'm doin.g some'Ihi,og in,correctly,. ow' ean I determine i,f the calculator is o'peratin, prop' c.r'~,y?'

A: The diagnostic selr-lest is described on page 1211

" :: MY'D'wube,rs contain commas instead of' periods as, deeim,a) pomts~ Ho\" do [ restore the periods?

A,: Press

(page 2S)~

'QI: How' de I cbange the number 0'( decimal places, tbat the HP,·IOB, disp~ys?

, . : Press ~-.....J' and the Dumb ·r of decimal places that Y[QU 'want (page 27).

A,: Exponent of len (ror example, 2t51 x 10-1.}t Refer' to "Sclentlflc and

E· I N .'t:u 27

D,gm. e:r,IDS, ,~o'lat],OD, on pa, e . i

IQ:' Wily do I et ,I, wron answer or' the no SoLution messa e 'when usin TVM?'

': Be :5U[,C to enter ,8 value fo,[" rom of the fi¥c TVM values before you solve for the f18Il., even if one of' the V:a'ltlCi is zero. (Don:·t for et to store a zero ror (fiI if you cc['mpl[ct'ely' pay offa lo'an,ij) Clearln all tb·~ r gisters ~""""",,~~'.1 .' before,· n.leri.n', you known 'values, aceom pll hcs the same thins~ Check 10 see that the calc:D~ator is h:l the appropriate 'p'aymcnt mode (S, gin or End mod[c) and '(bat PlYR is set correctly',

Q: How can, I . hange tbe sign of a numb r in a Ust of cash nOViS?

.: You must replace the eash now entry, "HlV'ie,vi:ng and R p~,Dc:in,g Cash ,ows,t' is discussed on page 19.

Q: Wh.at does PEND in the ,display mean,?

A: A n a, l'Ih.metic operatioe is pending (i n progress )~, [Q[:: What does :: in (I; di' p, ay :mean?

.-.: The D.NPutl key' has been, pressed, er '1.\'1'0 values bave been returned (pa e 25)i

Q: Why is IRR/YR lar er than I expeeted?

~: 'This is lRR per )rellrl To ee a periodic 1RR[, divide IRR/YR by P/YR.

To maintain prod,uet rel.i.a'biUty,. you should, avoid gelting the cal culator wet and ob erve 'I: he fD~1 owin temperat re an d humi dily' ] i :mil :

• Operating temperature: 0" 10' ,4SO[C [(3,2' tOI 11 ,.F)~

[ S:[o:rage temperature: - 200 to, [6SOC ( - 4- to 4go:F)~

[ '0 pera'Lin, . and storag 'hum'idity: '90'% relatlve humid~'1y' at ,4C)OC (104-F) maximum.

"17

1",1' '" ']"""cl :":Iin 'Ill il~bc-" 'O,,'p',~r'!III-'O:c',,'r' [PO"E;:~;",'n: u ad -r n 'Q, "rm!.' "3.,,:1 op ,'r'~ '''I-:O''I\1i

j •••• ~. ,', •••••••••• _ •• ~"~.- ••••• _. 1.· . .'.' "~'j •... ~.:"~_u.' .. _ _: .J .. lJIIl"Ii.Il .. ' [.,~J \ __ "_l .. ' .. [.~ .. ,., ... ~[ .• L" '-"oJ" I.UJ'" , .• ,11

(,." ,',' '18::0'·"", '71""""1'9':')""'" 'L' ("'A' "" '~O·""d-'-B-"·'

"p'~,r '. """" .,' : ': ,~:,,;i;, ~;,p, <, I'j'_'~';;'

"

,- ,., L- R-I,;I

, :,81!1 aSO[1:I U: ," : .: '1 'if

E d' 7G

,~ t, . [ ... -_ '[ - [' ,',,; -:

1;,~"',jr!i""1 !if. ,,;', ,,"~,

!I' '"',' ""iii" "1_ _' "',~

~,

D" II [ '1"{' I-

I' .- ,~" '," ',"':' ' " '4 ' _j

"ur,~~cc,_ ': ",'I.:

"V'~i!lIi; -:el[,... 'V' ] '')~A' " 'Of"'f.I, ",': ,",U)

",:,' ""'d' !!'-liI!~, K>'A""', 7" """"

I 0 tift, ,_ , " " '

-,'Ari,n V,S,7

Tns,'", :1- ~]I~'n 'L-' cR",4',-':4i:,

u.~, ll~ l._ '.11 _~ I_, ~ e- •

''I., J.'(,D,YC, l hrce fresh bur tou .. eel I balll,!j"ri es a I. han d. () 0:1, 1,0 Deb batter ics by[ Iheir edges, W'ipe'ach battery with a, lint-free cloth to remove dirt and oil,

2. M~tk-~, sure the :,,:Jc,uiatc'or is 0:11. [Yo'u ,viU lose m:mo,ry ~r t,'h", batteries are removed 'when, the ealeulator is OUI Do, 'nlot press rm ,a,g,a'in

... - he entire nrneed " 'h II b I 'II; ~i d

'Unt::d to ~ enure procedure tor c',,_-n .'.0":' .. ~·[,att,>" 'I~~S 'Lq CD:m:p:L'~[I,···· .. ·.· .• · .;;,

..•• ". ", '; .old the c,al~Ctdalor as ShO[WDI To, remove tbc 'baC,i"cr,y' .. compartment door, press down and outward on :it u:ntU it slides 00" (away f"om the center) I,

,.. "'u-" -' :,', the ealeulator OV~f' :iI;IIi;'D1d .. ·,: s"'b·;. ake i be b arteries out ..

• -iI!I' ,,,,,,f,D!I., .. ~ ""'U~ _"l" . ,,"' .. IUL _ ... __ lUI, .""',,_v .. _~!i. .. "

'., Hold the ealeulator as shown and stack the 'bal,(crics ~n the [b~.tlery' IcoDl,pa,ri:m'Bntll; 'Orie'nt, the, banerles aeeording 1 •. ·· .. · the, diagram 'ins~dc,

the ban ··rv ~'o":"m" part ','A:D" •.•.•. , sure the '(I=:·pd:: and flat ends mateh t-:'''h'''e~

~._,~. ",' . .Jilll .. i.iJ' "'·"'ll:.::g,.·,: .. ,[.II;s;.J~.)'11l1 .... _::" .. _. ~ .. _ . .'J ,~,~"'l~: 1.!i!____V . .:._,l'_!,I. [lll.).'1 ~j' .-~: •• l .. ull~l·U.· .. j''-··'

,d~,a,gr,am'ii

'.8 ',' these :uid~liDes (:0 determine if the caleulstor :requires, setvice.i If Ih~qcp~dure.q eonflnn 118- the c11culaior ls Dol fUlidio'ninc~llrop-dYI read tbe sectioa u~ :;';. t;be Calculator Re.q,uir,cs Service" ·on .p.8'e 124·~

: .,1 C['C II ",t:r' . ') ,,'1, .. ' •.. rn [an (n, .:hi'n, ',I I~ in 'Ib",'t~l',:,::,

. "R' ttb ~. I' "~ .~. '. 41' .~ .' H' <:: ·'Id··· d '. ='Y . tbe .',' t' 'C"V' a' 'n"d' P' '[a'r-r 'pv'; I at

. '. eser 'l.>e [CD, ,cu~a,~.or I' . ,~o'> 'O~.:~ ':,~ . >',),>' '. .. ,~~. <~ :,,1, .

the same time, 'It "',,Iy be necessary- to : ,>~pea(.l:be reset keystrokes SC\f: ;.8_1 times,

.- •• cruse me.Dlory,t rress ,aud hold down (gJ:" then 'press and hold down both. Iii) and (E.+I,. :M:em,ory is cleared ',and tbe ALL CLr message· is displayed 'when you. rel :r1:S'; all. three kess,

:: __ If the calcalator faUs to respond ,..fter' steps ,~ er 2, replace lh·, batterles (po·.c ~.l-,),t

'.'., II' tbe ealeulatoe fails to respcud atter : tep '3, remove l he

.. iatte -, ries (.a>e·l1'9) Ind.lighily press a CO·'D. against 'both eal CU <II' 'lato.F.' 'batt[c'ry' co' .' .t,a,cts;; Put. tbe··b. '.' tterles baek in, and turn OD [the, calculator. It should dl ~ 'p'~ay ,A,LL CLr-t,

If SIt.' ,ps' th.rough. 4 fan 1:0 r estore caleulat or D.pe.r·ll.iod, i,t req uires service,

,w,_' 'J ... 1

••.. ··;:1"[ r[~" '[ ;"Ol~'~[[.:>. ",-;'y,',Ir~[:~'".- (·I,Oi.~J .. '.::' L;~' :-.,'_ (. <_ 'til,. n""" ",':

_. Reset the ealeulator (see step l • •• bove),

...• i,'f'8·'··I/!!···· m·'··'c· .. ·,'··· O"'r1Ji (see stee 2 81' "ve '

~J. _2 '_ .~. '_~. ',' _~l'~:-.". .~ I ,'.' I ,.l J' .. I!i!)~' .,' 1i!iJ.· .. l[f' .J ~'_~'. '_ ... ,' • '.~ • IIJII'

3 lf the ealculat ""f' ~fi'·lfJ~: ·'0- res pond alter steps and '.: ',' remove the

[!Ii III ' .. l.,~· s- ',:,',1[_ [.,".' ~~I_, .... ",' '_' lUI. ~~!ijJ1 I.. .~. ,:.~ . _/ -,"', I I .• j II .. ,' _' j ~ ••. III , .. J •• ',~ •• • ••••••• "

b:· tteries (pege ' 19) aud :li,ghU,)f press a. coin ae-ainst both. caleu .... lato .'!b[atte:ry coetaets, plut the batterles 'back in and turn oa ('he calcula'to~ . ',t. '11 should d,ispla,y; ALL Ct[r •

. ·f :st ps l throu..b·~ .• ail to restore calculator func(·ion:. the eak ulator

.. 'ii'

... equires s .~~, ee,

. . .. [: .~-'" 0'·. ' .. " . [I' .' ... ,,:' ·"'1'; i'l' \ .. '···r· ':_', ',' " ... " [.'. [n~' [' i' . ' .. ...... tL·, ."" -I ,', :,,1 ',' . [~[ut < ~u-: ~:' 8:<1

~ j _I_:.,' ,I~':'I .. ,~_I,. ,', ,~_I ,_' ~" ,',1 ~l"' .. ,'I ',: ... ~:~> .. _ :._' ._ ._' ift,_,.~:,._, ... '_ .. ' ", __ ' __ ,.,' _,: __ "~ '[ ,"'. ,,' .. ' _

t '['~ '.1 : '.' : _, i~' '~'u:n::.,'l," :,in:~'::

, ,!!,' Do, the s lr~,t.es.t (d sscrib ed below). I r the calcul eto r all.s the s'oJ.r test, 11, :'I):quir'.· S ,S": . ice"

z, :~:f the calcuhl.to:, passes (he self-test, it is likel.y that you've made '. mistake in operating t he calculator. [T'~.y' re:r,ea(Ung- portions of (he~a~ual,' ~d~h~~k uAl1s\VCr~ to-Common Qu.stiolls' on page l~[fit

3. Contact th" Calcul ator S,u:.·,po:rt dCpor'lmcn'I .. , The address and phone aumber B.'. eo. ):i-led [on, th inside back ,cov,~, r.

If t,be d ispl a, , ean 'be turned 0:0, but·, it appears t.·bait the calculate r :t ••. not :operatin· " :p:r-o'perly" "ou. can. do a d:iagn.'ost,ie sel r~t,est" To, run. !t he ,sclr ... ,tes,t,:

'~, ,I j!i First, bold ,d'. ''NO, the IQ]I Ie <~:., til ,:0. p,~ ess PMT~ ,;11 the 5,8 m e tim, ',I,·

'.:-.', Pr " .. ~. any key ~ ... t'lr times, ,And .. ': al .. h, the dl~:'play ns various paIJ~'rns '", c.-dis~layed.Arlcr 'presshlgth~.kc~.u~ limes, (he calculator

d,isp1ay.s ,t~b.e copyrlgb~t message [COP'f .. HP 19,87 momcntai ny, Slid th~;~ the :message o. 'Th,is indi,eal:es tbe ealeulator is ready fer the

ke ':: t··· .~:~' A·. '.-:'.' '.: ~~["!Ii

3,., Starling at the upper left cornet «(ID) and 'm,o'vln,g from left (0 right., press, eaeh key in the lop row, Then, moving left to righi", press each k[cy in the second row, third rowl' etc." until you·v,c pressed each key.,

• lr you press the keys in, the proper order t and, (hey arc runcUo,n ... in,g properly, the calculator' d.iisplay& two, .. di,&Jl numbers, (The calcularcr is [counting [the k,cys us;i,ng hexadecirn a:1 base.)

[. Ir ),[OU press a k,ey out of order" or jf a 'key isn't (u:nctio:n:ing, p,roperlYI the next 'k[cysl,rokc displays 10 ... FAIL, followed by a onc~,digit number, If yo;u reeelved the message because you pressed a key ou l or order, you s hould reset the ealculator (hold down [~ and press lev) and start the self~test over, If you pressed the keys i,n order, but got t'h is message, the calc u later

. ...

req uires service,

4. Wbc n the keyboa,r,d test 'bas been, com pleled, t be calculator d.isplays, a message:

.' The calculator dlspl,ays, t 0 .' [Good if it passed the sel r~ test,

.' The ealeulator dlspiays, 1i Or ~ P'An_" foUow[ed 'by 8 one ... diglt hexadecimal number' 1 through F,[ if"i.t fuUed the sel:£:"test If the ealco 1,8tO[:r f a:i led the sel f .. test, II req ulres servlee (page 124) ~ Include a copy of the Iail message ,with the caleulator 'when you sh ap[ it for service, l

5. If the calculator failed the se~f~testJ [rerun (he test to ve;rlfy the results,

e,. To exit tbe sell-test, reset the calculator (hold down, IQJ and press,

[pj)~

To start a coo'imuous self-test (Uke the one performed at (he faCl-Dl)')t hold down, ~[ then press (FV]I' This test dEsplays, various patterns and the copyri:ght m,cssage, tben auto,maticall,y repeats. The test eomlnues until you press, lm,~

What ,8 Covered

TIl',' ca'lcu'iatof' (ex,cept Cor the batteries, or damage caused, by the bat, .. , teries) is lvantl,l'Ited ~y He.1Ylett~PQ,ckQrd 684,;tI31 [deIce"~! in "rater/a,I's Q,n,d Jvorkn'fQlull ip 10" ,OIl#!' ,yeaF'/rol'l'1 the ,dllli) oj' origin,at pll,rc/IQS6t, lr)'Ou. sell your u nit Of' gi,\'c It 3:S a Sir,. (he 'warr'anty is, automatically transferred to the new ,O'WDcr and remains in. effect rOt the ori,gin[a1 oae-jear period .. During, the warr,IlD'iY period, we wiD repair or; at our O[,pl'ion,) replace at D[D charge a product that proves to 'be d erective i[ provided y,QtI return the product, shipping prepaid. to a Hewlett-Packard service center, (Replacement m,ay' 'be with a newer model or equivalent or better :fll,l1ction.a~ilY~)

This warranty gives, y[ou specific legal. ri,gbts. an.d you m,ay' also have other rights that y,ary' from state to s't ate. p:rov:ince to province, or country' to

~

country,

What, [I,s Not C[overed'

Bs,tteries. ,Q:t:I'd daln,Qge ,caused by ,;1r"e' balteriai Qt:19' ,[1',0,' co,~ered ,by til e Hewlelt~Pll[ckQ:rd 'JWlml:nty. C/I,tck Jvith [t'te b,Qt,Iery ,flJQ"Ut!acn"rer' ,a'bOl,",' battery QI'i'd b,Q'l:tery leokage tWlmlll"iu~

,

This warranty does aot a,pplY' if the product has been dum[agcd by accldent or misuse or as, tbe result of service or modirica'lion by other than an authorized, H[ew'lett-Packard, service center ..

No, [other' express w31r',ant,. is given, T~[e repair or replacement or a

pr,od,uct is your exc~uslve remcdYI A,~Y OTHER: IM,:P'U'E,D WAR·, .~

RANTY [OF MER'C'H'ANTABILll,TY DR FIT;NIES[S, IS LIM:I[T:ED TO THE O'NE-YEA~R DURATiID[N [OF 'THI:S, W:R:lnEN WARF1AN'TY'. Some stares, provi:nce51' Of eountries do not anow' limitations 0:0 how long an im pI led wart ani" 1.ast51, so the above limit,a'lio:n may not app~y to Y'O'UI IN, N[Q[ EVEN,T' SHA,~ HEWLEn~p[AC:KARDI C:OMPANY 'BE

LI'ABLE FOR CO:N'S'E,Q[U,EN;TI:AL D'AMAGE,S,ji, Some states, provinees, or countries do Dot allow the exclusion, or I i,:nl it,a,t ion [of incidentel or consequential damages, so' the above limitation or exclusion may not ap'ply to YOUI

Products are ., old on the bas t ,':,J~:'p--,ccirica'lio,ns 3'p'nnc'ab,lc at the :nm'c of

l l. [I if'

manufacture. Hewlett-Packard shall have D,O oblia3'lio:n 1,0 modifv or

update prod uets ,once sold,

, "

-":'" '( (' - P k d' int ~ Ii! I ,j; ,(;0' Tl

,-"'," ", ' "',' I ", ~ , - ,- -, --, , ~ ,-, - , ,'~ , -,' ,- "" '" ", -,' " - , :' -, -- ',' ~, ,', " , ",-, - ',,' ,,~

_,~'cw :CI n .. ,: acsarc mamtam 5Crvl" 0 emers m many eounu ~,:S~ .uese

centers win repair ,a, eakuletor, or replace 'it, with the same model or one of equal or greater 'value, whC[Ih. ~ r i,l i,s, under wa ranty or nc t, Ther is [I service char.-,~ fer service art,:'r' the, warr,a,nl,:y period, Calculators normaUy are serviced I,ud r,esh&ppe.d within five workia ,~~ days,

., in :_,hll' IU'n,le:' SI- ,ties:: Snd the [calc:u~ator- to the Corvallis Service Cen I: ~'.r- ~i:sl ~ d on l he i n:i.d[c '" • I the 'back eove '~

1-1 , -; urepe: Contaet :yu.:r Hewlett Packard sates office or dealer or H, , .. wlett-Packard's European headqeartcr s ~,:r '111- loeatioa of he nearest, servl :." ce nte r t, Do 1101' Sll ip.llre caku III lot/or s-en,Jic,tl, ~"ilhou t

lirs" cOlila,ct';ilg' [(I' ,Heli"el,t .. PQ'Ckord ofJ~lce~

Hewlett ',I ,8:kard:'t.A* .,-.'", Roete du N,anl~dIA:wrU ': "~O~ '~l~,x'. H' 1211' 'M'cyr'i.n. 2

G · S-.. I ·",1 [eneY,a j ,-~ ~w,ltzerla'nu

'T'l<~:phon,e:: (022) 7_'~·:111.

, In'" G' 'I"h e' r c·' 0 ' "n"I' ':.'e' !IIi ' "0 l - - t" '\Ii -:- U - 'H'· a,,\u·'c' ('I 'pre eka ' l' d" , n:l' 0'"; PP 0- r

~~___ [~ _ ·~.I~," .[ .. i ; _ .. '.~ •..• ~, !l:ac jO_' ,f ,c ;~~'.~"'il":.~~; ',; a;~: "~ "., ~ :q, .: 'U,,!f,~[W ,,'

dealer or' 'write to the [C'orvanis Service Ce:nite,:r (listed on the ~:nside ,of I:h,e back: cover) for the locstion ,of other service centers. If local

• - '" - ' " . "" 'I' 1'- b t, .. .. - ~ -. _.. h !!: - .-, h . .. 11 ul '-'.' -, " -, h ' c- .. ~, ~ IU ~

service IS ueavauame, 'U"OU ean S •• I,P,i. u C earcutator 1,0 I.. u . rva,_ .·_5

~ ,1, ~

:s· .... rvice C ;,p"nl-"c~~'r' for r p', ,!~IIi, 1;. r

. _"", 1& ,..I· .. W :_ WI .. ~· ... '~ " '.~, .~ " .~:; u.}~ II

- .• :~i -'-I',ce ':-~:,b- ere is a" standard repai r charge for out-of- wa,'r,ranty service, The

C':A't'"tml);s, S:'D~"'P. Center '(:'I;,liri~d' 0"'0-' the inside [nf- the back cover) ""'8: '0- tell

VI, y "l~l ,~:~, .. WI "I'-'~ .' ~ ~ ~'. 11..", 1 .... 1, .~illW ... ~: . ."'.",: '. t , • .1.:' ." ~ iii.'] . II'", _ V W':, IILI' lt 1'V .',", .",,-,,1\ ,'.' T" ~ .> ~-.;I .. : . "'¥'~",l

:you h.o'w mueh this charge is, The fun clu:l.rg, ~.' is, subj. ct to the customer's 'local ,-:< les 0': value-added tax wherevee :"p:.·pncnilJ~"

" , ",,' :sa ,,',_ ,r" 0 "_ L~ ,,',', '~_ '" ' '_ LJ'" ""'.~.,"~' ~_ " ~

[CalCldat:or products d,a,m,~'-d by aceldent cr misuse are o·t covered by' the fixed service charges, · 'n~ these CU'6S·. charses are i.ndividuaUy·· deter-

, ,,_ H, II¥ ~ , iJI _ ' " ~ " ,," " " '>' ~, ~ ," -" , , " , , I< ' ~ ~, ,~ _,'" " , - ~ - - ~ ,~

.. - " ,- - ,-, ,- - - - d' " " ,," ,,', , d-" , - ",' -', _I',,]

mined baser 0'0 nme an. materia 'I

. Of :YOI'U:r' ealeul stor requi res service, ship, ,it to the nearest authorized service -,- -, -, r '~'. 'II >~ tlon nolnt

center o~, co,,-ect·,o _ po nt,

. . 'Include you.r ~r <turn, address and deser ipl,io,:n, ,f t b, ... problem.

I. 'i nlu.d, e proof ,of ' .~u,rehase, date i:r the 'wa,r'f',i'nly has not expired,

~. . Include a purchase order, check" [or credit card aumbe r plus e'x,pl:ra, ... lion, date (VI,SA or 'I.·.· ..• ·'ast,,:rCard) to cover the st . ndard repair charge,

• Ship tbe calculator i:n ,a,,<cq,u,al:c protect iva :paeka:] ng, to prevent damaee. Such da:m,age is not covered .by the warranty,. ~.O we recomme,n.d

th - !ii' t' 'I ·1 .. -( ..

,I '8" ~ 'Y'_-'O: 'U[-I m S-:'-U" ~,p;' -lC-c'Iii 'S", ·l1ip' rn . h,'nll_

~, " '. "II., ,'_- ~. ,ilie L, _ ,~,iI, W' ",~,~ ,'~ "I,;' , •. , "" I!I. ~,.

• ··~·,a.y (,be shipping charg -' [or deUve:r: t the Corvallis S, vice Center t w'h ... ther or not (he calcu later is und er war ranty,

Service is warranted against defects, in materials aad workmanship for 90 days fr'om the date [of service,

In 'the U~,S,~, a support ,agreemcn'lls ,av,ailable for repair and service, Refer to the form in the Fr'g"nt of the man ual .. , For additional i'I1~Dr'mDtiflnt contact the Co rva I Us, Service Center (see the inside of tile 'back cover).

,

',nlfo:rmat:i 'n

U"l!,S~,' Iii The HP-10B generates and uses radio frequency ene,r,gy and :may interfer'e with f'ldiD and television reception, The caleulater complies Wilh the limits for ,8 CI ass B; computing device ,as spec ificd in Subpart J o.f Part ~5 of FC'C Rules, which pr'o,vide reasonable pr,ol,ectio,n against such

i nterf erence ina residen I i ai, in sta llation, 1.0 I he un ~ i k-cly eve n t l h.,at the re is, in'lcrfcrenc,c, to radio or television reception (which can be determined 'by turning the HP-10B[ Olrr and, on Qlf by removing "he b'3t'lcrics), try the

fOil l OwLD,g:

Reorlentlng [the r[cceiyj,ng amenna.

Relceatlng the calculator wilth, respect to, the receive r"

For more information, consuU )'O,ur dealer, an experienced rad~o'ltelevislon (echni,cian, or the fono'[vnn,g booklet, prepared b,Y the Federal Communlcations Com,m,l,ss1oB': Ho[w fa ldclI"ifj; QII,d Resotve Radio-TV luterfi renee Prob,le:tus,~ This 'booklet is 8vailabl,e from the ... S,,, Govemmem Printing Office, Wash-in,gton. DICi 2.0402" Stock Number ~OOO .. OO,34.5·4t, Al th £irs( prlntla of thi[s manual, [1~iC telepbone

number was (202) 783-3238i

We ~'I Germ ny~ The HP, .. 10B complies 'M~,h VFG 1046/84'1' VOE

0871B" and similar' noninterference standards, I:r you usc equipment that is, not authorized b,y Hewlett-Packard, (hal sys'(,em e'D[On,gura,lion ha· 1,0 com .. pJy with (he rc'quiremcnls of Pamgraph 2 of the German Federal: Gazette, Order I(WO) 1046/84, dated December 1-4, 1984.

•

ore

s

Tbe~ calculator' determines tBRIYR fo,r' ,8 set o.f cash, flows using :ma~bemati,cal formulas that "seareh' for the answer. The process finds a solutiea byestlmatlng an a:ns,wcr and then. us:in,g that estimate [10 dOl anothee ,c,alcul,atioo, -lhls is caUed an iterative p-'OC'CSS.

In most cases, the ealeulator fmds, the desired answer, since there is uS'U:-' aUy onJy Doe solu.thlD to the calculation, However,., ca~cu)atin,g lRR[/YR .for eertaie sets of cash fIo''A'S is more complex, There may be more than one (or n,o) mathematical 5,0:lu tion 1,0 the problem. In these cases, the ea leulat[or displays a message to help you interpret who" has happened,

, ....

These are the possible outcomes [of an IRR/YR calculation':

C ~ [e "!i The calculator dispJayS a posltlve answer, This is the onl" positive answer, HOYIC'vcr one [o~ more negative answers may exist,

- ~ C ~ , . " , 2. The ~a~c'Ula,t.C?r finds a ~ega,ti:ye answc'r' but ,8, sin,gle positive answer also exists, It displ:ays: f:»O S .I,IT ALSO i, 0 see [the n,ega~,ive answer, press [(!) to clear the mes~a&c~, To search for the pos,iUve answer', you. must input a gues.". (ReFer to "Entering a OU'es5 'for lRRlYR;~'t below), There m.lght also be add:itio,nal negative answers,

. C ,- : 3. The calculate displ,ays a negative answer and no message.

This IS the [on,I,)' answer ..

~~: C,' - • The caku later displays (he message: E:rror"" S,olnl Til is

indicates that the calcu[ation is, ve'ry eomplex, II might inyolve marie Iban one positive or negative answer, or there may 'be no solution. Te co:otinue the calculation, y.ou must store a guess (see below),

· . 'c·· '. 5" T' "-h", . '1- . l' . -, . d'!!! _ .....•... I . '. 'So' ,u,,- -'. - h-'" -- :Ii -:- ,'- .. " ." - .. '1-.... .

• ',~-~_~ . .'- 'I' " I.c e C'I. eutator :" l 'p,.,a.s. no.O UlIQ,11i1 ., ,.,.e:re, IS n .1 ,a,nWc'f"

1-_· :h·'· .'Iii ,-. - - llil iaht - -'- ,:h· --. .. 'I"~ -' - .. - , .' ..... - -,- ... ., 'h ' .. '. .... ,. :'-c- f'-C-'~'"' -.' in

,,::IS sIl.U8It.lo:n :mJ,IJ_ .' _" e resuu ,0: an, error, :~U'C_l as .. mISIll,a~,*.e ,I .•

~ .. -"-*n' -:-: '1;'" iI!'h':'jjI]i Ilifti"'h',' 1i··;:IIO- ,,~., A··-·· ~:'" m' nn ':'0,", mistake 1':]'1-:'1' res iii.iI;l,~s: :~n, thl - t ',"IS~

.K .. " . _'_. ,,_,-u, lil. '. v. ~U.1I., I__ !I .. ' ''''Q~ '. ' . ~ .. _ .1.' ' ... - 1[1 1.11111 .. ~Ul.l .,_,- .. ' _~"" ~L U. II;., _ IL. .._ . . _. _ .. _

. -.,--: ... .--_,.1, :,,'.,i .. ·.'_:,,!·'h- .. , .,: _:'.1' · ... ·~:.c· . .--- .- .. -. :-'. ash n··I·" .. :.: A····· valid eash-Ilowserie

sa.:o l. pu~")n".,, ,:. wr<,,' SI, '.' ' ' .. n a ._' :, ,,:_-_,w,~ ,:. va".,_ ca~"·,, '_'.',., ,t. .. , rl ,.'

'-', . JR:' R"/'-')')" ';01 . '1' " I""' , , . h '. at I '-"1' "- -. -"- ··o!IiLI' .. "!i. '. - d -, - ,

:o,r' an" _-'_ .. ',,_:-'.' 'I'n, 'C,8CU!lltIO:O must ,,'ave at teas on:' p_o~n Ive an_ . one

, "

.. ..

. ': ',,:' ·"(·::v'.r.·e··: ,iI'"IV ,.-- '::h" 'n:----:,w . 10, .. , .. ,I, , .. _. '"' :' . ,0 .. , ..

The search J'lf .J:RR/YR may ta re , r::lallv':l:y 1 .. .Il--' :Um-=: .. 'y101l1 can ball the ealeuletion at any ~ime ".','1 :pr'ess'in~, the m1 key .. 'The ml~ss,age IntE,rlr'UPI,~'d :t.s·'is,ply'd.~, .'.r'ssi,n;~, (!J :1]0: .. ,-' ,dis,:p1.a,ys the currnt'tL",ate, for lRR.lYR~ 'You can, ":um .. · 'I'h caiC!ula,tion by:

:'- · h·:I··:..· ii,1'1ii,' ""u-··: rent e • ;'I''NI'!III '1-' ,':iI!! d··' ispl ~ .. '1 ..... ,",'1 '.iI!!I('I

', ... __ .II) "j 'II •.... ~ .. ~_.~ r ' ••• I!: '_. \lIlL.II' ... :.,' l~rIJ.! ' __ J[~ •• ')i, ',:_ __ . _,J ,_ •• UI [~JIi'1 ~~~

nt inues - he ealeu 1.0'1 ion ,r rom, w·b .. re U :I:efi,

-- StlorinQ a. "ess rOf IRR/· .. YR .. diseussed helow

_ ..... ,.I"D . :.:;:~"'" _' [_I, ~ , __ [_,~ _ •• • .. ~._. ~ .•. __ •

To, enter a guess, key in an estimate o[IRR'/YR and th~ n pt::',_STO .• . Y"-' - . Iii ~'I!':IiI·n·· Ad' iIi'A . 0" -" 'U' aC'!'~ t. 'r': l' ,'.D :u/'-ID '. E' the ,·c· (.: 'II!' m .- ... ·_·hi

~~;.:...I!~ ~.: _' >gl ~: I: ~ ; .. l~lr :",'J [°0, ..... I .~I ,II.! ~ . .':, ,: :l~l'.: .iiI' n .. ~ I _'l , ..... ~-. 'J.'> ~",~, : ~ '-_ ::_·I~

· .' 'Bero",(~i.nni:n,g the calculation. ,A :ra,'ir~, ,~~, urate :~juess ~,-',a-n redue .. the till, ,I •. ' rqu.irJ·d to eah .. :'u·lat ·:0, a:n,'wer :n<_, ,r,~ duee the ehanee •. ~f t'h,~ eak '01 ator solvin ~"'-O'~ an u ndtt',i,rablc', ncr '-,( i,\i: '.~. ~ J u~J n~-

• ,Afte:r' y;ou,:,I'~ inte ·r'~'.~.-t-:d th '. ,~~ Icida:IJoII

• ,A,fler' the IC'lculat,lor has halted the c'lcu1.alion due 1,0' a,or ,or the ,fo;r·:m,:nILned·as'~~~ :H"'·,:"~:'f'-,~ ': .. cace. " ,·.d<'.-. no other solutions wil:e foand,

4' [I.:·

'-. -. '1" "U' " .... - ·.G:u.'~._on'.'

•

Tb' _.' .. " HlP" 1,:···· -' t'" '.' ..... -'b" I' 'I-,!I!'~: ·t}'·,-,,) :','. ':-- "'00'" -r~ :': ~. ~. - 'il .:: .. : ... : .. -. '., "'1' ':l'···:d':···;:,· sh Ii .. - "1'

.. ,,'r! '"" ~,' .. ! : 5:,0 ",,:_.c<,8Id ·.ica~, l1um,-r m, ,an ftccu.mu,_,aC, .. BSL .I,om,!! '"

d', '., '1- "t······ -.- , .' . , .. , ti - .. ,".-, - -. '. -'- _. -.,", '·-h··'_, . t. : .. " '.' ", ", nte """" t ., :tl '-'. ·:t· " ;--' . ,t.'~., -. '1' ' ~ .,1'1 ....

oes·,.~ .'. · ... or·,) c,yer,), ,I],um.,r ,",,'" :.'. you cn,er:. ,.D" .. ' ,. :'C, , 1. pc,rlOI m:. I,o,.r,·

- .-'1. .-_,1 . I'ill!~' .. ..,' ... ,.. .. - .... lih·· A.hl 'k'" ~Tb"":-·· i k' ., ' .... t_. - .......

: .. ': .8';, ~ CilI;t _' . ,a~10DS WI :'eD ,YO' .. , :p.ress "" :.e udI ~eyl' _. ,Ie . ,ey perlo "S

the op;posite iotolmed-iate ,ca.lc:ulati,o-~s 10 e ;-~I,c:tively' 'cmov· a oumllC:r o,r pir ~fD~,'bers';DIft the Sloed~~l~ . ... .. ' .. '. ". ._......... .... _

. U.--- ... · :I',:;_",S

Tbe I JI 'l. :poslt:ivo al);~ DC - \ ,live :~~l'u,m';rl~_y_-ilab]e on the ealeulator are

+9.99999999999 x ',: .' .. ;;, the smallest 'pos:itive and ncgatilYC numbers avail@O ab .. e are, ~. x 10:~'499.",Dd,er'~·:w dls.piays '~, zero. 'R,eler to them ... ·· .• ·.age,

OF,"· .O····! :~~ cu:-M.····· .a .• a~·I-R!~t •• o··.';:_· .. llo .. ·~,iI!n- ··:.l··h~·;i! a····p: pe ·'nl"'-':,=·v,".,

. ~_. _ [~-,-, ~. _' . ..-. -ili \ ~ _ " .1 .. ",1.... . '" _&0 ... _1 _ ~ U~II!

.. ~. • .' .: • • I e- t_)

I

I' J

' . ' . PRe ,_. COS'T .,,', ....

MAR ._ PRe x 100

,~, .. :' I· • " ..•

.

, L

I· 'J

PH: ···C·--·· C-·-·O:·'·S~-'T- _.

.'. ["I'" "

'~ [I [~I ~ ~,' I'.· . .' .. ",-. ". : .- ". .. ..

MU "" ,COST x 100

O ..

,'. · ••• 1 •• [ ••. :

[ ] .....

~(f~

~" ~ ,170

+ Jlx 1+ -00.

NT ~ accumulated inl rest EPRN ~ aceumulated :prlncipal

,

;' :: periodic in't[crcs't rate

BAL, is initially p;v rounded to th,e co:rreDt ,disphlY ,-' lti-ngi'

PM'T'is iniliall,Y PMT funded to th ' eurre ' t di pl,ay set lin t

.

:j __ J/YR

I.... I -00"

P YR xli

4,I "

INT~ D BAL x;' (lNT~ is fou,oded t, th ur ,ent d,;:splay settln j INT~' = 0 for p riod 0 m Be~n m,ode~) ·

l'~ T = INT~ (\'lith si,gD , - r PMTJ

PRN = PMT +, INT'"

B[ ~" BALord PRN'

-- :E1NTelId' + INT 5l I:PRNttU + PRN'

- [ - NI'OM% ],Pfla ,

EFF% ~ 1 + ' - , ~ 1 )( 00

" 100xP'/~ "

i% :: periodic interest rate

J ~ tb ", oup numb -r' [of the cash RoWt, CFi =: amount of th casb nbw for group },j

"i = Dumbc,r 0" :tim,e--s the- eash flOw occurs for group], k :: the group Du:m'ber of 'l~~ hlst '- oup or cash nows,~

Ni ~ :" "I', -- t t.al number [of ea h. ,n 'WS prior 10 'fOU.,P j"

~ l~l' 'e'i' ~

NPfI' a CFo

i% 00

i

E CFjx

,~ l

[

Siali' ti'cS

Sx=

8y ::

ElY :E)~

E 2 _ 11::y)2

Y Ii

1,1

11' - 1

~, )2 Ey,2,_ ,-_~l_~

- '"

n -- 1

01=

[Ex:! _(E.r)2] [·l::y2 - 1Ext.]·

1.' , 11 .

".. . .

A. y-'b

.:r = ,.____

m

Press 1m or (!) to, clear a message Irom tbe display, At~L,·'C:Lr

(All Clear), Memory has been erased (page 23).

bAL,

(Balance) .. Balance in an amortization schedule (page 67).

CF<j'>

(ICash Flow ill Cash no,w number (page 78).,

'COPr,j :HP 1: 987

(Copyright HP 19:87);0 Copyright is displayed during self~l,esti

Error - IFunc (Brror _, Function),

I ,Altempt to divide by zero,

I Attempt Lo ealeulate n,! Wilt.. n < 0 or :0 ,3 nonlntcger ..

At't'cmpt to calcalate the loga:rithm of zero or a negative number,

• At:tcmpt to calculate 00 or 0 raised to, a negative power ..

I Attempt to raise a nega'live number to, a noninte "cr power,

• Attempt to ealealate the square root ,of a negative number,

Error - Full

(Err'olr .. ' Full) I' A'ttem,t to eakulare an, expressioe with more than n,v,e :pend,ing operati OlDS or attem pt to, enter more 'Ih.o n 15, cash Ilow groups,

Error -Int

(Error ... I nteres t)1 Per judie interest percent is S ..... lOO%t

Erlror , .. n

(Error ... n), Attempt '(0 solve ror IIYR with ,N ~ 0199999 or ;:: lEIO.,

Err-or ' .. Pi Yr

(Err,or - 'p'a:ym,ent'. per Year), Attempt 1:0 solve for P/YR, or store it

:;,1 II mbc f' in P/YR !(ha.t is, out ide lIt" I,cg,n~ range (I. lO""') or is nO'1 an 'in(,',:,cr ~'

Error ~I PEr

'I •.. I: t

(Erro:r '.' Perlod). ,Allempt to enter a, value in ~i 1'11:: .llS, outside U1C ~C',~ll

ra,n,ge [(1 to 99) or is not an lnteaer,

E'rr,or ~ Soln

(Error III' Solution ")", A"~,," ,r,i1'):IU'''(''I!I!O' n ~f\ir lR.'R'/",,'YR [0'"(' I'I,",,"YR mi':'·I,'1""~' Of' mav '11(1 exist,

l~':' ',I ~ ••• , •• ll~····I .. i!!Il ~l.., ... I., •• _./ •• I"'[U!~ I~l. ~ "1"' ••• ~.~.I~l' I _"'~.'-._. _ •• ~-!JJ.~ ,J. _,ill

:Jf you are attemptln ',I' ,'. solve I/'YR" yo: may be able I:~ perform the, calcu .. lation using, lR'R,]l)!_R. :If'you are atl,e:mplb'I,' an Inn/llR ealeulation refer ~,o page 12:71

:E:~rT'o:r "", StAt (" -::~'tr'or' '" SC,~;'[I k [i les !,

Attempt to calculate x' .~~ ... ~r, or r ~Nilh .r-data ,only (all , .. values Ic(~u,~iI to 'z. ero ," )""

.. ~: 'c· •

A l.t,cm 1'1, 1,0 cal cui ale, ; .. V, r ,or m I w'i I, h a,~ I ,l'"'''' va l. u C,~. equ a~ ~

• Atlcmpa 10, calculate with ,"t eq ua I '(0 zero,

. I" ~" ·8·' A, A, "·1 < 'J' " .. 'I " d" 'i'" :i

: .I ,It,cni pt I 0, C[I~~U ~a[,c, ~~=" ,!i ' ~\"' ; y'~" r t or 111 'wU _l n ~ "~Ior \"1.1. ~" I~ a t ,I!'"

slon b,y zer s o r ,squ:a f'C root or a ncg'u ive n ~mt[c r oeeurrred 'i n a statls .. , ties CD iculad,on .. Also. atl,cmpl to calculate X .. \vil,k ~ = ... ·.1

[I:nl:

~ , " -, ", 'II! ,t ]"' d I ( ~·7'"

,(lnlcrcs,I, .. lntercs; In an 3rnorlll31l0n ,~cJ,C; H"C ':_I' •. ~.g::~~ I), ,.~

I 'E P"tE-'d

.nl··-·:rru ' .. ',[~.

(Interrupted), A,:n .1RR/YR I/YRI' or- amortizati 1 enkulation was inu;:r' .. rupted by' pressing ··.C~·'I

n ,<I>

. '~:Ij) .. Nur:nbcr t)f times a eash nw of the SiU11: ;~unC::lnn UCCII,~S, consecu I, iveJy' (page 18)~

no S,oluron,

(No S:oluUon)t i-O selution exists for values ,cnlc:r,~d~)(~,g~' 1~7)~

1·' ",

" ,

'e .• Ole:

OFLOI

(Ove,rl1ow)" The magnitude. of a result is too large for the cal'Ula,to:r '10, v : "-'~['~'.' .' .': ,~'.' '" r;: :~" "". .~'~, - '~'"~"~:"': .... " ~ I:,","~"~~~,"-,'~"r "~.:~,., handle. Mess,!,: ~e 1$ dU*ipl,aycd for I, moment, then the ovornow result ,IS

, : " ill', ':' ,";" d ,(.: ,.1 . . ' .:' " " . '.' .'.: ~>~4'" r:'V1I)'" ~- ·'h' , ,10 ' ' ","., ':' • n' L,W' ',' m' ;f.ii,~'ii!i.,':;-,':. ~~ '0' '~s"" .:' ,d'~1 !{"'p' .Ii'a:v~d- '

. c ... u,rnc~ '....ofi,.'·~ '., t ' •• ' '.' '.' :.c:· .'.,.., I,;, ',. ,:0 over ID~ "., ~'''i:NIRD I~, ,~J.~ .'~ '~,I. ,.1'" .

if an inl,t:. :10: diate ' , VM or cashflow calculation results in, an ove rno,w

',t! .. ,~'" 'h"' ,ill h" '" ~, lh d~ ~ "'Ii ~ ...

condition ii, ,I, n~ l~' .• 1,5 ease, 1"Co message, remams In IH . 'C ". ~s,p~,ay:!!

'P:E.'[f' <p"~ > ..... ,<P'2:"'>

'~. ' , _' . ~ _ lI. '. ~ _.

'" ", " ~'I 'I " ,., 'j; d' d Ii t

(Periods .·]Dn';rrg' - el,ldiIlB)~ Dlsp ,8Y5 ' ..•• :&l'n'O,ln,g, a,n:' en .... In,g, pa:yrncn los, Ij'o:r ,a'D

a~ m 0'" r~I'I"'"'Jg.I';"A "ph"· C': d U' 1,1Ii (, :"p~'a:"'g,c'li' r:"'J)'""

_.I'. ,.l:A'U,iIIV'U. :'\;¥,: ..... '...... ,"'. U'I ..

'_, I '._ • I.'

POS lrr AL,S,Q

(P iI!"iI! I" al 'R '" - 'f' 'R" ~." "A'1' ,), A' 'I'R' R"'/"Y""R' .. ~ '1 'il'" .,'. .. ..

~.,'osl,lrve, mteme .. , "al,e ,0: ., .o(,'ur,D, ,. , sO,~"n".· .,~ ",. .•. calCU, a,.,llen pro-

dueed I, neg,ati,Y> so'~ut ion, A positive so~.ut ion also edsrs (page "127).

runn'~n,g

1(I"Run,ni'ng.· ":).1 A calculation is in process

• "._. •. • ._ ~~ '. ~ . _.- •• _ I.. ••• ."... _ " _ ••• ".. _.' _ • • • • _ ,", _ ..

IUFLO

, , I ,', )"'~ d·' 'Ii ,jIo TV' M I, 1"')'; I' JI J_1'p'" '10"'B'

-( U nderflow), An i,nlc:' :me'~ .i.ale :res'Ud, '~n,l. ~ · ,.~L r~ too ,,]11,3. ~ 0 r tne ,:~".~' ..' _;

'1" 0' " 'p~ recess

I ... • •. ~J·.·~~'I

<:nnn> P Vir

,"'""" " I' Iii 'b r"

(;;r"1 . ·aym" :~ ..• ients p·er Y ear) " ~ :~ :<'m'po'r ,a'I"V m css,a.~e sho'WI'n,o' ,nu'rn;cr 0" p ... a v

• __ 1 ••• _ •. : I I •••••• _ .• _ •• ...:_.. __ :_._., 1_.,' •• _1 ~ • __ '[.:'" • .1 11 .1 .• :. __ .• ,"" _. !Ii, •• J - ••• JI D - . .. .:. --,J- ,

ments ncr '\"::01' 'Displayed for ,3 moment WhC'R you po: ress

~_. _" ... ~'_ "."} 1.J.JII!W'l! • .I wi' .J_.!I!. -'_'II!..~_). _ .,._ ...... _ ~J. j~ ••• J ••. ~ •• Jl"· •. ~ .. ' I.~ ••• :."_ :" •••• _.

101~, FAI'L n

(HP:-l,OB Fail), The s,e~.f""tcst. Iailed; D, is the, fall, code (p,a,ge .121)~

101 ~ G,ood

(H:P-1DB Good). 'The ,sc)f~l~~:l is complet ~ ('po: e 1 ~"'l) ..

".,~' ll~l

(.M], 3$, ,37 ,~,2-,4

!.: _'I 21, 24" 118 :.24,

Aecumulative dlserepaneies, ,58 Add percent) 31

AdJusted lnterest ratc; 13 Ad,vance payments, [63,

ALL, elr, 24,., 133

A,MO:RT , ,52

Amortlzatioa, 66 eq uatioes, 130 in:'[crest. 66

lo,an 'balance, 66

primei pal, 66

range 'of payments, 61 sehedelc, 68

single pa,ymcnt, 6'

- !I! t , ... :1 1S

Amortlzation ,at a &amcc; : '

Amortize, ,smgle paym[oot, 67 Annual perce'Blage rate, 48. 101 Annualized yield, 84,

A:o'Duity accountt, 1 Amumclators, 24,

Answers to quesuons, 116 Application registers, 29

APR" 48, 101

A!I!'h • iii' !iI_ 3'9

ru ~ mene m regaters, ,"

Arlthmetie operators, 21

Auto inc,r,cmcnt, 67 Automatic constant, 3S Automobile loan, 104 A verage, 88,

[Cf!D,78

[Ch.a~:n ealeuletlons, 22 [Ch.amging, batteries, 118 1Y),cBG]" 26,

Clear d ispliaYt tO~

Clear sl at istics, 2,0 Clearln,g, 23[

Cleario.g messages, 23, [CU/tR A,LLI; 53

[PL, tl,8S

Colon, 24

Com'ma,28

Comp,uin,g inv,csLm 'ols. 71 Compound imicrest, 45:.;, 46

Co d-·'

mpoun ~'n,g

an J] 'U a I:~, ,60

da,iiy.12 monlldy,72 periods, 71 ,q,ua,rlcr~y) 12

Constant, 12,. 3-5

Co,ollin.uOHS c,ompoDudillS, '9,8 ContinuolUs memory • .'21

Cor recl'il1g, statlstlcs, '87 Correlation coefficient, ,88 Cost, 11

Cost of 0[0 d lscount, 96 Cost per un.ill 9,5 (~Sf]J 33

Cursor, 23

Backspace, 22, bAL, 67 Balance; 43, 67'

Balloon :p'oym,e:nli,'43; 56, B,asies, at ,8 glance, 10 B,a'lteries,' 8

cll,al1gin,&, 118 BE,GI:',24 (BE07EJm],S2 Beg' in 13

- - :.

Begin mode, ,53

Bo,rrowin,a equity 112 Br-.i&h(ness of dis,:p-lay" 21 Buy' ,out valu • 62

C

1m. 21

Canadian mortgage, 105

C ,., )- I d aJ 62"

ap'Il'L'fIi I !'_JIll]· u· - u· '11, , ..

: ,II Q, ~ 'T' " :Wil "

Car loan, 53'1 '04, C·ashnow'

calcu~,atio,ns, 75

dearin& 7S dlagrams, _ 3,

di'SCOUdll 77 cntcrin,&, 78 equations, 131 gro''U,p,77 mistakes, 1'9 problems, 47 repleeing, 79 viewing, 79

C,as'b, paid .out, 44 'Cas'h received, 44

o

Daily CO,lIl pour~d,ins, 12 Decimal pomt" 26~[ 28, Digit separator, 28 Digits, 26

Dim displa,Y, 21 Discounted contract, 80 Discounted mo,r('g"age, 99 [OISe], 27, S8

lOI-SP-] 8" 28

III - d' - lI,n, __,

1,37

D'ispl:a'y all d,igitsl 28 Disp~ay format, 21 001,.,28,

Down paym,cnl, 53't ,5,5

Future value, 43" 48 [EYi, 43, 48'1 S,2

G

Grcupieg cash flows I 71 Guess for IRR'/YR', 12'1

reifl,4O E,27

lll"21

le,EIF .]. ,51, 71

Effective

annual rate. 41' rate, 71 Effective r',al " 161 End, '13

End mode, 53 En.terIn.g a Guess] 127 Equations, 1291

amortization, 130 cash flow, 13,1

latcrest rule conversion, 1. 31 margin and markup, 129 stat lSl ies, 13,2

TVM,13O

Eq U~[l.Y, borrow a,g,a,j nst, 112 Erase, 22." 23

Erase m'cm'ory) 120 Error' messages, 133 Estimate for IRR%t 121 Estimate of XI ,88 EsI,imatc Or)/I ,88 Expone n(:s'l' 21

Help, for questions, 116 His,t'ol} based ror'ccastin,&, 9'S Home Dl'of"gage. ,55

I ndi'vid'ual re I j rc:m, "'rn,t account, 60 I ni.tial, cash now; 77'

ONPUTII' 2S

'I n put annu n 'i a tor I 24,

In:s'(alli,ng, baneries, 118 I'nt" ,67

'I: n I crest

compound, 45, 52 simple, 4,5

'( n terest conversion ,3'1: a gla nee, 16 In terest r ale conve rsion 7' ~

equal ions" 13·1 Interest with fees. 101 In terest .. only 10Bn i' 102 Intermediate result, 41 Internal precision, 28 J'nlernul: rate Q,r return,

17. 4,9, 7S" 83 Investment eomparlsons, 71 'I:RA,_ 00

I:R'RI49

lRR/YR. "

[R.B/Y'B]~ 49., 75

IRR'/YR ,al a glance, 18,

lRR'/'YR CaJcu1alions~ 127 III V ,RJI' 48i, 52

Factcrial, 40

Fees up front, 101 :FIX"26

:Fo:rcc'llst~'ng based on history, 95,

Format the d i:spla,Y, 26

1:31 Ind II:

~"'" ,L 00.35 Lease, [62

a d va n ce Ila )'0'1 en [S,. 63 u near re gressi on I a.5,. 9] ILNlt 40

Loan, with fees, 101 Loans. ,53

inl,cr'-t~,s,l onl,y, 102 number (lr payments, 52 odd ri rst pa )"111 en t J 102

cash no,ws,44- numbers, 22, sign, 13

Net r ut urc value, 114

Ncl present value, 171 49.,80 H,e I C ed v,al,uc I' ,82,

[fffi',. 78

IN6M'~J, 51.. 71

Nominal

annual rate, 41 rat,c,71, Nond,nal rate, 16 ,NP'V. 77

_. ,

[N,P v' I. 49'1 75-

NIJV al ,;1 FI:~lnc,c'l' lR,

MI

1t!±J., 3,5 ~ J ,.

M re '-isu:r.. 29,,31', 35 Malrunction, us IM,ARI" 3,3,

M'arg,in.~ u, 3,],

Mar:kup,~ 11, 33

M',DI u:rit,y value, ,43, M[ca,n" '

we'ig,hled,. 9[4- :M,cm,[or'y, 29

cle a ri ng, 23,

,Memo,ry 'keys, at u glance, , 2 Mcs;sttg'C1i, 29~ '1·'

Mo'rl,s,a"gc

Canadiu:nl 105 discounted,,99' premium, 99 wr,ap~iI.r und 1'1:2

(fA1l1, ],3,

M'llo-al r II nd, 48. 49

o

,

Odd fi F 5,( p',lyID en t, 102 (Qffi,.21

ON 2·'~

~." ll.

One paymcnl pcr year, 58

One .. number Iunction , 25 One- variable stat i:S'l!CS. 86 Opt ion '(.0. bu.YI' 62

'p

Parenthe C'S, 41

:Parl:ia Iir l paymen'l" 10.2 :P.aymcnls,. 48:~ S:2

p -ND~ 4

, -

Pe ree 11 r, :11 'I 31

ch mge, 32

Pe rcen t a t a ,gl ance, 11 Period, 26" 28

:P' 'riodic rate, 47

Pc :riod 'I' .

~~,T t ·,,52

Population standard d i"vialion" 88, Positive cash Ilows, s ,

(P,R;'C Ji 33

Premium mortsa J'C" 9')

N,

lDJ],40 IN)'t 481 52 ,nt,8S,

N,alu~ra] lo8ari~hm, 40 :N e,g,tI't ivc

Prescot valu ~ ~ . Price, 11 PrJn,67

riocipal 5'1' 67'

, I ,.. _~ d~ .. ItL

Principal re' uetion, uU

ilfi!J; 48, ,S2

[ezVA)" SI; S:~ 71

Settmg a sales pricc1 95

St.:!.r. k 10 24" .

, ,-rut ~: ~ y ,. .... .

,Sho:rt I rID iuvest - ent, 75 Sj ~

change, 51 convco'tioD,,' S' Simple interest, 45', 97 Slope, '.,

Square 1[00'1. 26 40 ,Sx'S' .

~. I'

Slat lsties : .'

elearin ~,8S

corrections, 129 equations 132

foreea tln ~,9',

limit 0 valu ' •... [

linear [ lim, "Iion, 8S" 91 t~ ~ • 5

u iear roreeas 10,1" "~

linear reare:' ;OID~' 5, "[1

, ~['n,' ~~ . 91

'W. ~:II

m mo 'j' S m,:isl,ak ~ ~ 7

ene-varlable, 8S

p . :pu.~ation standard d ~. vial ion 31 89

Ouestion ; 1161 Ouiek reference, ~:O

R,angc of numb 15. 129 RC: ~ 33'· 35· 38'·:,···

~.~, ,~,

. teesll, 38

R,ecaU mem,ory!" '2, Reciprocal 40 Register, 1

Re ~"~ster' lab ~]Sl' S R[cgis:a.,crs, 29

Re;,~ "ainin.g amou 't, 43 Reset, 24" [~20

Residu ,1. s

value, 62

Re'llrem,ent ,I 'count,. 11

mMl"3S131

mNO),28 Ro''U ltd ln ' '. '.

er 'ors, ."

'. '111'1'

,sampl . tan ~ ard devial i OJ

standard da'Y·aliono, ,85 summation 89

ilSw,AP)., 88

two .. ,'ya.ri:ab~e; 85' wei: "" ted mean,

Sllli: ties at ,I ;&Ia'nee 19

S tat i· tics" w,ei:gh,ted mean, 94 Status) 24

(§TQI, 3S:, .' ,

S t,ock inv[eJ;,tmcn'l. 75 Store,

Sub'ra,ct p '. reent, . [ ~

Su ' , mation slatjst:i,cs~ ,8.5 Summed, valueI' ,82 (lIWAP'I,25

,Sample s't· n,dard devi,aUon, ". Savin . for colle e, 101' Savi[I' acc.ou'n(I"~·

Sc:icn l.ifi,c not at 1,00,· 2'7

Sel -test, 121

Slc]Un,g, price, 33

S ervire" 124

Taxable r,etilement account, 111 Tax .. ,del ··rred account. 110 Tax-free aCC01!Ul[t, 0

, .. ' ··,ey M,cm, ry:, 3.5

Time out, 21

Tr,aDin,g zeros" 28,

TUfD otT, 21

Turn on, 21

TVM 4

,

equations, 130

pro Iems; 7

TVM st ,8 glance, 13, Two-ou:mber run,cti[ons, Two ... 'V8' ,iabl. st atlstlcs 86

~ flo" 80

[ .. ~. . . ':. .' " .'. [

U,neYen cash .' ,ws', .

Value of a fuad, 11

Vi win cash Ilows, 19

Waranty,l23

W ~"i:&hled mean, '94

\9 ' Wh,al if . I • " 106,

Wbat if'. I • at a g]anc,c) WOD'~l tu Don, 120 Wra:p~arouDd mortgage 112

y

Y ellow shift ,key; 2 . 'Yi[cld 83

~ ~ ~.,

y.~in:ter'c . pt, 88,

In,d', x 11.11