The Tvm Menu - HP -18C Owner's Manual

Table 4·1. TVM Menu Keys
Menu Key
..
Description
The TVM Menu
Stores or calculates the total number of payments (or com-
pounding periods) . N can be expressed in any unit of time-
for example, years, months, or days:
Stores or calculates the annual percentage interest rate.
Stores or calculates the present value of the series of future
cash flows. To a lender or borrower, PV is the amount of the
loan; to an investor, PV is the initial investment.
Stores or calculates the dollar amount of each periodic pay-
ment. The payments are the same amount, and no payments
are skipped. Payments can occur at the beginning or end of
each period .
Stores or calculates the future value-the dollar amount of
the final cash flow, or the compounded value of the series of
previous cash flows . FV always occurs at the end of the last
period .
The Secondary TVM Menu
Stores the number of payments per year. The value must be
an integer in the range 1 through 999.
Sets Begin mode; used when payments occur at the begin-
ning of each period .
Sets End mode ; used when payments occur at the end of
each period.
Displays the AMRT (amortization) menu for calculating am-
ortization schedules .
• When the HP-18C calculates a non-integer N, the answer must be interpreted carefully. The
built-in formulas used by the HP-18C do not calculate partial period payments . Interpreting
a non-integer N is covered in the savings account example on pages 69 through 71 .
Calculations using a stored non-integer N produces a mathematically correct result , but this
result has no simple useful interpretation. The example on pages 145 through 147 use the
formula solver to do an "odd-period-at-the-beginning" calculation in which interest begins to
accrue prior to the beginning of the first regular payment period.
4: Time Value of Money 57