HP 10bII+ User Manual page 81

This solution requires four steps:
1. Calculate the present value of the 47 monthly payments: (4 × 12) - 1 = 47.
2. Add the value of the additional advance payment.
3. Find the present value of the buy option.
4. Sum the values calculated in steps 2 and 3.
Step 1
Find the present value of the monthly payments.
Set to Begin mode. Press
Table 6-13 Calculating the present value
Keys
JG\Í
YjÙ
GY::yÌ
:É
dÒ
Ï
Step 2
Add the additional advance payment to PV. Store the answer.
Table 6-14 Adding the advance payment
Keys
1vÌy4
s
Step 3
Find the present value of the buy option.
Table 6-15 Calculating the present value of the last cash flow
Keys
YgÙ
\¯
if BEGIN annunciator is not displayed.
Display
12.00
47.00
-2,400.00
0.00
9.00
95,477.55
Display
97,877.55
97,877.55
Display
48.00
Description
Sets payments per year.
Stores number of payments.
Stores monthly payment.
Stores FV for Step 1.
Stores interest rate.
Calculates the present value of
47 monthly payments.
Description
Adds additional advance.
payment
Stores result in M register.
Description
Stores month when buy option
occurs.
Time Value of Money Calculations
73