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HP 20B User Manual

Business consultant financial calculator
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HP 20b Business Consultant

Financial Calculator Manual
For free training, visit www.hp.com/go/calctraining
HP part number: F2219-90201
First edition: August 2008

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Summary of Contents for HP 20B

  • Page 1: Hp 20B Business Consultant

    HP 20b Business Consultant Financial Calculator Manual For free training, visit www.hp.com/go/calctraining HP part number: F2219-90201 First edition: August 2008...

  • Page 2: Legal Notices

    Legal Notices This manual and any examples contained herein are provided “as is” and are subject to change without notice. Hewlett-Packard Company makes no warranty of any kind with regard to this manual, including, but not limited to, the implied warranties of merchantability, non-infringement and fitness for a particular purpose.

  • Page 3: Table Of Contents

    Legal Notices Revision History...2 HP 20b Business Consultant Keyboard Keyboard Map Legend ...6 Basic Features Welcome to the HP 20b Financial Calculator ...7 Turning the Calculator On and Off...7 Selecting a Language ...7 Adjusting the Display Contrast...7 Cursor ...7 Two Line Display ...8 The Mode Menu: Setting Preferences ...8...
  • Page 4 Two-Number Functions ...26 Storing and Recalling Numbers ...27 Recall Arithmetic...28 Storing and Recalling with Time Value of Money (TVM) Keys ...28 Recalling a Menu Item Value in a Menu ...28 Rounding Numbers...28 Percentages...28 Time Value of Money Time Value of Money (TVM) Keys...30 Calculating Payments on a Loan ...32 Amortization...33 Creating an Amortization Schedule ...34...
  • Page 5 Statistics Example...63 11 Errors Error Messages and Calculator Status ...65 12 Warranty, Regulatory, and Contact Information Replacing the Batteries...67 HP Limited Hardware Warranty and Customer Care...67 Customer Care ...68 Product Regulatory & Environment Information ...71 Index Contents...

  • Page 6: Hp 20B Business Consultant Keyboard

    HP 20b Business Consultant Keyboard Keyboard Map Legend Feature Time Value of Money keys Cash Flows, IRR, and NPV menus Data and Statistics menus Input key Memory menu Up/Insert and Down/Delete keys Secondary function key On/Off and clear entry key...

  • Page 7: Basic Features

    Welcome to the HP 20b Financial Calculator This manual is designed to familiarize you with the many features of your new 20b Financial Calculator. It includes menu maps, example problems and solutions with key presses, screen shots, and examples of cash flow diagrams. There are also sections which list the error messages and explain how RPN works.

  • Page 8: Two Line Display

    < > The Mode menu allows you to customize the calculator. To access the Mode menu, press . Press repeatedly to scroll through the menu starting with FIX=2 (the number of digits displayed to the right of the decimal point).
  • Page 9 Key in the number of digits you want and press you want is displayed. The display precision can be any number from 0-11. If you specify -1, the calculator displays numbers with the most appropriate number of digits after the decimal point.

  • Page 10: Changing The Calculation Mode

    Scrolls to the current setting for the calculation mode, Chain . Selects RPN as the active setting. Note the small RPN annunciator to the right. Exits the Mode menu and returns you to the default calculator screen.

  • Page 11: Key Presses And The Secondary Function : Key

    Key Presses and the Secondary Function : Key To execute the function associated with a key, press and release the desired key. Most of the 20b's keys have two functions: the primary function and the secondary function. The primary function is printed on the top of the key. The secondary function is printed on the bevel of the key.

  • Page 12: The I Key

    key is used to input values for variables and execute menu items. key is also used in Reverse Polish Notation (RPN) mode to enter a number on the stack or duplicate it. The = Key key is used at the end of a mathematical operation to calculate the final result. For example, returns a final result of 3 .

  • Page 13: Editing And Clearing Entries

    When an item for which the screen. Do not confuse this small annunciator (=) with the larger annunciator When an item for which the the screen. Editing and Clearing Entries The On/CE O Key Pressing one time cancels current number entries, mathematical operations, or a menu selection, in that order. Pressing repeatedly when performing multiple operations cancels one operation at a time, from the latest to the earliest.

  • Page 14: Accessing Menus And Menu Maps

    Del.Data? or Del.CF? prompts, press Accessing Menus and Menu Maps Many of the calculator's functions are located within menus. To access a menu, press the key, or secondary-function-key- combination, for the menu in which you wish to work. To exit a menu, press For example, to access the Break-even menu, press <...
  • Page 15 2. Read-only. Read-only items such as Internal Rate of Return ( IRR% ) in the IRR menu are display-only; they are calculated values computed internally by the calculator. 3. Write-only. Write-only items, such as investment interest rate ( Inv. I% ) in the Net Present Value (NPV) menu, are...

  • Page 16: Mathematical Calculations

    Mathematical Calculations Mathematical Functions Mathematical functions are located: +-*/ On keys, such as,  On shifted, or secondary functions, such as,  In the Math menu,  Number Entry and Display Numbers are entered by pressing: Numbered keys,  The decimal point ...

  • Page 17: Chain Mode

    Algebraic Mode To set the calculator in Algebraic mode, refer to the section titled, The Mode Menu: Setting Preferences in Chapter 1 . In Algebraic mode, multiplication and division have a higher priority than addition and subtraction. For example, in Algebraic...

  • Page 18: Reverse Polish Notation (Rpn) Mode

    For example, key in 1+ 2 x 5 nPr2 1+2*5:b2:m= Note: the calculator is limited to 12 pending operations. An operation is pending when it is waiting for the input of a number or the result of an operation of higher priority.

  • Page 19: Last Number

    See Table 2-2 for an example using the last number function. Table 2-2 Last Number Keys :u3I <<<<< O1c23 I56c1 for instance, the calculator "pops" or moves the two numbers Display Description Sets FIX= to 3.000 Selects RPN as the operating mode. Inputs 1.23 and 56.123 Mathematical Calculations changes the stack as shown in Figure 4.
  • Page 20 Table 2-2 Last Number Keys +:d/ For more complex problems requiring two or more operations, you do not need to enter parentheses to set operational priority. Key in numbers and operations inside the parentheses first, followed by those outside of the parentheses. If a problem has more than one set of parentheses, start by working with the operations and numbers in the innermost parentheses and work out.
  • Page 21 Table 2-3 Simple Arithmetic Calculations in RPN Mode Keys Pressing when you are not entering a number duplicates the number on Level 1. That is, the number on Level 1 is pushed on the stack, making Levels 1 and 2 equal. In the example above, pressing 77 on the stack making Levels 1 and 2 equal.

  • Page 22: One-Number Functions And The Math Menu

    Mathematical Calculations Figure 6 The RPN Stack and the Roll Down Operation Pressing performs a swap . A swap operation exchanges the numbers on Levels 1 and 2 of the stack. The key has a small symbol on it as a reminder of the swap feature. With the numbers entered into the stack shown in the left column in Figure 7, pressing performs a swap to the stack as shown in the right column.

  • Page 23: The Math :S Menu

    ( Degrees ) or radians ( Radians ). You will need to change the setting if the active mode is not what your problem requires. For more information on the Mode menu and calculator settings, refer to the section titled, The Mode Menu: Setting Preferences in Chapter 1 .
  • Page 24 < to scroll through the menu items, starting with Trigonometry. The Trigonometry, Hyperbolic, and Probability items Press have sub-menus. Press Press to cancel the Math menu and return to current work. Press For an example using the math menu to calculate Sin -1 (0.5), see Table 2-5. Figure 8 The Menu Map for the Math Menu with these items displayed to access the functions within the sub menus.

  • Page 25: The Probability Sub-Menu

    Table 2-5 Math Menu Example Keys I< In the Math menu, PI does not perform calculations; it enters PI for calculations. You may start an operation, use the Math menu to execute a function, and continue calculating with your original operation without losing your work. The Probability Sub-menu Lower Tail Normal Distribution (LTND) calculates the probability for a normally distributed, random variable to be less than the input.

  • Page 26: Two-Number Functions

    2. Type the number for which you want to calculate the probability, or, for the inverse, the probability for which you want the number. 3. Navigate to the appropriate function in the Probability sub-menu of the Math menu. Table 2-6 Probability Example Keys <<I <<<<...

  • Page 27: Storing And Recalling Numbers

    RPN press: Storing and Recalling Numbers The calculator has ten memories available for use during calculations. These memories are numbered from 1-9 and 0. To store a number in a memory, press stored in a memory, press followed by the key representing the memory number.

  • Page 28: Recall Arithmetic

    to recall memory 2. Note how the new current value stored in memory 2 is 17 , (5 +12). press are valid mathematical operations for memories. To view the stored values in memories 1-9 and 0, press through each memory starting with memory 1 ( Mem 1 ). Note that in the Memory menu, you can change the value of any memory by selecting the memory and typing a number followed by the Recall Arithmetic 12L+2...
  • Page 29 Mathematical Calculations To find a percentage of a given number, enter the number and multiply it by the desired percentage, followed by . For 200*25%= to return a result of 50 . example, to find 25% of 200, press To add or subtract a percentage of a number, enter the first number, followed by and the percentage followed 50+10%= Finish your calculation with...

  • Page 30: Time Value Of Money

    Time Value of Money Time Value of Money The examples in the following sections are calculated with the Mode menu preferences in their default settings, unless otherwise noted. For more information about basic features and setting preferences, see Chapter 1 , Basic Features . Time Value of Money (TVM) Keys Cash flow diagrams are useful tools for analyzing financial situations, as they help you identify the TVM functions needed to resolve your problem.
  • Page 31 Figure 1 Cash Flow Diagram Example with Corresponding TVM Keys The TVM functions of the calculator can solve problems with at least one cash flow, and problems in which all the cash flows, except the first and last, are of the same value. To solve other types of cash flows, refer to the section below titled, Canadian Mortgages: TVM Canada , or Chapter 4, Cash Flows .

  • Page 32: Calculating Payments On A Loan

    To save values for the TVM variables, enter the desired number, followed by the corresponding TVM key. To calculate an unknown value, enter all known values and press the key of the item you want solved. Table 3-1 TVM Keys Keys Description Stores or calculates the number of payments or compounding periods.

  • Page 33: Amortization

    Table 3-2 TVM Example Keys To reset the TVM variables to their default values, with any TVM variable displayed press repeatedly until TVM displays. Press Amortization Refer to Figure 2 for a menu map of the Amortization menu (Amort). Table 3-3 lists the keys and variables of the Amortization menu.

  • Page 34: Creating An Amortization Schedule

    The amount of your payments applied towards interest for the first year is about 14,000.00. Displays the first payment in the next period to amortize (the second year). Note that the calculator automatically updates Start to the next group of periods to amortize. Time Value of Money >...

  • Page 35: Interest Conversion Menu

    To reset the menu items to their default values, with any item of the Amortization menu displayed press displayed, press . At the TVM Reset prompt, press Interest Conversion Menu To open the Interest Conversion menu (IConv) press Table 3-5 Interest Conversion Menu Items Item Nom.% Eff.%...

  • Page 36: Canadian Mortgages: Tvm Canada

    By default, the HP 20b performs calculations assuming that the number of compounding periods always equals the number of payments per year. You can, however, enable the TVM Canada option in the Mode menu, which enables you to select the number of compounding periods per year.
  • Page 37 C/YR and no longer affects P/YR. 4. Note, however, if you now change the value of P/YR, the calculator automatically sets C/YR so it equals your new value assigned to P/YR. This means that if you modify P/YR, you also need to modify C/YR, if P/YR and C/YR are different values in your TVM problem.

  • Page 38: Canadian Mortgage Example

    (number of digits to the right of the decimal point). Scrolls to TVM mode and sets mode to TVM Canada . Returns to default calculator screen. Opens P/YR menu. Inputs 12 for P/YR and 2 for C/YR. Exits menu and inputs values for N, I/YR, and PV.

  • Page 39: Cash Flows

    Figure 1 Cash Flow Diagram In the calculator, a cash flow list is a set of numbered pairs, CF(n) and #CF(n) , where n is the index of the cash flow list. Each pair represents one or more cash flows in a cash flow diagram. As with TVM problems, it helps to sketch a cash flow diagram as a first step in solving cash flow problems.

  • Page 40: Cash Flow Example

    To erase a cash flow list, with any cash flow displayed press the bottom line, along with Cash Flow= . At this prompt, press to confirm the reset, or Table 4-1 lists the keys used for cash flow problems. For a cash flow example, see Table 4-2. Table 4-1 Cash Flow Keys ><...
  • Page 41 Table 4-2 Cash Flow Example Keys 8000 5000I 4500I 4000I 5000I Display Description Opens the cash flow list. Inputs -80000 as the monetary value of the initial cash flow. Note: the sign of the cash outflow is negative. Accepts 1 as the number of occurrences for CF(0). Displays the current monetary value of CF(1).

  • Page 42: Analyzing Cash Flows

    Table 4-2 Cash Flow Example Keys 115000 Analyzing Cash Flows The various functions used to analyze cash flows are located in the NPV before entering cash flows, you will be redirected to the cash flow menu to enter values into the cash flow list. The menu maps for the IRR and NPV menus are shown in Figure 2.
  • Page 43 Table 4-3 NPV and IRR Menu Items Item Inv. I% Net PV Net FV Net US Payback Discounted Payback Total #CF/Yr IRR% See Table 4-4 for an example of the NPV and IRR functions using the cash flow example in Table 4-2. Table 4-4 NPV and IRR Example Keys Display...

  • Page 44: Editing Cash Flows

    Table 4-4 NPV and IRR Example Keys Display < << Editing Cash Flows In the cash flow list, you can view and modify the current monetary value of a specific cash flow, or cash flows. Press > repeatedly to scroll through the list. To modify the displayed entry, type a new number and press example, to change the current monetary value of the cash flow three, CF(3) , in the example in Table 4-2 from 0 to 200 , with CF(3)= displayed, press You can also modify the number of occurrences of a cash flow in the same manner with #CF(n) displayed.

  • Page 45: Sample Cash Flow Diagrams

    Cash Flows Sample Cash Flow Diagrams Figure 3 Sample Cash Flow Diagrams...

  • Page 46: Bonds

    Bonds Set.Date Yield% The Bond Menu Before you enter the Bond menu, be sure to verify the date format is set appropriately for your problem. The default setting is mm.ddyyyy , but it can be set for dd.mmyyyy . Bond day counts (360/365) and annual or semiannual coupon payment schedules may be set from either the Mode menu or the Bond menu.

  • Page 47: Bond Calculation Example

    Table 5-1 Bond Menu Items Variable Call Yield% Price Accrued Actual/Cal.360 Annual/Semiannual Bond Calculation Example What price should you pay on April 28, 2010 for a 6.75% U.S. Treasury bond maturing on June 4, 2020, if you want a yield of 4.75%? Assume the bond is calculated on a semiannual coupon payment on an actual/actual basis. See Table 5- 2.
  • Page 48 Table 5-2 Bond Calculation Example < <4.75 <= < +L1= To reset the menu items to their default values, with any item of the Bond menu displayed press displayed, press to reset the menu, or Display Description Displays current call value. Default is 100 . Note: if Call requires another value, key in the number followed by Inputs 4.75% for Yield% .

  • Page 49: Date Calculation

    Date Calculation The Date Calculation Menu The Date Calculation menu is used to calculate the number of days between two dates, or a second date given a number of days from an initial, or final date. To open the Date Calculation menu, press scroll through the items shown in Figure 1.
  • Page 50 Table 6-1 Date Calculation Example <10.3 12010 <= To reset the menu items to their default values, with any item of the Date menu displayed press displayed, press to reset the menu, or Display Description Inputs the ending date in the selected format. Calculates the number of actual days between the starting and ending dates.

  • Page 51: Break-Even

    Break-even The Break-even Menu To open the Break-even menu, press . Once you have entered all known data, press to calculate it. The break-even function allows you to study problems involving a profit, when a quantity of items, with a cost to manufacture and a fixed price to develop and market, is sold at a given price.
  • Page 52 Table 7-1 Break-even Example Keys <= To reset the menu items to their default values, with any item of the Break-even menu displayed press BrkEven displayed, press Display Description Calculates the current value for the unknown item. 3200 units would have to be sold to return a profit of 10,000.00.

  • Page 53: Business Problems

    Business Problems Figure 1 The Menu Map for the Percent Calculation (%calc) Menu The Percent Calculation Menu Press to open the menu. There are four items in this menu: markup as a percentage of cost ( Mkup. %C ), markup as a percentage of price ( Mkup.

  • Page 54: Percent Calculation Examples

    Note: for business problems, margin is based on price; markup is based on cost. The examples below are shown with RPN as the active operating mode. Percent Calculation Examples See Tables 8-1 through 8-4 for examples of calculations in the %calc menu. 1.
  • Page 55 Note: although the example in Table 8-2 calls for no compounding, you may specify the number of compounding periods used in calculations with the Nb Period item in the %Change sub-menu. Nb Period is the number of compounding periods used in calculations between the old value and new value.

  • Page 56: Depreciation

    Depreciation The Depreciation Menu Press to open the Depreciation menu. To select a depreciation method, press Input the values required for the calculation:  Asset life  Starting date or month of the deprecation  Cost and salvage values  Declining balance factor (DecBal and DBXover only) ...
  • Page 57 < Note: pressing on the last item of a sub-menu returns you to the Year item, not to the top of the sub-menu (see Figure 1). By scrolling through all the items of a sub-menu, you incrementally advance the Year item. This allows you to see the depreciation schedule for the next year without additional entries.

  • Page 58: Depreciation Example

    Table 9-2 Depreciation Menu Items Item Salvage Factor Year Depreciation R.Book Value R.Depreciable Value Depreciation Example A metalworking machine, purchased for 10,000.00, is to be depreciated over five years. Its salvage value is estimated at 500.00. Using the straight-line method, find the depreciation and remaining depreciable value for each of the first two years of the machine's life.
  • Page 59 Table 9-3 Straight Line Depreciation Example < < < < < < To reset the menu items to their default values, with any item of the Depreciation menu displayed press Depreciation displayed, press Display Description Remaining book value after year one. Remaining depreciable value after year one.

  • Page 60: 10 Statistical Operations

    Statistical Operations 10 Statistical Operations Figure 1 The Menu Maps for the Data and Statistics Menus...

  • Page 61: The Data And Stats Menus

    See Figure 1. To select a specific type of regression line in the Predictions sub-menu, press to cycle through the options. Note: if you press , the calculator automatically selects the curve that is the best fit for your data.
  • Page 62 Table 10-1 The Statistics Menu Items Menu Item Nb Item Mean Mean X Std. Dev Y Std. Dev X Population Dev Y Population Dev S.E.SamP.X S.E.SamP.Y Pred X Pred Y Correlation Covariance Sigma X Description Number of items. Average of X values. Average of Y values.

  • Page 63: Statistics Example

    Table 10-1 The Statistics Menu Items Menu Item Sigma Y Sigma X Sigma Y Sigma XY Statistics Example Sales for the last five months are represented by the pairs of values shown below, with the month number as x, and the sales values as y.
  • Page 64 Table 10-3 Statistics Example Keys <I << :z<< <7I <= < < < :z<< <I< To reset the menu items to their default values, with any item of the Data or Statistics menus displayed press the prompt, Stats , press Display Confirm your choice by pressing Statistical Operations...

  • Page 65: 11 Errors

    11 Errors Error Messages and Calculator Status Table 11-1 Error Messages Error Message ER: Underflow ER: x/0 ER: 0/0 ∞ ∞ ∞ √ / (x<0) ER: LN (0) ER: LN (x<0) ER: ATrig(|x|>1) ∞ ER: 1^ ∞ ER: (x<0)^ ∞...
  • Page 66 Table 11-1 Error Messages Error Message ER: Many Solutions ER: Invalid N ER: User Abort ∞ Result ER: Insufficient Data ER: No Payback ER: Unique solution to IRR Not Found ER: Stack ER: Parenthesis: ER: Insufficient Memory ER: No Solution Found Status Returned when there are many solutions to the problem.

  • Page 67: 12 Warranty, Regulatory, And Contact Information

    HP will replace software media which does not execute its programming instructions due to such defects. HP does not warrant that the operation of HP products will be uninterrupted or error free. If HP is unable, within a reasonable time, to repair or replace any product to a condition as warranted, you will be entitled to a refund of the purchase price upon prompt return of the product with proof of purchase.

  • Page 68: Customer Care

    Customer Care In addition to the one year hardware warranty your HP calculator also comes with one year of technical support. If you need assistance, HP customer care can be reached by either email or telephone. Before calling please locate the call center nearest you from the list below.
  • Page 69 Paraguay Perú Philippines Polska Portugal Warranty, Regulatory, and Contact Information Contact 210 969 6421 1-800-999-5105 800-711-2884 852 2833-1111 www.hp.com/support/india +65 6100 6682 01 605 0356 02 754 19 782 81-3-6666-9925 www.hp.com/support/korea www.hp.com/support +65 6100 6682 01-800-474-68368 www.hp.com/support 020 654 5301...
  • Page 70 1-877 232 0589 495 228 3050 01 439 5358 6100 6682 0800980410 2-561-2700 022 827 8780 09 8171 0281 08 5199 2065 022 567 5308 www.hp.com/support +852 28052563 +65 6100 6682 0207 458 0161 800-HP INVENT 0004-054-177 0-800-474-68368 +65 6100 6682...

  • Page 71: Product Regulatory & Environment Information

    Hewlett-Packard Company P.O. Box 692000, Mail Stop 510101 Houston, TX 77269-2000 or call HP at 281-514-3333 To identify your product, refer to the part, series, or model number located on the product. Canadian Notice This Class B digital apparatus meets all requirements of the Canadian Interference-Causing Equipment Regulations.
  • Page 72 Chemical Substances HP is committed to providing our customers with information about the chemical substances in our products as needed to comply with legal requirements such as REACH (Regulation EC No 1907/2006 of the European Parliament and the Council). A chemical information report for this product can be found at: http://www.hp.com/go/reach...
  • Page 73 部件名称 铅 (Pb) 外觀殼子/字鍵 O：表示该有毒有害物质在该部件所有均质材料中的含量均在SJ/T11363-2006 标准规定的限量要求以下。 X：表示该有毒有害物质至少在该部件的某一均质材料中的含量超出SJ/T11363-2006 标准规定的限量要求。 表中标有“X” 的所有部件都符合欧盟RoHS法规 “欧洲议会和欧盟理事会2003年1月27日关于电子电器设备中限制使用某些有害物质的2002/95/EC号指令” 注：环保使用期限的参考标识取决于产品正常工作的温度和湿度等条件 Warranty, Regulatory, and Contact Information 产品中有毒有害物质或元素的名称及含量 根据中国《电子信息产品污染控制管理办法》 有毒有害物质或元素 汞 (Hg) 镉 (Cd) 六价铬 (Cr(VI)) 多 溴联 苯 (PBB) 多溴二苯醚 (PBDE)
  • Page 74 Date key, 49; example, date format, 9 days between. See Date calculation decimal point, 9 decimal separator: point or comma, 9 default calculator screen, 8 degrees, 9 delete: DEL key, 44 delete key, 44 deleting. See Reset menu depreciation, 56;...
  • Page 75 16 number period: compounding, 55 number periods: amortization, 33 numbers: rounding, 28; storing and recalling, 27 off: calculator off, 7 Off: key, 7 on: calculator on, 7 On: key, 7 P/YR: key, 32 parentheses: use in Chain mode, 17...

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