Simple and compound interest

Hide thumbs
Also See for HP 10BII:

- Owner's manual (145 pages) ,
- User manual (145 pages) ,
- Quick start manual (7 pages)

Advertisement

hp calculators

HP 10BII Simple and Compound Interest

7B

1000000PE

C

Answer:

$61,306.77. The $1,000,000 amount is entered as a negative number since it will be a withdrawal from the

account in 40 years.

Example 5: What interest rate, compounded semiannually will cause an initial deposit of $400 to grow to become $600

in 5 years? Use the Vw function to clear the time value of money application registers.

Solution:

Vw

2Ud

10A

400C

600PE

B

Answer:

8.28%, compounded semiannually.

Example 6: How long would it take before an initial deposit of $2,345 would grow to become $3,456, if the account

earns interest at 5%, compounded monthly? Use the Vw function to clear the time value of money

application registers.

Solution:

Vw

12Ud

5B

2345C

3456PE

A

Answer:

93.27 months or approximately 7.8 years. In actuality, the balance in the account would not exceed $3,456

until month 94.

Example 7: If you earn $26.25 interest in two months on a deposit into an account paying 3.5% simple interest, what

was the size of the original deposit?

Solution:

Rearrange I = PRT so that P is isolated: P = I / R / T. Note that since T will equal 2/12 in this example, it

should be enclosed in parentheses as shown below.

26.25/0.035/Us2/12Ut=

Answer:

$4,500.

hp calculators

- 4 -

HP 10BII Simple and Compound Interest - Version 1.0

Advertisement