HP 10BII Owner's Manual page 64

FV-7500.00
PMT"? Money received
: by lessor
is positive
1 2 35 36
VYR = 1096
N=36
Money paid out
РУК «12 by lessor is
negative
PV = -13,500.00
Begin Mode
Set to Begin mode. Press QED if annunciator is not displayed.
Keys: Display: Description:
OOOH 12.00 Sets payments per year.
@@@® 10.00 Stores desired annual
yield.
COGYGXOXO GP -13,500.00 Stores lease price.
@O00mM 7,500.00 Stores residual (buy out
value).
60/0] 36.00 Stores length of lease,
in months.
lease payment.
Notice that even if the customer chooses not to buy the car, the lessor
still includes a cash flow coming in at the end of the lease equal to the
residual value of the car. Whether the customer buys the car or it is sold
on the open market, the lessor expects to recover $7,500.
64 5: Time Value of Money Calculations