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6.66
P?4.0000
Stores N, prompts for
P.
12
E=6.8671
Calculates E for bank
#2.
@ (EQUATIONS (V]
E=(EXP(N+100
Displays the continu-
ous compounding
equation.
N?6.6600
Prompts for N.
6.65
E=6.8761
Retains previous value
of N, calculates E for
bank #3.
Bank #3 is offering the most favorable interest rate.
Time Value of Money Calculations
The following examples use the time value of money equation in the
library. To display the equation, press @[LIBRARY]. If necessary, press
(v] until the HP-22S displays the beginning of the equation
(¢<Px188+1-F)Xx).
The time value of money variables are described on page 109. Follow-
ing is a brief description of each variable:
B =
the beginning value (also called the present value) of the series
of future cash flows.
F =
the future value—the amount of the final cash flow, or the
compounded value of the series of previous cash flows.
134
8: Additional Examples
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