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hp 17bII+ Financial Calculator Owner’s Manual Edition 1 Part Number F2234-90020...
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Hewlett-Packard Co. shall not be liable for any errors or for incidental or consequential damages in connection with the furnishing, performance, or use of this manual or the examples contained herein.
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Welcome to the hp 17bII+ The hp 17bII+ is part of Hewlett-Packard’s new generation of calculators: ! The two-line display has space for messages, prompts, and labels. ! Menus and messages show you options and guide you through problems. ! Built-in applications solve these business and financial tasks: Time Value of Money.
Contents List of Examples Important Information Getting Started Power On and Off; Continuous Memory Adjusting the Display Contrast Setting the Language What You See in the Display The Shift Key ( Backspacing and Clearing Doing Arithmetic Keying in Negative Numbers ( &...
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Error Messages Modes Calculator Memory ( Arithmetic The Calculator Line Doing Calculations Using Parentheses in Calculations The Percent Key The Mathematical Functions The Power Function (Exponentiation) The MATH Menu Saving and Reusing Numbers The History Stack of Numbers Reusing the Last Result ( Storing and Recalling Numbers Doing Arithmetic Inside Registers and Variables Scientific Notation...
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Converting between Two Currencies Storing and Recalling Sets of Currencies Clearing the Currency Variables Time Value of Money The TVM Menu Cash Flow Diagrams and Signs of Numbers Using the TVM Menu Loan Calculations Savings Calculations Leasing Calculations Amortization (AMRT) Displaying an Amortization Schedule Printing an Amortization Table Interest Rate Conversions...
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Bonds The BOND Menu Doing Bond Calculations Depreciation The DEPRC Menu Doing Depreciation Calculations DB, SOYD, and SL Methods The ACRS Method Partial-Year Depreciation Running Total and Statistics The SUM Menu Creating a SUM List Entering Numbers and Viewing the TOTAL Viewing and Correcting the List Copying a Number from a List to the Calculator Line...
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The Time Menu Setting the Time and Date (SET) Changing the Time and Date Formats (SET) Adjusting the Clock Setting (ADJST) Appointments (APPT) Viewing or Setting an Appointment (APT1-APT10) Acknowledging an Appointment Unacknowledged Appointments Clearing Appointments Date Arithmetic (CALC) Determining the Day of the Week for Any Date Calculating the Number of Days between Dates Calculating Past or Future Dates The Equation Solver...
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How the Solver Works Halting and Restarting the Numerical Search Entering Guesses Printing The Printer’s Power Source Double-Space Printing Printing the Display( Printing Other Information ( Printing Variables, Lists, and Appointments (LIST) Printing Descriptive Messages (MSG) Trace Printing (TRACE) How to Interrupt the Printer Additional Examples Loans Simple Annual Interest...
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Assistance, Batteries, Memory, and Service Obtaining Help in Operating the Calculator Answers to Common Questions Power and Batteries Low-Power Indications Installing Batteries Managing Calculator Memory Resetting the Calculator Erasing Continuous Memory Clock Accuracy Environmental Limits Determining If the Calculator Requires Service Confirming Calculator Operation: Self-Test Warranty Service...
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Cash-Flow Calculations Bond Calculations Depreciation Calculations Sum and Statistics Forecasting Equations Used in (Chapter 14) Canadian Mortgages Odd-Period Calculations Advance Payments Modified Internal Rate of Return Menu Maps RPN: Summary About RPN About RPN on the hp 17bII+ Setting RPN Mode Where the RPN Functions Are Doing Calculations in RPN Arithmetic Topics Affected by RPN Mode...
List of Examples The following list groups the examples by category. Getting Started Using Menus Using the Solver Arithmetic Calculating Simple Interest Unit Conversions Simple Interest at an Annual Rate (RPN example on page 276) General Business Calculations Percent Change Percent of Total Markup as a Percent of Cost Markup as a Percent of Price...
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An Individual Retirement Account Calculating a Lease Payment Present Value of a Lease with Advanced Payments and Option to Buy Displaying an Amortization Schedule for a Home Mortgage Printing an Amortization Schedule Calculations for a Loan with an Odd First Period Discounted Mortgage APR for a Loan with Fees (RPN example on page 276)
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Bonds and Notes Price and Yield of a Bond A Bond with a Call Feature A Zero-Coupon Bond Yield to Maturity and Yield to Call Price and Yield of a Discounted Note Depreciation Declining-Balance Depreciation ACRS Deductions Partial-Year Depreciation Running Total and Statistical Calculations Updating a Checkbook Mean, Median, and Standard Deviation Curve Fitting...
Important Information ! Take the time to read chapter 1. It gives you an overview of how the calculator works, and introduces terms and concepts that are used throughout the manual. After reading chapter 1, you’ll be ready to start using all of the calculator’s features. ! You can choose either ALG (Algebraic) or RPN (Reverse Polish Notation) mode for your calculations.
Getting Started Watch for this symbol in the margin. It identifies examples or keystrokes that are shown in ALG mode and must be performed differently in RPN mode. Appendixes D, E, and F explain how to use your calculator in RPN mode. The mode affects only arithmetic calculations ―...
Setting the Language The calculator can display information in six different languages. The language initially used by the calculator was preset at the factory. To change the language: 1. Press the @ > 2. Press to display the INTL menu, which stands for "international".
Alarm going off Shift ( ) is Sending information Batteries low. (or past due). active. to the printer. (page 224) (page 147) (page 19) (page 184) Annunciators Calculator Cursor line Menu labels for the MAIN menu. To display the MAIN menu, press (that is, first , then The Shift Key (...
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Table 1-2. Keys for Clearing Description Backspace; erases the character before the cursor. < Clear; clears the calculator line. (When the calculator is off, this key turns the calculator on, but without clearing anything.) This clears all information in the current work area (menu).
Doing Arithmetic The “ ” in the margin is a reminder that the example keystrokes are for ALG mode. This is a brief introduction to doing arithmetic. More information on arithmetic is in chapter 2. Remember that you can erase errors by pressing <...
" Use parentheses to impose '*&+%" an order of calculation. Keying in Negative Numbers ( & ) & key changes the sign of a number. ! To key in a negative number, type that number, then press & ! To change the sign of an already displayed number (it must be the rightmost number), press &...
Menu Labels Menu Keys The top row of keys is related to the labels along the bottom of the display. The labels tell you what the keys do. The six keys are called menu keys; the labels are called menu labels. The MAIN Menu The MAIN menu is a set of primary choices leading to other menu options.
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Table 1-3. The MAIN Menu Operations Done in Menu Label Covered in: This Category " # TVM: Time value of money: Chapter 5 (Finance) loans, savings, leasing, amortization. ICNV: Interest conversions. Chapter 6 CFLO: Lists of cash flows for Chapter 7 internal rate of return and net present value.
Choosing Menus and Reading Menu Maps Below is a menu map illustrating one possible path through three levels of menus: from the MAIN menu to the BUS menu to the MU%C (markup as a percent of cost) menu. There are no menus that branch from the MU%C menu because the MU%C menu is a final destination―you use it to do calculations, rather than to choose another menu.
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index and examine the menu maps in appendix C. Displaying the MU%C menu: Step 2. To display the MAIN menu, press . This step lets you start from a known location on the menu map. Step 3. Press to display the BUS menu. Step 4.
Calculations Using Menus Using menus to do calculations is easy. You don’t have to remember in what order to enter numbers and in what order results come back. Instead, the menus guide you, as in the previous example. All the keys you need are together in the top row.
Many menus in this calculator work like the example above. The rules for using variables are: ∗† ! To store a value, key in the number and press the menu key. Arithmetic calculations, as well as single values, can be stored. ! To calculate a value, press the menu key without first keying in a number.
! If the current menu has a list (SUM, CFLO, or Solver), pressing clears the values in the list. To see what value is currently stored in a variable, press menu label. Solving Your Own Equations (SOLVE) This chapter has introduced some of the built-in menus the calculator offers.
Typing Words and Characters: the ALPHAbetic Menu The ALPHAbetic menu is automatically displayed when you need it to type letters and characters. The ALPHA menu also includes characters not found on the keyboard: ! Uppercase letters. ! Space. ! Punctuation and special characters. ! Non-English letters.
Keys Characters " " & / 5 " 2 . 3 4 5?" 2 5 , 6 5?@A" 5?@AB9B" 5?@AB9BCD,8" , : 0 ; 5?@AB9BCD,87E" < = < > 5?@AB9BCD,87EF:" 5?@AB9BCD,87EF:" Note that the ? is just a character, part of the variable’s name. It is not an operator, which ÷...
Table 1-4. Alphabetic Editing Operation Label or Key to Press ALPHA-Edit Menu Inserts character before the cursor. Any character. Deletes character at the cursor. Moves the cursor far left, one display-width. Moves the cursor left. Moves the cursor right. Moves the cursor far right, one display-width.
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Calculate the cost of carpet needed to cover a 9’ by 12’ room. The carpet costs $22.50 per square yard. Starting from the MAIN menu (press Keys: Display: Description: & 5?@AB9BCD,87EF:" Displays the SOLVE menu and the current equation. " Displays the customized menu for carpeting.
Controlling the Display Format The DSP menu (press ) gives you options for formatting numbers. You can pick the number of decimal places to be displayed, and whether to use a comma or a period to “punctuate” your numbers. Decimal Places To change the number of displayed decimal places, first press the key.
Rounding a Number function rounds the number in the calculator line to the number of displayed decimal places. Subsequent calculations use the rounded value. Starting with two displayed decimal places: Keys: Display: Description: .&-*-!" 5.787 " Four decimal places are .&-*-("...
Error Messages Sometimes the calculator cannot do what you “ask”, such as when you press the wrong key or forget a number for a calculation. To help you correct the situation, the calculator beeps and displays a message. ! Press <...
Language. Press @> to change the language. Calculator Memory ( The calculator stores many different types of information in its memory. Each piece of information requires a certain amount of storage space. You can monitor the amount of available memory by pressing Number of bytes of Percentage of total memory still free...
Arithmetic If you prefer RPN to algebraic logic, please read appendix D before you read this chapter. The “ “ in the margin is a reminder that the example keystrokes are for ALG mode. The Calculator Line The calculator line is the part of the display where numbers appear and calculations take place.
In the second case, the key acts like the key by displaying the result of 750 x 12. Here’s a longer chain calculation. 456 - 75 × 18.5 This calculation can be written as: 456 − 75 ÷ 18.5 x 68 ÷ 1.9. Watch what happens in the display as you key it in: Keys: Display:...
Note that you must include a for multiplication; parentheses do not imply multiplication. The Percent Key key has two functions: Finding a Percentage. In most cases, divides a number by 100. The one exception is when a plus or minus sign precedes the number. (See “Adding or Subtracting a Percentage,”...
Table 2-1. Shifted Math Functions Description reciprocal square root square Keys: Display: Description: (&$." Reciprocal of 4. +&+-" Calculates 20 . 47.2 .#&'-B" Calculates 4.47 + 47.20. .#&'-B#&$#" Calculates 1.1 '$&.$" Completes calculation of (4.47 + 47.2) x1.1 The Power Function (Exponentiation) The power function, , raises the preceding number to the power of the following number.
The MATH Menu To display the MATH menu, press (the shifted key). Like the other mathematics functions, these functions operate on only the last number in the display. Table 2-2. The MATH Menu Labels Menu Label Description Common (base 10) logarithm of a positive number. Common (base 10) antilogarithm;...
Saving and Reusing Numbers Sometimes you might want to include the result of a previous calculation in a new calculation. There are several ways to reuse numbers. The History Stack of Numbers When you start a new operation, the previous result moves out of the display but is still accessible.
Pressing clears the history stack. Be careful if a menu is active, because then also erases the data associated with that menu. Keys: Display: Description: 75.55 32.63 " +$&,$" 42.92 moves out of $#&+%" display. Now, suppose you want to multiply 42.92 x 11. Using the history stack saves you time.
An equivalent keystroke sequence for this problem would be: Storing and Recalling Numbers key copies a number from the calculator line into a designated storage area, called a storage register. There are ten storage registers in calculator memory, numbered 0 through 9. The key recalls stored numbers back to the calculator line.
keys can also be used with variables. For example, (in the MU%C menu) stores the rightmost number from the display into the variable M%C. copies the contents of M%C into the calculator line. If there is an expression in the display (such as $)+! ), then the recalled number replaces only the last number.
You can also do arithmetic with the values stored in variables. For example, (in the MU%C menu) multiplies the current contents of M%C by 2 and stores the product in M%C. Scientific Notation Scientific notation is useful when working with very large or very small numbers.
Range of Numbers The largest positive and negative numbers available on the calculator are ±9.99999999999 x 10 ; the smallest positive and negative numbers available are ±1 x 10 –499 2: Arithmetic...
Percentage Calculations in Business The business percentages (BUS) menu is used to solve four types of problems. Each type of problem has its own menu. TIME SOLVE CURRX %CHG %TOTL MU%C MU%P Table 3-1. The Business Percentages (BUS) Menus Menu Description Percent change The difference between two numbers (OLD and...
The calculator retains the values of the BUS variables until you clear them by pressing . For example, pressing while in the %CHG menu clears OLD, NEW, and %CH. To see what value is currently stored in a variable, press menu label.
90000 E9A8,(K(((&(( " Stores 90,000 in OLD. 95000 <HC8,.K(((&((" Stores 95,000 in NEW. 67M1<=H8.&.'" Calculates percent change. What would this year’s sales have to be to show a 12% increase from last year? OLD remains 90,000, so you don’t have to key it in again. Just enter %CH and ask for NEW.
Markup as a Percent of Cost (MU%C) Example. The standard markup on costume jewelry at Balkis’s Boutique is 60%. The boutique just received a shipment of chokers costing $19.00 each. What is the retail price per choker? Keys: Display: Description: "...
Sharing Variables Between Menus If you compare the MU%C menu and the MU%P menus, you’ll see that they have two menu labels in common –– %CHG %TOTL MU%C MU%P COST PRICE COST PRICE Shared variables The calculator keeps track of the values you key in according to those labels.
Currency Exchange Calculations The CURRX menu does currency exchange calculations between two currencies using an exchange rate that you calculate or store. The CURRX Menu SOLVE CURRX TIME US$ EUR RATE C.STO C.RCL SELCT To display the currency exchange menu from the MAIN menu, press Currency #1 is US$ Currency #2 is EUR (U.S Dollar)
Table 4–1. The CURRX Menu Menu Key Description Curr1 Current currency#1;stores or calculates the number of units of this currency Curr2 Currency currency#2;stores or calculates the number of units of this currency Stores or calculates the exchange rate between the two current currencies.
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Table 4–2. Currencies ; # < # # = #> " United States Austria, Greece, Canada United Kingdom of America Belgium, Ireland, Italy, (Dollars) (Pounds) (Dollars) Germany, Luxembourg, Spain, Netherlands, Finland, Portugal, France, Vatican City (EURO) ? # @ # A # B #C # Switzerland Israeli Denmark...
Entering a Rate The following two examples illustrate the two ways to enter an exchange rate. Example: Calculating an Exchange Rate. You have just flown from Canada to United States, and you need to exchange your Canadian Dollars for U.S Dollars. The conversion chart looks this : United States Conversion Chart (in US$) Currency Rate...
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0.6584 4FN8(&''" Stores equivalent number of US$ 21:H8(&''" Calculates the RATE. Part 2: The following keystrokes show that you can reverse the order in which the two currencies are selected. Keys: Display: Description: FH9H7: 7422H<7@ $" Select US$ as currency #1 H<:H2 1 21:H"...
Converting Between Two Currencies Once the currencies are selected and a RATE has been entered, you can convert any number of units of one currency to the other. Example : Converting between Hong Kong and U.S Dollars. Part 1: Use the exchange rate stored in the previous example to calculate how many U.S dollars you would receive for 3,000 Hong Kong Dollars.
Recalling Sets of Currencies. To recall a stored set of currencies and their exchange rate, press , followed by the appropriate menu key. The hp 17bII+ automatically returns to the CURRX menu. The equivalency message and menu labels show the recalled currencies and RATE.
Time Value of Money The phrase time value of money describes calculations based on money earning interest over a period of time. The TVM menu performs compound-interest calculations and calculates (and prints) amortization schedules. ! In compound interest calculations, interest is added to the principal at specified compounding periods, thereby also earning interest.
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The time value of money (TVM) menu does many compound-interest calculations. Specifically, you can use the TVM menu for a series of cash flows (money received or money paid) when: ! The dollar amount is the same for each payment. ! The payments occur at regular intervals.
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Table 5-1. TVM Menu Labels Menu Label Description First Level Stores (or calculates) the total number of payments or *† compounding periods. (For a 30-year loan with monthly payments, N＝12 x 30＝360.) Shortcut for N: Multiplies the number in the display by P/YR, and stores the result in N.
Table 5-1. TVM Menu Labels (Continued) Menu Label Description Second Level (Continued) Sets Begin mode: payments occur at the beginning of each period. Typical for savings plans and leasing. (The Begin and End modes do not matter if PMT＝0.) Sets End mode: payments occur at the end of each period.
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(receipts) as positive. Perform a calculation from the point of view of either the lender (investor) or the borrower, but not both! (Loan) Money re- ceived is a Equal periods positive number Money paid out is a negative Equal payments number (FV is Future Value,...
Payments occur at either the beginning of each period or the end of each period. End mode is shown in the last two figures; Begin mode is shown in the next figure. Capitalized value of lease Figure 5-5. Lease Payments Made at the Beginning of Each Period (Begin Mode) Using the TVM Menu First draw a cash-flow diagram to match your problem.
4. Store the values you know. (Enter each number and press its menu key.) 5. To calculate a value, press the appropriate menu key. You must give every variable―except the one you will calculate―a value, even if that value is zero. For example, FV must be set to zero when you are calculating the periodic payment (PMT) required to fully pay back a loan.
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Keys: Display: Description: " ] " Displays TVM menu. #$ 5?@2 H<A 0EAH" Clears history stack and TVM variables. " If needed: sets 12 " payment periods per year; #$ 5?@2 H<A 0EAH" End mode. " Figures and stores number <8%'&(("...
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11.5 12; End mode _ 630 Keys: Display: Description: " ] ! " Display TVM menu. #$ 5?@2 H<A 0EAH" Clears history stack and TVM variables. " If needed: sets 12 payment #$ 5?@2 H<A 0EAH" periods per year; End mode.
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75 ,250 13.8 12; End mode Balloon. The problem is done in two steps: 1. Calculate the monthly payment without the balloon (FV=0). 2. Calculate the balloon payment after 4 years. Keys: Display: Description: " ] " Display TVM menu. #$ 5?@2 H<A 0EAH"...
Step 2. Calculate the balloon payment after 4 years. 894.33 " Stores rounded PMT value & 50:8/*,+&%%" for exact payment amount (no fractional cents). <8+*&((" Figures and stores number of payments in 4 years. 5O8/-%K+(*&*#" Calculates balloon payment after four years. This amount plus last monthly payment repays the loan.
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Keys: Display: Description: " ] " Displays TVM menu. #$ 5?@2 H<A 0EAH" Clears history stack and TVM variables. " Sets one compounding " per./yr. (one interest #"5?@2 H<A"0EAH" pmt./yr.). Payment mode does not matter. ;6@28-&$(" Stores annual interest rate. 2000 &...
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2 12; End mode 15 12 2 _ 80 2,000 Keys: Display: Description: " " ] Displays TVM menu. It is not necessary to clear data because you do not need to set any of the values to zero. " Sets 24 payment periods "...
Leasing Calculations Two common leasing calculations are 1) finding the lease payment necessary to achieve a specified yield, and 2) finding the present value (capitalized value) of a lease. Leasing calculations typically use “advance payments”. For the calculator, this means Begin mode because all payments will be made at the beginning of the period.
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;6@28#+&((" Stores annual interest rate. 13500 " Stores car’s value in PV. & 5O8/#%K.((&((" (Money paid out by lessor.) 7500 GO8-K.((&((" Stores purchase option value in FV. (Money received by lessor.) 50:8$*,&#," Calculates monthly payment received. Example: Present Value of a Lease with Advance Payments and Option to Buy.
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Keys: Display: Description: " ] " Displays TVM menu. #$ 5?@2 H<A 0EAH" Clears history stack and TVM variables. " Sets 12 payment periods " per year; Begin mode. #$ 5?@2 JH=;<" 0EAH" Step 1: Find the present value of the monthly payments. <8+-&(("...
5O8-K%+(&+%" Calculates present value of the buy option. Step 4: Add the results of step 2 and 3. ,#K+-'&((" Calculates present, capitalized value of lease. Amortization (AMRT) The AMRT menu (press ] . \ ) displays or prints the following values: ! The loan balance after the payment(s) are made.
Table 5-2. AMRT Menu Labels Menu Description Label Stores the number of payments to be amortized, and calculates an amortization schedule for that many payments. Successive schedules start where the last schedule left off. #P can be an integer from 1 through 1,200.
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2. Store the values for I%YR , PV, and PMT. (Press & to make PMT a negative number.) If you need to calculate one of these values, follow the instructions under “Using the TVM Menu,” on page 66. Then go on to step 3.
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Next successive set of payments authorized To calculate a subsequent schedule with a different number of payments, key in that number and press To start over from payment #1 (using the same loan information), press and proceed from step 7. Example: Displaying an Amortization Schedule.
payments, but does not display it. ;<:H2HF:8/*K##%&#'" D isplays interest paid in first year. 52;<7;5198/$##&+*" Displays principal paid in first year. J191<7H8'+K-**&.$" Displays balance at end of first year. P58#$ 50:FI #%/$+" Calculates amortization schedule for next 12 payments. ;<:H2HF:8/*K(*.&#." D isplays results for second year.
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6. Press Ignore the message 3H@ P50:FQ 52HFF RP5S . 7. Press 8. Key in the payment number of the first payment in the schedule and press . (For instance, for the very first payment, FIRST= 1.) 9. Key in the payment number of the last payment in the schedule and press 10.Key in the increment ―...
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(1 year). " Calculates and prints amortization schedule shown below. ;6@28" #$&.(" 5O8" '.K(((&((" 50:8" /',%&-$" GO8" (&((" 5?@28" #$&((" H<A 0EAH" " 50:FI+,/'(" ;<:H2HF:8" /-K,-'&*-" 52;<7;5198" /%+-&--" J191<7H8" '%K'$$&,+" " 50:FI'#/-$" ;<:H2HF:8" /-K,%(&*$" 52;<7;5198" /%,%&*$" J191<7H8" '%K$$,&#$" " 5: Time Value of Money...
Interest Rate Conversions The interest conversion (ICNV) menu converts between nominal and effective interest rates. To compare investments with different compounding periods, their nominal interest rates are converted to effective interest rates. This allows you, for example, to compare a savings account that pays interest quarterly with a bond that pays interest semiannually.
The ICNV Menu TIME SOLVE CURRX ICNV CFLO BOND DEPRC CONT NOM% EFF% NOM% EFF% The ICNV menu converts between nominal and effective interest rates, using either: ! Periodic compounding; for example, quarterly, monthly, or daily compounding. ! Continuous compounding. Converting Interest Rates To convert between a nominal annual interest rate and an effective annual interest rate that is compounded periodically :...
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To convert between a nominal annual interest rate and an effective annual interest rate that is compounded continuously : 1. Press " h to get the interest conversions menu. 2. Press for “continuous”. 3. To convert to the effective rate, key in the nominal rate and press , then press 4.
58+&((" Stores number of compounding periods per year for bank #1. <E068'&-(" Stores nominal annual interest rate for bank #1. HGG68'&*-" Calculates effective interest rate for bank #1. 58#$&((" Stores number of compounding periods per year for bank #2. <E068'&'." 6.65 Stores nominal annual interest rate for bank #2.
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interest rate in the TVM menu. (You can also use TVM if PMT = 0, regardless of the compounding periods.) 1. Call up the periodic interest-rate conversion menu ( " h 2. Calculate the effective annual interest rate from the nominal annual interest rate given by the bank.
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effective interest rate based on your payment periods. Last, convert the effective rate to the nominal rate based on the bank’s compounding periods. Example: Balance of a Savings Account. Starting today, you make monthly deposits of $25 into an account paying 5% interest compounded daily (365-day basis).
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" Stores 84 deposit periods, " $25 per deposit, and no & 5O8(&((" money before the first regular deposit. GO8$K.#,&'#" Value of account in 7 years. If the interest rate were the unknown, you would first do the TVM calculation to get I%YR (5.01). Then, in the ICNV PER menu, store 5.01 as NOM% and 12 as P for monthly compounding.
Cash Flow Calculations The cash flow (CFLO) menu stores and analyzes cash flows (money received or paid out) of unequal (ungrouped) amounts that occur at regular intervals. Once you’ve entered the cash flows into a list, you can calculate: ! The total amount of the cash flows. ! The internal rate of return (IRR%).
Table 7-1. CFLO Menu Labels Menu Label Description Accesses the CALC menu to calculate TOTAL, IRR%, NPV, NUS, NFV. Allows you to insert cash flows into a list. Deletes cash flows from a list. Allows you to name a list. Allows you to switch from one list to another or create a new list.
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$300 Money received is a $250 positive number $200 $200 $125 $100 Time periods $ _ 50 Money paid out is a negative number Figure 7-1. Cash Flows (Ungrouped) The horizontal timeline is divided into equal compounding periods. The vertical lines represent the cash flows. For money received, the line points up (positive);...
Figure 7-2. Grouped Cash Flows After an initial payment of $100, the investor pays $100 at the end of periods 1 through 5, and $200 at the end of periods 6 through 8. The investment returns $1,950 at the end of period 9. For every cash flow you enter, the calculator prompts you to indicate how many times (#TIMES) it occurs.
Entering Cash Flows To enter cash flows into a CFLO list: 1. Press " r . You will see either G9ECL(T8U if the current list is empty, or G9ECL# or more T8U if the list is not empty. This is the bottom of the current list.
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been automatically set to 1, and #&(( is displayed on the calculator line. Do either a or b: To retain the value 1 and go on to the next flow, press To change #TIMES, key in the number and press Given #TIMES Calculator line 7.
The #TIMES prompting is usually on, because it is automatically turned on whenever you clear or get a cash-flow list. Example: Entering Cash Flows. Enter the following ungrouped cash flows in a list and find the percentage internal rate of return (IRR). $－500 $ 275 Keys:...
keys move up and down one number at a time. display the beginning and end of the list. Changing or Clearing a Number. To change a number after it’s been entered: display the number, key in the new value, and press Use this same method to clear a number to zero.
The name can be up to 22 characters long and include any character except:＋ － x ÷ ( ) < > : = space But only the first three to five characters (depending on letter widths) of the name are used for a menu label. Avoid names with the same first characters, since their menu labels will look alike.
To remove just one value at a time from a list, use Cash-Flow Calculations: IRR, NPV, NUS, NFV Once you have entered a list of cash flows, you can calculate the following values in the CALC menu. ! Sum (TOTAL). ! Internal rate of return (IRR%).
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Table 7-2. The CALC Menu for CFLO Lists Menu Label Description Calculates the sum of the cash flows. Calculates the internal rate of return―the interest (discount) rate at which the net present value of the cash flows equals zero. Stores the periodic interest rate, expressed as a percentage (sometimes called cost of capital, discount rate, or required rate of return).
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Example: Calculating IRR and NPV of an Investment. An investor makes an initial investment of $80,000, and expects returns over the next five years as illustrated below. 115,000 5,500 5,000 4,500 4,000 $ _ 80,000 (Initial flow) Calculate the total of the cash flows and the internal rate of return of the investment.
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assumed to occur just once. 80000 G9ECL#T8U" Prompts for next cash & /*(K(((&((" flow. Calculator line shows last number entered. G9ECL$T8U" 5000 Stores $5,000 for FLOW(1), prompts for next flow. G9ECL%T8U" 4500 Stores FLOW(2). 5500 G9ECL+T8U" Stores FLOW(3). G9ECL.T8U" 4000 Stores FLOW(4).
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<5O8$K-'$&+%" Calculates new NPV. Example: An Investment with Grouped Cash Flows. You are considering an investment that requires a cash outlay of $9,000, with the promise of monthly cash flows as shown. Calculate IRR%. Also find NPV and NFV at an annual interest rate of 9%. $ _ 9,000 Since some of these cash flows are grouped (consecutive and equal), the #TIMES prompting must be on so you can specify a number other...
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G9ECL(T8U" prompting is turned on. 9000 G9ECL#T8U" Stores the initial cash & I flow. P:;0HFL#T8#" Stores FLOW(1) and prompts for #TIMES(1). G9ECL$T8U" FLOW(1) occurs 3 times; prompts for next cash flow. " 1000 Stores FLOW(2) four G9ECL%T8U" times. " Stores FLOW(3) one time G9ECL+T8U"...
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Calculate the annual rate of return for this investment. (The prompting for #TIMES should be on.) Keys: Display: Description: " r " Current cash-flow list. " Clears the current list or " gets a new one. This sets " the #TIMES prompting on. G9ECL(T8U"...
G9ECL.T8U" " Calculates quarterly rate ;2268$&+%" of return. ,&-$" Calculates nominal annual rate of return from quarterly rate. Doing Other Calculations with CFLO Data If you would like to do other calculations with cash flows besides those in the CALC menu, you can do so by writing your own Solver equations. There are Solver functions that can access data stored in CFLO lists, and there is a summation function that can combine all or part of the values stored in specific lists.
Bonds The BOND menu calculates the yield to maturity or price of a bond. It also calculates yield to call on a coupon date and accrued interest. You can specify the: ! Calendar basis: 30/360 or actual/actual (days per month/days per year).
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Table 8-1. BOND Menu Labels Menu Description Label Displays a menu of bond types: 30/360 or actual/actual, semi-annual or annual. Stores the settlement (purchase) date according to the current date format (MM.DDYYYY or DD.MMYYYY; see page 143). Stores the maturity date or call date according to the current date format.
Doing Bond Calculations Remember that values in the BOND menu are expressed per $100 face value or as a percentage. A CALL value of 102 means that the bond will be worth $102 for every $100 of face value when called. Some corporate bonds in the United States use the convention that the price of the bond is set to 100 if the coupon rate equals the yield, whether or not the settlement date is a coupon date.
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maturity, the CALL value must equal 100. (See step 3.) 8. To calculate a result, first press to access the remaining menu labels. Do either a or b: Key in the yield and press • . Press to calculate the price.
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01:8(.?(#?$(#* :4H" 6.75 75<68'&-." Stores annual coupon rate. " Stores desired yield " (displayed rounded to two • @9A68*&%*" decimal places). 52;7H8*'&%*" Result: price is $86.38 per $100 face value. € *'&%*)#&*." Adds accrued interest owed the seller. **&$%" Net price. Suppose that the market quote for the bond is 88¼.
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5.022003 FH::8" Stores purchase date (.?($?$((% G2;" (MM.DDYYYY format). 3.032022 01:8(%?(%?$($$ :M4" Stores maturity date. 75<68'&((" Stores annual coupon rate. Stores yield. " • @9A68.&-(" 52;7H8#(%&+%" Calculates price. " 3.032006 Changes maturity date " 102.75 to call date and stores 71998#($&-."...
Depreciation The DEPRC (depreciation) menu calculates depreciation values and remaining depreciable values one year at a time. The methods available are: Declining balance. Sum-of-the-years’ digits. Straight line. Accelerated Cost Recovery System. The DEPRC Menu TIME SOLVE CURRX ICNV CFLO BOND DEPRC BASIS SALV...
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Table 9-1. DEPRC Menu Labels Menu Description Label † Stores the depreciable cost basis of the asset at acquisition. ‡ ! Stores the salvage value of the asset at the end of its useful life. If there is no salvage value, set SALV=0. ˆ...
To see the value currently stored in a variable, press menu label. Doing Depreciation Calculations DB, SOYD, and SL Methods To calculate the depreciation for an asset: 1. Display the DEPRC menu: press " … 2. Define the characteristics of the asset: Key in the cost basis and press †...
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Example: Declining-Balance Depreciation. A metalworking machine, purchased for $10,000, is to be depreciated over 5 years. Its salvage value is estimated at $500. Find the depreciation and remaining depreciable value for each of the first 3 years of the machine’s life using the double-declining-balance method (200% of the straight-line rate).
2AO8%K*((&((" Remaining depreciable value after third year using SL. The ACRS Method To calculate the amount of tax deduction under the U.S. Accelerated Cost Recovery System: 1. Display the DEPRC menu: press " … 2. Enter the cost basis of the asset and press †...
‰ 172F68$.&((" Tabular value, year 2. Š 172F8'K$.(&((" Deduction in second year. ‰ 172F68$(&((" Tabular value, year 3. Š 172F8.K(((&((" Deduction in third year. Partial-Year Depreciation When the acquisition date of an asset does not coincide with the start of the tax or fiscal year, then the amounts of depreciation in the first and last years are computed as fractions of a full year’s depreciation.
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Calendar Year Depreciation Value 1 (Oct.-Dec.) ¼ x year 1 (¾ x year 1) + (¼ x year 2) (¾ x year 2) + (¼ x year 3) 4 (Jan.-Sept.) ¾ x year 3 Example: Partial-Year Depreciation. A movie camera bought for $12,000 has a useful life of 10 years with a salvage value of $500.
Running Total and Statistics The SUM menu stores and statistically analyzes sets of numbers. As you enter the numbers, the calculator displays their running total. Once you’ve entered the numbers into a list, you can: ! Calculate the mean, median, standard deviation, and range. ! Display the largest and smallest number in the list.
The SUM Menu TIME SOLVE CURRX CALC INSR DELET NAME TOTAL TOTAL MEAN MEDN STDEV RANGE MORE SORT FRCST MORE The SUM menu creates lists of numbers and performs calculations with a SUM list. Table 10-1. SUM Menu Labels Menu Description Label Accesses the CALC menu to calculate the total, mean,...
To see the calculator line when this menu is in the display, press once. (This does not affect number entry.) To see this menu when the calculator line is in the display, press Creating a SUM List To keep a running total of a list of numbers or do statistical calculations with sets of data, first create a SUM list of the values.
After briefly showing ITEM(1), the display shows " ;:H0L$T8U" :E:19 =number TOTAL is the updated, running TOTAL of all the numbers in the list (only one number, so far). 4. To enter ITEM(2), key in the value and press . The prompt for ITEM(3) and the new, updated total appear.
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Deleting Numbers from a List. Pressing deletes the current item. Example: Updating a Checkbook. On May 31, your checking account balance was $267.82. The transactions for the first 10 days in June are: Date Transaction Amount Date Transaction Amount Balance 267.82 Check －128.90...
55.67 ;:H0L*T8U" :E:198..%&(-" ;:H0L*T8U" Ends list and displays SUM menu again. Copying a Number from a List to the Calculator Line To copy a number from the list into the calculator line, use display the number, then press Naming and Renaming a SUM List A new list has no name.
Starting or GETting Another List When you press , the SUM list that appears is the last one used. To start a new list or switch to a different one, the current list must be named or cleared. If it is named, then: 1.
Calculations with One Variable The CALC menu calculates the following statistical values using one SUM list. Table 10-2. The CALC Menu for SUM Lists Menu Key Description Calculates the sum of the numbers in the list. • ! Calculates the arithmetic mean (average). ‘...
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Phone Phone Month Month Expense Expense 1. May $340 4. August $780 2. June $175 5.September $245 3. July $450 6. October $625 Calculate the mean, median, and standard deviation of the monthly phone bills. Then display the smallest value in the list. Keys: Display: Description:...
deviation. " Displays rest of CALC menu. ” 0;<8#-.&((" Finds smallest number. Calculations with Two Variables (FRCST) The FRCST menu does the following two-variable calculations using two SUM lists: ! Fits x- and y-data to a linear, logarithmic, exponential, or power curve.
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CALC TOTAL MEAN MEDN STDEV RANGE MORE SORT FRCST MORE (select x and y) x-list y-list CORR MORE MODL W.MN G.SD SIZE MORE MORE After pressing — , you must specify two previously created lists― one for the x-variable and one for the y-variable. The two lists must have the same number of items.
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Table 10-3. FRCST Menu Labels Menu Label Description list name for x-variable These specify the two lists of data to be list name for y-variable compared. Also used for estimations:store x and estimate y, or vice-versa. ˜ the menu label for an unnamed current list. ™...
Curve Fitting and Forecasting Curve fitting is a statistical method for finding a relationship between two variables, x and y. Based on this relationship, you can estimate new values of y based on a given x-value, and vice-versa. Each SUM list holds the numbers (data values) for one variable.
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To do curve fitting and forecasting : 1. Enter the data into two SUM lists: one for the x-values and one for the y-values. Make sure each list has the same number of items so that the items are in matched pairs. 2.
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Number of Minutes of Radio Dollar Sales Advertising (y-values, (x-values, SALES ) MINUTES ) Week 1 $1,400 Week 2 $ 920 Week 3 $1,100 Week 4 $2,265 Week 5 $2,890 Week 6 $2,200 BJ’s wants to determine whether there is a linear relationship between the amount of radio advertising and the weekly sales.
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Keys: Display: Description: " Displays current SUM list and SUM menu keys. " Clears current list. ;:H0L#T8U" " Stores minutes of " advertising (x-values) into " a SUM list. " " ;:H0L-T8U" :E:198$(&((" :@5H"1"<10HIV;<54:W" MINUTES " Names this list. (See page ;:H0L-T8U"...
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" FH9H7: @ O12;1J9H" Selects MINUTES as x-list, 0;<4" " 9;<H12 " SALES as y-list, indicates F19HF" current curve-fitting model, and displays FRCST menu. ™ 7E228(&,(" Correlation coefficient for linear model. The correlation coefficient calculated above is acceptable to BJ’s. Using the linear model, estimate what the level of sales would be if the business purchased 7 minutes of advertising time per week.
Weighted Mean and Grouped Standard Deviation Data in one list (x) can be weighted or grouped (by frequency) by data in another list (y). To find the mean of weighted data and the standard deviation of grouped data: 1. Enter the data values―the x-variable―into a SUM list. 2.
;:H0L.T8U" :E:198*%#&((" Names this list RENT. (See " RENT page 30 to use the ALPHA ;:H0L.T8U" menu.) ;:H0L#T8U" Gets a new, empty list. " Stores frequencies into " second list. " ;:H0L.T8U" :E:198$''&((" Displays names of all " ) — SUM lists.
statistics for just one list of data, specify the same list for both x and y. 2. To see n, press ) ¡ 3. Press again to display the summation menu, and press the menu label for the value you want. Doing Other Calculations with SUM Data If you would like to do other statistical calculations with SUM data besides those in the CALC menu, you can do so by writing your own...
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