HP 10bII+ Financial Calculator
User's Guide
HP Part Number: NW239-90001
Edition 1, May 2010
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  • Page 1

    HP 10bII+ Financial Calculator User’s Guide HP Part Number: NW239-90001 Edition 1, May 2010...

  • Page 2

    In this regard, HP shall not be liable for technical or editorial errors or omissions contained in the manual.

  • Page 3

    HP 10bII+ Financial Calculator...

  • Page 4: Keyboard Map Legend

    Keyboard Map Legend Number Primary Functions SHIFT Down SHIFT Up (row of keys) (white) (orange functions on (blue functions above key bevel) keys) 12 character, seven- segment screen display Time Value of Money Payments per year, Bond calculations (TVM) interest conversion, amortization, Input key, markup, cost, Date and change of...

  • Page 5: Table Of Contents

    Table of Contents Legal Notice....................... ii HP 10bII+ Financial Calculator..................iii Keyboard Map Legend ....................iv 1 At a Glance........................1 Basics of Key Functions....................1 Shift Keys........................2 Boxed Key Functions ....................2 Percentages .......................3 Memory Keys ......................4 Time Value of Money (TVM) ..................6 TVM What if...

  • Page 6: Table Of Contents

    Arithmetic with One-and Two-number Functions............39 Last Answer ......................41 Display Format of Numbers ..................41 Scientific Notation ....................43 Interchanging the Period and Comma ................. 43 Rounding Numbers....................43 Messages ........................ 44 3 Business Percentages......................45 The Business Percentage Keys ..................45 Percent key ......................

  • Page 7: Table Of Contents

    8 Cash Flow Calculations ..................... 87 How to Use the Cash Flow Application................87 Clearing the Cash Flow Memory.................88 Calculating Internal Rate of Return................90 NPV and IRR/YR: Discounting Cash Flows ..............91 Organizing Cash Flows .....................91 Viewing and Editing Cash Flows.................93 Calculating Net Present Value and Net Future Value .............95 Automatic Storage of IRR/YR and NPV ................98 9 Calendar Formats and Date Calculations ................

  • Page 8: Table Of Contents

    Equations ........................I 16 Appendix C: Messages .......................I 17 Warranty, Regulatory, and Contact Information ..............1 Replacing the Batteries ....................1 HP Limited Hardware Warranty and Customer Care............1 Limited Hardware Warranty Period ................1 General Terms ......................2 Exclusions........................2 Regulatory Information ....................

  • Page 9: At A Glance., Basics Of Key Functions

    At a Glance... This section is designed for you if you’re already familiar with calculator operation or financial concepts. You can use it for quick reference. The rest of the manual is filled with explanations and examples of the concepts presented in this section. Basics of Key Functions Table 1-1 Basics of key functions Keys...

  • Page 10: Shift Keys, Boxed Key Functions

    Shift Keys Most keys on the HP 10bII+ have three functions: • a primary function printed in white on the key. • a secondary function printed in orange on the bevel of the key. • a tertiary function printed in blue above the key on the keyboard (see Figure 1).

  • Page 11: Percentages

    Table 1-2 Clearing functions Keys Associated Function Clears break-even memory. Clears TVM memory. Clears cash flow memory. Clears statistics memory. For more information on the calculator’s keys and basic functions, refer to chapter 2, Getting Started. Percentages Table 1-3 Keys for percentage calculations Keys Description §...

  • Page 12: Memory Keys

    Table 1-5 Finding the margin Keys Display Description JVÀ 15.00 Enters cost. GG¼ 22.00 Enters price. ® 31.82 Calculates margin. If the cost is 20.00 and the markup is 33%, what is the selling price? Table 1-6 Calculating the price Keys Display Description...

  • Page 13

    Multiply 17, 22, and 25 by 7, storing ‘× 7’ as a constant operation. Table 1-8 Storing ‘x 7’ as a constant Keys Display Description JjPjª 7.00 Stores ‘× 7’ as a constant operation. 1 19.00 Multiplies 17 × 7. 154.00 Multiplies 22 ×...

  • Page 14: Time Value Of Money (tvm)

    Time Value of Money (TVM) Enter any four of the five values and solve for the fifth. A negative sign in the display represents money paid out, and money received is positive. Table 1-1 1 Keys for TVM calculations Keys Description Clears TVM memory and the current P_YR is displayed.

  • Page 15: Tvm What If.

    Table 1-12 Calculating the monthly payment Keys Display Description :É 0.00 Enters future value. Ì - 1 22.86 Calculates payment if paid at end of period. TVM What if... It is not necessary to reenter TVM values for each example. Using the values you just entered, how much can you borrow if you want a payment of 100.00? Table 1-13 Calculating a new payment Keys...

  • Page 16: Amortization

    Amortization After calculating a payment using Time Value of Money (TVM), input the periods to amortize \Ê \Ê and press . Press once for periods 1- 1 2, and once again for payments 13- 24. Press to continually cycle through the principal, interest, and balance values (indicated by the PRIN, INT, and BAL annunciators respectively).

  • Page 17: Depreciation

    Table 1-16 Amortization example Keys Display Description - 1 ,388.36 Displays interest. 13,836.22 Displays the balance amount. For more information on amortization, refer to the section titled, Amortization in chapter 6, Time Value of Money Calculations. Depreciation Table 1-17 Depreciation keys Keys Description Ù...

  • Page 18: Interest Rate Conversion

    Table 1-18 Calculating the depreciation Keys Display Description \« 7,600.00 Remaining depreciable value after year one. 1,900.00 Depreciation of the asset in year two. \« 5,700.00 Remaining depreciable value after year two. For more information on depreciation, refer to chapter 7, Depreciation. Interest Rate Conversion To convert between nominal and effective interest rates, enter the known rate and the number of periods per year, then solve for the unknown rate.

  • Page 19: Cash Flows, Irr/yr, Npv, And Nfv

    Cash Flows, IRR/YR, NPV, and NFV Table 1-21 Cash flows, IRR, NPV, and NFV keys Keys Description Clears cash flow memory. \Í Number of periods per year (default is 12). For annual cash flows, P/YR should be set to 1; for monthly cash flows, use the default setting, 12.

  • Page 20

    If you have an initial cash outflow of 40,000, followed by monthly cash inflows of 4,700, 7,000, 7,000, and 23,000, what is the IRR/YR? What is the IRR per month? Table 1-22 Calculating the IRR/YR and IRR per month Keys Display Description CFLO CLR...

  • Page 21: Date And Calendar

    Display Description \½\« 643.88 Calculates NFV. For more information on cash flows, refer to chapter 8, Cash Flow Calculations in the HP 10bII+ Financial Calculator User’s Guide. Date and Calendar Table 1-24 Keys used for dates and calendar functions Keys Description ]È...

  • Page 22: Bonds

    Bonds Bond calculations, primarily calculating bond price and yield, are performed by two keys, Û ]Ñ ]Ô . These keys permit you to input data or return results. Pressing only calculates a result. The other keys used in bond calculations only permit you to input the data required for the calculations.

  • Page 23

    Table 1-27 Bond calculation Keys Display Description BOND CLR (message Clears bond memory. flashes, then disappears) Y7GgG:J: 4-28-2010 3 Inputs the settlement date (mm.ddyyyy format). ]¾ S7:YG:G: 6-4-2020 4 Inputs the maturity date. ]° S7jV]Î 6.75 Inputs CPN%. J::]Ë 100.00 Inputs call value.

  • Page 24: Break-even

    Break-even Table 1-28 Break-even keys Keys Description Clears break-even memory. ]¬ Stores the quantity of units required for a given profit or calculates it. ]© Stores the sales price per unit or calculates it. ]¦ Stores variable cost per unit for manufacturing or calculates it.

  • Page 25: Statistical Calculations

    Statistical Calculations Table 1-30 Statistics keys Keys Description Clear statistical registers. Enter one-variable statistical data. ¡ x-data Delete one-variable statistical data. \¢ x-data Enter two-variable statistical data. Æ ¡ x-data y-data Delete two-variable statistical data. Æ \¢ x-data y-data v¡ Opens editor for reviewing/ editing entered statistical data.

  • Page 26

    Using the following data, find the means of x and y, the sample standard deviations of x and y, and the y-intercept and the slope of the linear regression forecast line. Then, use summation Σ statistics to find x-data y-data Table 1-31 Statistics example Keys Display...

  • Page 27: Probability

    Probability Table 1-32 Probability keys Keys Description Calculates a cumulative normal probability given a Z-value. Calculates a Z-value given a cumulative normal probability. Calculates the cumulative Student’s T probability given degrees of freedom and a T-value. Calculates a T-value given degrees of freedom and the cumulative Student’s T probability.

  • Page 28: Trigonometric Functions

    Trigonometric Functions Table 1-34 Trigonometry keys Keys Description Calculates sine, cosine, and tangent. , or Calculates inverse sine, inverse cosine, and inverse tangent. , or Calculates hyperbolic sine, cosine and tangent. , or Calculates inverse hyperbolic sine, cosine, and tangent. , or Toggles between radians and degrees modes.

  • Page 29

    Convert the results to radians using Pi. Table 1-36 Converting to radians Keys Display Description P\;aJg Converts degrees to radians. For more information on trigonometric functions, refer to chapter 2, Getting Started. At a Glance...

  • Page 30

    At a Glance...

  • Page 31: Getting Started, Power On And Off, Manual Conventions And Examples

    Getting Started Power On and Off To turn on your HP 10bII+, press . To turn the calculator off, press the orange shift key, > , then . To change the brightness of the display, hold down and then simultaneously press Since the calculator has continuous memory, turning it off does not affect the information you have stored.

  • Page 32: Basics Of Key Functions

    Basics of Key Functions Table 2-1 Basics of key functions Keys Display Description 0.00 Turns calculator on. 0.00 [blue] Displays shift annunciator 0.00 [orange] Displays shift annunciator JGD| Erases last character. Toggles between radians and degrees. The item before the / is the alternate; the (at the bottom of the display) item after the / is the default setting.

  • Page 33: Boxed Key Functions, Shift Keys

    Shift Keys Most keys on the HP 10bII+ have three functions: • a primary function printed in white on the key. • a secondary function printed in orange on the bevel of the key. • a tertiary function printed in blue above the key on the keyboard (see Figure 1).

  • Page 34: Simple Arithmetic Calculations

    Table 2-2 Clearing functions Keys Associated Function Clears break-even memory. Clears TVM memory. Clears cash flow memory. Simple Arithmetic Calculations Operating Modes To change the operating mode, press the blue shift key, followed by to toggle between Algebraic and Chain modes. A brief message is displayed indicating the selected operating mode.

  • Page 35

    If you press an operator key after completing a calculation, the calculation is continued. Table 2-5 Continuing a calculation Keys Display Description 1JJV7V4 356.42 Completes calculation of 240.92 + 1 15.5. Calculations in Chain Mode Calculations in Chain mode are interpreted in the order in which they are entered. For example, entering the following numbers and operations as written from left to right, J1GPD4 , returns 9.

  • Page 36

    For example, to calculate 1 + (2 x 3), you may enter the problem as written from left to right, with parentheses to prioritize the multiplication operation. When entered with parentheses, this expression returns a result of 7. Calculations in Algebraic Mode In Algebraic mode, multiplication and division have a higher priority than addition and J1GPD4 subtraction.

  • Page 37: Understanding The Display And Keyboard, Cursor, Clearing The Calculator

    Table 2-8 Using parentheses in calculations Keys Display Description 0.41 Calculates 30 ÷ 73. 3.70 Multiplies the result by 9. Negative Numbers Enter the number and press to change the sign. Calculate -75 ÷ 3. Table 2-9 Changing the sign of numbers Keys Display Description...

  • Page 38: Annunciators

    , then press and hold down both . When you release all three, all memory is cleared. The All Clear message is displayed. Clearing Messages When the HP 10bII+ is displaying an error message, clears the message and restores the original contents of the display. Annunciators Annunciators are symbols in the display that indicate the status of the calculator.

  • Page 39

    Table 2-1 1 Annunciators and status Annunciator Status A shift key has been pressed. When another key is pressed, the functions labeled in orange or blue are executed. Inverse mode is active for trigonometric or probability functions. Radians mode is active. Begin mode is active;...

  • Page 40: Input Key, Swap Key, Statistics Keys

    Table 2-1 1 Annunciators and status Annunciator Status FUNC A math error has occurred (for example, division by zero). Input Key Æ key is used to separate two numbers when using two-number functions or two- Æ variable statistics. The key can also be used to enter cash flows and cash flow counts, ordered pairs, and evaluate any pending arithmetic operations, in which case the result is the same as pressing Swap Key...

  • Page 41: Time Value Of Money (tvm), Cash Flows, Bond, And Break-even Keys, Math Functions

    Table 2-12 Statistics keys Keys Description Sum of the y-values. Sum of the x-values. Time Value of Money (TVM), Cash Flows, Bond, and Break-even Keys When entering data for TVM, cash flows, bond, depreciation and break-even calculations, results are calculated based on data entered into specific memory registers. When pressed, the keys used for these operations: •...

  • Page 42

    Table 2-14 One-number functions Keys Description § Divide a number by 100. Rounds x to the number specified by the display format. Calculates 1/x. Calculates the square root of x. Calculates the square of x. Calculates natural exponent to the power of x. Calculates natural log.

  • Page 43: Trigonometric And Hyperbolic Functions And Modes

    Trigonometric and Hyperbolic Functions and Modes Selecting Angle Format The trigonometric angle format determines how numbers are interpreted when using trigonometry functions. The default format for angles on the 10bII+ is degrees. To change to radians mode, press . When radians mode is active, the RAD annunciator is displayed.

  • Page 44: Hyperbolic Functions

    Table 2-16 Example using various trigonometric calculations Keys Display Description A7SG]oR 51.6839 Displays inverse cosine of 0.62. 17.8288 Calculates arccos 0.35 - arccos 0.62. 17.83 Return display to default format. π Pressing displays the value of . Although the displayed value is appears in the π...

  • Page 45: Two-number Functions, In-line Functions

    Example Perform the following hyperbolic calculations. Table 2-19 Example performing various hyperbolic calculations Keys Display Description 0.0000 Sets display to four decimal places. J7GV]rc 1.6019 Display sinh 1.25. 17Vd]rC 0.5299 Displays tanh 0.59. 2.1318 Calculates sinh 1.25 + tanh 0.59. ]roR 1.3899 Calculates acosh 2.1318.

  • Page 46

    Table 2-20 Example calculating percent change as an in-line function Keys Display Description Jj\¨ 17.00 Enters number1, displays the PEND annunciator indicating the calculator is awaiting instructions. Enters number 2. 70.59 Calculates the percent change. Æ Press , and now calculate the same example using the key to store the first number, then key in the second number and perform the operation.

  • Page 47: Arithmetic With One-and Two-number Functions

    The Table 2-23 below lists the two-number functions of the calculator. Table 2-23 Two-number functions Keys Description 1APa Addition, subtraction, multiplication, division. The power function. \¨ % Change. Combinations. ]< Permutations. \Ç The date and day, past or future, that is a given number of days from a given date.

  • Page 48

    Table 2-24 Calculating the expression Keys Display Description 1Yj7G1 51.67 Calculates + 47.20. J7J\2 1.21 Calculates 1.1 52.88 Completes the calculation. Example 2 Calculate natural logarithm (e ). Then calculate 790 + 4! Table 2-25 Calculating the logarithm value Keys Display Description G7V\K...

  • Page 49: Last Answer, Display Format Of Numbers

    Calculate percent change. Display Format of Numbers When you turn on the HP 10bII+ for the first time, numbers are displayed with two decimal places and a period as the decimal point. The display format controls how many digits appear in the display.

  • Page 50

    Regardless of the current display format, each number is stored internally as a signed, 12-digit number with a signed, three-digit exponent. Specifying Displayed Decimal Places To specify the number of displayed decimal places: Press followed by for the desired decimal setting. –...

  • Page 51: Scientific Notation, Interchanging The Period And Comma, Rounding Numbers

    Table 2-30 Example displaying all digits Keys Display Description Jaj4 1.43 Divides. 142857142857 Displays all 12 digits. Scientific Notation Scientific notation is used to represent numbers that are too large or too small to fit in the display. For example, if you enter the number 10,000,000 x 10,000,000 =, the result is 1.00E14, which means one times ten to the fourteenth power, or 1.00 with the decimal point moved fourteen places to the right.

  • Page 52: Messages

    Shows rounded, stored number. Messages The HP 10bII+ displays messages about the status of the calculator or informs you that you have attempted an incorrect operation. To clear a message from the display, press . For a complete list of error messages, refer to Appendix C.

  • Page 53: Business Percentages, The Business Percentage Keys, Percent Key

    Business Percentages The Business Percentage Keys When entering data for business percentage calculations, results are calculated based on data entered into specific memory registers. When pressed, the keys used for these operations: • store data. • enter known data for variables used during calculations. •...

  • Page 54

    Table 3-2 Subtracting a percent in a calculation Keys Display Description G::A 200.00 Enters 200. GV§ 50.00 Multiplies 200 by 0.25 and subtracts 50 from 200. 150.00 Completes the calculation. Example 2 You borrow 1,250 from a relative, and you agree to repay the loan in a year with 7% simple interest.

  • Page 55: Margin And Markup Calculations

    Margin and Markup Calculations The 10bII+ can calculate cost, selling price, margin, or markup. Table 3-6 Keys for margin and markup Application Keys Description À ¼ ® Margin Margin is markup expressed as a percent of price. À ¼ Ã Markup Markup calculations are expressed as a percent of cost.

  • Page 56

    Table 3-8 Calculating the retail price Keys Display Description ¼ 30.40 Calculates retail price. Using Margin and Markup Together Example A food cooperative buys cases of canned soup with an invoice cost of 9.60 per case. If the co-op routinely uses a 15% markup, for what price should it sell a case of soup? What is the margin? Table 3-9 Calculating the margin Keys...

  • Page 57: Number Storage And Storage Register Arithmetic, Using Stored Numbers In Calculations

    Number Storage and Storage Register Arithmetic Using Stored Numbers in Calculations You can store numbers for reuse in several different ways: ª • (Constant) to store a number and its operator for repetitive operations. • Use 3 Key Memory ( , and ) to store, recall, and sum numbers with a single keystroke.

  • Page 58

    Example 2 Calculate 10 + 10%, 1 1 + 10%, and 25 + 10%. Table 4-2 Storing ‘+ 10%’ as a constant Keys Display Description J:1J:§ª 1.00 Stores + 10% as a constant. 1 1.00 Adds 10% to 10. 12.10 Adds 10% to 1 1.

  • Page 59

    Example 4 Calculate the percent change between 55 and 32 and store it as a constant. Then calculate the percent change between 50 and 32, and 45 and 32. Table 4-4 Calculating percent change Keys Display Description VV\¨DGª 32.00 Stores % change 32 as constant. -41.82 Calculates the % change between 55 and 32.

  • Page 60

    Example Use the M register to add 17, 14.25, and 16.95. Then subtract 4.65 and recall the result. Table 4-6 Calculating basic arithmetic operations using M register Keys Display Description 17.00 Stores 17 in M register. JY7GVm 14.25 Adds 14.25 to M register. JS7dVm 16.95 Adds 16.95 to M register.

  • Page 61

    Table 4-7 Calculating the expression using two storage registers Keys Display Description YjV7S 475.60 Stores 475.60 (displayed number) in R \w7Y aDd7JV 39.15 Stores 39.15 in R 12.15 Completes first calculation. VS:7J1 1,035.70 Recalls R NOTE: If the calculator is set for Algebraic mode, press at the end of this step.

  • Page 62

    Table 4-8 Keys for performing arithmetic inside registers Keys New Number in Register Old contents ÷ displayed number. register number Example 1 Store 45.7 in R , multiply by 2.5, and store the result in R Table 4-9 Calculating and storing the result in the storage register Keys Display Description...

  • Page 63: Picturing Financial Problems, How To Approach A Financial Problem

    Picturing Financial Problems How to approach a Financial Problem The financial vocabulary of the HP 10bII+ is simplified to apply to all financial fields. For example, your profession may use the term balance, balloon payment, residual, maturity É value, or remaining amount to designate a value that the HP 10bII+ knows as (future value).

  • Page 64: Signs Of Cash Flows, Periods And Cash Flows, Simple And Compound Interest

    The period is normally defined in a contract and must be known before you can begin calculating. • To solve a financial problem with the HP 10bII+, all cash flows must occur at either the beginning or end of a period. •...

  • Page 65: Interest Rates

    The word compound in compound interest comes from the idea that interest previously earned or owed is added to the principal. Thus, it can earn more interest. The financial calculation capabilities of the HP 10bII+ are based on compound interest. Interest Rates...

  • Page 66: Two Types Of Financial Problems

    • As a periodic rate. This is the rate that is applied to your money from period to period. • As an annual nominal rate. This is the periodic rate multiplied by the number of periods in a year. • As an annual effective rate.

  • Page 67: Recognizing A Cash Flow Problem

    Figure 4 Cash flow diagram (Borrower’s perspective) One of the values for PV, PMT, FV can be zero. For example, following is a cash flow diagram (from the saver’s perspective) for a savings account with a single deposit and a single withdrawal five years later.

  • Page 68

    The following is a cash flow diagram for an investment in a mutual fund. This is an example \½ \Á of a problem that is solved using either (Net Present Value) or (Internal Rate of Return per Year). Figure 6 Cash flow diagram (Investment in a mutual fund) Cash flow problems are described in chapter 8 titled, Cash Flow Calculations.

  • Page 69: Time Value Of Money Calculations, Using The Tvm Application, The Tvm Keys

    Time Value of Money Calculations Using the TVM Application The time value of money (TVM) application is used for compound interest calculations that involve regular, uniform cash flows – called payments. Once the values are entered you can vary one value at a time, without entering all the values again. To use TVM, several prerequisites must be met: •...

  • Page 70: Begin And End Modes, Loan Calculations

    If the first payment occurs at the end of the first period, set your HP 10bII+ to End mode; if it occurs at the beginning of the first period, set your calculator to Begin mode.

  • Page 71

    Figure 7 Cash flow diagram (Calculate PMT) \¯ Set to End mode. Press if BEGIN annunciator is displayed. Table 6-2 Calculating the monthly payment Keys Display Description JG\Í 12.00 Sets periods per year (optional, as 12 is the default). DPJGÙ 36.00 Stores number of periods in loan.

  • Page 72

    Table 6-3 Calculating the interest rate Keys Display Description 1V:Ì -372.53 Decreases payment from 422.53. Ò 2.03 Calculates annual interest rate for the reduced payment. Part 3 If interest is 10.5%, what is the maximum you can spend on the car to lower your car payment to 375.00? Table 6-4 Calculating the amount Keys...

  • Page 73

    \¯ Set to End mode. Press if BEGIN annunciator is displayed. Table 6-5 Calculating the maximum purchase price Keys Display Description JG\Í 12.00 Sets periods per year. D:\Ú 360.00 Stores the length of the mortgage (30 × 12). :É 0.00 Pays mortgage off in 30 years.

  • Page 74

    Figure 9 Cash flow diagram (Calculate PMT) \¯ Set to End mode. Press if BEGIN annunciator is displayed. Table 6-6 Calculating the monthly payment Keys Display Description JG\Í 12.00 Sets periods per year. GV\Ú 300.00 Stores length of mortgage (25 × 12 = 300 months).

  • Page 75: Savings Calculations

    Figure 10 Cash flow diagram (Calculate FV) The value in PMT should always be rounded to two decimal places when calculating FV or PV to avoid small, accumulative discrepancies between non-rounded numbers and actual (dollars and cents) payments. If the display is not set to two decimal places, press Table 6-7 Calculating the final amount Keys Display...

  • Page 76

    Figure 1 1 Cash flow diagram (Calculate the number of years) Since this account has no regular payments (PMT = 0), the payment mode (End or Begin) is irrelevant. Table 6-8 Calculating the number of years Keys Display Description 0.00 Clears TVM memory.

  • Page 77

    Table 6-9 Calculating the balance after six years Keys Display Description SÙ 6.00 Sets n to 6 years. É 3,035.28 Calculates the amount you can withdraw after six years. Example: An Individual Retirement Account You opened an individual retirement account on April 14, 1995, with a deposit of 2,000. 80.00 is deducted from your paycheck and you are paid twice a month.

  • Page 78

    Table 6-10 Calculating the balance amount Keys Display Description S7DÒ 6.30 Stores interest rate. JV\Ú 360.00 Stores the number of deposits. É 52,975.60 Calculates the balance amount. Example: An Annuity Account You opt for an early retirement after a successful business career. You have accumulated a savings of 400,000 that earns an average of 7% annual interest, compounded monthly.

  • Page 79: Lease Calculations

    Lease Calculations A lease is a loan of valuable property (like real estate, automobiles, or equipment) for a specific amount of time, in exchange for regular payments. Some leases are written as purchase agreements, with an option to buy at the end of the lease (sometimes for as little as 1.00).

  • Page 80

    Table 6-12 Calculating the monthly lease payment Keys Display Description JG\Í 12.00 Sets payments per year. J:Ò 10.00 Stores desired annual yield. JDV::yÏ - 1 3,500.00 Stores lease price. jV::É 7,500.00 Stores residual (buy out value). DSÙ 36.00 Stores length of lease, in months. Ì...

  • Page 81

    This solution requires four steps: Calculate the present value of the 47 monthly payments: (4 × 12) - 1 = 47. 2. Add the value of the additional advance payment. 3. Find the present value of the buy option. 4. Sum the values calculated in steps 2 and 3. Step 1 Find the present value of the monthly payments.

  • Page 82

    Table 6-15 Calculating the present value of the last cash flow Keys Display Description :Ì 0.00 Stores zero payment for this step of solution. JV:::yÉ - 1 5,000.00 Stores value to discount. Ï 10,479.21 Calculates the present value of last cash flow. Step 4 Add the results of ’Step 2’...

  • Page 83

    To amortize a range of payments, enter starting period number ending period number, \Ê then press . The HP 10bII+ displays the annunciator PER followed by the starting and ending payments that will be amortized. Then press repeatedly to cycle through interest, principal, and balance.

  • Page 84

    If you store, recall, or perform any other calculations during amortization, pressing will no longer cycle through interest, principal, and balance. To resume amortization with the v\Ê same set of periods, press Example: Amortizing a Range of Payments Calculate the first two years of the annual amortization schedule for a 30 year, 180,000 mortgage, at 7.75% annual interest with monthly payments.

  • Page 85

    The amount paid toward interest and principal (13,894.67 + 1,579.84 = 15,474.51) equals the total of 12 monthly payments (12 × 1,289.54 = 15,474.51). The remaining balance equals the initial mortgage, less the amount applied toward principal (180,000 - 1,579.84 = 178,420.16).

  • Page 86

    Table 6-21 Calculating the monthly payment Keys Display Description Ì -310.42 Calculates the monthly payment. Amortize the 1 , 25 , and 54 payments Table 6-22 Calculating the amount Keys Display Description JÆ 1.00 Enters first payment. \Ê 1 – 1 Displays PER and the amortized payment period.

  • Page 87: Interest Rate Conversions

    Interest Rate Conversions \Ó \Ð The Interest Conversion application uses three keys: , and \Í . They convert between nominal and annual effective interest rates. If you know an annual nominal interest rate and you wish to solve for the corresponding annual effective rate: \Ó...

  • Page 88

    Table 6-23 Calculating the interest rate (First bank) Keys Display Description \Ð 6.87 Calculates the annual effective rate. Second Bank Table 6-24 Calculating the interest rate (Second bank) Keys Display Description S7SV\Ó 6.65 Stores nominal rate. JG\Í 12.00 Stores monthly compounding periods.

  • Page 89

    Example: Monthly Payments, Daily Compounding Starting today, you make monthly deposits of 25 to an account paying 5% interest, compounded daily (using a 365 day year). What will the balance be in seven years? Step 1 Calculate the equivalent rate with monthly compounding. Table 6-26 Calculating the equivalent nominal percentage rate Keys Display...

  • Page 90: Resetting The Tvm Keys

    Resetting the TVM Keys Press to clear the TVM registers. This sets N, I/YR, PV, PMT, and FV to zero and briefly displays TVM CLR, followed by the current value in P/Yr. Time Value of Money Calculations...

  • Page 91: The Depreciation Keys, Depreciation

    Depreciation On the 10bII+, depreciation calculations are performed using the functions printed in blue on the keyboard located under the blue bracket titled, DEPRECIATION. Depreciation calculations Ï É Ò are based on data entered into the Time Value of Money (TVM) keys: , and Ù...

  • Page 92

    To perform a depreciation calculation: Ï Enter the original cost of the asset, using 2. Enter the salvage value of the asset, using FV. If the salvage value is zero, press :É Ù 3. Enter the expected useful life of the asset (in years), followed by 4.

  • Page 93

    Table 7-2 Depreciation example using SL Keys Display Description VÙ 5.00 Inputs 5 for the expected useful life of the asset in the selected format. 1,900.00 Enters the year for which depreciation is to be calculated and calculates the depreciation of the asset in year one. TVM and X are displayed.

  • Page 94

    Example 3 A machine was purchased for 5,000 and is to be depreciated over seven years with no salvage value. Using the double declining balance method, what is the depreciation for the first three years of the machine's life? What is the remaining depreciable value? Table 7-4 Depreciation example using Declining Balance Keys Display...

  • Page 95: Cash Flow Calculations, How To Use The Cash Flow Application

    , then enter the repeat value followed by ¤ In general, use the following steps for cash flow calculations on the HP 10bII+: Organize your cash flows on paper. A cash flow diagram is useful. 2. Clear the cash flow memory.

  • Page 96: Clearing The Cash Flow Memory

    Table 8-1 Cash Flow Keys Description Clears cash flow memory. \Í Number of periods per year (default is 12). For annual cash flows, P/YR should be set to 1; for monthly cash flows, use the default setting, 12. ¤ Cash flows, up to 45. J identifies the cash flow number. When preceded by a number1 ¤...

  • Page 97

    Figure 1 As illustrated in Figure 1, if no more than 15 data points are stored in the statistics memory, you may store up to 45 cash flows with the shared memory space. If more than 15 data points are stored in the statistics memory, the total memory available for storing cash flows is reduced.

  • Page 98: Calculating Internal Rate Of Return

    Calculating Internal Rate of Return Press , and store the desired number of periods per year in P/YR. Æ ¤ 2. Enter the cash flows using \Á 3. Press Figure 4 Cash flow diagram (Investments in stock) Table 8-2 Example 1: a short term investment Keys Display Description...

  • Page 99: Npv And Irr/yr: Discounting Cash Flows, Organizing Cash Flows

    Table 8-2 Example 1: a short term investment Keys Display Description Y:::y¤ -4,000.00 Enters second cash flow. Note the CFLO and CF annunciators. (CF 2 flashes, then disappears) JJjSV7Gd¤ 1 1,765.29 Enters third cash flow. Note the CFLO and CF annunciators. (CF 3 flashes, then disappears) \Á...

  • Page 100

    Figure 5 Initial cash flow and cash flow groups Whenever you enter a series of cash flows, it is important to account for every period on the cash flow diagram, even periods with cash flows of zero. Example Enter the cash flows from the preceding diagram and calculate the IRR/YR. Assume there are 12 periods per year.

  • Page 101: Viewing And Editing Cash Flows

    Table 8-3 Example calculating IRR and effective interest rate Keys Display Description J:::¤ 1,000.00 Enters second cash flow group amount. Note the CFLO and CF (CF 2 flashes, then annunciators. disappears) D\¥ 3.00 Enters number of repetitions. Note the CFLO and N (CFn 2 flashes, then annunciators.

  • Page 102

    Æ 6. To replace the currently displayed value, simply type a new number and press Only valid entries are accepted. If you type an invalid entry, such as a value of 0 for the count, the ERROR annunciator appears and the value is rejected. To clear the current cash flow or repeat value without removing the entire pair, press .

  • Page 103: Calculating Net Present Value And Net Future Value

    Table 8-5 Editing cash flows Keys Display Description jV::Æ1GÆ 3 2.00 Inputs new cash flow amount and repeat value. Displays the new repeat value, 2.00, for CF 1JG::yÆ1G Inputs new cash flow, CF and repeat value. 4 is displayed first, with no value followed by Æ...

  • Page 104

    How much should you pay for the contract if you wish to yield a yearly rate of 15% on your investment? Figure 6 Cash flow diagram (Calculate the amount) Æ ¤ The following example uses the keys to enter the cash flow amount and repeat value simultaneously.

  • Page 105

    Keys Display Description :ÆY¤ 4.00 Input fifth cash flow amount and repeat value. (CFn 4 flashes, then disappears) jV::ÆJ¤ 1.00 Input sixth cash flow amount and repeat value. (CFn 5 flashes, then disappears) :Æd¤ 9.00 Input seventh cash flow amount and repeat value.

  • Page 106: Automatic Storage Of Irr/yr And Npv

    Figure 7 Cash flow diagram (Calculates NPV) Automatic Storage of IRR/YR and NPV When you calculate NPV, the result is stored in PV for your convenience. To recall that result, vÏ press . If you haven’t changed the TVM values from the last example using NPV, vÏ...

  • Page 107: Calendar Formats And Date Calculations, Calendar Format, Date Format

    360-day calendar. Date Format The valid range of dates for the calendar functions of the HP 10bII+ is October 15, 1582 through December 31, 9999. For the date, the number of days between two dates, and bond calculations, dates may be entered and displayed either in month-day-year (M.DY) or day- month-year (D.MY) formats.

  • Page 108

    2. Enter the number of digits through that you wish to appear after the decimal point. To view the entire date, press . For more information on changing the number display, refer to the section titled, Specifying Displayed Decimal Places in chapter 2. To key in a date in M.DY format: Key in one or two digits for the month.

  • Page 109: Date Calculations And Number Of Days

    Date Calculations and Number of Days To calculate the date and day, past or future, that is a given number of days from a given date as an in-line function: \Ç Key in the given date and press 2. Key in the number of days. 3.

  • Page 110: Number Of Days

    Table 9-2 Date calculation example as an in-line function Keys Display Description JG7JgG:JJ 12.18201 1_ Keys in the date in MM.DDYYYY format. \ÇJ::4 3-27-2012 2 Calculates the date. Æ To enter the data for this example using the key: Table 9-3 Date calculation example using the ‘INPUT’ key Keys Display Description...

  • Page 111

    Table 9-4 Calculating the actual number of days as an in-line function Keys Display Description ]È 0.00 Sets the desired date format. Note the D.MY annunciator. ]Å 0.00 Sets the desired calendar format, in this case, actual days (optional if the 360 annunciator is not displayed, as Actual is the default).

  • Page 112

    Æ Using the key: Table 9-6 Calculating the actual number of days using the ‘INPUT’ key Keys Display Description 0.00 Clear display. J:7JjG:JGÆ 10.17 Keys in the date in MM.DDYYYY format and displays digits in the selected display format (2). S7:YG:JV\Ä...

  • Page 113: The Bond Keys, Bonds

    Bonds The Bond Keys On the 10bII+, bond calculations are based on data or settings stored in the ten keys which make up the top two rows of the keyboard. The functions used in bond calculations are printed in blue above the keys on the keyboard. To access the bond functions, press followed by the desired function.

  • Page 114

    When entering data for bond calculations, results are calculated based on data entered into specific memory registers. When pressed, the keys used for these operations: • store data. • enter data for variables used during calculations (input only). • calculate unknown variables based on stored data. Most of the other keys used in bond calculations allow you to enter data for a variable, but ]Û...

  • Page 115

    Table 10-2 Bond calculation example Keys Display Description S7:YG:G: 6-4-2020 4 Inputs June 4, 2020 for the maturity date. ]° S7jV]Î 6.75 Inputs 6.75% for the value for CPN%. J::]Ë 100.00 Inputs call value. Optional, as default is 100. Note: if Call requires another value, key in the number followed by ]Ë...

  • Page 116: Resetting The Bond Keys

    Table 10-3 Keys Display Description J:7JVG:G: 10- 1 5-2020-4 Inputs October 15, 2020 for the maturity date. ]° Y7JVG:JG 4- 1 5-2012-7 Inputs April 15, 2012 for the settlement date. ]¾ ]Ô 5.72 Calculates yield as a %. Continuing with the same bond problem, assume the bond will not be called. What is the expected yield to maturity? Table 10-4 Keys...

  • Page 117: The Break-even Keys, Break-even

    Break-even 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. On the 10bII+, break-even calculations are performed using the functions printed in blue on the keyboard located under the blue bracket titled, BREAKEVEN.

  • Page 118

    Example 1 The sale price of an item is 300.00, the cost is 250.00, and the fixed cost is 150,000.00. How many units would have to be sold to make a profit of 10,000.00? Table 1 1-2 Break-even example Keys Display Description BK EV CLR...

  • Page 119

    Example 2 What is the estimated maximum fixed cost you can afford to manufacture 10,000 water filters, if your desired selling price is 45.00? Assume the cost per unit is 23.00. Since you want to calculate the maximum fixed cost, your profit for the purpose of the example will be 0.00. Table 1 1-3 Calculating the projected maximum fixed cost Keys Display...

  • Page 120: Resetting The Break-even Keys

    Resetting the Break-even keys To reset the break-even keys to their default values, press . A brief message flashes on the screen to indicate the break-even registers have been reset. To return to the default calculator screen, press Break-even...

  • Page 121

    Statistical Calculations The 10bII+ allows you to enter data for one- and two-variable statistics easily. Once data is entered, you can use the statistical functions to calculate the following: • Mean and standard deviation • Regression statistics or a best fit •...

  • Page 122: Clearing Statistical Data, Entering Statistical Data

    Clearing Statistical Data Clear the statistical data before entering new data. If you don't clear the statistical data, new information stored will be added to the current calculations. To clear all statistical data, press . The message STAT CLR flashes briefly and the display is cleared. The regression model is also reset to its default setting, LINEAR.

  • Page 123

    To enter x-data for one-variable statistics complete the following steps: Clear the statistical registers by pressing ¡ 2. Enter the first value and press . The HP 10bII+ displays n, the number of items accumulated. ¡ 3. Continue accumulating values by entering the numbers and pressing .

  • Page 124: Viewing And Editing Statistical Data

    Viewing and Editing Statistical Data v¡ Press to open the editor. The number of items accumulated, n, is displayed, along with the current x-or y-value. The STAT annunciator appears, and the X or Y identifies the displayed value. 2. Press to move up through the current statistical data.

  • Page 125

    At what temperature would the manager predict to sell 800 drinks? How many employees will be needed for tomorrow's predicted temperature of 43 Table 12-3 Example entering statistical data, opening the editor, and predicting Keys Display Description STAT CLR Clears the statistics memory. (message flashes briefly, then disappears) DGÆYJV¡...

  • Page 126

    Table 12-4 Adding more data Keys Display Description YDÆJ:GD¡ 4.00 Enters fourth ordered pair. DjÆSgV¡ 5.00 Enters fifth ordered pair. After modifying the data, predict the next day’s activity at a record 45 Table 12-5 A new prediction Keys Display Description YV\W 1,204.67...

  • Page 127: Summary Of Statistical Calculations

    Summary of Statistical Calculations The STAT annunciator indicates that a statistical calculation was performed. Some functions return two values. In this instance, the X annunciator is displayed along with STAT. Press \« to see the second value. In this case, the X annunciator changes to a Y, indicating the second value is being displayed.

  • Page 128: Mean, Standard Deviations, And Summation Statistics

    Mean, Standard Deviations, and Summation Statistics You can calculate the mean ( ), sample standard deviation (S ), and population standard σ deviation ( ), and summation statistics, n, , and x of x-data. For x,y data, you can also Σ...

  • Page 129: Linear Regression, Estimation, And Regression Modes

    \h\« The standard deviations calculated by are the sample standard deviations. They assume that the data is a sampling of a larger, complete set of data. If the data constitutes the entire population, the true population standard deviations can be \e\«...

  • Page 130

    2. Enter the first x-value and press . The x-value is displayed. ¡ 3. Enter the corresponding y-value and press . The HP 10bII+ displays n, the number of pairs of items accumulated. 4. Continue entering x,y pairs. The n-value is increased with each entry. \Z\«...

  • Page 131

    Figure 4 Diagram on forecasting sales and minutes for advertising Table 12-10 Example for forecasting Keys Display Description STAT CLR Clears statistics memory. (message flashes briefly, then disappears) GÆJY::¡ 1.00 Enters minutes and sales for consecutive weeks. JÆdG:¡ 2.00 DÆJJ::¡ 3.00 VÆGGSV¡...

  • Page 132: Weighted Mean

    Table 12-10 Example for forecasting Keys Display Description \Z\« 0.90 Calculates correlation coefficient. Estimate what the level of sales would be if the business purchased 7 or 8 minutes of advertising. Table 12-1 1 Estimating the level of sales Keys Display Description 3,357.38...

  • Page 133: Regression Models And Variables

    Table 12-13 Calculating the average monthly rent Keys Display Description STAT CLR Clears statistics memory. (message flashes briefly, then disappears) V::ÆVY¡ 1.00 Enters first rent and its weight. V:VÆDG¡ 2.00 Enters second rent and its weight. VJ:Ægg¡ 3.00 Enters third rent and its weight. VJSÆdG¡...

  • Page 134: Probability Calculations, Factorial, Permutations

    If BEST FIT is selected, the 10bII+ calculates the best fit when , or is pressed. When selected, BEST FIT flashes briefly, followed by the chosen fit. The selected regression will remain set until a new one is selected, or the statistics memory is cleared.

  • Page 135: Combinations, Random Number And Seed

    Example Using five books labeled A, B, C, D, and E, how many different ways can three books be placed on a shelf? Table 12-15 Example calculating permutations Keys Display Description V]<D4 60.00 Calculates permutations of n items taken r at a time. Æ...

  • Page 136: Advanced Probability Distributions

    Example Store a seed value of 42; set the number display to 9. Then generate three random numbers. Table 12-17 Example storing a seed value and generating random numbers Keys Display Description YG\w]6 42.00 Stores 42 as the random number generator seed.

  • Page 137: Normal Lower Tail Probability

    Normal Lower Tail Probability To calculate the area under the curve to the left of z (the lower tail probability), enter the z- value and press . This function calculates the probability that a standard normal random variable, Z, is less than z. Figure 5 Example The variable Z is a standard normal random variable.

  • Page 138: Inverse Of Normal Lower Tail Probability

    Inverse of Normal Lower Tail Probability Figure 8 What is the z-value corresponding to a lower tail cumulative probability of .025? Table 12-20 Example calculating z-value (lower tail) Keys Display Description 7:GV]oF - 1 .959964 Calculate the corresponding z- value. Figure 9 Figure 10 Statistical Calculations...

  • Page 139: Student's T Probability Lower Tail

    Student's T Probability Lower Tail Figure 1 1 To calculate the area under the Student's T Distribution curve, first enter the degrees of freedom, followed by the t-value. It is a two-number function, so it may be entered as either Æ...

  • Page 140: Inverse Of Student's T Probability Lower Tail

    Inverse of Student’s t Probability Lower Tail If you know the lower tail probability, P, and you want to calculate t, enter the degrees of Æ freedom (df ), followed by , then P. Press to calculate t. Figure 14 Example A hypothesis test requires a critical t-value from the Student’s T distribution with 26 degrees of freedom.

  • Page 141: Conversions From Lower Tail

    Conversions from Lower Tail The distribution functions on the 10bII+ return values for the lower tail cumulative probability. The lower tail probability corresponds to the area under the curve to the left of the given value. Sometimes you will want to work with areas other than the lower tail. It is easy to convert from lower tail to another area as long as you keep in mind that the total area under the curve is equal to 1, and the Normal and the Student’s T distributions are symmetrical.

  • Page 142

    Example 2 The variable Z is a standard normal random variable. What is the probability that z is greater than 1.2 or less than - 1 .2? Figure 18 The desired area is to the right of 1.2 and to the left of - 1 .2. Since normal distributions are symmetrical, and the areas are the same, you can calculate the lower tail area and simply multiply by 2.

  • Page 143

    Example 3 The variable Z is a standard normal random variable. Find z so that the probability that Z is less than z and greater than -z is equal to 0.95. Figure 19 The given area is 0.95. The area not included is 1-0.95/2 = 0.025. Since the normal distribution is symmetrical, half of the desired area is in the lower tail, .05/2=.025.

  • Page 144

    Statistical Calculations...

  • Page 145: Additional Examples, Business Applications

    Additional Examples Business Applications Setting a Sales Price One method for setting the per unit sales price is to determine the cost of production per unit, and then multiply by the desired rate of return. For this method to be accurate, you must identify all costs associated with the product.

  • Page 146

    Table 13-3 Calculating the sales estimates for years six and seven Keys Display Description 0.00 Clears statistics registers. JÆJ::::¡ 1.00 Enters first year and sales for that year. GÆJJGJ:¡ 2.00 Enters second year’s data. DÆJD:S:¡ 3.00 Continues data entry. YÆJS:jV¡ 4.00 VÆG:Vd:¡...

  • Page 147: Loans And Mortgages

    Table 13-4 Calculating the cost without the cash discount Keys Display Description GPDS:PJ 72,000.00 Calculates numerator in equation. \q\qJ: 98.00 Parentheses force order of calculation. :AG\n P\qD:A 36.73 Calculates, as an annual percentage rate, cost of not taking discount. Loans and Mortgages Simple Annual Interest Example Your good friend needs a loan to start his latest enterprise and has asked you to lend him 450...

  • Page 148

    To solve a continuous compounding problem complete these steps: Compute the annual effective rate using the above equation. 2. Either use this effective rate in your calculations with an annual period (P/YR = 1) or convert this rate so that it applies to your payment period. In the following example, P/YR = 12 so you have to calculate a new NOM% using the interest rate conversion application with P/YR equal to 12.

  • Page 149

    Yield of a Discounted (or Premium) Mortgage The annual yield of a mortgage bought at a discount or premium can be calculated given the original mortgage amount (PV), interest rate (I/YR), periodic payment (PMT), balloon payment amount (FV), and the price paid for the mortgage (new PV). Remember the cash flow sign convention: money paid out is negative;...

  • Page 150

    Table 13-9 Calculating the balloon payment Keys Display Description V\Ú 60.00 Stores number of payments until balloon. É 88,706.74 Calculates the balloon payment (add to final payment). Step 3 Enter actual, current values for N and PV; then find the new I/YR for the discounted mortgage with balloon.

  • Page 151

    Table 13-1 1 Calculating the annual percentage rate considering fees Keys Display Description D:\Ú 360.00 Stores length of mortgage. JS::::Ï 160,000.00 Stores original amount of mortgage. :É 0.00 The loan will be completely paid off in 30 years. Ì - 1 ,230.26 Calculates payment.

  • Page 152

    If interest is applied to an odd first period, it is usually calculated as simple interest. So using the HP 10bII+ to do a payment calculation with an odd first period is a two step process: Calculate the amount of simple interest that accrues during the fractional first period and add it to the loan amount.

  • Page 153

    Table 13-13 Calculating the monthly payment amount Keys Display Description :É 0.00 Enters amount left to pay after 36 payments. Ì - 1 57.03 Calculates the payment amount. Automobile Loan Example You are buying a new 14,000.00 sedan. Your down payment is 1,500 and you are going to finance the remaining 12,500.

  • Page 154: Canadian Mortgages

    In Canadian mortgages, the compounding and payment periods are not the same. Interest is compounded semi-annually while payments are made monthly. To use the TVM application in the HP 10bII+, you need to calculate a Canadian mortgage factor (which is an adjusted interest rate) to store in I/YR.

  • Page 155

    What if … TVM Calculations One of the most valuable aspects of the HP 10bII+’s TVM application is the ease with which it handles the question “what if …” in financial calculations. For example, one of the most popular “what if …” questions is, “What if the interest rate changes to …? How will that affect my payment?”...

  • Page 156: Savings

    Table 13-18 Calculating the number of years required to pay off the loan Keys Display Description GS\Í 26.00 Sets payments per year for every two weeks. Ù 514.82 Calculates number of biweekly payments. v\Ú 19.80 Displays years required to pay off the loan.

  • Page 157

    Figure 20 Cash flow diagram \¯ Set to Begin mode. Press if BEGIN annunciator is not displayed. Table 13-20 Calculating the annual effective rate Keys Display Description d\Ó 9.00 Stores annual nominal rate. JG\Í 12.00 Stores number of compounding periods used with this nominal rate.

  • Page 158

    Then use that PV as the FV on the following cash flow diagram, and calculate the PMT. Figure 21 Cash flow diagram (Calculate PMT) \¯ Set to End mode. Press if BEGIN annunciator is displayed. Table 13-22 Calculating the monthly deposit required Keys Display Description...

  • Page 159

    account be? Assume that only the interest is taxed (assume the principal was taxed before deposit). What is the purchasing power of that amount, in today’s dollars, assuming a 4% inflation rate? \¯ Set to Begin mode. Press if BEGIN annunciator is not displayed. Table 13-23 Calculating the purchasing power of the amount Keys Display...

  • Page 160: Cash Flow Examples

    Example If you invest 3,000 each year for 35 years, with dividends taxed as ordinary income, how much will you have in the account at retirement? Assume an annual dividend rate of 8.175%, a tax rate of 28%, and that payments begin today. What is the purchasing power of that amount in today’s dollars, assuming 4% inflation? \¯...

  • Page 161

    The payment calculation is a straightforward TVM payment calculation using the new amount as the PV. \¯ Set to End mode. Press if BEGIN annunciator is displayed. Table 13-25 Calculating the payment Keys Display Description 0.00 Clears TVM registers. JG\Í 12.00 Sets payments per year.

  • Page 162

    = 82 = 861.59 = 180 - 82 = 98 Table 13-26 Calculating the annual return Keys Display Description DV:::y¤ Enters 35,000 for loan amount. -35,000.00 vÌyAjVY Enters net payment for first 82 months. 107.59 ¤ gG\¥ Enters number of times payment occurs.

  • Page 163: Power And Batteries, Installing Batteries

    Appendix A: Batteries and Answers to Common Questions Power and Batteries The calculator is powered by two 3-volt lithium button-cell batteries, CR2032. When changing batteries, use only fresh button-cell batteries. Both batteries must be changed at the same time. Do not use rechargeable batteries. Low Power Annunciator When the low battery-power annunciator ( ) comes on, you should replace the batteries...

  • Page 164: Determining If The Calculator Requires Service

    Insert the other new battery, making sure that the positive sign (+) battery is facing outward. 8. Replace the battery-compartment lid. 9. Press If the calculator does not turn on, follow the procedures below. Determining if the Calculator Requires Service Use these guidelines to determine if the calculator requires service.

  • Page 165: Answers To Common Questions

    A: Press (Ch. 2 Getting Started). Q: How do I change the number of decimal places that the HP 10bII+ displays? A: Press and the number of decimal places that you want (Ch. 2 Getting Started). Q: What does an E in a number (for example, 2.51E–13) mean? A: Exponent of ten.

  • Page 166: Environmental Limits

    Q: How can I change the sign of a number in a list of cash flows? A: You must edit or replace the cash flow entry (Ch. 8 Cash Flow Calculations). Q: What does in the display mean? PEND A: An arithmetic operation is pending (in progress). Q: What does in the display mean? INPUT...

  • Page 167: Range Of Numbers

    Appendix B: More About Calculations IRR/YR Calculations The calculator determines IRR/YR for a set of cash flows using mathematical formulas that search for the answer. The process finds a solution by estimating an answer and then using that estimate to do another calculation. This is called an iterative process. In most cases, the calculator finds the desired answer, since there is usually only one solution to the calculation.

  • Page 168

    Time Value of Money (TVM) Payment Mode Factor: S = 0 for End mode; 1 for Begin mode. I/YR ------------ - P/YR ⎛ ⎞ – ⎛ ⎞ -------- – ⎝ ⎠ ⎜ ⎟ × ⎛ ⎞ × × ⎜ ⎟ ------------------------------------- - --------------- ⎝...

  • Page 169

    Cash-Flow Calculations i% = periodic interest rate. j = the group number of the cash flow. = amount of the cash flow for group j. = number of times the cash flow occurs for group j. k = the group number of the last group of cash flows. ∑...

  • Page 170

    Bonds Reference: Lynch, John J. Jr. and Jan Mayle, Stanford Securities Calculation Methods, Securities Industry Association, New York, 1986. A = accrued days, the number of days from beginning of coupon period to settlement date. E = number of days in coupon bracketing settlement date. By convention, E is 180 (or 360) if calendar basis is 30/360.

  • Page 171

    Depreciation For the given year number (YR) and with Factor (FACT) as a percentage: – BASIS SALV ------------------------------------ - LIFE BASIS SALV – × ----------------------------------------------- - – SOYD LIFE YR LIFE × --------------------------- LIFE YR 1 – ⎛ ⎛ ⎞ ⎞...

  • Page 172

    Forecasting Name Best Fit Automatically selects fit Linear m*x+b Logarithm m*ln(x)+b Exponential (m*x) Power Exponent Inverse m/x+b Appendix B: More About Calculations...

  • Page 173

    Uflo (Underflow). An intermediate result in TVM is too small for the HP 10bII+ to process. This message is also briefly displayed if any calculation underflows. In this case, it is followed by zero. no Solution No solution exists for values entered (Appendix B).

  • Page 174

    Table C-1 Messages Message Displayed Description BOND CLR bond registers were cleared. STAT CLR statistical memory and registers were cleared. Best Fit The calculator selected the best fit regression which is subsequently flashed for 1 second. running Displays if a calculation takes longer than .25 seconds. User Stop An IRR/YR, I/YR, or amortization calculation was interrupted by pressing...

  • Page 175: Warranty, Regulatory, And Contact Information, Replacing The Batteries, Hp Limited Hardware Warranty And Customer Care

    This HP Limited Warranty gives you, the end-user customer, express limited warranty rights from HP, the manufacturer. Please refer to HP's Web site for an extensive description of your limited warranty entitlements. In addition, you may also have other legal rights under appli- cable local law or special written agreement with HP.

  • Page 176: General Terms, Exclusions

    Replacement products may be either new or like-new. HP also expressly warrants to you that HP software will not fail to exe- cute its programming instructions after the date of purchase, for the period specified above, due to defects in material and workmanship when properly installed and used.

  • Page 177: Regulatory Information, Federal Communications Commission Notice, Modifications

    EXTENT ALLOWED BY LOCAL LAW, THE REMEDIES IN THIS WARRANTY STATEMENT ARE YOUR SOLE AND EXCLUSIVE REMEDIES. EXCEPT AS INDICATED ABOVE, IN NO EVENT WILL HP OR ITS SUPPLIERS BE LIABLE FOR LOSS OF DATA OR FOR DIRECT, SPECIAL, INCI- DENTAL, CONSEQUENTIAL (INCLUDING LOST PROFIT OR DATA), OR OTHER DAMAGE, WHETHER BASED IN CONTRACT, TORT, OR OTHERWISE.

  • Page 178: Declaration Of Conformity For Products Marked With Fcc Logo, United States Only, Canadian Notice

    European standards (European Norms) that are listed in the EU Declaration of Conformity issued by HP for this product or product family and available (in English only) either within the product documentation or at the following web site: www.hp.eu/certificates (type the product number in the search field).

  • Page 179: Japanese Notice, Disposal Of Waste Equipment By Users In Private Household In The European Union

    For non-telecommunications products and for EU harmonized telecommunications products, such as Bluetooth® within power class below10mW. For EU non-harmonized telecommunications products (If applicable, a 4-digit notified body number is inserted between CE and !). Please refer to the regulatory label provided on the product. The point of contact for regulatory matters is: Hewlett-Packard GmbH, Dept./MS: HQ-TRE, Herrenberger Strasse 140, 71034 Boeblingen, GERMANY.

  • Page 180: Perchlorate Material - Special Handling May Apply, Customer Care, Contact Information

    California. 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 with warranty, please refer to the warranty infor- mation on the product CD.

  • Page 181

    Lithuania www.hp.com/support Luxembourg 2730 2146 Malaysia 1800-88-8588 Martinica 0-800-990-01 1; Mauritius www.hp.com/support 877-219-8671 Mexico 01-800-474-68368 Montenegro www.hp.com/support México (800 HP INVENT) Montserrat 1-800-71 1-2884 Morocco www.hp.com/support Namibia www.hp.com/support Netherlands 020 654 5301 Netherland 001-800-872-2881; 0800-551-664 Zealand Antilles 800-71 1-2884 Nicaragua 1-800-0164;...

  • Page 182

    Turks & 01-800-71 1-2884 www.hp.com/support Caicos United 0207 458 0161 Uruguay 0004-054- 1 77 Kingdom US Virgin 1-800-71 1-2884 United 800-HP INVENT States Islands Venezuela 0-800-474-68368 Vietnam +65-6272-5300 (0-800 HP INVENT) Viêt Nam Zambia www.hp.com/support Warranty, Regulatory, and Contact Information...

  • Page 183

    Warranty, Regulatory, and Contact Information...

  • Page 184

    Warranty, Regulatory, and Contact Information...

  • Page 185

    Chain mode calculations Advance payments 72 Clearing Algebraic mode backspace calculations messages in the display Amortization 74 Comma equations interchanging with period range of payments Comma separator III single payment Constants TVM keys used using Angle format Cursor 29 selecting Customer care and contact information 6 Annuity account 70 Annunciators 30...

  • Page 186

    In-line functions 37 mean of x weighted by y means of x and y Interest MU (markup) compound interest interest rates simple interest Interest rate conversions 79 nom% Investments different compounding periods number of days calculating IRR IRR/YR I one-number functions IRR/YR calculations P/YR possible outcomes...

  • Page 187

    Registers clearing Messages I M register calculator status using numbered registers Regulatory Information 3 list of Modes Reset II TVM begin and end Rounding numbers 43 Negative numbers 29 Savings calculations 67 Net future value 95 Scientific notation 43 Net present value 95 Screen display iv Number of days 101 Service II...

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