Hewlett-Packard 10B Tutorial To begin, look at the face of the calculator. Every key (except one, the gold shift key) on the 10B has two functions: each key's primary function is noted in white on the key itself, while each key's secondary function is noted in gold above the key.
Hewlett-Packard 10B Tutorial Page 2 If we did not press , we would input the data shown on the screen to memory. Clearing the calculator is very important, since unwanted data in memory can result in improper calculations, and hence wrong answers.
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Hewlett-Packard 10B Tutorial Page 4 Periods per Year Setting One important setting that can cause problems is the periods per year setting. To check the current setting, CLEAR ALL press and then press and hold down . The display shows the setting for periods/year.
FV of -$200.04 is displayed. The HP is programmed so that if the PV is + then the FV is displayed as - and vice versa, because the HP assumes that one is an inflow and the other is an outflow. When entering both PV and FV, one must be entered as negative and the other as positive.
HP calculates the rate of return to be 12.18 percent. Remember that the HP is programmed so that if the PV is + then the FV is displayed as - and vice versa because the HP assumes that one is an inflow and other is an outflow. When entering both PV and FV values, one must be negative and one positive.
In essence, each payment is shifted back one period. To analyze annuities due press BEG/END . The word “begin” appears on the screen. Now the HP analyzes the cash flows based on BEG/END beginning of period payments. Change back to end mode by pressing Interest Conversion The following equation is used to convert a nominal rate to an effective rate.
The CFs from the time line are entered. Now enter the interest rate. I/YR At this point the HP knows the cash flows, the number of periods, and the interest rate. To find the PV, press to get PV = NPV = $377.40.
Hewlett-Packard 10B Tutorial Page 9 What’s the PV? Clear, set P/YR = 1 if changed. Now the HP knows the cash flows. Thus, enter the interest rate: I/YR Now press to get PV = NPV = $1,099.94. To check your entries: 0 to see CF to see first CF entry.
The NPV of $220.50 is displayed. Thus, the PV of the cash inflows exceeds the cost of the investment by $220.50. If a negative CF occurs at the end of a project’s life, then the HP may give an error message, indicating that IRR/YR there are two IRRs.
Linear Regression Beta coefficients can be calculated by using the HP’s linear regression capabilities. The X (independent variable) and Y (dependent variable) values must be entered in the proper sequence, where the X data is on the horizontal axis (market) and Y data is on the vertical axis (stock).
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The value displayed, 1.60, is the slope coefficient, or the beta coefficient. Amortization The HP can also be used to calculate amortization schedules. Example: Determine the interest and principal paid each year and the balance at the end of each year on a three-year $1,000 amortizing loan which carries an interest rate of 10 percent.
Hewlett-Packard 10B Tutorial Page 14 Beg. Bal. Payment Interest Princ. Repmt. Ending Bal. 1,000.00 402.11 100.00 302.11 697.89 697.89 402.11 69.79 332.32 365.57 365.57 402.11 36.56 365.55 With the data still entered in the TVM menu, do the following: INPUT AMORT “PEr 1-1"...
Hewlett-Packard 10B Tutorial Page 15 Next, with the data still in the calculator, do the following: INPUT AMORT “PEr 1-3" is displayed. Hold down to see Int, then release and -206.35 displayed. This is the total interest paid over Years 1 to 3.