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Next, enter the data.
N
3
I/YR
26
PV
100
PMT
0
To determine the FV simply press
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.
Example 2:
What is the PV of $500 due in 5 years if the interest rate is 10 percent? Clear first and then enter the
following data.
N
5
I/YR
10
PMT
0
FV
500
PV
Pressing the
key reveals that $310.46 will grow to $500 in 5 years at a 10 percent rate.
Example 3:
Assume a bond can be purchased today for $200. It will return $1,000 after 14 years. The bond pays
no interest during its life. What rate of return would you earn if you bought the bond?
N
14
+/-
200
PMT
0
FV
1000
(Optional if registers are cleared.)
FV
and the FV of -$200.04 is displayed.
(Optional if registers are cleared.)
PV
+/-
(The
key changes the sign.)
Hewlett-Packard 10B Tutorial
Page 5
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