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This is a brief guide to using the HP 10-b II financial calculator.
Before you start, you need to setting up your HP 10-b II calculator. To set the number of digits after the decimal point.
To enter the number of periods in a year, press # and press ■ the (yellow-orange) “gold shift” and press {P/YR} (for example, enter 12 ■ {P/YR} for monthly). Click here for more explaination.
To set cash flows to the beginning of period or the end of period, press ■ and press {BEG/END}. This toggles between "begin" mode and "end" mode.
You should use the following convention when you work on financial calculations:
- Treat cash flows you are receiving as positive numbers.
- Treat cash flows you are paying out as negative numbers.
To turn a positive number into a negative number, enter the number on your keypad and press {+/-} key.
In each of the above calculations, remember the sign convention! If you have an error, either that or omitted data is the most likely cause.
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| To calculate
| First clear
| Next enter
| Next enter
| Next enter
| Next enter
| Push for result
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Future value Example
| ■ {C_ALL}
| # {N}
| # {I/YR}
| # {PMT} (if any). Annuity payments
| # {PV} (if any). Single payments now
| {FV}
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Present value Example
| ■ {C_ALL}
| # {N}
| # {I/YR}
| # {PMT} (if any). Annuity payments
| # {FV} (if any). Single payments at time N
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{PV}
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| Interest rate Example
| ■ {C_ALL}
| # {N}
| # {PMT} (if any). Annuity payments
| # {PV} (if any). Single payments now
| # {FV} (if any). S ingle payments at time N
| {I/YR}
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| Annuity payment Example
| ■ {C_ALL}
| # {N}
| # {I/YR}
| # {PV} (if any)
| # {FV} (if any). Single payments at time N
| {PMT} |
Using HP 10-b II To amortize a loanDo the steps for annuity payment as shown above. Then enter # {INPUT} # where the first # is the beginning of the interval you want to amortize, and the second # is the end of the interval you want to amortize. For example, to do the first five periods of a house loan, you'd press 1 {INPUT} 5 then press ■ {AMORT}.
- To display the amount of interest you paid this interval, press =.
- To display the amount of principal you paid this interval, press = again.
- To display the remaining balance of the loan, press = again.
To do the next interval of equal length, simply press ■ {AMORT}.
If, at any interval beginning, you want to amortize a different length next interval (for example, if you had 12 months of payments on your house loan after a short first interval of 5 payments), you'd press # {INPUT} # (in the example 6 {INPUT} 17 ). The first calculation would amortize 5 months of the loan (as shown above), and the second calculation would amortize the next 12 months of the loan. Then follow the steps above starting with ■ {AMORT} to do subsequent 12 month intervals.
To calculate IRR and NPVEnter the cash flows as follows, remembering the sign convention:
- Clear previous data by pressing ■ {C_ALL}.
- To enter each flow, press # CFj, remembering Flow (0) is the flow at period zero; Flow (1) is the first flow, etc.
- If a cash flow is repeated, enter the number of times it is repeated by pressing # ■ {Nj}.
- When you have entered the last cash flow
- To calculate an NPV, enter the interest rate # {I/YR} followed by ■ {NPV}.
- To calculate an IRR, enter ■ {IRR}.
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