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.
To calculate | First clear | Next enter | Next enter | Next enter | Next enter | Push for result |
---|---|---|---|---|---|---|
Future value Example | {C_ALL} | # {N} | # {I/YR} | # {PMT} (if any). Annuity payments | # {PV} (if any). Single payments now | {FV} |
Present value Example | {C_ALL} | # {N} | # {I/YR} | # {PMT} (if any). Annuity payments | # {FV} (if any). Single payments at time N | {PV} |
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} |
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 loan
Do 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 NPV
Enter 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}.
Updated On: 16.12.19