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