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}**.

- To calculate an NPV, enter the interest rate

Updated On: 16.12.19