# HP10BII New User’s Primer for Ex-TI User

Suppose that you have $1000 to invest for a period of 5 years at an interest rate of 10% per year. How much will you have accumulated at the end of this time period?

### Here is the HP TI BAII Plus Solution to the Lump Sums problem:

In this problem, the $1000 is the present value (PV), N is 5, and I / Y is 10%. Before entering the data you need to make sure that the financial registers (each key is nothing more than a memory register) are clear. Otherwise, you may find that numbers left over from previous problems will interfere with the solution to this one. Press 2nd then FV to clear the memory. Now all we need to do is enter the numbers into the appropriate keys: 5 into N, 10 into I / Y, -1000 into PV. Now to find the future value simply press CPT (compute) and then the FV key. The answer you get should be **1,610.51**.

### Here is the HP 10bII Solution to the same Lump Sums problem:

Set the calculator to 1 [Shift] [P/YR] ( Rational).

Press [Shift] [C ALL], the HP 10bII will display ‘1 P_Yr’ for about 2 seconds.

5 [N]

10 [I/YR]

1000 [+/-] [PV]

0 [PMT]

To get the answer, press [FV].

**1,610.51**

**Notes:**

- The order in which the numbers are entered does not matter.
- Every time value of money problem has either 4 or 5 variables (corresponding to the 5 basic financial keys). Of these, you will always be given 3 or 4 and asked to solve for the other. To solve these problems you simply enter the variables that you know in the appropriate keys and then press the other key to get the answer.
- Notice that we entered the 1000 in the PV key as a negative number. This was on purpose. Most financial calculators (and spreadsheets) follow the Cash Flow Sign Convention. This is simply a way of keeping the direction of the cash flow straight. Cash inflows are entered as positive numbers and cash outflows are entered as negative numbers. In this problem, the $1000 was an investment (i.e., a cash outflow) and the future value of $1610.51 would be a cash inflow in five years. Had you entered the $1000 as a positive number no harm would have been done, but the answer would have been returned as a negative number. This would be correct had you borrowed $1000 today (cash inflow) and agreed to repay $1610.51 (cash outflow) in five years. Do not change the sign of a number using the ‘minus’ key. Instead, use the +/- key.