Enter 5555.5555 To change decimals from 2 to 4, press ‘gold shift’ DISP 4: 5,555.5555 is displayed. To change from 4 places to 2, press ‘gold shift’ DISP 2: 5,555.56 is displayed. We usually set the display to 2 places, which is especially convenient when working with dollars and percentages. However, we often use 4 places when dealing with interest rates and rates of return that are entered as decimals.

One important setting that can cause problems is the periods per year setting. To check the current setting, press [Gold shift] and [C ALL]. The calculator will display for periods per year. The calculator comes pre-set at 12 periods per year; that is, it assumes calculations will be done on a monthly basis. However, accounting and finance textbook problems generally use 1 period/year. To change to 1/year: Press [Gold shift] [C ALL] and then press 1 [Gold Shift] [P/YR]….

Clearing the HP10BII Calculator To clear the HP10BII calculator’s memory, press [gold shift] [C ALL]. If we did not press, we would input the data shown on the screen to memory. Clearing the calculator is very important, since unwanted data in memory can result in improper calculations, and hence wrong answers. It is best to get into the habit of automatically clearing memory before starting a calculation. Occasionally, you may purposely want to save data, but, in general, you will be entering all new data, so starting with a clear memory is the safest approach.

HP10BII Lump Sums To begin, we consider TVM calculations with single (lump) sums. In this situation, we do not use the PMT key, so be sure to either clear all, which sets the payment (PMT) equal to 0, or enter 0 as the PMT when entering the input data. If you know any 3 variables, you can find the value of the 4th. Example 1: What is the FV (future value) after 3 years if the interest rate is 26%?

HP10BII Ordinary Annuities Example 1: What is the FV of an annuity of $100 paid at the end of each year for 5 years if the interest rate equals 6%? 0 6% 1 2 3 4 5 |---------|---------|---------|---------|----------| -100 -100 -100 -100 -100 5 [N] 6 [I/YR] -100 [PMT] 0 [PV] Now press the [FV] key, and an FV of $563.71 is displayed. Note: If you get the answer of 505.

Example1: What is the PV of the following cash flows if the interest rate is 10%? Year 1: 1,000 Year 2: 2,000 Year 3: 3,000 Here is the keystrokes to solve the above question: Remember to setup the calculator first - 1 P/YR. Press [Orange Shift] key and [C ALL] key will display 1 P_Yr Enter 0 and press [CFj] Display 0 followed by 0.00 Enter 1000 and press [CFj] Display 1 followed by 1,000.

Why your calculator may be giving you the wrong answers? Data Entry Error: a common mistake is in entering one number incorrectly, or in forgetting a step such as entering 0 in FV or PMT for certain calculations (which means that whatever number is in the key from the previous calculation will remain in the key’s memory). You can always check what is stored in any particular key by pressing RCL and then the key.

Let’s walk step-by-step on how to solve for each financial variable. If you do not get the correct answers to these, go back and check your work by using the {RCL} (Recall) key, for instance, hit {RCL}{N} to find out what you have in your calculator for {N}, and so on. If the number is not correct, just simply re-input the number that is incorrect and go on from there. We will start with solving for {PMT}, as that is the easiest.