How to use the HP 10bII financial calculator?
Now that we have a general feel for how the financial calculator is organized, let’s go over some frequently used functions and useful settings you should understand. Turning the HP 10BII on and off is pretty simple. All you have to do is use the ON Button to turn it on or the Gold Key first then the ON button to turn it off.
How do you find the present value on a HP 10bII?
The present value is found using an interest rate representing the cost of funds involved. On the HP 10bII, DCF problems involving NPV are solved using the , , and the yellow-shifted and functions. The initial cash flow is keyed (and changed to a negative number if appropriate) and entered using the key.
How do I solve NPV problems on the HP 10bII?
On the HP 10bII, DCF problems involving NPV are solved using the , , and the yellow-shifted and functions. The initial cash flow is keyed (and changed to a negative number if appropriate) and entered using the key. Then the next cash flow is entered using the key. This process continues until all cash flows have been entered.
What is the rate of compounding for 360 months?
We can convert the total number of compounding periods to 30 x 12, or 360 months and the rate to 4.5% / 12, or 0.375% per month. Now we have our 4 known components and can easily solve for the monthly payment amount, which is $1,520.
How do you calculate compound interest on HP 10bII?
10:4415:59Calculating Interest Rate (I/YR) | HP 10bII+ Financial Calculator - YouTubeYouTubeStart of suggested clipEnd of suggested clipSo press 4 and then press the orange button and then we press pmt. Now it is changed if you pressMoreSo press 4 and then press the orange button and then we press pmt. Now it is changed if you press the orange button and press c you can see it's four times per year.
How do you change the compounding period on HP 10bII?
To change to annual compounding, press the 1 key followed by the ENTER key. If done correctly, your screen should display P/Y= 1.0000. To change this setting on the HP 10BII, press the 1 key followed by the Shift key, followed by the P/Y key (the PMT key).
How do I use hp10bii+?
5:067:51Three basics on HP 10bII Financial Calculator - YouTubeYouTubeStart of suggested clipEnd of suggested clipYear. Now payment in this case when I get them in any cash flow repayments. So you can just leave itMoreYear. Now payment in this case when I get them in any cash flow repayments. So you can just leave it out or you can do zero.
How do I program my HP 10bII financial calculator?
0:060:32Setting Up your HP10bII - YouTubeYouTubeStart of suggested clipEnd of suggested clipFirst when you take your calculator out of the package in 712 payments per year you can check thatMoreFirst when you take your calculator out of the package in 712 payments per year you can check that by pushing shift. And clear all it says 12 payments per year at the top. You need to set that at one
What is the difference between HP 10bII and HP 10bII+?
The HP 10bII+ is an upgrade of the HP 10bII. Hewlett Packard added more functions like depreciation, probability distribution calculations, bonds, expanded statistic capabilities, and depreciation. HP 10bII+ calculator has continuous memory, turning it off does not affect the information you have stored.
What is P Y and C Y?
P/Y stands for payments per year, and C/Y for compounding periods per year. For BA II Plus, the defaults for P/Y and C/Y are 12. That is, 12 payments per year and 12 compounding periods per year. To set both P/Y and C/Y to be the SAME number such as 1 (one payment per year and.
How do you do Cfj on a financial calculator?
The cash flows that describe the prospective investment are now in the calculator. Press RCL, CFj, then 0 followed by RCL, CFj, [+], and RCL, SHIFT, then Nj, repeatedly to view the cash flows and number of times each occurs.
How do I set hp10bii to 4 decimal places?
0:120:55Change Decimal Places | HP 10bII+ Financial Calculator - YouTubeYouTubeStart of suggested clipEnd of suggested clipHere's how you do it it's currently in two decimal. Places you can see it over there so to change itMoreHere's how you do it it's currently in two decimal. Places you can see it over there so to change it you just press the orange button with the arrow facing. Down then you press the equal sign. And
What is CFj on calculator?
All payments will be positive since they are cash inflows. Step 2: Type 100, then press "CFj" button three times. The first time you press "CFj", you will save 100 as the first cash flow. The next two times you press "CFj", you will save 100 as cash flow 2 and 3.
What is the CPT button on a financial calculator?
The Compute (CPT) Button When you are about to select a field for the calculator to compute, you press the compute button (CPT) first. The CPT button is normally pressed before calculating a payment (PMT), number of periods (N), present value (PV), future value (FV) and interest rate period (I%).
How do you find PV on a financial calculator?
Enter the present value formula. Click the blank cell to the right of your desired calculation (in this case, C7) and enter the PV formula: = PV(rate, nper, pmt, [fv]). Note: The calculation will not work yet.
What is time value of money HP 10BII?
The time value of money application built into the HP 10bII is used to solve compound interest problems and annuities that involve regular, uniform payments. Compound interest problems require the input of 3 of these 4 values: . Annuity problems require the input of 4 of these 5 values: . Once these values have been entered in any order, the unknown value can be computed by pressing the key for the unknown value.
What is discounted cash flow HP 10BII?
Since the time value of money application is not designed for these situations, the HP 10bII contains functions that solve these types of problems, commonly referred to as discounted cash flow (DCF) analysis.
How to solve DCF problems on HP 10BII?
On the HP 10bII, DCF problems involving NPV are solved using the , , and the yellow-shifted and functions. The initial cash flow is keyed (and changed to a negative number if appropriate) and entered using the key. Then the next cash flow is entered using the key. This process continues until all cash flows have been entered. If any of the cash flows occur more than one time in a row (three consecutive periods where the cash flows are all $5,000, for example), then immediately after the cash flow is entered using the key, enter the number of times the cash flow’s value is repeated and press the key.
What does CF and N mean on HP 10BII?
CF indicates that a cash flow was just entered while N indicates the frequency of a cash flow was entered using key. Each time the key is pressed, the HP 10bII display will briefly display a number corresponding to the number of cash flow groups entered so far.
Is time value of money positive or negative?
The time value of money application operates on the convention that money invested is considered positive and money withdrawn is considered negative. An analysis of the monetary situation should indicate which values are being invested and which values are being withdrawn. This will determine which are entered as positive values ...
How to convert nominal to effective interest rate?
To convert between nominal and effective interest rates, enter the known rate and the number of periods per year, then solve for the unknown rate. Find the annual effective interest rate of 10% nominal interest compounded monthly. For more information on interest rate conversions, refer to the section titled, Interest Rate Conversionsin chapter 6, Time Value of Money Calculations.
Do you have to reenter TVM values for EA ch?
It is not necessary to reenter TVM values for ea ch example. Using the values you just entered, how much can you borrow if you want a payment of 100.00? ...how much can you borrow at a 9.5% interest rate? For more information on TVM concepts and problems, refer to chapter 5, Picturing Financial Problems,and chapter 6, Time Value of Money Calculations.