Home > HP > Calculator > HP 10BII Manual

HP 10BII Manual

Add to Favourites

Download as PDF Print this page Share this page

Have a look at the manual HP 10BII Manual online for free. It’s possible to download the document as PDF or print. UserManuals.tech offer 1114 HP manuals and user’s guides for free. Share the user manual or guide on Facebook, Twitter or Google+.

$Page 66 66 5: Time Value of Money Calculations Step 2. $GGWKHDGGLWLRQDODGYDQFHSD\PHQWWR396WRUHWKHDQVZHU Step 3. )LQGWKHSUHVHQWYDOXHRIWKHEX\RSWLRQ Step 4. $GGWKHUHVXOWVRIVWHSVDQG Keys: Display: Description: *b12.006HWVSD\PHQWVSHU\HDU P47.006WRUHVQXPEHURI SD\PHQWV (2–2,400.006WRUHVPRQWKO\ SD\PHQW /0.006WRUHV)9IRUVWHS .9.006WRUHVLQWHUHVWUDWH 95,477.55&DOFXODWHVSUHVHQW YDOXHRIPRQWKO\ SD\PHQWV 2(97,877.55$GGVDGGLWLRQDO DGYDQFHSD\PHQW...$

$Page 67 5: Time Value of Money Calculations 67 Amortization $PRUWL]DWLRQLVWKHSURFHVVRIGLYLGLQJDSD\PHQWLQWRWKH DPRXQWWKDWDSSOLHVWRLQWHUHVWDQGWKHDPRXQWWKDW DSSOLHVWRSULQFLSDO3D\PHQWVQHDUWKHEHJLQQLQJRIDORDQ FRQWULEXWHPRUHLQWHUHVWDQGOHVVSULQFLSDOWKDQSD\PHQWV QHDUWKHHQGRIDORDQ 7KH *NH\RQWKH+3%,,DOORZV\RXWRFDOFXODWH n7KHDPRXQWDSSOLHGWR LQWHUHVWLQDUDQJHRISD\PHQWV n7KHDPRXQWDSSOLHGWR SULQFLSDOLQDUDQJHRISD\PHQWV n7KHORDQEDODQFH...$

$Page 68 68 5: Time Value of Money Calculations 7KHQXPEHUVGLVSOD\HGIRULQWHUHVWSULQFLSDODQGEDODQFHDUHURXQGHGWR WKHFXUUHQWGLVSOD\VHWWLQJ To Amortize. 7RDPRUWL]HDVLQJOHSD\PHQWHQWHUWKHSHULRGQXPEHU DQGSUHVV *7KH+3%,,GLVSOD\VWKHDQQXQFLDWRUPERIROORZHG E\WKHVWDUWLQJDQGHQGLQJSD\PHQWVWKDWZLOOEHDPRUWL]HG 3UHVV WRVHHLQWHUHVW INT\f3UHVVDJDLQWRVHHWKHSULQFLSDO PRIN\f DQGDJDLQWRVHHWKHEDODQFH BAL\f&RQWLQXHSUHVVLQJWRF\FOHWKURXJK...$

$Page 69 5: Time Value of Money Calculations 69 ,I\RXDOUHDG\NQRZWKHPRUWJDJHSD\PHQW\RXFDQHQWHUDQGVWRUHLWMXVW OLNH\RXVWRUHWKHRWKHUIRXUYDOXHV1H[WDPRUWL]HWKHILUVW\HDU 7KHDPRXQWSDLGWRZDUGLQWHUHVWDQGSULQFLSDO \ \fHTXDOVWKHWRWDORIPRQWKO\SD\PHQWV ï \f7KHUHPDLQLQJEDODQFHHTXDOVWKHLQLWLDOPRUWJDJHOHVVWKH DPRXQWDSSOLHGWRZDUGSULQFLSDO ² \f Keys: Display: Description:...$

$Page 70 70 5: Time Value of Money Calculations $PRUWL]HWKHVHFRQG\HDU 7KHDPRXQWSDLGWRZDUGLQWHUHVWDQGSULQFLSDO \ \fHTXDOVWKHWRWDORIPRQWKO\SD\PHQWV ï \f7KHUHPDLQLQJEDODQFHHTXDOVWKHLQLWLDOPRUWJDJHOHVVWKH DPRXQWDSSOLHGWRZDUGSULQFLSDO ²² \f0RUHPRQH\LVDSSOLHGWRSULQFLSDOGXULQJWKHVHFRQGUDWKHU WKDQWKHILUVW\HDU7KHVXFFHHGLQJ\HDUVFRQWLQXHLQWKHVDPHIDVKLRQ Example:...$

$Page 71 5: Time Value of Money Calculations 71 $PRUWL]HWKHVWWKDQGWKSD\PHQWV 01.00(QWHUVILUVWSD\PHQW *1– 1LVSOD\V3(5DQGWKH DPRUWL]HGSD\PHQWSHULRG –310.42LVSOD\V35,1DQGWKHILUVW SULQFLSDOSD\PHQW 0.00LVSOD\V,17DQGWKHLQWHU HVW 13,939.58LVSOD\V%$/DQGWKHORDQ EDODQFHDIWHURQHSD\PHQW 025.00(QWHUVSD\PHQWWRDPRU WL]H * 25– 25LVSOD\V3(5DQGWKH DPRUWL]HGSD\PHQWSHULRG –220.21LVSOD\V35,1DQGWKH SULQFLSDOSDLGRQWKHWK SD\PHQW...$

$Page 72 72 5: Time Value of Money Calculations Interest Rate Conversions 7KH,QWHUHVW&RQYHUVLRQDSSOLFDWLRQXVHVWKUHHNH\V *\b*ZDQG*b7KH\FRQYHUWEHWZHHQQRPLQDO DQGDQQXDOHIIHFWLYHLQWHUHVWUDWHV1RPLQDODQGHIIHFWLYH LQWHUHVWUDWHVDUHGHVFULEHGRQSDJH ,I\RXNQRZDQDQQXDOQRPLQDOLQWHUHVWUDWHDQG\RXZLVK WRVROYHIRUWKHFRUUHVSRQGLQJDQQXDOHIIHFWLYHUDWH (QWHUWKHQRPLQDOUDWHDQGSUHVV *\b (QWHUWKHQXPEHURIFRPSRXQGLQJSHULRGVDQGSUHVV *b ...$

$Page 73 5: Time Value of Money Calculations 73 First Bank Second Bank Third Bank )LUVW%DQNRIIHUVDVOLJKWO\EHWWHUGHDOVLQFHLVJUHDWHUWKDQDQG Compounding and Payment Periods Differ 7KH790DSSOLFDWLRQDVVXPHVWKDWWKHFRPSRXQGLQJ SHULRGVDQGWKHSD\PHQWSHULRGVDUHWKHVDPH6RPHORDQ LQVWDOOPHQWVRUVDYLQJVGHSRVLWVDQGZLWKGUDZDOVGRQRW FRLQFLGHZLWKWKHEDQN·VFRPSRXQGLQJSHULRGV,IWKH SD\PHQWSHULRGGLIIHUVIURPWKHFRPSRXQGLQJSHULRG...$

$Page 74 74 5: Time Value of Money Calculations 7RDGMXVWDQLQWHUHVWUDWHZKHQWKHFRPSRXQGLQJSHULRGGLIIHUVIURPWKH SD\PHQWSHULRGFRPSOHWHWKHIROORZLQJVWHSV (QWHUWKHQRPLQDOUDWHDQGSUHVV *\b(QWHUWKHQXPEHURI FRPSRXQGLQJ SHULRGVLQD\HDUDQGSUHVV *b6ROYHIRUWKHHIIHFWLYH UDWHE\SUHVVLQJ *Z (QWHUWKHQXPEHURI SD\PHQWSHULRGVLQD\HDUDQGSUHVV *b 6ROYHIRUWKHDGMXVWHGQRPLQDOUDWHE\SUHVVLQJ *\b Example: Monthly Payments, Daily Compounding. 6WDUWLQJWRGD\...$

$Page 75 6: Cash Flow Calculations 75 6 Cash Flow Calculations How to Use the Cash Flow Application 7KHFDVKIORZDSSOLFDWLRQLVXVHGWRVROYHSUREOHPVZKHUH FDVKIORZVRFFXURYHUUHJXODULQWHUYDOVEXWDUHRIYDU\LQJ DPRXQWV$

$Page 76 76 6: Cash Flow Calculations XXX Keys: Display: Description: *&0.00&OHDUVDOOUHJLVWHUV *b12.006WRUHVSHULRGVSHU\HDU (,–5,000.00(QWHUVLQLWLDOFDVKIORZ LVSOD\VFDVKIORZ JURXSQXPEHUZKLOH \RXKROGGRZQ , (,–2,000.00(QWHUVQH[WFDVKIORZ (,–4,000.00(QWHUVQH[WFDVKIORZ ,11,765.29(QWHUVILQDOFDVKIORZ *938.98&DOFXODWHVDQQXDO QRPLQDO\LHOG d3.250RQWKO\\LHOG 12 3 -5,000.00 -2,000.00 -4,000.0011,765.29 Flows received are positive. Flows paid out are negative....$

View all the pages

Add page 71 to Favourites

image text

							5: Time Value of Money Calculations 71
$PRUWL]HWKHVWWKDQGWKSD\PHQWV
01.00(QWHUVILUVWSD\PHQW
*1– 1LVSOD\V3(5DQGWKH
DPRUWL]HGSD\PHQWSHULRG
–310.42LVSOD\V35,1DQGWKHILUVW
SULQFLSDOSD\PHQW
0.00LVSOD\V,17DQGWKHLQWHU
HVW
13,939.58LVSOD\V%$/DQGWKHORDQ
EDODQFHDIWHURQHSD\PHQW
025.00(QWHUVSD\PHQWWRDPRU
WL]H
* 25– 25LVSOD\V3(5DQGWKH
DPRUWL]HGSD\PHQWSHULRG
–220.21LVSOD\V35,1DQGWKH
SULQFLSDOSDLGRQWKHWK
SD\PHQW
–90.21LVSOD\V,17DQGWKHLQWHU
HVWSDLGRQWKHWKSD\
PHQW
9,193.28LVSOD\V%$/DQGWKHEDO
DQFHDIWHUWKHWKSD\
PHQW
054.00(QWHUVSD\PHQWWRDPRU
WL]H
*54– 54LVSOD\V3(5DQGWKH
DPRUWL]HGSD\PHQWSHULRG
–290.37LVSOD\V35,1DQGWKH
SULQFLSDOSDLGRQWKHWK
SD\PHQW
–20.05LVSOD\V,17DQGWKHLQWHU
HVWSDLGRQWKHWKSD\
PHQW
1,801.57LVSOD\V%$/DQGWKHEDO
DQFHDIWHUWKHWKSD\
PHQW
 .book  Page 71  Wednesday, June 21, 2000  5:19 PM

Add page 72 to Favourites

image text

							72 5: Time Value of Money Calculations
Interest Rate Conversions
7KH,QWHUHVW&RQYHUVLRQDSSOLFDWLRQXVHVWKUHHNH\V
*\b*ZDQG*b7KH\FRQYHUWEHWZHHQQRPLQDO
DQGDQQXDOHIIHFWLYHLQWHUHVWUDWHV1RPLQDODQGHIIHFWLYH
LQWHUHVWUDWHVDUHGHVFULEHGRQSDJH 
,I\RXNQRZDQDQQXDOQRPLQDOLQWHUHVWUDWHDQG\RXZLVK
WRVROYHIRUWKHFRUUHVSRQGLQJDQQXDOHIIHFWLYHUDWH
 (QWHUWKHQRPLQDOUDWHDQGSUHVV
*\b
 (QWHUWKHQXPEHURIFRPSRXQGLQJSHULRGVDQGSUHVV
*b
 &DOFXODWHWKHHIIHFWLYHUDWHE\SUHVVLQJ
*Z
7RFDOFXODWHDQRPLQDOUDWHIURPDNQRZQHIIHFWLYHUDWH  (QWHUWKHHIIHFWLYHUDWHDQGSUHVV
*Z
 (QWHUWKHQXPEHURIFRPSRXQGLQJSHULRGVDQGSUHVV
*b
 &DOFXODWHWKHQRPLQDOUDWHE\SUHVVLQJ
*\b
,QWKH790DSSOLFDWLRQ
*\bDQG.VKDUHWKHVDPHUHJLVWHU
,QWHUHVWFRQYHUVLRQVDUHXVHGSULPDULO\IRUWZRW\SHVRISUREOHPV
n&RPSDULQJLQYHVWPHQWVZLWKGLIIHUHQWFRPSRXQGLQJSHULRGV
n6ROYLQJ790SUREOHPVZKHUHWKHSD\PHQWSHULRGDQGWKHLQWHUHVW
SHULRGGLIIHU
Investments With Different Compounding Periods
Example: Comparing Investments.

Add page 73 to Favourites

image text

							5: Time Value of Money Calculations 73
First Bank
Second Bank
Third Bank
)LUVW%DQNRIIHUVDVOLJKWO\EHWWHUGHDOVLQFHLVJUHDWHUWKDQDQG

Compounding and Payment Periods Differ
7KH790DSSOLFDWLRQDVVXPHVWKDWWKHFRPSRXQGLQJ
SHULRGVDQGWKHSD\PHQWSHULRGVDUHWKHVDPH6RPHORDQ
LQVWDOOPHQWVRUVDYLQJVGHSRVLWVDQGZLWKGUDZDOVGRQRW
FRLQFLGHZLWKWKHEDQN·VFRPSRXQGLQJSHULRGV,IWKH
SD\PHQWSHULRGGLIIHUVIURPWKHFRPSRXQGLQJSHULRG
DGMXVWWKHLQWHUHVWUDWHWRPDWFKWKHSD\PHQWSHULRG
EHIRUHVROYLQJWKHSUREOHP
Keys: Display: Description:
*\b6.706WRUHVQRPLQDOUDWH
*b4.006WRUHVTXDUWHUO\
FRPSRXQGLQJSHULRGV
*Z6.87&DOFXODWHVDQQXDO
HIIHFWLYHUDWH
*\b6.656WRUHVQRPLQDOUDWH
*b12.006WRUHVPRQWKO\FRP
SRXQGLQJSHULRGV
*Z6.86&DOFXODWHVDQQXDO
HIIHFWLYHUDWH
*\b6.636WRUHVQRPLQDOUDWH
*b360.006WRUHVFRPSRXQGLQJ
SHULRGV
*Z6.85&DOFXODWHVDQQXDO
HIIHFWLYHUDWH
.book  Page 73  Wednesday, June 21, 2000  5:19 PM

Add page 74 to Favourites

image text

							74 5: Time Value of Money Calculations
7RDGMXVWDQLQWHUHVWUDWHZKHQWKHFRPSRXQGLQJSHULRGGLIIHUVIURPWKH
SD\PHQWSHULRGFRPSOHWHWKHIROORZLQJVWHSV (QWHUWKHQRPLQDOUDWHDQGSUHVV
*\b(QWHUWKHQXPEHURI
FRPSRXQGLQJ SHULRGVLQD\HDUDQGSUHVV
*b6ROYHIRUWKHHIIHFWLYH
UDWHE\SUHVVLQJ
*Z
 (QWHUWKHQXPEHURI SD\PHQWSHULRGVLQD\HDUDQGSUHVV
*b
6ROYHIRUWKHDGMXVWHGQRPLQDOUDWHE\SUHVVLQJ
*\b
Example: Monthly Payments, Daily Compounding. 6WDUWLQJWRGD\
\RXPDNHPRQWKO\GHSRVLWVRIWRDQDFFRXQWSD\LQJ\bLQWHUHVW
FRPSRXQGHGGDLO\XVLQJDGD\\HDU\f:KDWZLOOWKHEDODQFHEHLQ
VHYHQ\HDUV
Step 1. &DOFXODWHWKHHTXLYDOHQWUDWHZLWKPRQWKO\FRPSRXQGLQJ
6LQFH 120\b DQ G,

Add page 75 to Favourites

image text

							6: Cash Flow Calculations 75
6
Cash Flow Calculations
How to Use the Cash Flow Application
7KHFDVKIORZDSSOLFDWLRQLVXVHGWRVROYHSUREOHPVZKHUH
FDVKIORZVRFFXURYHUUHJXODULQWHUYDOVEXWDUHRIYDU\LQJ
DPRXQWV

Add page 76 to Favourites

image text

							76 6: Cash Flow Calculations
XXX
Keys: Display: Description:
*&0.00&OHDUVDOOUHJLVWHUV
*b12.006WRUHVSHULRGVSHU\HDU
(,–5,000.00(QWHUVLQLWLDOFDVKIORZ
LVSOD\VFDVKIORZ
JURXSQXPEHUZKLOH
\RXKROGGRZQ
,
(,–2,000.00(QWHUVQH[WFDVKIORZ
(,–4,000.00(QWHUVQH[WFDVKIORZ
,11,765.29(QWHUVILQDOFDVKIORZ
*938.98&DOFXODWHVDQQXDO
QRPLQDO\LHOG
d3.250RQWKO\\LHOG
12 3
-5,000.00 -2,000.00
-4,000.0011,765.29
Flows received
are positive.
Flows paid out
are negative.
chapt_6.fm  Page 76  Thursday, June 22, 2000  12:32 PM

Add page 77 to Favourites

image text

							6: Cash Flow Calculations 77
NPV and IRR/YR: Discontinuing Cash Flows
&KDSWHUGHPRQVWUDWHVWKHXVHRIFDVKIORZGLDJUDPVWRFODULI\ILQDQFLDO
SUREOHPV7KLVVHFWLRQGHVFULEHVGLVFRXQWHGFDVKIORZV7KH139DQG
,55

Add page 78 to Favourites

image text

							78 6: Cash Flow Calculations
:KHQHYHU\RXHQWHUDVHULHVRIFDVKIORZVLWLVLPSRUWDQWWRDFFRXQWIRU
HYHU\SHULRGRQWKHFDVKIORZGLDJUDPHYHQSHULRGVZLWKFDVKIORZVRI
]HUR
Entering Cash Flows
7KH+3%,,FDQVWRUHDQLQLWLDOFDVKIORZSOXVDGGLWLRQDOFDVKIORZ
JURXSV(DFKFDVKIORZJURXSFDQKDYHXSWRFDVKIORZV(QWHUFDVK
IORZVXVLQJWKHIROORZLQJVWHSV 3UHVV
*&WRFOHDUWKHUHVLVWHUV
 (QWHUWKHQXPEHURISHULRGVSHU\HDUDQGSUHVV
*b
 (QWHUWKHDPRXQWRIWKHLQLWLDOLQYHVWPHQWWKHQSUHVV
,7KH´Mµ
VWDQGVIRUWKHFDVKIORZ´ QXPEHUµWKURXJK\f
 (QWHUWKHDPRXQWRIWKHQH[WFDVKIORZDQGSUHVV
,
 ,IWKHDPRXQWHQWHUHGLQVWHSRFFXUVPRUHWKDQRQFH FRQVHFXWLYHO\
HQWHUWKHQXPEHURIWLPHVLWRFFXUVDQGSUHVV
*C
 5HSHDWVWHSVDQGIRUHDFK
,DQG*CXQWLODOOFDVKIORZVKDYH
EHHQHQWHUHG
CF1=0,N1=6
CFO = -11,000 CF 2 = 1,000
,N2=3
CF 3 = 10,000
,N3=1
12 345678910
chapt_6.fm  Page 78  Thursday, June 22, 2000  12:32 PM

Add page 79 to Favourites

image text

							6: Cash Flow Calculations 79
Example. (QWHUWKHFDVKIORZVIURPWKHSUHFHGLQJGLDJUDPDQG
FDOFXODWHWKH ,55

Add page 80 to Favourites

image text

							80 6: Cash Flow Calculations
7RUHSODFHDFDVKIORZDPRXQWSUHVV
n!,WRWRVWRUHWKHQHZDPRXQWLQFDVKIORZVWR
n!,WRWRVWRUHWKHQHZDPRXQWLQFDVKIORZVWR
n!,
WRVWRUHWKHDPRXQWLQWKHQH[WFDVKIORZ
n!,WRVWRUHWKHDPRXQWLQWKHSUHYLRXVFDVKIORZ
n!, ,WRVWRUHWKHDPRXQWLQWKHFXUUHQWFDVKIORZ
7RUHSODFHWKHQXPEHURIWLPHVDSDUWLFXODUFDVKIORZRFFXUV
WKH
FDVKIORZZKRVHQXPEHURIRFFXUUHQFHVZLOOFKDQJH7KHQHQWHUWKH
QXPEHURIWLPHVLWRFFXUVDQGSUHVV
*C
6LQFHFDVKIORZVFDQQRWEHGHOHWHGRULQVHUWHGXVH
*&WRVWDUWRYHU
Calculating Net Present Value
7KHQHWSUHVHQWYDOXH139\fIXQFWLRQLVXVHGWRGLVFRXQWDOOFDVKIORZV
WRWKHIURQWRIWKHWLPHOLQHXVLQJDQDQQXDOQRPLQDOLQWHUHVWUDWHWKDW\RX
VXSSO\
7KHVHVWHSVGHVFULEHKRZWRFDOFXODWH139  3UHVV
*&DQGVWRUHWKHQXPEHURISHULRGVSHU\HDULQ 3

All HP manuals Comments (0)