HP 10bII

What if ... TVM Calculations
One of the most valuable aspects of the HP 10BII’s TVM application is
the ease with which it handles the question “what if ...” in financial
calculations. For example, one of the most popular “what if ...”
questions is, “What if the interest rate changes to ...? How will that affect
my payment?” To answer this question, once you have calculated a
payment based on one interest rate, all you need to do is enter the new
interest rate and recalculate PMT.
Some of the examples earlier in this manual have included some brief
encounters with “what if ...” questions, but a more complete example
follows.
Example.
You
are
about
to
sign
on
the
dotted
line
for
a
30-year,
$735,000
mortgage,
on a vacation
home. The annual
interest
rate is
11.2%.
Part 1. What will your payments be at the end of ће month?
Set to End mode. Press СЄ if BEGIN annunciator is displayed.
Keys: Display: Description:
(«јав с) 12.00 Sets payments per year.
@@®@@@@Ф) 735,000.00 Stores known values.
ФОО
11.20
Goes 360.00
Ow 0.00
ep
-7,110.88
Calculates
payment.
106 8: Additional Examples