HP 10bII - Time Value of Money Calculations; Using the TVM Application

5
Time Value of Money Calculations
Using the TVM Application
The time value of money (ГУМ) application is used for
compound interest calculations that involve regular,
uniform cash flows — called payments. Once the values are
entered you can vary one value at а time, without entering
all the values again.
To use TVM, several prerequisites must be met:
= The amount of each payment must be the same. If the payment
amounts vary, use the procedures described in chapter 6, “Cash
Flow Calculations”.
m Payments must occur at regular intervals.
m The payment period must coincide with the interest compounding
period. (If it does not, convert the interest rate using the Qoa),
OEB, and keys described on page 72.)
= There must be at least one positive and one negative cash flow.
5: Time Value of Money Calculations 53