HP 10bII - Loan Calculations

Begin and End Modes
|L——— 4 Before you start a TVM calculation, identify whether the
Socom|| first periodic payment occurs at the beginning or end of
Eel the first period. If the first payment occurs at the end of
IOOOOO the first period, set your HP 10BII to End mode; if it
00000] occurs at the beginning of the first period, set your
Осо calculator to Begin mode.
To switch between modes, press QE). The BEGIN annunciator is
displayed when your calculator is in Begin mode. No annunciator is
displayed when you are in End mode.
Mortgages and loans typically use End mode. Leases and savings plans
typically use Begin mode.
Loan Calculations
Example: A Car Loan. You are financing a new car with a three year
loan at 10.5% annual nominal interest, compounded monthly. The price
of the car is $14,500. Your down payment is $1,500.
Part 1. What are your monthly payments at 10.5% interest? (Assume
your payments start one month after the purchase or at the end of the
first period.)
PV =14,500 - 1500
-105%
М№3х12
Р/В «12
1 2 kcu 35 36
PMT?
End Mode
Set to End mode. Press ЄЗ if BEGIN annunciator is displayed.
5: Time Value of Money Calculations 55