Time Value of Money Calculations62
To verify values, press vÙ, vÒ, vÏ, vÌ, and vÉ.
Pressing v\Ú recalls the total number of payments in years and v\Í
shows you the number of payments per year. Recalling these numbers does not change the
content of the registers.
Begin and End Modes
Before you start a TVM calculation, identify whether the first periodic payment occurs at the
beginning or end of the first period. If the first payment occurs at the end of the first period,
set your HP 10bII+ to End mode; if it occurs at the beginning of the first period, set your
calculator to Begin mode.
To switch between modes, press \¯. 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.)
\¯
Switches between Begin and End mode. In Begin mode, the BEGIN
annunciator is displayed.
\Ê
Calculates an amortization table.
Table 6-1 Keys for performing TVM calculations
Keys Stores or Calculates
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