HP 17BIIPLUS - Page 5

hp calculators
HP 17bII+ Time-Value-Of-Money
The Keystrokes
Let’s put all the keystrokes below in one spot so that you can
see everything in a single operation as follows:
5000
+/-
PV
4
I%YR
3
SK
N
At this point you have all the information in for the calculator
to solve the problem. And, by the way, you can give the
registers the information in any order you want. The interest
rate could have come before the deposit amount, for example,
and it would make no difference, as long as you get the right
information in these different electronic slots we call
“registers.” Now, solve for FV by pressing that key:
FV Answer: 5,636.36
Positive and Negative
Note that the answer is positive. Recall that we did this from
the saver’s point of view. So, this means the money is flowing
to the saver, which, of course, it is. Had we put in the $5,000.
deposit at the start as a positive, that is, from the bank’s point
of view, the future value answer would have been a negative
$5,636.36, meaning the bank would have to pay this money to
the saver. The money would be flowing away from the
bank.
And One More Detail
Now, don’t clear your calculator quite yet. Let’s see what this
account may have accumulated if the saver had not only
deposited $5,000. at the outset but at the end of each month
(remember we are in the End mode) also deposited $50. for the
full 36 months. All the information we put in the calculator is still
needed. We just have to add one more piece and that is
the monthly deposit of $50. Where do we put this? In the
register where monies are paid or received on a periodic basis,
the ‘PMT” register. Do this with the following keystrokes:
50
+/-
PMT
Don’t forget that before we put the deposit in the PMT register
we have to show the deposit flowing away from the saver by
making it negative with the ‘+/-’ key.
hp calculators - 5 - HP 17bII+ Time-Value-Of-Money