HP HP10BII - Using Manual

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USINGTHEHEWLETTPACKARD‐HP10BIIFINANCIALCALCULATOR
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Basicfinancialexampleswithfinancialcalculatorsteps
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PreparedbyColinCSmith2010
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Someimportantthingstoconsider
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1. ThesenotescoverbasicfinancialcalculationsusingtheHP10bIIfinancialcalculator.Thenotesdonotdealwith
theunderlyingtheoryand/orformulae.Studentsshouldideallyhaveaworkingknowledgeoftheundelying
theory.
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2. Atbestthesenotesaredesignedtogetyoustarted.
Theydonotclaimtobeacomprehensiveguidetotheuseof
yourcalculator.Consultyourusermanualformoreinformationandfurtherexamples.
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3. Thelogicusedinapproachingtheseexampleswillbesimilartothelogicusedwhenperformingmanual
calculations–theinterestrateisconvertedtoaperiodicinterestrate(
i
/
m
)andthenumberofyearswillbe
convertedtocompoundingperiods(nxm).
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4. Financialcalculatorshavefunctionalitynotavailabletothehumanbrainandthemulti‐functionalityoffinancial
calculatorsisnotdemonstratedinthesenotes.Ifyouusedifferentfunctionalityandgetthesameanswer–
congratulations
‐youareanadvancedfinancialcalculatoruser.Ifyouusedifferentfunctionalityanddonotget
thesameanswerfollowourbasicstepsandreadyourmanualtolearnmore.
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INDEX
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Page
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GettingStarted
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2
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Lumpsums–PresentValuesandFuturevalues
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3
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Lumpsums–InterestRatesandPeriods,andNominalandEffectiveInterestRates
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4
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Annuities–Ordinaryannuitiesandannuitiesdue
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5‐6
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Amortisation–Calculatingtheannualamountofinterestpaidand
capitalrepaid
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7‐9
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Bondvaluation–Calculatingthevalueofannual,semi‐annualcompoundedbondsandcalculating
theyieldtomaturity
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10
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NetPresentValueandInternalRateofReturn
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11
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