HP HP10BII Using

LUMPSUMS–FUTUREVALUESANDPRESENTVALUES
ColinCSmith2010
3
*seegettingstarted

1. SimpleFutureValue(FV)


YouborrowR5,000fromafriendat8%p.a.interest
tobecompoundedannually.Capitalandinterestis
repayablein5yearstime.Howmuchwillyourepay?

 
HP10BIIfinancialcalculator
KEYS DISPLAY
*MustnotdisplayBEGIN
 CALL 0.00
5,000+/‐PV
‐5,000.00
8I/YR 8.00
5N 5.00
FV
7,346.64



2. FutureValue(FV)withfrequentcompounding


YouhavesavedR10,000andinvestthisinafixed
depositwithabankat10.5%compoundedquarterly
for4years.Howwillyoureceivein4yearstime?

 
HP10BIIfinancialcalculator
KEYS DISPLAY
*MustnotdisplayBEGIN
CALL 0.00
10,000+/‐ PV
‐10,000.00
10.5÷4I/YR 2.63
4x4N 16.00
FV
15,137.38




3. SimplePresentValue(PV)


Youhavejustturned20yearsofageandyourlate
UncleScroogebequeathedyouanamountofR5,000
payableonyour25
th
birthday.Yourfatheroffersto
giveyouthepresentvaluetodayincash.Atan
interestrateof10%p.a.compoundedannuallyhow
muchmustyourfathergiveyoutoday?Whatisthe
presentvalueofthebequest?

The–veamountreflectswhatshouldbepaidtoday.
 
HP10BIIfinancial
calculator
KEYS DISPLAY
*MustnotdisplayBEGIN
CALL 0.00
5,000FV
5,000.00
10I/YR 10.00
5N 5.00
PV
‐3,104.61




4. PresentValue(PV)withfrequentcompounding


UncleGeorgeismoregenerousandleavesyoua
substantialinheritance.Youwanttosetasideand
amounttobuyyourdreamcarwhenyoucomplete
yourtraineecontractin5yearstime.Estimatesare
thatthedreamcarwillcostR220,000
atthattime.
Abankisofferingyoua5yearfixed depositat
11.5%compoundedmonthlyfor5years.Howmuch
shouldyouinvesttoday?

The–veamountreflectswhatshouldbepaidtoday.
 
HP10BIIfinancialcalculator
KEYS DISPLAY
*MustnotdisplayBEGIN
CALL 0.00
220,000FV
220,000.00
11.5÷12I/YR 0.96
5x12N 60.00
PV
‐124,134.45





HP HP10BII Specifications

General

Brand	HP
Model	HP10BII
Category	Calculator
Language	English