HP HP10BII Using

ANNUITIES–ORDINARY,DUE,FUTUREVALUE,PRESENTVALUE
ColinCSmith2010
6
12. Calculatingthepayment(PMT)foranormalfinancialtransaction‐AnnuityDue
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You buy a new car today for R120 000 and
obtainfinancefor80%ofthepurchaseprice
(R96,000) overfour years.Thebank quotes
you a finance rate of 12% per annum
(nominal rate).Instalments are payable
monthly in advance.Calculate the monthly
instalment.

 
HP10BIIfinancialcalculator
KEYS DISPLAY

*MustdisplayBEGIN
CALL 0.00
BEG/END
BEGIN0.00
1 P/YR 1.00
96,000PV
96,0000.00
0FV
0.00
12÷12I/YR 1.00
4x12N 48.00
PMT
‐2503.02
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Youcanalsosolvefortheinterestrateandforthenumberofperiodsusingthesamefunctions.
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13. Calculatingtheinterestrateforanormalfinancialtransaction‐AnnuityDue
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
AbankoffersyouapersonalloanofR20,000
repayable in 24 easy instalments of R1,050
per month
 starting immediately.What
nominalinterestrate(APR)isbeingcharged?
 
HP10BIIfinancialcalculator
KEYS DISPLAY

*MustdisplayBEGIN
CALL 0.00
BEG/END
BEGIN0.00
1 P/YR 1.00
20,000PV
20,0000.00
0FV
0.00
1,050+/‐PMT ‐1050.00
24N 24.00
I/YR
2.1237
X12
25.48
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Additionalnotes:

PleasealsoseetheBondValuationsectionforsimilartransactions.
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Wherewehaveirregularcashflowpayments,wecannotusetheannuityfunctionalityandinsteadcanusetheNET
PRESENTVALUEandINTERNALRATEOFRETURNfunctions.
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HP HP10BII Specifications

General

Brand	HP
Model	HP10BII
Category	Calculator
Language	English