Time Value of Money (TVM) Registers
and Amortization
To solve for one of the TVM registers, you must enter
non-zero values in three of the other four registers (the
HP10BII will assume that the value for the fourth register
is zero).
To Solve for Payment:
1. Clear all registers. [SHIFT][C ALL]
2. Store the amount of the loan. Amount [PV]
3. Store the annual interest rate. Rate [I/YR]
4. Store the number of payments. Payment [N]
5. Press the payment key. [PMT]
To Amortize the Loan:
6. View principal paid in Year 1. [SHIFT][AMORT] [=]
7. View interest paid in Year 1. [=]
8. View the current loan balance. [=]
9. To view the next range of principal, interest, and loan
balance, repeat Steps 6-8.
Cash Flow Registers
The cash flow registers allow you to solve for
internal rate of return (IRR) and net present value
(NPV).
To Solve for IRR or NPV:
• Store the number of periods per year.
Number [SHIFT][P/YR]
• Store the amount of the initial investment.
Amount [CFj]
• Store the amount of the next cash flow and press
[CFj] (if the amount entered occurs more than once
consecutively, enter the number of times is occurs
and press [SHIFT] [Nj]).
Amount [CFj]
• Repeat step 3 for each cash flow.
• Solve for IRR. [SHIFT] [IRR/YR]
OR
• Store the annual interest rate. Rate [I/YR]
• Solve for NPV. [SHIFT] [NPV]
Practice Problem
You are currently negotiating with a tenant who is interested in leasing 25,600 square feet of
vacant space. The tenant has proposed an annual rent of $22.50 per square foot to be paid
monthly, and wants an improvement allowance of $400,000. In addition, they are asking for
free rent for the first year. The lease term is 5 years. The owners’ required rate of return is
11% percent. What is the annual effective rent?
Keystrokes HP10BII Display
Set to 12 payments
per year
12 [SHIFT] [P/YR] 12.00
Clear all data [SHIFT] [C ALL]
12 P_Yr
0.00
Store Cash Flow 0 400000 [+/-] [CFj]
C-FLOW CF 0
C-FLOW CF -400,000.00
Store Cash Flow 1 0 [CFj]
C-FLOW CF 1
C-FLOW CF 0.00
Repeat Cash Flow 1 12 [SHIFT] [Nj]
C-FLOW N 1
C-FLOW N 12.00
Calculate monthly
rent and store as
Cash Flow 2
25600 [x] 22.5 [÷] 12 [=] [CFj]
48,000.00
C-FLOW CF 2
C-FLOW CF 48,000.00
Repeat Cash Flow 2 4 [x] 12 [SHIFT] [Nj]
C-FLOW N 2
C-FLOW N 48.00
Store I/YR 11 [I/YR] 11.00
Solve for NPV [SHIFT] [NPV] 1,264,566.51
Store payments
per year
5 [SHIFT] [x P/YR] 60.00
Solve for payment [PMT] -27,494.74
Solve for annual
payment per square
foot
[÷] 25600 [x] 12 [=] -12.89
The annual effective rent is $12.89 per square foot.
National Headquarters
430 North Michigan Avenue
Chicago, Illinois 60611-4090
Telephone
Facsimile
Internet
(800) 837-0706
(800) 338-4736
www.irem.org
HP10BII Financial Calculator Quick Reference Guide
To Previous Page
Loading...