Just remember you need to input at least 4/5 of the variables into the calculator and solve for the missing variable each time.Īlso, don’t forget that the payment is going to be a negative number whenever you change it. An example is provided with a detailed explanation. Or if you pressed the 1/YR button you will see that the interest rate would need to be 13.90% to get your $150 payment. This article shows how to calculate the net present value and net future value of an investment that pays uneven annual payments.If you press the N button you will find out that if you want to have a $150 monthly payment the loan term will need to be 92.80 months.This will store the payment of $150 into your calculator so now you can see all the different variables stored in the calculator to arrive at your $150 monthly payment. So, type -150 (to do this enter 150 and then press the +/- button) now press the PMT button. This is the tricky part… before entering 150 into the calculator you will need to change it to a negative 150 before placing it into your HP. Now let’s say that you want to have a payment of $150 per month even, which is also very easy to do. Press the PMT button and you will see that the new payment for the 10 year term is $127.65. To do this just type 120 into your trusty calculator and press the N button and you have just extended the term to 10 years. Now let’s say that the payment is too high and you would like to extend the term of the loan to 120 months, it is very easy to do. Time value of money is a life hack few have mastered but in my opinion is very important. If you press the N button right now the calculator will say 60 If you need to keep up with your fast-paced business courses while working and planning for your future career, invest in the HP10B business calculator.If you would like to check your work or see the variables that are stored in the calculator you go now press any of the variable buttons and you will see the data you just entered. So to find out the monthly payment, just press the PMT button and you should get -205.62, which is your monthly payment amount. Now we have solved the equation for 4 out of 5 of the variables except the monthly payment which is what we need.For the future value, it is usually zero unless there is a balloon payment and in this case there isn’t so enter 0 and press the FV button.The present value is entered next, which is $9700 so input 9700 into the calculator and press the PV button.Input 9.9 into the calculator and then press the 1/YR button. Now let’s input the interest rate 1/YR in to the calculator.Type 60 into the calculator and then press the N button. Next let’s input the time of the loan in months, which is 60. A tutorial about using the HP 10BII financial calculator to solve time value of money problems involving uneven cash flows. The HP 10bII Financial Calculator features over 100 built-in functions for business, finance, mathematics, and statistics, the 10BII is an ideal calculator.First clear your calculator memory by pressing the orange button and then pressing the C ALL button.To do input the data into your calculator follow these steps: Now that you have your loan information, now it’s time to input the data into your HP calculator. PMT – this field remains blank as this will be our answer.FV – 0 (this amount is almost always zero, unless it is a balloon mortgage).PV – 9700 (this is the present value of the loan, in this case $9700 without the $ symbol).1/YR – 9.9 (this is the interest rate of the loan without the % symbol). N– 60 (this is the number of payments in months).So if you have a loan for $9700 at 9.9% for five years and you would like to find out the monthly payment, then you can find it out easily using the HP 10bII calculator.įor example: If you want to calculate the monthly payment for the above loan, then you will need to have all the other values (N, 1/YR, PV, and FV) to solve for PMT (Payment). With the 10bii Financial Calculator, you can: Calculate Time Value of Money (Length of Term, Present Value, Nominal Interest, Loan Payments, Future Value) and see the cash flow diagram produced for you automatically. Easily calculate loan payments, interest rates and conversions, standard deviation, percent, TVM, NPV, IRR, cash flows, and more. You'll be able to work quicker and more efficiently with over 100 time-saving, easily-accessible business functions. Whether you are a student or a practicing professional, the fast and powerful HP 10bll+ makes it easy to solve business, financial, statistical, and math calculations accurately and quickly, at a price that everyone can afford.This is a brief tutorial that will show you have to use the HP 10bII financial calculator to amortize a loan.įirst you will need to find answers to all of the following questions (bulleted below) except one of them, which is the one you will be solving for in this case PMT – Monthly Payment. The HP 10bII is the smart choice for business and finance needs.
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