HP-10BII Financial Calculator Guide 0904

CCIM Institute
Page 1 of 24
430 N. Michigan Ave., Suite 800, Chicago, IL 60611-4092; 312-321-4460; www.ccim.com
Financial Calculator Guide

INTRODUCTION .................................................................................. 2
GENERAL CALCULATOR FUNCTIONS .................................................. 3
Power On ............................................................................................................................ 3
Basic Features ..................................................................................................................... 3
Dual Key Functions .............................................................................................................. 3
Annunciators ....................................................................................................................... 3
Simple Arithmetic Calculations............................................................................................. 4
Decimal Place Setting .......................................................................................................... 4
Input Key............................................................................................................................. 4
Recall Function and Storage Registers.................................................................................. 4
Keystrokes at a Glance......................................................................................................... 5
Basic Functions at a Glance ................................................................................................. 7
Clearing the Calculator................................................................................................................ 7
Changing the Decimal Place Display............................................................................................ 7
Switching Between Begin/End Mode........................................................................................... 7
Switching Between Periods and Commas.................................................................................... 7
Setting the Number of Compounding/Discounting Periods .......................................................... 7
Checking the Number of Compounding/Discounting Periods or Payments Set ............................. 7
Activity 1-1: Financial Calculator Guide Pre-Course Assignment.................................................. 8
ADVANCED CALCULATIONS................................................................ 9
Compounding/Discounting Keystrokes at a Glance .............................................................. 9

Compounding and Discounting Examples............................................................................ 9
Sample Problem 1:
Sample Problem 2:
Sample Problem 3:
Sample Problem 4:
Sample Problem 5:
Sample Problem 6:
Compounding a Single Amount to the Future............................................. 10

Compounding an Annuity to the Future ..................................................... 11
Compounding Sinking Fund Payments ....................................................... 12
Discounting a Single Value to the Present .................................................. 13
Discounting an Annuity to a Present Value................................................. 14
Determining a Stream of Equal Payments Needed to Amortize an Amount. 15
Calculating an Amortization Table ..................................................................................... 16

Sample Problem 7: Calculating Loan Amortization ................................................................... 17
Sample Problem 8: Calculating Balloon Payments .................................................................... 18
Entering Cash Flows .......................................................................................................... 19

Sample Problem 9: Calculating NPV ......................................................................................... 20
Sample Problem 10: Calculating IRR......................................................................................... 21
Editing/Changing Cash Flows ............................................................................................ 22

ANSWER SECTION ............................................................................ 23
Answers to Activity 1-1 ............................................................................................................. 24
Reprinted from CI 101, Financial Analysis for Commercial Investment Real Estate, Version 01/04.
Copyright 2004 by the CCIM Institute. All rights reserved.
HP-10BII Financial Calculator Guide
Page 2 of 24
CCIM Institute; 430 N. Michigan Ave., Suite 800, Chicago, IL 60611-4092; 312-321-4460; www.ccim.com
INTRODUCTION
his calculator guide is divided into two sections: General Calculator Functions and Advanced Calculations. The first
section is designed to introduce you to the basic functions of the HP-10BII financial calculator. It presumes no prior
knowledge or experience in using the calculator. It illustrates how to set the calculator properly, the first step when
beginning any financial calculation.
The second section, Advanced Calculations, provides the keystrokes for a variety of calculations used in the Financial
Analysis course. They include:
Compounding and discounting examples (in Module 3: Time Value of Money)
Loan analysis examples (in Module 4: Finance)
Cash flow analysis examples (in Module 6: Investment Value and Investment Performance)
The calculations in this section are designed to illustrate the keystrokes used to solve the problems, not to teach the actual
financial concept.
The scope of this guide is limited to those calculator functions used in this course. For more detailed explanations or
descriptions, refer to the calculators Users Guide.
Page 3 of 24

GENERAL CALCULATOR FUNCTIONS
Becoming familiar with the calculators basic operations is essential to being at ease with its functionality.
Power On
(the key is located at the lower left of the calculator keyboard). The calculator turns
To turn on the calculator, press
itself off about 10 minutes after you stop using it. Because the calculator has continuous memory, stored information is
not lost when it shuts off.
Basic Features
Some basic calculator features will help you with future calculations. These features include:
Dual key functions
Annunciators
Simple arithmetic calculations
Display format
Storage registers
Dual Key Functions

Most calculator keys perform at least two functions. The primary function of each key is printed in white on the key while
its secondary function is printed in color in the lower slanted half of the key.
, which specifies the second function the
The dual function of each key is made possible by the use of the shift key,
key performs when pressed. All shift functions will be shown as
shift function. For example, to turn the calculator
off, it will be shown as
, not
. The shift key on the calculator operates like the shift key on a
keyboard.
Annunciators
Annunciators are symbols in the display that indicate the calculators status. They include:
Anunciator
SHIFT
INPUT
Status
The shift function has been activated by pressing
has been pressed, or two values have been entered or returned.
PEND
An arithmetic calculation is pending.
BEGIN
Begin mode is active.
Refer to the calculator Users Guide for a complete list and description of all annunciators.
Page 4 of 24
Simple Arithmetic Calculations

Calculations are entered into the calculator in standard entry formata numeric value is entered first, then the arithmetic
function, then another numeric value, then the equal sign. For example, the keystrokes for 1 plus 2 are
.
Decimal Place Setting
The default setting for the display format, as seen when the calculator is first turned on, is two decimal places (0.00).
Changing the number of decimal points only affects what appears on the display, not the internal calculations.
Calculations are performed with up to 12-digit accuracy internally, regardless of the number of displayed decimal places.
When the result of a calculation contains more than can be displayed in the current display format, the number is rounded
then the number of decimal places
to fit the current display setting. To change the display format, press
desired. Be careful to check this setting to avoid rounding errors.
Input Key
The
key is used to separate two numbers when using two-number functions. The INPUT annunciator displays
key is pressed. If a number is in the display, press
to erase the INPUT annunciator and clear the
when the
display. If the cursor or an error message displays, press
twice to erase the INPUT annunciator. In this calculator
guide, you will practice using the
key to calculate the percent change between two numbers.
Recall Function and Storage Registers
The calculator can recall for reuse or store arithmetic in 10 user registers numbered from 0 through 9. The keys to initiate
these functions are the
and
keys followed by the number of the register that the amount is being
recalled from or stored into. In addition to the 10 user registers, the calculator also has 15 cash flow registers, a memory
register, financial registers, and statistical registers.
Page 5 of 24

Keystrokes at a Glance
Below are the keystrokes used to perform the basic functions covered in this guide. Refer to your users guide for
information regarding the keys and keystrokes not in this list.
Keystroke(s)
Function
Turns the calculator on.
Clears the entire display and cancels the calculation.
Accesses the function printed in color on each key. All shift functions will be shown as
function. The annunciator SHIFT displays when the
key is pressed.
Turns the calculator off.
Sets the number of decimal points displayed.
Clears all memory but does not reset the financial modes of P/YR, begin/end, and decimal place
settings. This function also displays the number of compounding/discounting periods set. Keep the
key pressed to display the number of periods set.
Toggles between the begin and end mode. The BEGIN annunciator displays when the calculator is
in the begin mode.
Toggles the numeric value entered between positive and negative.
Sets a pending addition calculation and displays the PEND annunciator.
Completes a pending calculation.
Sets a pending subtraction calculation and displays the PEND annunciator.
Sets a pending multiplication calculation and displays the PEND annunciator.
Sets a pending division calculation and displays the PEND annunciator.
Page 6 of 24

Keystroke(s)
Function
Divides the last number entered by 100; it is preceded by an addition, subtraction, or
multiplication sign, then it adds, subtracts, or multiplies a percent.
Used to separate two numbers when using two-number functions. The INPUT annunciator
key is pressed.
displays when the
Calculates the percentage change between two numbers.
Retrieves data already entered in a financial register.
Copies the displayed number to a designated register.
Clears the last digit in the display (if the cursor appears after the number). This key clears the
entire display if it is pressed when no cursor appears in the display.
Enters number of payments.
Multiplies the last number entered by the preset number of periods per year.
Enters or calculates interest per year.
Enters or calculates present value.
Enters or calculates payment.
Enters number of payments per year mode.
Enters or calculates future value.
Initiates amortization function.
Displays cash flow specified by the register number entered after the
key.
Replaces or stores the amount in the cash flow specified by the register number entered after the
key.
Page 7 of 24

Basic Functions at a Glance

You will do some common functions repeatedly when working on financial calculations. They include:
Clearing the Calculator
Four methods can clear the calculator:

1.
Press
to clear the last digit in the display (if the cursor appears after the number). This key clears the entire
display if it is pressed when no cursor appears in the display.
2.
Press
to clear the entire number being entered. If a number already has been entered, this key clears the
display and cancels the current calculation.
3.
Press
4.
To clear all memory and reset modes, press and hold down
memory is cleared. The All Clear message displays.
to clear all memory. This key does not reset fixed modes (P/YR, begin/end, or decimal settings).
. When you release all three, all
Changing the Decimal Place Display
Press
, then press the number of digits (0 to 9) desired in the display.
Switching Between Begin/End Mode
Press
to toggle between these two modes.
Note: When the calculator is set to the begin mode, BEGIN appears in the display. When set to the end mode, the display
is clear.
Switching Between Periods and Commas
Press
to toggle between using a period or comma as the decimal point and digit separator.
Setting the Number of Compounding/Discounting Periods
Use the following keystrokes to set annual, quarterly, or monthly periods.

Period
Keystrokes
Display
Annual
1.00
Quarterly
4.00
Monthly
12
12.00
Checking the Number of Compounding/Discounting Periods or Payments Set
Press
. Note: Keep keys pressed to display the number of periods set.
Page 8 of 24

Activity 1-1: Financial Calculator Guide Pre-Course Assignment
Complete the following activity. Check your answers with those found in the answer section at the end of
this guide.
Perform the calculator functions described in the Function column (in order). In the Keystrokes column, write the keys you
need to press to perform each of the corresponding functions. In the Display column, write what you see in the calculator
display window.
Function
Keystrokes
Display
Activate the shift function.

Deactivate the shift function.
Set the number of decimal places to 4.
Set the number of decimal places to 2.
Set the calculator for quarterly compound/discount
periods per year.
Check the number of compound/discount periods.
Set the calculator for monthly compound/discount
periods per year.
Set the calculator for yearly compound/discount
periods per year, then set the length of the
investment holding period to 6 years.
Turn the calculator off.
Page 9 of 24

ADVANCED CALCULATIONS
The following examples and practice calculations will help familiarize you with the calculations used in the Financial
Analysis course. They include:
Compounding and discounting examples (in Module 3: Time Value of Money)
Loan analysis examples (in Module 4: Finance)
Cash flow analysis examples (in Module 6: Investment Value and Investment Performance)
These calculations are designed to illustrate the keystrokes used to solve the problem, not the actual financial concept.
Compounding/Discounting Keystrokes at a Glance

Function
Keystrokes
Solve for
Compound a single amount to the future.

Compound a series of equal payments (annuity) to the
future.
Note:
=0
Note:
=0
Note:
=0
Note:
=0
Note:
=0
Note:
=0
Compound sinking fund payments.

Discount a future value to the present.
Discount a series of equal future payments to the present.
Determine a series of equal payments needed to amortize an
amount.
Compounding and Discounting Examples

The following sample problems review the keystrokes you will need to know to do calculations for the six functions of a
dollar. The functions will be discussed in detail in Module 3: Time Value of Money.
Page 10 of 24

Sample Problem 1: Compounding a Single Amount to the Future
Calculate what $100 will be worth in 10 years if invested at 9 percent interest compounded annually.
Step
Keystrokes
Display
1.
Set one period per year.
2.
Clear all registers/check periods per year.
3.
Enter the amount invested.
4.
Enter the number of periods the investment is held.
5.
Enter the annual interest rate.
6.
Calculate the future value of the initial investment.
1.00
0.00
100
-100.00
10
10.00
9.00
236.74
If this problem were changed to a 9 percent annual rate with monthly compounding, the following keystrokes would be
used. Note: Do not clear the calculator; simply continue with these keystrokes.
Step
1.
Set for monthly compounding.
2.
Enter the number of months the investment is held.
3.
Calculate the future value with monthly compounding periods.
Keystrokes
Display
12
12.00
10
120.00
245.14
Page 11 of 24

Sample Problem 2: Compounding an Annuity to the Future
Calculate the future value of $100 invested each year for five years at 11.5 percent interest compounded annually.
Step
Keystrokes
1
1.
2.
3.
Enter the amount of the payment invested.
4.
5.
6.
Calculate the future value of the payments.
Display
1.00
0.00
100
-100.00
5.00
11.5
11.50
629.00
If this problem involved quarterly compounding payments with $25 payments ($100/4) for five years, the following
keystrokes would be used. Note: Do not clear the calculator; simply continue with these keystrokes.
Step
1.
Set for quarterly compounding.
2.
Enter the number of payments made during the holding period.
3.
Enter the quarterly payment amount.
4.
Calculate the future value with monthly compounding periods.
Keystrokes
Display
4.00
20.00
25
-25.00
663.28
Page 12 of 24

Sample Problem 3: Compounding Sinking Fund Payments
How much must be invested each year to accumulate $10,000 at the end of six years if the annual payments earn 7.75
percent compounded annually?
Step
Keystrokes
Display
1.
2.
3.
4.
5.
Enter the future value of the investment.
6.
Calculate the annual payment amount.
1.00
0.00
6.00
7.75
7.75
10,000
10,000.00
-1,371.77
If this problem involved annual payments that were to be made at the beginning of the year rather than at the end, what
would the payments be? Note: Do not clear the calculator, simply continue with these keystrokes.
Step
Keystrokes
1.
Reset to beginning of period.
2.
Calculate the annual payment.
3.
Reset to end of period.
4.
Calculate annual payment.
Display
-1,371.77
BEGIN
-1,273.11
BEGIN
-1,273.11
-1,371.77
Page 13 of 24

Sample Problem 4: Discounting a Single Value to the Present
What is the present value of $50,000 to be received at the end of 13 years if discounted at 9.5 percent?
Step
Keystrokes
Display
1.
2.
3.
4.
Enter the annual discount rate.
5.
Enter the future value of the investment.
6.
Calculate the present value.
1.00
0.00
13
13.00
9.5
9.50
50,000
50,000.00
-15,366.91
Note: The present value is a negative number because it represents the amount that must be invested at 9.5 percent to
grow to $50,000 over a period of 13 years.
Page 14 of 24

Sample Problem 5: Discounting an Annuity to a Present Value
What is the present value of $2,000 to be received at the end of each year for three years when discounted at 10 percent?
Step
Keystrokes
Display
1.
Set the calculator for one period per year.
2.
3.
4.
Enter the annual discount rate.
5.
Enter the amount of the payment.
6.
Calculate the present value.
1.00
0.00
3.00
10
10.00
2,000
2,000.00
-4,973.70
If this problem involved monthly payments of $166.67 ($2,000 12) received at the beginning of each month for three
years, discounted at 10 percent, compounded monthly, what is the present value?
Step
Keystrokes
1.
Set for monthly payments.
2.
Enter the number of payments.
3.
Enter the amount of the payments received.
4.
Set to beginning of period.
5.
Calculate present value.
6.
Reset to end of period.
Display
12
12.00
36.00
166.67
166.67
166.67
BEGIN
-5,208.35
BEGIN
-5,208.35
Page 15 of 24

Sample Problem 6: Determining a Stream of Equal Payments Needed to Amortize an Amount
Calculate the monthly payments required to repay a loan of $50,000 in 15 years if the annual interest rate is 12.5 percent
compounded monthly.
Step
Keystrokes
1.
Set the calculator for 12 periods per year.
2.
3.
Enter the loan amount.
4.
5.
6.
Calculate the monthly payment amount.
12
Display
12.00
0.00
50,000
12.5
15
50,000.00
12.50
180.00
-616.26
Page 16 of 24

Calculating an Amortization Table

The amortization process uses the
calculates:
Accumulated interest
Accumulated principle reduction
Outstanding loan balance
function, which is built into the financial calculator. This function
This function assumes you have already solved for a payment amount or have entered the appropriate amortization values
in I/YR, PV, PMT, and P/YR.
Step
Display
1.
Press
2.
Press
PRIN followed by the principal amortized for that period
3.
Press
INT followed by the interest amortized for that period
4.
Press
BAL followed by the interest amortized for that period
5.
Press
6.
Repeat steps 2 to 4.
7.
Repeat steps 1 to 4 until the desired

length of time has been reached.
PEr followed by the starting and ending payments that will be amortized
PEr followed by the next set of periods

Principal, interest, and balance for this set of periods
Page 17 of 24

Sample Problem 7: Calculating Loan Amortization
Calculate the amount of principal and interest paid and the remaining loan balance at the end of the first two years on a
20-year loan of $100,000 with annual interest of 10 percent repaid monthly.
Step
Keystrokes
12
1.
Set 12 periods per year.
2.
3.
4.
5.
6.
7.
Display amounts for the first 12-month period.
8.
Display principal for the first year.
9.
Display interest for the first year.
10.
Display the loan balance at the end of the first year.
11.
Display amounts for the second 12-month period.
12.
Display principal for the second year.
13.
Display interest for the second year.
14.
Display the loan balance at the end of the second year.
Display
12.00
0.00
100,000
-100,000.00
10
10.00
20
240.00
965.02
PEr 1-12
PRIN
1,654.72
INT
9,925.52
BAL
-98,345.28
PEr 13-24
PRIN
1,827.99
INT
9,752.25
BAL
-96,517.29
Page 18 of 24

Sample Problem 8: Calculating Balloon Payments
A mortgage loan for $100,000 at 10.5 percent annual interest has monthly payments based on an amortization schedule
over 25 years. If the full balance of the loan is due in 12 years, what is the balloon payment?
Step
Keystrokes
Display
12
1.
Set 12 periods per year.
2.
3.
4.
5.
6.
7.
Re-enter the number of years through the length of the balloon payment.
8.
Solve for balloon payment.
12.00
0.00
10.5
10.50
25
100,000
300.00
100,000.00
-944.18
12
144.00
-80,185.15
Page 19 of 24

Entering Cash Flows

The cash flow programs built into the calculator enable you to analyze investments with varying cash flow amounts.
Learning how to enter uneven cash flows is important to know for the calculations you will be doing in Module 6:
Investment Value and Investment Performance. The calculator can store an initial cash flow plus 14 additional cash flow
groups. Also, cash flows of equal amounts can be grouped to contain up to 99 cash flows. This significantly expands the
actual number of future cash flows that may be incorporated into a single investment calculation.
Certain general rules must be followed when processing cash flows. They are:
Cash flows to be entered must occur at regular intervals at the end of time periods
Periods without cash flows must be assigned zero
Consecutive equal cash flows (including zeros) may be grouped
Sign convention must be applied to all cash flows
Use the following steps to enter a series of cash flows.

Step
1.
2.
Enter the number of periods per year.
3.
Enter the amount of the initial investment (CF 0)

(the j stands for the cash flow number, 0 through 14).
4.
Enter the amount of the next cash flow (CF 1).
5.
If the next cash flow is different than the previous cash flow, enter the amount
of the next cash flow (CF 2) and go directly to Step 7.
If it is the same cash flow amount as in Step 4, skip this step and go directly to
Step 6.
6.
Enter the number of times the cash flow amount in Step 4 occurs consecutively.
Keystrokes
XX*
XX
XX
XX
XX
Repeat steps 4 to 6 for each cash flow until all have been entered.
* XX represents numeric values.
7.
Page 20 of 24

These sample problems will solve for the net present value (NPV) and internal rate of return (IRR), respectively, using a
series of cash flows. The concepts of NPV and IRR will be explained thoroughly in the course. For now, focus on how the
cash flows are entered.
Sample Problem 9: Calculating NPV
Calculate the NPV for the following cash flows. Use a 10 percent yield.
Cash flows:
Year
Amount
0
1
2
3
4
5
(80,000)
5,000
(4,500)
5,500
4,000
125,000
Step
Keystrokes
1.
2.
3.
Enter the cash flow amount (CF 0).
4.
Enter cash flow 1.
5.
Enter cash flow 2.
6.
Enter cash flow 3.
7.
Enter cash flow 4.
8.
Enter cash flow 5.
9.
Enter discount rate.
10.
Calculate NPV.
Display
1.00
0.00
80,000
5,000
4,500
5,500
4,000
125,000
10
CF 0
-80,000.00
CF 1
5,000.00
CF 2
-4,500.00
CF 3
5,500.00
CF 4
4,000.00
CF 5
125,000.00
10.00
5,305.90
Page 21 of 24

Sample Problem 10: Calculating IRR
Calculate the IRR for an investment with the following cash flows:
Year
0
1
2
3
4
5
6
7
8
9
10
11
Amount
(150,000)
5,000
5,000
5,000
10,000
10,000
10,000
10,000
15,000
15,000
15,000
250,000
Step
Keystrokes
1.
2.
3.
Enter the cash flow amount (CF 0).
4.
Enter cash flow 1.
5.
Repeat cash flow 1 three times.
6.
Enter cash flow 2.
7.
Repeat cash flow 2 four times.
8.
Enter cash flow 3.
9.
Repeat cash flow 3 three times.
10.
Enter cash flow 4.
11.
Calculate IRR.
Display
1.00
0.00
150,000
5,000
3
10,000
4
15,000
3
250,000
CF 0
-150,000.00
CF 1
5,000.00
n1
3.00
CF 2
10,000.00
n2
4.00
CF 3
15,000.00
n3
3.00
CF 4
250,000.00
9.42
Page 22 of 24

Editing/Changing Cash Flows

Once cash flows are stored in the storage registers for use in calculating IRR and NPV, they may be modified without reentering the entire cash flow problem.
To view a cash flow, press:
through
to display a cash flow stored in one of the registers 0 through 9

through
to display a cash flow stored in one of the registers 10 through 14
to display the next cash flow
to display the previous cash flow
to display the current cash flow
To replace a cash flow amount, press
through
to store a new amount in one of the cash flow registers 0 through 9

through
to store a new amount in one of the cash flow registers 10
through 14
to store the amount in the next cash flow register
to store the amount in the previous cash flow register
to store the amount in the current cash flow register
To replace the number of times a particular cash flow occurs, press

will change. Then enter the number of times it occurs and press
Since cash flows cannot be deleted or inserted, use
and the cash flow whose number of occurrences

.
to start over.

ANSWER SECTION
Page 23 of 24
Page 24 of 24

Answers to Activity 1-1
Function
Keystrokes
Display
Activate the shift function.
INPUT
Deactivate the shift function.
0.00
Set the number of decimal places to four.
0.0000
Set the number of decimal places to two.
0.00
Set the calculator for quarterly compound/discount

periods per year.

periods per year.
Check the number of compound/discount periods
12
Set the calculator for yearly compound/discount


12
4.00
4 P_Yr
12.00
12P_Yr
6.00
This is the total number
of periods the
investment is
compounded/
discounted.
72.00
This is the total
number of periods
the investment is
compounded/
discounted.
Turn the calculator off.

HP-10BII Financial Calculator Guide 0904

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CCIM Institute

430 N. Michigan Ave., Suite 800, Chicago, IL 60611-4092; 312-321-4460; www.ccim.com

Financial Calculator Guide

Compounding/Discounting Keystrokes at a Glance .............................................................. 9

Compounding a Single Amount to the Future............................................. 10

Calculating an Amortization Table ..................................................................................... 16

Entering Cash Flows .......................................................................................................... 19

Editing/Changing Cash Flows ............................................................................................ 22

HP-10BII Financial Calculator Guide

Compounding and discounting examples (in Module 3: Time Value of Money)

Loan analysis examples (in Module 4: Finance)

HP-10BII Financial Calculator Guide

GENERAL CALCULATOR FUNCTIONS

Dual key functions

Simple arithmetic calculations

Dual Key Functions

has been pressed, or two values have been entered or returned.

An arithmetic calculation is pending.

Begin mode is active.

HP-10BII Financial Calculator Guide

Simple Arithmetic Calculations

HP-10BII Financial Calculator Guide

HP-10BII Financial Calculator Guide

HP-10BII Financial Calculator Guide

Basic Functions at a Glance

Four methods can clear the calculator:

Changing the Decimal Place Display

, then press the number of digits (0 to 9) desired in the display.

Switching Between Begin/End Mode

to toggle between these two modes.

Setting the Number of Compounding/Discounting Periods

Use the following keystrokes to set annual, quarterly, or monthly periods.

Checking the Number of Compounding/Discounting Periods or Payments Set

. Note: Keep keys pressed to display the number of periods set.

HP-10BII Financial Calculator Guide

Activity 1-1: Financial Calculator Guide Pre-Course Assignment

Activate the shift function.

HP-10BII Financial Calculator Guide

Compounding and discounting examples (in Module 3: Time Value of Money)

Loan analysis examples (in Module 4: Finance)

Compounding/Discounting Keystrokes at a Glance

Compound a single amount to the future.

Compound sinking fund payments.

Compounding and Discounting Examples

HP-10BII Financial Calculator Guide

Sample Problem 1: Compounding a Single Amount to the Future

Set one period per year.

Clear all registers/check periods per year.

Enter the amount invested.

Enter the number of periods the investment is held.

Enter the annual interest rate.

Calculate the future value of the initial investment.

Set for monthly compounding.

Enter the number of months the investment is held.

Calculate the future value with monthly compounding periods.

HP-10BII Financial Calculator Guide

Sample Problem 2: Compounding an Annuity to the Future

Set one period per year.

Clear all registers/check periods per year.

Enter the amount of the payment invested.

Enter the number of periods the investment is held.

Enter the annual interest rate.

Calculate the future value of the payments.

Set for quarterly compounding.