Hewlett-Packard 12C Tutorial
|
|
- Hilary Stewart
- 8 years ago
- Views:
Transcription
1 To bein, look at the ace o the calculator. Every key (except the arithmetic unction keys in the ar riht column and the ive keys on the bottom let row) has two or three unctions: each key s primary unction is noted in white on the key itsel, while each key s secondary unction is noted in old above the key or in blue on the lower ace o the key. To use the unction on the key, simply press the key. To access the old unction above each key, irst press the old key, which we will call the old shit key, and then press the desired unction key. (Note that the old shit key is near the lower let corner o the calculator keyboard.) To access the blue unction on the bottom o each key, irst press the blue key, which we will call the blue shit key, and then press the desired unction. (The blue shit key is located just to the riht o the old shit key.) Turnin the Calculator On and O ON To turn on the calculator, press. Note that the ON key is on the lower let corner o the keyboard the ace o the key has a white "ON". Also, we will desinate keys throuhout this tutorial by the use o small boxes, as above. To conserve the battery, the calculator turns itsel o about 10 minutes ater your last keystroke. To turn the calculator o, press ON aain. Also, note that pressin the old shit key places a little in the lower let corner o the display. Pressin CLX the blue shit key places a little at the bottom o the display. Press the key and the symbol oes away. The shit keys are tole keys that switch back and orth between the reular and the old or blue unctions. They are like the typewriter shit key. Ater you press the old (or blue ) key, look only at old (or blue) writin. Note that the calculator has a continuous memory, so turnin it o does not aect any data stored in the calculator. Clearin the Calculator Clearin the calculator is very important, since unwanted data in memory can result in improper calculations, and hence wron answers. It is best to et into the habit o automatically clearin memory beore startin a calculation. Occasionally, you may purposely want to save data, but, in eneral, you will be enterin all new data, so startin with a clear memory is the saest approach.
2 Pae 2 There are our dierent levels o clearin data: REG clears all memory and the display. CLX clears the entire display, but not the memory. FIN E clears the inancial reister but not the display. clears the statistics reister and the display. Note that the keys above are desinated as CLEAR keys on the ace o the calculator. Chanin the Display Enter To chane decimals rom 2 to 4, press 4. 5, is displayed. To chane rom 4 places to 2, press 2. 5, is displayed. (Roundin is automatic.) We usually set the display to 2 places, which is especially convenient when workin with dollars and percentaes. However, we oten use 4 places when dealin with interest rates and rates o return that are entered as decimals. Time Value o Money (TVM) The TVM keys are located on the top row o the keyboard. n i PMT FV In eneral, TVM problems involve our variables three are known and the ourth is unknown. Lump Sums To bein, we consider TVM calculations with sinle (lump) sums. In this situation, we do not use the PMT key, so be sure to either clear all, which sets the payment (PMT) equal to 0, or enter 0 as the PMT when enterin the input data. I you know any three variables, you can ind the value o the ourth.
3 Pae 3 Example 1: FIN What is the FV o $100 ater 3 years i the interest rate is 26 percent? First, clear with. Next, enter the data. 3 n 26 i 100 PMT 0 (Optional i reisters are cleared.) To determine the FV simply press FV and the FV o -$ is displayed. The HP is prorammed so that i the is + then the FV is displayed as - and vice versa, because the HP assumes that one is an inlow and the other is an outlow. When enterin both and FV, one must be entered as neative and the other positive. Example 2: What is the o $500 due in 5 years i the interest rate is 10 percent? Clear irst and then enter the ollowin data: 5 n 10 i PMT 0 (Optional i reisters are cleared.) 500 FV Pressin the key reveals that $ will row to $500 in 5 years at a 10 percent rate.
4 Pae 4 Example 3: Assume a bond can be purchased today or $200. It will return $1,000 ater 14 years. The bond pays no interest durin its lie. What rate o return would you earn i you bouht the bond? 14 n CHS CHS 200 (The key chanes the sin.) 0 PMT 1000 FV Simply press the i key and the HP calculates the rate o return to be percent. Remember that the HP is prorammed so that i the is + then the FV is displayed as - and vice versa, because the HP assumes that one value is an inlow and other is an outlow. Also note that the neative sin is placed on the 200 entry by pressin the key marked CHS or chane sin. Now suppose you learn that the bond will actually cost $300. What rate o return will you earn? CHS i Override the -200 by enterin 300, then press to et 8.98 percent. I you pay more or the bond, you earn less on it. The important thin, thouh, is that you can do what i analyses with the calculator. ON ON Now press to turn o the calculator. Then turn on the calculator. The display still shows The memory is not erased. What was on the screen when you turned the calculator o returns when you CLX RCL n turn it back on. Now press. What was on the screen is one, but press to et N = FIN 14. The other memory reisters also retain inormation unless you press.
5 Pae 5 Ordinary Annuities Example 1: What is the FV o an annuity o $100 paid at the end o each year or 5 years i the interest rate equals 6 percent? 0 6% /))))))))3))))))))3))))))))3))))))))3)))))))) n 6 i CHS PMT Now press the Example 2: FV key, and an FV o $ is displayed. What is the o the same annuity? Leave data in calculator, but enter 0 as the FV to override, then press to et $ Annuities Due Each payment o an annuity due occurs at the beinnin o the period instead o at the end as with a reular BEG annuity. In essence, each payment is shited back one period. To analyze annuities due press. The word BEGIN appears on the screen. Now the HP analyzes the cash lows based on beinnin o END period payments. Chane back to end mode by pressin. Interest Conversion The ollowin equation is used to convert a nominal rate to an eective rate.
6 Pae 6
7 Pae 7 Given: k Nom = 10% and m = 12 payments/year, However, it s much easier to convert the nominal rate usin the calculator: FIN First, clear the inancial reister,. 10 ENTER 12 n i CHS PMT FV 10.47% shows on the screen. Cash Flow Operations We can also ind the, FV, and IRR (rate o return) o a series o unequal cash lows. Example 1: Uneven Cash Flows Assume the ollowin cash lows: What is the o these CFs? 0 10% /))))))))3))))))))3))))))))3)))))))) FIN First clear the HP s inancial reister,. CF 0 0 Sets CF 0 equal to 0. CF 50 j Sets CF 1 equal to
8 Pae 8 The CFs rom the time line are entered. Now enter the interest rate: 10 i At this point the HP knows the cash lows, the number o periods, and the interest rate. To ind the, N press to et = N = $ Example 2: Embedded Annuities We have these cash lows, which contain embedded annuities: 0 10% /)))))))3))))))3))))))3))))))3))))))3))))))3))))))3))))))3)))) )) What s the? FIN Clear the HP,. 0 CF N j N j N j Now the HP knows the cash lows. Thus, enter the interest rate: 10 i N Now press to et = N = $1,
9 Pae 9
10 Pae 10 To check your entries: RCL RCL 0 to see CF 0. 1 to see irst CF entry, in this example. 1 to see how many times CF 1 is repeated. The display shows that n RCL N j the irst CF occurs three consecutive times. Example 3: The Rate o Return Oered by an Investment (IRR) 1 Assume that we invest $1,000 now (t = 0) and then expect to receive an uneven set o cash lows. Here is the CF time line: What rate o return will we earn? Enter the ollowin: /))))))))3))))))))3))))))))3)))))))) FIN 1000 CHS CF IRR = 16.71% 1 I a neative CF occurs at the end o a project s lie, then the HP may ive an error messae, indicatin that ENTER RCL R/S there are two IRRs. Enter data, then enter 10 and then to et the irst IRR. Then enter a ENTER RCL R/S lare percentae, such as 100 and then to ind the other IRR. You miht have to experiment with uesses to locate the two IRRs.
11 Pae 11 You can also determine the N o the investment. Leave data entered and then enter the opportunity cost interest rate, say 8 percent. To ind N press: 8 i N The N o $ is displayed. Thus, the o the cash inlows exceeds the cost o the investment by $ Statistical Calculations The HP can also be used or several types o statistical calculations. Mean and Standard Deviation (F) Year Sales 1994 $ What s the mean (averae) and standard deviation (F) o sales over the 3 years? Use the E+ key to enter data: E Clears the statistical reister. E+ 150 A number 1 is displayed. E+ 95 A number 2 is displayed. E+ 260 A number 3 is displayed. Determine the mean and standard deviation by simply pressin _ X The mean equals $ S The standard deviation is $ S is the sample standard deviation.
12 Pae 12 Linear Reression Beta coeicients can be calculated by usin the HP s linear reression capabilities. The X (independent variable) and Y (dependent variable) values must be entered in the proper sequence, where X data is on the horizontal axis (market) and Y data is on the vertical axis (stock). Enter the data as ollows: Year Market (k M ) Stock (k j ) % 38.6% E Note: The order in which the data is entered is very important. The Y value (k j ) must be entered beore the X value (k M ). ENTER E CHS ENTER CHS E ENTER E ENTER E ENTER E y, ^ r The value is y when x = 0, or k j when k M = 0, which is the vertical axis intercept. STO 0 Stores the value o the Y intercept or use in calculatin the slope (beta). 0 x, ^ r 5.57 is the value o x when y = 0. 0 RCL CHS X Y > < The value displayed, 1.60, is the slope coeicient, or the beta coeicient. Amortization
13 Pae 13 The HP can also be used to calculate amortization schedules. Example: Determine the interest and principal paid each year and the balance at the end o each year on a three-year $1,000 amortizin loan which carries an interest rate o 10 percent. The payments are due annually. Perorm the ollowin steps: 3 n FIN Clears the inancial reister. 10 i 1000 PMT A payment o is displayed. This is the amortization schedule correspondin to the loan. Be. Bal. Payment Interest Princ. Repmt. Endin Bal. 1 1, With the data still entered in the TVM menu, do the ollowin: 1 AMORT Tells the calculator that you want to amortize the irst payment only. The display shows , which is the interest payment durin the irst year. Write it into a table as X > < Y The display shows This is the repayment o principal in the irst year. Write it in the table. RCL The display shows This is the remainin principal balance at the end o the irst year. Write it down. AMORT 1 This tells the calculator that you want to amortize the next payment only. AMORT The number o payments keyed in just beore is taken to be the payments ollowin any that have been already amortized. Thus, keyin in 1 at this step moved you into the second payment period.
14 Pae is the interest paid in Year 2.
15 Pae 15 X > < Y is the principal paid in Year 2. RCL is the endin balance at end o Year 2. AMORT is the interest paid in Year 3. X > < Y is the principal repayment in Year 3. RCL 0.02 is the balance at end o Year 3. See the manual or an explanation o how to do monthly amortization. Next, with the data still in the calculator, do the ollowin: 1000 This returns the calculator to the oriinal principal balance o $1, AMORT Tells the calculator that you want to amortize the irst three payments toether. In this example there are only 3 payments, but that is not always the case. The display shows This is the total interest paid over Years 1 to 3. X > < Y is the total repayment o principal over Years 1 to 3. RCL 0.02 is the remainin balance.
Hewlett-Packard 10B Tutorial
To begin, look at the face of the calculator. Every key (except one, the gold shift key) on the 10B has two functions: each key's primary function is noted in white on the key itself, while each key's
More informationSharp EL-733A Tutorial
To begin, look at the face of the calculator. Almost every key on the EL-733A has two functions: each key's primary function is noted on the key itself, while each key's secondary function is noted in
More informationTexas Instruments BAII PLUS Tutorial
To begin, look at the face of the calculator. Almost every key on the BAII PLUS has two functions: each key's primary function is noted on the key itself, while each key's secondary function is noted in
More informationTexas Instruments BAII PLUS Tutorial
Omar M. Al Nasser, Ph.D., MBA. Visiting Assistant Professor of Finance School of Business Administration University of Houston-Victoria Email: alnassero@uhv.edu Texas Instruments BAII PLUS Tutorial To
More informationHewlett-Packard 17BII Tutorial
To begin, look at the face of the calculator. Most keys on the 17BII have two functions: a key's primary function is noted in white on the key itself, while the key's secondary function is noted in gold
More informationIntroduction. Turning the Calculator On and Off
Texas Instruments BAII PLUS Calculator Tutorial to accompany Cyr, et. al. Contemporary Financial Management, 1 st Canadian Edition, 2004 Version #6, May 5, 2004 By William F. Rentz and Alfred L. Kahl Introduction
More informationCalculator (Hewlett-Packard 10BII) Tutorial
UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT Calculator (Hewlett-Packard 10BII) Tutorial To begin, look at the face of the calculator. Most keys (except a few) have two functions: Each key s primary function
More informationHewlett-Packard 10BII Tutorial
This tutorial has been developed to be used in conjunction with Brigham and Houston s Fundamentals of Financial Management 11 th edition and Fundamentals of Financial Management: Concise Edition. In particular,
More informationTexas Instruments BAII Plus Tutorial for Use with Fundamentals 11/e and Concise 5/e
Texas Instruments BAII Plus Tutorial for Use with Fundamentals 11/e and Concise 5/e This tutorial was developed for use with Brigham and Houston s Fundamentals of Financial Management, 11/e and Concise,
More informationHOW TO USE YOUR HP 12 C CALCULATOR
HOW TO USE YOUR HP 12 C CALCULATOR This document is designed to provide you with (1) the basics of how your HP 12C financial calculator operates, and (2) the typical keystrokes that will be required on
More informationHP 12C Calculations. 2. If you are given the following set of cash flows and discount rates, can you calculate the PV? (pg.
HP 12C Calculations This handout has examples for calculations on the HP12C: 1. Present Value (PV) 2. Present Value with cash flows and discount rate constant over time 3. Present Value with uneven cash
More informationUsing Financial And Business Calculators. Daniel J. Borgia
Using Financial And Business Calculators Daniel J. Borgia August 2000 Table of Contents I. Texas Instruments BA-35 SOLAR II. Texas Instruments BAII PLUS III. Hewlett Packard 12C IV. Hewlett Packard 17BII..
More informationDiscounted Cash Flow Valuation
Discounted Cash Flow Valuation Chapter 5 Key Concepts and Skills Be able to compute the future value of multiple cash flows Be able to compute the present value of multiple cash flows Be able to compute
More informationCHAPTER 9 Time Value Analysis
Copyright 2008 by the Foundation of the American College of Healthcare Executives 6/11/07 Version 9-1 CHAPTER 9 Time Value Analysis Future and present values Lump sums Annuities Uneven cash flow streams
More informationSMART Ink. Windows operating systems. User s guide
SMART Ink Windows operatin systems User s uide Trademark notice SMART Ink, SMART Notebook, SMART Meetin Pro, Bridit, smarttech, the SMART loo and all SMART talines are trademarks or reistered trademarks
More informationThe Time Value of Money
The following is a review of the Quantitative Methods: Basic Concepts principles designed to address the learning outcome statements set forth by CFA Institute. This topic is also covered in: The Time
More informationCourse FM / Exam 2. Calculator advice
Course FM / Exam 2 Introduction It wasn t very long ago that the square root key was the most advanced function of the only calculator approved by the SOA/CAS for use during an actuarial exam. Now students
More informationUsing Financial and Business Calculators. Daniel J. Borgia
Using Financial and Business Calculators Daniel J. Borgia Table of Contents Texas Instruments (TI) BA-35 SOLAR......................................1 Texas Instruments (TI) BA II PLUS........................................11
More informationEhrhardt Chapter 8 Page 1
Chapter 2 Time Value of Money 1 Time Value Topics Future value Present value Rates of return Amortization 2 Time lines show timing of cash flows. 0 1 2 3 I% CF 0 CF 1 CF 2 CF 3 Tick marks at ends of periods,
More informationCHAPTER 2. Time Value of Money 2-1
CHAPTER 2 Time Value of Money 2-1 Time Value of Money (TVM) Time Lines Future value & Present value Rates of return Annuities & Perpetuities Uneven cash Flow Streams Amortization 2-2 Time lines 0 1 2 3
More informationChapter 4 Time Value of Money ANSWERS TO END-OF-CHAPTER QUESTIONS
Chapter 4 Time Value of Money ANSWERS TO END-OF-CHAPTER QUESTIONS 4-1 a. PV (present value) is the value today of a future payment, or stream of payments, discounted at the appropriate rate of interest.
More informationDISCOUNTED CASH FLOW VALUATION and MULTIPLE CASH FLOWS
Chapter 5 DISCOUNTED CASH FLOW VALUATION and MULTIPLE CASH FLOWS The basic PV and FV techniques can be extended to handle any number of cash flows. PV with multiple cash flows: Suppose you need $500 one
More informationHewlett Packard (HP) 10BII
Hewlett Packard (HP) 10BII The HP10BII is programmed to perform two basic types of operations: statistical operations and financial operations. Various types of computations are activated by depressing
More informationHow To Read The Book \"Financial Planning\"
Time Value of Money Reading 5 IFT Notes for the 2015 Level 1 CFA exam Contents 1. Introduction... 2 2. Interest Rates: Interpretation... 2 3. The Future Value of a Single Cash Flow... 4 4. The Future Value
More informationKey Concepts and Skills. Multiple Cash Flows Future Value Example 6.1. Chapter Outline. Multiple Cash Flows Example 2 Continued
6 Calculators Discounted Cash Flow Valuation Key Concepts and Skills Be able to compute the future value of multiple cash flows Be able to compute the present value of multiple cash flows Be able to compute
More informationUNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT, 5ed. Time Value Analysis
This is a sample of the instructor resources for Understanding Healthcare Financial Management, Fifth Edition, by Louis Gapenski. This sample contains the chapter models, end-of-chapter problems, and end-of-chapter
More informationappendix B COMPOUND SUM OF AN ANNUITY OF $1 appendix C PRESENT VALUE OF $1 appendix D PRESENT VALUE OF AN ANNUITY OF $1
appendices appendix A COMPOUND SUM OF $1 appendix B COMPOUND SUM OF AN ANNUITY OF $1 appendix C PRESENT VALUE OF $1 appendix D PRESENT VALUE OF AN ANNUITY OF $1 appendix E TIME VALUE OF MONEY AND INVESTMENT
More informationTIME VALUE OF MONEY. Hewlett-Packard HP-12C Calculator
SECTION 1, CHAPTER 6 TIME VALUE OF MONEY CHAPTER OUTLINE Clues, Hints, and Tips Present Value Future Value Texas Instruments BA II+ Calculator Hewlett-Packard HP-12C Calculator CLUES, HINTS, AND TIPS Present
More informationIntegrated Case. 5-42 First National Bank Time Value of Money Analysis
Integrated Case 5-42 First National Bank Time Value of Money Analysis You have applied for a job with a local bank. As part of its evaluation process, you must take an examination on time value of money
More informationHANDBOOK: HOW TO USE YOUR TI BA II PLUS CALCULATOR
HANDBOOK: HOW TO USE YOUR TI BA II PLUS CALCULATOR This document is designed to provide you with (1) the basics of how your TI BA II Plus financial calculator operates, and (2) the typical keystrokes that
More informationIn this section, the functions of a financial calculator will be reviewed and some sample problems will be demonstrated.
Section 4: Using a Financial Calculator Tab 1: Introduction and Objectives Introduction In this section, the functions of a financial calculator will be reviewed and some sample problems will be demonstrated.
More informationNote: In the authors opinion the Ativa AT 10 is not recommended as a college financial calculator at any level of study
Appendix 1: Ativa AT 10 Instructions Note: DNS = Does Not Calculate Note: Loan and Savings Calculations Automatically round to two decimals. -Clear -Store Data in Memory -Recall Stored Data in Memory [CE]
More informationTime Value of Money. 2014 Level I Quantitative Methods. IFT Notes for the CFA exam
Time Value of Money 2014 Level I Quantitative Methods IFT Notes for the CFA exam Contents 1. Introduction... 2 2. Interest Rates: Interpretation... 2 3. The Future Value of a Single Cash Flow... 4 4. The
More informationChapter 7 SOLUTIONS TO END-OF-CHAPTER PROBLEMS
Chapter 7 SOLUTIONS TO END-OF-CHAPTER PROBLEMS 7-1 0 1 2 3 4 5 10% PV 10,000 FV 5? FV 5 $10,000(1.10) 5 $10,000(FVIF 10%, 5 ) $10,000(1.6105) $16,105. Alternatively, with a financial calculator enter the
More informationContinue this process until you have cleared the stored memory positions that you wish to clear individually and keep those that you do not.
Texas Instruments (TI) BA II PLUS Professional The TI BA II PLUS Professional functions similarly to the TI BA II PLUS model. Any exceptions are noted here. The TI BA II PLUS Professional can perform two
More informationCh. Ch. 5 Discounted Cash Flows & Valuation In Chapter 5,
Ch. 5 Discounted Cash Flows & Valuation In Chapter 5, we found the PV & FV of single cash flows--either payments or receipts. In this chapter, we will do the same for multiple cash flows. 2 Multiple Cash
More informationCALCULATOR TUTORIAL. Because most students that use Understanding Healthcare Financial Management will be conducting time
CALCULATOR TUTORIAL INTRODUCTION Because most students that use Understanding Healthcare Financial Management will be conducting time value analyses on spreadsheets, most of the text discussion focuses
More informationIntroduction to the Hewlett-Packard (HP) 10BII Calculator and Review of Mortgage Finance Calculations
Introduction to the Hewlett-Packard (HP) 10BII Calculator and Review of Mortgage Finance Calculations Real Estate Division Sauder School of Business University of British Columbia Introduction to the Hewlett-Packard
More informationTime Value of Money. 2014 Level I Quantitative Methods. IFT Notes for the CFA exam
Time Value of Money 2014 Level I Quantitative Methods IFT Notes for the CFA exam Contents 1. Introduction...2 2. Interest Rates: Interpretation...2 3. The Future Value of a Single Cash Flow...4 4. The
More informationsubstantially more powerful. The internal rate of return feature is one of the most useful of the additions. Using the TI BA II Plus
for Actuarial Finance Calculations Introduction. This manual is being written to help actuarial students become more efficient problem solvers for the Part II examination of the Casualty Actuarial Society
More informationPower functions: f(x) = x n, n is a natural number The graphs of some power functions are given below. n- even n- odd
5.1 Polynomial Functions A polynomial unctions is a unction o the orm = a n n + a n-1 n-1 + + a 1 + a 0 Eample: = 3 3 + 5 - The domain o a polynomial unction is the set o all real numbers. The -intercepts
More informationPV Tutorial Using Calculator (Sharp EL-738)
EYK 15-2 PV Tutorial Using Calculator (Sharp EL-738) TABLE OF CONTENTS Calculator Configuration and Abbreviations Exercise 1: Exercise 2: Exercise 3: Exercise 4: Exercise 5: Exercise 6: Exercise 7: Exercise
More informationOrdinary Annuities Chapter 10
Ordinary Annuities Chapter 10 Learning Objectives After completing this chapter, you will be able to: > Define and distinguish between ordinary simple annuities and ordinary general annuities. > Calculate
More informationBUSI 121 Foundations of Real Estate Mathematics
Real Estate Division BUSI 121 Foundations of Real Estate Mathematics SESSION 2 By Graham McIntosh Sauder School of Business University of British Columbia Outline Introduction Cash Flow Problems Cash Flow
More informationUsing Financial Calculators
Chapter 4 Discounted Cash Flow Valuation 4B-1 Appendix 4B Using Financial Calculators This appendix is intended to help you use your Hewlett-Packard or Texas Instruments BA II Plus financial calculator
More informationChapter 6 Contents. Principles Used in Chapter 6 Principle 1: Money Has a Time Value.
Chapter 6 The Time Value of Money: Annuities and Other Topics Chapter 6 Contents Learning Objectives 1. Distinguish between an ordinary annuity and an annuity due, and calculate present and future values
More informationTopics. Chapter 5. Future Value. Future Value - Compounding. Time Value of Money. 0 r = 5% 1
Chapter 5 Time Value of Money Topics 1. Future Value of a Lump Sum 2. Present Value of a Lump Sum 3. Future Value of Cash Flow Streams 4. Present Value of Cash Flow Streams 5. Perpetuities 6. Uneven Series
More informationTT03 Financial Calculator Tutorial And Key Time Value of Money Formulas November 6, 2007
TT03 Financial Calculator Tutorial And Key Time Value of Money Formulas November 6, 2007 The purpose of this tutorial is to help students who use the HP 17BII+, and HP10bll+ calculators understand how
More information5. Time value of money
1 Simple interest 2 5. Time value of money With simple interest, the amount earned each period is always the same: i = rp o We will review some tools for discounting cash flows. where i = interest earned
More information3. Time value of money. We will review some tools for discounting cash flows.
1 3. Time value of money We will review some tools for discounting cash flows. Simple interest 2 With simple interest, the amount earned each period is always the same: i = rp o where i = interest earned
More informationThe time value of money: Part II
The time value of money: Part II A reading prepared by Pamela Peterson Drake O U T L I E 1. Introduction 2. Annuities 3. Determining the unknown interest rate 4. Determining the number of compounding periods
More informationBA II Plus Advanced Business Analyst Calculator
BA II Plus Advanced Business Analyst Calculator Quick Guide to Settings and Concepts Purpose of Guide This Quick Guide is a supplement to the BA II Plus Guidebook. It includes brief examples of commonly
More informationNotes on the SHARP EL-738 calculator
Chapter 1 Notes on the SHARP EL-738 calculator General The SHARP EL-738 calculator is recommended for this module. The advantage of this calculator is that it can do basic calculations, financial calculations
More informationTVM Appendix B: Using the TI-83/84. Time Value of Money Problems on a Texas Instruments TI-83 1
Before you start: Time Value of Money Problems on a Texas Instruments TI-83 1 To calculate problems on a TI-83, you have to go into the applications menu, the blue APPS key on the calculator. Several applications
More information9.1 9.1. Graphical Solutions to Equations. A Graphical Solution to a Linear Equation OBJECTIVES
SECTION 9.1 Graphical Solutions to Equations in One Variable 9.1 OBJECTIVES 1. Rewrite a linear equation in one variable as () () 2. Find the point o intersection o () and () 3. Interpret the point o intersection
More informationBA-35 Solar Quick Reference Guide
BA-35 Solar Quick Reference Guide Table of Contents General Information... 2 The Display... 4 Arithmetic Operations... 6 Correcting Errors... 7 Display Formats... 8 Memory Operations... 9 Math Operations...
More informationhp calculators HP 17bII+ Discounting & Discounted Cash Flow Analysis It's About Time The Financial Registers versus Discounted Cash Flow
HP 17bII+ Discounting & Discounted Cash Flow Analysis It's About Time The Financial Registers versus Discounted Cash Flow Discounting a Single Sum Discounting and Compounding Discounting a Series of Sums
More informationBASICS. Access blue functions with [Shift up] Access orange functions with [Shift down]
CALCULATOR COURSE BASICS Most keys have three functions: Primary function printed in white Secondary function printed in orange Tertiary function printed in blue Access blue functions with [Shift up] Access
More information14 Financial. Functions. Financial Functions 14-1. Contents
14 Financial Functions Contents Getting Started: Financing a Car... 14-2 Getting Started: Computing Compound Interest... 14-3 Using the TVM Solver... 14-4 Using the Financial Functions... 14-5 Calculating
More informationChapter 4. The Time Value of Money
Chapter 4 The Time Value of Money 1 Learning Outcomes Chapter 4 Identify various types of cash flow patterns Compute the future value and the present value of different cash flow streams Compute the return
More informationPurpose EL-773A HP-10B BA-II PLUS Clear memory 0 n registers
D-How to Use a Financial Calculator* Most personal finance decisions involve calculations of the time value of money. Three methods are used to compute this value: time value of money tables (such as those
More informationSolving Equations and Inequalities Graphically
4.4 Solvin Equations and Inequalities Graphicall 4.4 OBJECTIVES 1. Solve linear equations raphicall 2. Solve linear inequalities raphicall In Chapter 2, we solved linear equations and inequalities. In
More informationExercise 1 for Time Value of Money
Exercise 1 for Time Value of Money MULTIPLE CHOICE 1. Which of the following statements is CORRECT? a. A time line is not meaningful unless all cash flows occur annually. b. Time lines are useful for visualizing
More informationTime-Value-of-Money and Amortization Worksheets
2 Time-Value-of-Money and Amortization Worksheets The Time-Value-of-Money and Amortization worksheets are useful in applications where the cash flows are equal, evenly spaced, and either all inflows or
More informationIntroduction to the Time Value of Money
Module 3 Introduction to the Time Value of Money David Mannaioni CPCU, CLU, ChFC, CFP 7483 This publication may not be duplicated in any way without the express written consent of the publisher. The information
More informationTime Value of Money. If you deposit $100 in an account that pays 6% annual interest, what amount will you expect to have in
Time Value of Money Future value Present value Rates of return 1 If you deposit $100 in an account that pays 6% annual interest, what amount will you expect to have in the account at the end of the year.
More informationClick Here to Buy the Tutorial
FIN 534 Week 4 Quiz 3 (Str) Click Here to Buy the Tutorial http://www.tutorialoutlet.com/fin-534/fin-534-week-4-quiz-3- str/ For more course tutorials visit www.tutorialoutlet.com Which of the following
More informationDiscounted Cash Flow Valuation
6 Formulas Discounted Cash Flow Valuation McGraw-Hill/Irwin Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Outline Future and Present Values of Multiple Cash Flows Valuing
More informationChapter 6. Learning Objectives Principles Used in This Chapter 1. Annuities 2. Perpetuities 3. Complex Cash Flow Streams
Chapter 6 Learning Objectives Principles Used in This Chapter 1. Annuities 2. Perpetuities 3. Complex Cash Flow Streams 1. Distinguish between an ordinary annuity and an annuity due, and calculate present
More informationDick Schwanke Finite Math 111 Harford Community College Fall 2015
Using Technology to Assist in Financial Calculations Calculators: TI-83 and HP-12C Software: Microsoft Excel 2007/2010 Session #4 of Finite Mathematics 1 TI-83 / 84 Graphing Calculator Section 5.5 of textbook
More information2016 Wiley. Study Session 2: Quantitative Methods Basic Concepts
2016 Wiley Study Session 2: Quantitative Methods Basic Concepts Reading 5: The Time Value of Money LESSO 1: ITRODUCTIO, ITEREST RATES, FUTURE VALUE, AD PREST VALUE The Financial Calculator It is very important
More informationChapter 6. Discounted Cash Flow Valuation. Key Concepts and Skills. Multiple Cash Flows Future Value Example 6.1. Answer 6.1
Chapter 6 Key Concepts and Skills Be able to compute: the future value of multiple cash flows the present value of multiple cash flows the future and present value of annuities Discounted Cash Flow Valuation
More informationBasic Financial Tools: A Review. 3 n 1 n. PV FV 1 FV 2 FV 3 FV n 1 FV n 1 (1 i)
Chapter 28 Basic Financial Tools: A Review The building blocks of finance include the time value of money, risk and its relationship with rates of return, and stock and bond valuation models. These topics
More informationChapter 5 Time Value of Money 2: Analyzing Annuity Cash Flows
1. Future Value of Multiple Cash Flows 2. Future Value of an Annuity 3. Present Value of an Annuity 4. Perpetuities 5. Other Compounding Periods 6. Effective Annual Rates (EAR) 7. Amortized Loans Chapter
More informationThe Mathematics of Financial Planning (supplementary lesson notes to accompany FMGT 2820)
The Mathematics of Financial Planning (supplementary lesson notes to accompany FMGT 2820) Using the Sharp EL-738 Calculator Reference is made to the Appendix Tables A-1 to A-4 in the course textbook Investments:
More informationCasio Financial Consultant A Supplementary Reader - Part 2
Casio Financial Consultant A Supplementary Reader - Part 2 An Electronic Publication By Contents i CASIO Financial Consultant: A Supplementary Reader - Part 2 CONTENTS Page Introduction ii Compound Interest
More informationChapter F: Finance. Section F.1-F.4
Chapter F: Finance Section F.1-F.4 F.1 Simple Interest Suppose a sum of money P, called the principal or present value, is invested for t years at an annual simple interest rate of r, where r is given
More informationFuture Value. Basic TVM Concepts. Chapter 2 Time Value of Money. $500 cash flow. On a time line for 3 years: $100. FV 15%, 10 yr.
Chapter Time Value of Money Future Value Present Value Annuities Effective Annual Rate Uneven Cash Flows Growing Annuities Loan Amortization Summary and Conclusions Basic TVM Concepts Interest rate: abbreviated
More informationhp calculators HP 20b Time value of money basics The time value of money The time value of money application Special settings
The time value of money The time value of money application Special settings Clearing the time value of money registers Begin / End mode Periods per year Cash flow diagrams and sign conventions Practice
More informationImportant Financial Concepts
Part 2 Important Financial Concepts Chapter 4 Time Value of Money Chapter 5 Risk and Return Chapter 6 Interest Rates and Bond Valuation Chapter 7 Stock Valuation 130 LG1 LG2 LG3 LG4 LG5 LG6 Chapter 4 Time
More informationFinance 331 Corporate Financial Management Week 1 Week 3 Note: For formulas, a Texas Instruments BAII Plus calculator was used.
Chapter 1 Finance 331 What is finance? - Finance has to do with decisions about money and/or cash flows. These decisions have to do with money being raised or used. General parts of finance include: -
More informationTIME VALUE OF MONEY (TVM)
TIME VALUE OF MONEY (TVM) INTEREST Rate of Return When we know the Present Value (amount today), Future Value (amount to which the investment will grow), and Number of Periods, we can calculate the rate
More informationHP 20b Business Consultant HP 30b Business Professional Financial Calculator User s Guide
HP 20b Business Consultant HP 30b Business Professional Financial Calculator User s Guide HP Part Number: NW238-90001 Edition 1, March 2010 i Legal Notice This manual and any examples contained herein
More informationFormulas, Symbols, Math Review, and Sample Problems
Formulas, Symbols, Math Review, and Sample Problems Mathematics and Analytical Skills Review... 1 Summary of Basic Formulas... 11 Direct Capitalization... 11 Yield Capitalization... 13 Present Value of
More informationPRESENT VALUE ANALYSIS. Time value of money equal dollar amounts have different values at different points in time.
PRESENT VALUE ANALYSIS Time value of money equal dollar amounts have different values at different points in time. Present value analysis tool to convert CFs at different points in time to comparable values
More informationHow to calculate present values
How to calculate present values Back to the future Chapter 3 Discounted Cash Flow Analysis (Time Value of Money) Discounted Cash Flow (DCF) analysis is the foundation of valuation in corporate finance
More informationBA II PLUS Calculator
BA II PLUS Calculator 1997, 2002 Texas Instruments Incorporated Important Texas Instruments makes no warranty, either expressed or implied, including but not limited to any implied warranties of merchantability
More informationfirst complete "prior knowlegde" -- to refresh knowledge of Simple and Compound Interest.
ORDINARY SIMPLE ANNUITIES first complete "prior knowlegde" -- to refresh knowledge of Simple and Compound Interest. LESSON OBJECTIVES: students will learn how to determine the Accumulated Value of Regular
More informationPV Tutorial Using Excel
EYK 15-3 PV Tutorial Using Excel TABLE OF CONTENTS Introduction Exercise 1: Exercise 2: Exercise 3: Exercise 4: Exercise 5: Exercise 6: Exercise 7: Exercise 8: Exercise 9: Exercise 10: Exercise 11: Exercise
More informationEXCEL PREREQUISITES SOLVING TIME VALUE OF MONEY PROBLEMS IN EXCEL
CHAPTER 3 Smart Excel Appendix Use the Smart Excel spreadsheets and animated tutorials at the Smart Finance section of http://www.cengage.co.uk/megginson. Appendix Contents Excel prerequisites Creating
More informationTVM Applications Chapter
Chapter 6 Time of Money UPS, Walgreens, Costco, American Air, Dreamworks Intel (note 10 page 28) TVM Applications Accounting issue Chapter Notes receivable (long-term receivables) 7 Long-term assets 10
More informationReducing balance loans
Reducing balance loans 5 VCEcoverage Area of study Units 3 & 4 Business related mathematics In this chapter 5A Loan schedules 5B The annuities formula 5C Number of repayments 5D Effects of changing the
More informationFinance Unit 8. Success Criteria. 1 U n i t 8 11U Date: Name: Tentative TEST date
1 U n i t 8 11U Date: Name: Finance Unit 8 Tentative TEST date Big idea/learning Goals In this unit you will study the applications of linear and exponential relations within financing. You will understand
More information2. How would (a) a decrease in the interest rate or (b) an increase in the holding period of a deposit affect its future value? Why?
CHAPTER 3 CONCEPT REVIEW QUESTIONS 1. Will a deposit made into an account paying compound interest (assuming compounding occurs once per year) yield a higher future value after one period than an equal-sized
More informationBA II PLUS Calculator
BA II PLUS Calculator Important Information Texas Instruments makes no warranty, either express or implied, including but not limited to any implied warranties of merchantability and fitness for a particular
More informationBank: The bank's deposit pays 8 % per year with annual compounding. Bond: The price of the bond is $75. You will receive $100 five years later.
ü 4.4 lternative Discounted Cash Flow Decision Rules ü Three Decision Rules (1) Net Present Value (2) Future Value (3) Internal Rate of Return, IRR ü (3) Internal Rate of Return, IRR Internal Rate of Return
More informationThe explanations below will make it easier for you to use the calculator. The ON/OFF key is used to turn the calculator on and off.
USER GUIDE Texas Instrument BA II Plus Calculator April 2007 GENERAL INFORMATION The Texas Instrument BA II Plus financial calculator was designed to support the many possible applications in the areas
More informationMHSA 8630 -- Healthcare Financial Management Time Value of Money Analysis
MHSA 8630 -- Healthcare Financial Management Time Value of Money Analysis ** One of the most fundamental tenets of financial management relates to the time value of money. The old adage that a dollar in
More informationTI-86 Financial Functions
TI-86 Financial Functions Loading and Installing Finance Features on Your TI-86... 2 Loading the Finance Features into TI-86 Memory... 2 Installing the Finance Features for Use... 2 Displaying the FIN
More informationChapter 5 & 6 Financial Calculator and Examples
Chapter 5 & 6 Financial Calculator and Examples Konan Chan Financial Management, Spring 2016 Five Factors in TVM Present value: PV Future value: FV Discount rate: r Payment: PMT Number of periods: N Get
More information