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# HP 10b Calculator - TVM Examples

Description
The following problems are taken from the article "Mastering the Math Behind Your Money" in the May 1989 issue of Money magazine. The article provided keystrokes for the HP 12c calculator. The following keystrokes show the solutions for the same problems using the HP 10b. Please note that there are some calculations that will be slightly different due to rounding of some numbers on the part of the authors of the article.
Calculator symbol key
The procedures in this document use the following text to represent symbol keys:
 Key Description Text Representation colored key; shift key SHIFT
I. How much should be saved?
Set to BEGIN mode. Press SHIFT, then BEG/END if annunciator is not displayed.
 Keys Display Description Press 1, SHIFT, then P/YR 1.00 Sets annual compounding Press 2879, [+/-], then PV -2,879.00 Stores today's money value Press 7, then I/YR 7.00 Calculates future cost Press 10, then N 10.00 Press 0, then PMT 0.00 Press FV 5,663.43 Press 12, SHIFT, then P/YR 12.00 Sets monthly compounding and payments Press 0, then PV 0.00 Calculates monthly investment Press 120, then N 120.00 Press 8.5, then I/YR 8.50 Press PMT -29.89
II. How big of a mortgage can be afforded?
Set to END mode. Press SHIFT, then BEG/END if BEGIN annunciator is displayed.
 Keys Display Description Press 12, SHIFT, then P/YR 12.00 Sets monthly payments Press 360, then N 360.00 Stores known values Press 1100, [+/-], then PMT -1.100.00 Press 11, then I/YR 11.00 Press 0, then FV 0.00 Press PV 115,506.98 Calculates mortgage amount
##### note:
The difference in mortgage amount is because the article used a rounded figure for interest rate on the HP 12c.
III. What is really being earned on investments?
Set to END mode. Press SHIFT, then BEG/END if BEGIN annunciator is displayed.
 Keys Display Description Press 1, SHIFT, then P/YR 1.00 Sets annual payments Press 5000, [+/-], then PV -5,000.00 Stores known values Press 8000, then FV 8,00 Press 3, then N 3.00 Press 0, then PMT 0.00 Press I/YR 16.96 Calculates annual return
The following routines give solutions to several problems mentioned in the body of the article. All solutions assume the calculator is set to END mode.
Press SHIFT, then BEG/END if BEGIN annunciator is displayed.
Home
What are the monthly payments on a loan?
 Keys Display Description Press 12, SHIFT, then P/YR 12.00 Sets monthly payments Press 110000, then PV 110,000 Stores known values Press 360, then N 360.00 Press 11, then I/YR 11.00 Press 0, then FV 0.00 Press PMT -1,047.56 Calculates monthly payment
 Keys Display Description Press 12, SHIFT, then P/YR 12.00 Sets monthly payments Press 321, [+/-],then PMT -321.00 Stores known values Press 48, then N 48.00 Press 6, then I/YR 6.00 Press 0, then FV 0.00 Press PV 13,668.28 Calculates the price to buy
Discounting \$5,000 over 4 years at 6 percent inflation:
 Keys Display Description Press 12, SHIFT, then P/YR 12.00 Sets monthly compounding Press 48, then N 48.00 Stores known values Press 6 then I/YR 6.00 Press 5000, then FV 5,000.00 Press 0, then PMT 0.00 Press PV -3,935.49 Calculates today's value of Projected resale
The lease option:
 Keys Display Description Press 12, SHIFT, then P/YR 12.00 Sets monthly payments Press 48, then N 48.00 Stores known values Press 6, then I/YR 6.00 Press 325, [+/-], then PMT -325.00 Press 0, then FV 0.00 Press PV 13,838.60 Calculates the price to lease
Investments
What is the value of future income from annuity or other investments?
 Keys Display Description Press 12, SHIFT, then P/YR 12.00 Sets monthly payments Press 2500, then PMT 2,500.00 Stores known values Press 204, then N 204.00 Press 8, then I/YR 8.00 Press 0, then FV 0.00 Press PV -278,316,83 Calculates today's value of the future income
##### note:
The difference in the amount of today's value is due to the fact that the article used a rounded figure for interest.
What is the yield to maturity (of a bond)?
 Keys Display Description Press 1, SHIFT, then P/YR 1.00 Sets annual payments Press 110, then PMT 110.00 Stores known values Press16, then N 16.00 Press 900, [+/-], then PV -900.00 Press 1000, then FV 1,000.00 Press I/YR 12.47 Calculates yield
What is the interest-rate risk on a bond?
 Keys Display Description Press 1, SHIFT, then P/YR 1.00 Sets annual payments Press 1000, then FV 1,000.00 Stores known values Press 100, then PMT 100.00 Press 10, then N 10.00 Press 11, then I/YR 11.00 Press PV -941.11 Calculates the price
What if the rates drop to 9 percent?
 Keys Display Description Press 9, then I/YR 9.00 Stores new interest rate Press PV -1,064.18 Calculates price

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