HP 10B - Manual (Page 100)

COST% -
DISC% X 360 X 100
((100 - D1SC%) X (TOTAL DAYS - DISC DAYS))
DISC% is ihc discount percent if the payment is made early. TOTAL
DAYS is the total number of days until the bill must be paid. D/5C DAYS
is the number of days for which the discount is available.
Example.
You receive a bill with the credit terms 2/10, NET/30. What
Is the cost of not taking the cash discount?
Keys: Display: Description:
2 0 360 (x) 100 (3 72,000.00 Calculates numerator in
equation.
■Ш as 100 0 2 Parentheses force order
1 Ш
98.00 of calculation.
0 аш 30 010 0 36.73 Calculates, as an annual
percentage rate, cost of
not taking discount.
Loans and Mortgages
Simple Annual Interest
Example.
Your good friend needs a loan to start his latest enterprise
and has requested that you lend him $450 for 60 days. You lend him the
money at 10% simple annual interest, to be calculated on a 365-day basis.
How much interest will he owe you in 60 days, and what is the total
amount owed?
This equation is used for calculating simple annual interest using a 365
day year:
INTEREST -
LOAN AMOUNT X INTEREST%x TERM OF LOAN (IN DAYS)
365
8: Additional Examples 97