Picturing financial problems, How to approach a financial problem – HP 10B User Manual
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4
Picturing Financial Problems
How to Approach a Financial Problem
The financial vocabulary of the HP-lOB is simplified to apply to all finan
cial fields. For example, your profession may use the term
balance, bal
loon payment, residual, maturity \^alue,
or
remaining amount
to designate a
value that the HP-lOB knows as
(E3
(future value).
The simplified terminology of the HP-lOB is based on cash flow diagrams.
Cash flow diagrams are pictures of financial problems that show cash
flows over time. Drawing a cash flow diagram is the first step to solving a
financial problem.
The following cash flow diagram represents investments in a mutual fund.
The original investment was $7,000.00, followed by investments of
$5,000.00 and $6,000.00 at the end of the third and sixth months. At the
end of the 11th month, $5,000.00 was withdrawn. At the end of the 16lh
month, $16,567.20 was withdrawn.
4: Picturing Financial Problema 43