Time value of money calculations, Using the tvm application – HP 10B User Manual
Page 54
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5
Time Value of Money Calculations
Using the TVM Application
____i.i The time value of money (TVM) application is used for com-
pound interest calculations that involve regular, uniform cash
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.
nows —called payments. Once the values arc entered you
can vary one value at a time, without entering all (he values
again.
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To use TVM, several prerequisites must be met:
■ The amount of each payment must be the same. If the payment
amounts vary, use the procedures described in chapter
6
, “Cash Flow
Calculations.”
Bt Payments must occur at regular intervals.
■ The payment period must coincide with the interest compounding
period. (If it docs not, convert (lie inlercsl rate using the B|
BiEFF%l. and B(EZ
yr
) keys described on page 71.)
o There must be at least one positive and one negative cash flow.
5: Time Value of Money Catculationt 51