Clearing tvm, Begin and end modes, Loan calculations – HP 10B User Manual

Page 56: Part 1, Example: a car loan

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Clearing TVM

Press

BICLEAR ALLI lo dear the TVM registers. This sets

N, f/YR, PV,

PM Ty

and

to zero and briefly displays the current value in

P/YR,

Begin and End Modes

OOODOQj
OOOOOC'

CZDOOOCii

OOOOCl

ooooc^

oooac

{OBOOc:

Before you start a TVM calculation, identify whether the

first periodic payment occurs at the beginning or end of the

first period. If the first payment occurs at the end of the first

period, set your HP-lOB to End mode; if it occurs at the

beginning of the first period, set your calculator to Begin

mode.

To switch between modes, press BlBEG/ENDl. The BEGIN annunciator is

displayed when your calculator is in Begin mode. No annunciator is

displayed when you arc in End mode.

Mortgages and loans typically use End mode. Leases and savings plans

typically use Begin mode.

Loan Calculations

Example: A Car Loan.

You arc financing a new car with a three year

loan at 10.5% annual nominal interest, compounded monthly. The price

of the car is S7,250. Your down payment is $1,500.

Part 1

. What arc your monthly payments at 10.5% interest? (Assume

your payments start one month after the purchase or at the end of the

first period.)

5: Time Value of Money Calculations S3