Keys, Display, Description – HP 10B User Manual

Page 67: Step 1

Attention! The text in this document has been recognized automatically. To view the original document, you can use the "Original mode".

Ii‘ the annual interest rate is 18%, what is the capitalized value of the

lease?

Begin Mode

PV = ?

This solution requires four steps.

1. Calculate the present value of the 47 monthly payments:

(4x12) -1 = 47.

2. Add the value of the additional advance payment.

3. Find the present value of the buy option.

4. Sum the values calculated in steps 2 and 3.

Step 1-

Find the present value of the monthly payments.

Set to Begin mode. Press BIBEG/ENDI if annunciator is not displayed.

Keys:

121[P/Y~R1

47(H)

2400 (EMI

Display:

12.00

47.00

-2,400.00

Description:

Sets payments per year.

Stores number of

payments.

Stores monthly payment.

5: Time Value of Money Calculations