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HP 20B User's Manual

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1. Y Population Dev Population Standard deviation for Y a measure of how dispersed the y data values are aboutthe mean assuming the data constitutes a complete set of data S E SamP X Sample error for X a measure of how dispersed the X data values are about the mean sample standard deviation assuming the data is a sampling of a larger more complete data set S E SamP Y Sample error for Y a measure of how dispersed the Y data values are about the mean sample standard deviation assuming the data is a sampling of a larger more complete data set Pred X Predicts X for a given hypothetical value of Y based upon the model calculated to fit the data Pred Y Predicts Y for a given hypothetical value of X based upon the model calculated to fit the data a The a coefficient for the chosen regression model which is the slope for a linear model b The b coefficient for the chosen regression model which is the y intercept for a linear model Correlation The correlation coefficient for the given x y data The correlation coefficient is a number in the range 1 through 1 that measures how closely the calculated line fits the data Covariance A measure of how much two variables change in relation to one another Sigma X The sum of the x values 62 Table 10 1 The Statistics Menu Items Statistical Operations Menu Item Description Sigma Y The sum of the y values Sigma X The sum o
2. Adds 1 23 and 56 123 then divides the sum by the ie last number 56 123 Returns results in the selected display format For more complex problems requiring two or more operations you do not need to enter parentheses to set operational priority Key in numbers and operations inside the parentheses first followed by those outside of the parentheses If a problem has more than one set of parentheses start by working with the operations and numbers in the innermost parentheses and work out For example calculate 3 4 x 5 6 One way to calculate this problem is to key in the numbers and operations within the parentheses first followed by the operation outside of the parentheses See Table 2 3 Table 2 3 Simple Arithmetic Calculations in RPN Mode Keys Display Description RPN Stack 3 IT wer ca Inputs the numbers and the 100 Previous Value operation in the first set of parentheses Intermediate results are displayed Note Previous Value the and RPN annunciators am Inputs the numbers and the 1 iin AC Previous Value tuu operation in the second set of parentheses Intermediate results are displayed Note Previous Value the annunciator 20 Mathematical Calculations Table 2 3 Simple Arithmetic Calculations in RPN Mode Keys Display Description RPN Stack x a Finishes the operation and l 3400 Previous Value wy displays the result
3. Depreciation Method Sline Description Straight line is a method of calculating depreciation presuming an asset loses a certain percentage of its value annually at an amount evenly distributed throughout its useful life SOYD Sum of the years digits is an accelerated depreciation method In SOYD the depreciation in year Y is Life Y 1 SOY 100 of the asset where SOY is the sum of the years for the asset or for an asset with a 5 year life 5 4 3 2 1 15 DecBal Declining balance is an accelerated depreciation method that presumes an asset will lose the majority of its value during the first few years of its useful life DBXover Declining balance crossover is an accelerated depreciation method that presumes an asset will lose the majority of its value in the first few years of its useful life but that it will revert to a consistent depreciation during the latter part of its life which is then calculated using the straight line method French SL Straight line French This method of depreciation is similar to the Straight line method except an actual calendar date in the selected format is entered in for Startto indicate when the asset was first placed into service Amort F French amortization This method is an accelerated depreciation method with a crossover to the French Straight Line method Table 9 2 Depreciation Menu Items Item Description Life The expected useful life of the a
4. ER Insufficient Memory Insufficient memory to complete the operation ER No Solution Found No solution found 66 12 Warranty Regulatory and Contact Information Replacing the Batteries Use only fresh batteries Do not use rechargeable batteries The calculator takes two 3 volt CR2032 lithium batteries To install a new battery With the calculator turned off slide the back cover off Remove one ofthe old batteries and replace it with a new battery with the positive polarity symbol facing outward C ees Remove the second battery and replace it with a new battery with the positive polarity symbol facing outward 4 Replace the back cover Warning There is danger of explosion if the battery is incorrectly replaced Replace only with the same or equivalent type recommended by the manufacturer Dispose of used batteries according to the manufacturer s instructions Do not mutilate puncture or dispose of batteries in fire The batteries can burst or explode releasing hazardous chemicals HP Limited Hardware Warranty and Customer Care This HP Limited Warranty gives you the end user customer express limited warranty rights from HP the manufacturer Please refer to HP s Web site for an extensive description of your limited warranty entitlements In addition you may also have other legal rights under applicable local law or special written agreement with HP Limited Hardware Warranty Period Duration 12 months total m
5. Executes the Random function Returns a random number in the range 0 lt x 1 ed EJ Calculates factorial of x where 253 lt x lt 253 The Gamma function is used to calculate x for non integers or negative numbers Est Calculates y to the x power kl Calculates the reciprocal e In Chain or Algebraic mode recalls the result of the last operation In RPN mode returns the content of the Last Number variable ms Rounds x internally to the number specified by the display format The Math Z3 Menu There are additional functions available in the Math menu To open the Math menu press E See Figure 8 for the menu map of the Math menu 23 Mathematical Calculations kl DWN ABS Absolute Value Trigonometry DWN DWN Probability Hyperbolic INPUT INPUT INPUT H 1 LTND DWN DWN DWN 1 COSH LTND DWN DWN TANH cos DWN DWN DWN DWN Chi E DWN TAN h Ol o EE DWN F Distribution DWN F Distribution Figure 8 The Menu Map for the Math Menu Press to scroll through the menu items starting with Trigonometry The Trigonometry H yperbolic and Probability items have sub menus Press with these items displayed to access the functions within the sub menus Press to cancel the Math menu and return to current work Press E to return to the top of the Math menu For an example using the math menu to calculate Sin 1
6. 0 5 see Table 2 5 24 Mathematical Calculations Table 2 5 Math Menu Example Keys Display Description Tri onome zi Enters 0 5 and opens the Math menu starting with ES Trigonometry Es ZIH3 Selects the Trigonometry sub menu and scrolls to Sint ann LU Note the value for Sin is calculated immediately and displayed or Validates the result 3888 LAL In the Math menu P does not perform calculations it enters P for calculations You may start an operation use the Math menu to execute a function and continue calculating with your original operation without losing your work The Probability Sub menu Lower Tail Normal Distribution LTND calculates the probability for a normally distributed random variable to be less than the input Inverse Lower Tail Normal Distribution LTND 1 is the inverse function for LTND it calculates the value V for which the probability of a normally distributed random variable to be less than V is the given input Student Inverse Student Chi2 Inverse Chi2 F Distribution and Inverse F Distribution perform similar operations for Student Chi2 and F Distributions Student Chi and F Distribution and their inverse operations are special cases as they require more than one number as input Student and Chi require N the number of degrees of freedom and F Distribution requires N1 and N2 two degrees of freedom To perform Student
7. 2 found to the right of a variable When an item for which the key is valid displays the INPUT annunciator is displayed on the top line atthe right of the screen Editing and Clearing Entries ONICE The On CE Key Pressing one time cancels current number entries mathematical operations or a menu selection in that order Pressing repeatedly when performing multiple operations cancels one operation at a time from the latest to the earliest The Reset KAJ Menu The Reset menu allows you to reset some or all of the menu items variables and registers to their default values To open the Reset menu press E TVM displays on the top line Press or repeatedly to scroll to a TOT x INPUT specific item To validate a choice and reset the selected items press Press to cancel If you select the command to reset the cash flow Cash Flow statistics Stats or all values All items you will be prompted to confirm your choice Atthe Del All Del Data and Del CF prompts press again to confirm the reset or to cancel While working within a specific menu pressing takes you directly to the item of the Reset menu that allows you to resetthat specific menu For example if you are working in the Bond menu and you wish to reset all your entries in the Bond menu with any item of the Bond menu displayed press mm Bond displays on screen Atthis prompt pressing resets the Bond menu and returns you to the last item you w
8. Depreciation Example nennen enne nennen nnns 58 10 Statistical Operations The Data and Stats Menus sssssssseseeeeneeeeennnn nennen nennen nera nn nannat 61 Contents Statistics E Xa MM Plea ico oie Eise ates dp dpi pede ied e Red 63 11 Errors Error Messages and Calculator Status erre aeee 65 12 Warranty Regulatory and Contact Information Replacing the Batterles e i te eee ie Ie PO Ur e Ee do diei ons 67 HP Limited Hardware Warranty and Customer Care 67 C storrier Cate oU ta vu m eae e EE 68 Product Regulatory amp Environment Information ecran n 71 Index HP 20b Business Consultant Keyboard HP 20b Business Consultant 16 E NES ZEE N vm D PMT 15 ES vs 14 CshFl IRR NPV Bond me 13 Lr 12 E INPUT G 11 10 9 Keyboard Map Legend No Feature Chapter s Feature Chapter s 1 Time Value of Money keys 3 16 Annunciator display area 1 2 Cash Flows IRR and NPV 4 15 Amortization and Depreciation 3 8 menus menus 3 Data and Statistics menus 9 14 key and Percent 2 6 Calculation menu 4 Input key 1 13 Store and Recall 2 5 Memory menu 1 12 Break even menu 6 6 Up Insert and Down Delete 1 11 Backspace key and Reset 1 keys menu 7 Secondary function key 1 10 Math Menu 2 8 On Off and clear entry key 1 9 Mathematical function keys 2 1 Basic Features Welcome to the HP 20b Financial Calculator This manual is designed to familiarize you with the many feat
9. remaining book value 58 remaining depreciable value 58 Reset key 13 roll down See RPN rounding numbers RND key 23 RPN Reverse Polish Notation 18 RPN stack 18 S S E SamP X and Y 61 salvage depreciation 58 scientific notation EEX key 16 scroll up and down arrow keys 8 semiannual bond 47 Sigma X Y 61 sign positive negative key 16 sine SIN key 23 slope 61 square of x key 23 square root key 23 standard deviation 61 start amortization period 33 start date depreciation 58 75 Index statistics menu items 62 one variable 61 one variable weighted 61 Stats key 61 two variable 61 statistics example 63 stats menu 61 storing numbers STO key 27 student 25 sums sub menu See Statistics swap See RPN symbol battery 7 T tangent TAN key 23 thousands separator 9 time value of money keys 32 top line display 8 total cash flows 43 TVM example 32 storing and recalling numbers 28 U up arrow key See scroll X x Sigma 62 square of Sigma x 63 times payment per year xP YR key 32 x mean 62 x mean sample 62 x population Std Dev 62 x prediction 62 x standard deviation 62 Y y Sigma 63 square of Sigma y 63 y mean 62 y mean sample 62 y population Std Dev 62 y prediction 62 y standard deviation 62 y to the x power 23 y intercept 61
10. the active operating mode Percent Calculation Examples See Tables 8 1 through 8 4 for examples of calculations in the calc menu 1 Find the markup on an item if the cost price is 15 00 and the selling price is 22 00 See Table 8 1 Table 8 1 Markup Example Keys Display Description Mhup zt Opens the calc menu Cost KC Opens the Mkup C sub menu RAF LILILI 5 meur Cost Inputs 15 for Cost IAU Price me Inputs 22 for Price ees Houf ZU zz Calculates the value of Mkup C for the given data 455 1 2 Find the percent change between 20 and 35 with no compounding Table 8 2 Percent Change Example Keys Display Description BS HRUP XG Opens the calc menu Change Scrolls to Change Old i Opens the Change sub menu LI EIS E Old Inputs 20 for Old cODU fv f 3 s5 3500 D meur 0 EE Calculates the current value of 6 Change for the given 2uu data Business Problems Note although the example in Table 8 2 calls for no compounding you may specify the number of compounding periods used in calculations with the Nb Period item in the Change sub menu Nb Period is the number of compounding periods used in calculations between the old value and new value The default is 1 but to change the setting key in a number with Nb Period displayed followed by After calculating the
11. 8000 51 4746 8368 Costa Rica 0 800 011 0524 Denmark 82 33 28 44 Deutschland 069 9530 7103 Ecuador 800 711 2884 El Salvador 800 6160 Espa a 913753382 France 01 4993 9006 68 Table 12 1 Contact Information Warranty Regulatory and Contact Information Country Region Greece Edda Contact 210 969 6421 Guatemala 1 800 999 5105 Honduras 800 711 2884 Hong Kong F 4 gl fT BE 852 2833 1111 www hp com support india India Indonesia 65 6100 6682 Ireland 01 605 0356 Italia 02 754 19 782 Japan BA 81 3 6666 9925 Korea t www hp com support korea Magyarorsz g www hp com support Malaysia 65 6100 6682 M xico 01 800 474 68368 Middle East International www hp com support Netherland 020 654 5301 New Zealand 0800 55 1 664 1 800 711 2884 Nicaragua Norwegen 23500027 Osterreich 01 360 277 1203 Panama 001 800 71 1 2884 Paraguay 009 800 541 0006 Per 0 800 10111 Philippines 65 6100 6682 Polska www hp com support Portugal 021 318 0093 69 Table 12 1 Contact Information Country Region Puerto Rico Warranty Regulatory and Contact Information Contact 1 877 232 0589 Russia Poccua 495 228 3050 o 01 439 5358 Baue 6100 6682 South Africa 0800980410 South Korea 2 561 2700 Suisse francais 022 827 8780 Suomi 09 8171 0281 Sverige 08 5199 2065
12. DBXover Year Depreciation R Book Value R Depreciable Value Figure 1 The Menu Map for the Depreciation Menu The Depreciation Menu Press fed to open the Depreciation menu To select a depreciation method press repeatedly See Figure 1 Input the values required for the calculation e Assetlife e Starting date or month of the deprecation e Costand salvage values e Declining balance factor DecBal and DBXover only e The first year for which you want to view the depreciation schedule Scroll through the items of the sub menu for the selected depreciation method by pressing or repeatedly To change the value of the displayed item key in a number and press For the Start item enter either a number or an actual date depending on the type of depreciation selected P ress repeatedly to view the depreciation schedule 56 Depreciation Note pressing on the last item of a sub menu returns you to the Year item not to the top of the sub menu see Figure 1 By scrolling through all the items of a sub menu you incrementally advance the Year item This allows you to see the depreciation schedule for the next year without additional entries Brief descriptions of the methods used to calculate depreciation are provided in Table 9 1 Table 9 2 describes the items found in the depreciation sub menus For an example calculating depreciation using the straight line method see Table 9 3 Table 9 1 Depreciation Methods
13. Level 2 of the stack and thus allows you to perform addition or subtraction after pressing to add or subtract x96 from the number For example returns 50 but 200 is still on Level 2 of the stack and pressing returns 150 or 200 2596 29 3 lime Value of Money The examples in the following sections are calculated with the Mode menu preferences in their default settings unless otherwise noted For more information about basic features and setting preferences see Chapter 1 Basic Features Time Value of Money TVM Keys Cash flow diagrams are useful tools for analyzing financial situations as they help you identify the TVM functions needed to resolve your problem A cash flow diagram is a drawing with a set of vertical arrows arranged on a horizontal line The horizontal line represents the period of time from the beginning of the financing to the end The vertical arrows represent the money or cash flows at certain times throughout the period The arrows length is proportional to the cash flow amount each arrow represents a longer arrow indicates a larger amount a shorter arrow a smaller amount Each arrow s position on the line represents the time at which the cash flow occurs The orientation of the arrow up or down represents the direction of the cash flow up for money received down for money paid out See Figure 1 30 Time Value of Money PV Loan amount End Money received is positive Beg End For payme
14. PV Net present value Shows the value of the cash flows atthe time of the initial cash flow discounting the future cash flows by the value set for nv NetFV Net future value Shows the value of the cash flows atthe time ofthe last cash flow discounting the earlier cash flows by the value set for Inv Net US Net uniform series Shows the per period payment of a regular periodic cash flow of equivalent present value to the cash flow list Payback Payback Shows the number of periods for the investmentto return value Discounted Payback Discounted Payback Shows the number of periods required for the investment to return value if the cash flows are discounted using the value set in nv Total The sum of all the cash flows equivalent to NPV if Inv 1 is 0 CF Yr The number of cash flows per year The default is 1 IRR Internal rate of return This is the discount rate for the cash flow that returns a Net Present Value of 0 See Table 4 4 for an example of the NPV and IRR functions using the cash flow example in Table 4 2 Table 4 4 NPV and IRR Example Keys Display Description Tn DL e Opens the NPV menu nnn wu Inv Tm Ee Inputs 10 5 for investment rate Teimer IU Heb PL Displays the NPV of the cash flow with the given Inv 1 1416060 E Heb FJ S Displays the NFV of the cash flow with the given Inv 1 3849326 C EEE Se Displays the Net
15. Table 3 6 Interest Rate Conversion Example Keys Display Description BS Hom SE Opens the IConv menu starting with the current value of the DOU nominal percentage rate D St Inputs 36 5 as the nominal percentage rate CHR CC Scrolls to compounding periods per year C Y R Default value 1209 CDU is 12 35 Table 3 6 Interest Rate Conversion Example Keys Display Description ER SIE Carr E E Inputs 365 as the value for the number of compounding 36500 periods per year EFF Ez m Scrolls to the variable for the effective rate and calculates it A HHD 36 5 nominal rate compounded daily equals an effective rate of 44 03 Note C YR is the same number as P YR in TVM calculations since most interest calculations are based on the same number of payments and compounding periods per year and interest rate conversions are commonly linked to a subsequent TVM calculation This feature is provided for your convenience but this means modifying one number also modifies the other If your TVM problem requires different values for P YR and C YR refer to the section below titled Canadian Mortgages TVM Canada The IConv menu permits you to solve for C YR but the result is not always a positive integer TVM calculations however require C YR to be an integer larger than zero If you attempt to perform a TVM calculation without a valid value for C YR or P YR an invalid P YR er
16. be liable for technical or editorial errors or omissions contained herein FOR CONSUMER TRANSACTIONS IN AUSTRALIA AND NEW ZEALAND THE WARRANTY TERMS CONTAINED IN THIS STATEMENT EXCEPT TO THE EXTENT LAWFULLY PERMITTED DO NOT EXCLUDE RESTRICT OR MODIFY AND ARE IN ADDITION TO THE MANDATORY STATUTORY RIGHTS APPLICABLE TO THE SALE OF THIS PRODUCT TO YOU 67 Warranty Regulatory and Contact Information Customer Care In addition to the one year hardware warranty your HP calculator also comes with one year of technical support If you need assistance HP customer care can be reached by either email or telephone Before calling please locate the call center nearest you from the list below Have your proof of purchase and calculator serial number ready when you call Telephone numbers are subject to change and local and national telephone rates may apply For more support information please visit the web at www hp com support Contact Information Table 12 1 Contact Information Africa English Contact Country Region www hp com support Afrique francais www hp com support Argentina 0 800 555 5000 Australia 1300 55 1 664 Belgique francais 02 620 00 85 Belgium English 02 620 00 86 Bolivia 800 100 193 Brasil 0 800 709 7751 Canada 800 HP INVENT Caribbean 1 800 711 2884 Cesk republikaik 296 335 612 Chile 800 360 999 China FB 010 68002397 Colombia 01
17. between J and 7 also displays at the right of the screen This number indicates the day of the week corresponding to that date Monday is 1 and Sunday is 7 Note in 360 day calendar mode Cal 360 days of the week are displayed only if the date is valid 1 23 or 1 23 Selects point or comma as decimal separator Default is decimal point 1 23 Pressing toggles between these options 1000 00 1 000 00 1000 00 or 1 000 00 Selects thousands separator Default is none 1000 00 Pressing toggles between these options Note the 1000 00 and 1 000 00 options are only available if the decimal separator is setfor point 1000 00 and 1 000 00 are available only if the decimal separator is set for comma Chain Algebraic or RPN Calculation mode For more information referto Chapter 2 Mathematical Calculations Pressing cycles through these options Basic Features Table 1 1 Mode Menu Settings Setting top line English Francais Deutch or Espafiol Description Language setting for the messages displayed on the screen Defaultis English Pressing cycles through these options Actual or Cal 360 Calendar options for bonds and date calculations Default is Actual T Pressing toggles between these options Annual or Semiannual Bond type Default is Annual T Pressing toggles between these options TVM Standard or TVM Canada Activate or deactivate
18. calculation is continued using the currently displayed value In Chain mode if you wish to override the left to right order of entry use parentheses ES PS to prioritize operations For example to calculate 1 2x 3 you may enter the problem as written from left to right with parentheses to prioritize the multiplication operation See Table 2 1 below Table 2 1 Simple Arithmetic Calculations in Chain Mode Keys Display Description 1 ES Sets operational priority inputs numbers and J C3 SE multiplies 2 and 3 Adds 1 to 6 and returns 7 00 on the bottom line as ann i uL the final result Algebraic Mode To set the calculator in Algebraic mode refer to the section titled The Mode Menu Setting Preferences in Chapter 1 In Algebraic mode multiplication and division have a higher priority than addition and subtraction For example in Algebraic mode pressing returns a result of 7 00 In Chain mode the same key presses return a result of 9 00 In Algebraic mode operations between two numbers have the following priority e Highest priority the power function y e Second priority combinations and permutations e Third priority multiplication and division e Lowest priority addition and subtraction 17 Mathematical Calculations For example key in 1 2 x 5 nPr22 in Algebraic mode by pressing EJEJEJEJEJESEJEJESESES rne resutis 22 Note the calculator is limited to 12 pendin
19. end of the amortized period Interest Amount of the loan payment applied to the interest at the end of the amortized period 33 Time Value of Money Enter the values for the TVM keys for the example below Press followed by or to view the amortization schedule Creating an Amortization Schedule You borrow 140 000 00 for 360 months at 10 interest Create an amortization schedule for the loan How much interest did you pay for the first year What is the balance of your loan after the first year See Table 3 4 The example below is shown with RPN as the active operating mode Table 3 4 Amortization Example Keys Display Description LOS PYR Inputs 12 as the number of payments per year EDU mm HE E Inputs 360 30 times 12 payments per year as the number of 36000 payments for the 30 year loan LA rr ET Inputs 10 as the interest rate percentage per year PU ge Inputs the value of the loan atthe time of the first payment nnnnnn E FU Inputs 0 as the future value of the loan zero balance P LL PMT PHT m Calculates the monthly payment 122860 H LI Hb Per by Displays the number of periods to group together in the 1200 amortization schedule Default is the current value of PAY R v Shark E Displays the first period of the group of periods to amortize iin uu v Balance Displays the current balanc
20. example above with no compounding say for example you wish to calculate the percent change over Six compounding periods Table 8 3 Percent Change Example with Compounding Keys Display Description ZChan e MOm The current value of Change for the given data 3C nn i508 INPUT e Periods A Inputs 6 for the number of compounding periods UU zChsn3e a Calculates the percent change between the old value 778 i and the new value over six compounding periods 3 Whatis 3096 of 80 Table 8 4 Part 96 of Total Example Keys Display Description fes HMhup XE ge Opens the calc menu Park Ta Scrolls to the Part Tota menu item Total x Diy hes Opens the Partas Total sub menu UU INPUT a ang Total E Inputs 80 for Total LA eyes o meur Part Inputs 30 for Part 3050 Pm Tas ri Calculates the value of Part 6Totalfor the given data tou To reset the menu items to their default values with any item of the calc menu displayed press E Press or INPUT i to scroll until Calc displays and press to reset the menu or to cancel Press to exit the menu 55 9 Depreciation Leer INPUT INPUT SOYD INPUT INPUT INPUT iri INPU DWN DWN DWN DWN Press to scroll through the items Life Start calendar date for French SL and Amort F Cost Salvage Factor only available for DecBal and
21. forCF 4 INPUT CFS Accepts 1 as the number of occurrences for CF 4 UUU Displays the current monetary value of CF 5 ER ER ER ER Leer dE Inputs 5000 as the monetary value of CF 5 n LU Displays the current value 1 for the number of times CF 5 occurs CFB Inputs 5 for the number of occurrences for CF 5 ann UUU Displays the current monetary value of CF 6 41 Cash Flows Table 4 2 Cash Flow Example Keys Display Description STI ri Inputs 115000 as the monetary value of CF 6 wu Displays the current value 1 for the number of times CF 6 occurs GP uade Accepts 1 as the number of occurrences for CF 6 LLLI LI Analyzing Cash Flows The various functions used to analyze cash flows are located in the NPV and IRR menus If you press or before entering cash flows you will be redirected to the cash flow menu to enter values into the cash flow list The menu maps for the IRR and NPV menus are shown in Figure 2 Table 4 3 describes the items within these menus z PV ES Inv 1 DWN DWN Net CF Yr PV DWN Net FV DWN DWN DWN DWN Discounted Payback DWN Payback Figure 2 The Menu Map for the NPV and IRR Menus 42 Cash Flows Table 4 3 NPV and IRR Menu Items Item Description Inv 1 Investment or discount rate Enter the investment rate or discount rate for the cash flow followed by NUM Net
22. in memories For example press See to store 5 in memory 2 To add 12 to the value of memory 2 press fes 5 FS EA Later on during a calculation you can 27 Mathematical Calculations press to recall memory 2 Note how the new current value stored in memory 2 is 17 5 12 and are valid mathematical operations for memories To view the stored values in memories 1 9 and 0 press E D followed by EJ or E repeatedly to scroll through each memory starting with memory 1 Mem 1 Note that in the a menu you can change the value of any memory by selecting the memory and typing a number followed by the key Recall Arithmetic In RPN typing adds the value of memory 2 to the first level of the stack but it will not modify the stored value of memory 2 This is useful as it saves one stack level You can also use and after ei To perform the same operation in Algebraic and Chain modes press CJ BA Storing and Recalling with Time Value of Money TVM Keys To store the current number in the Time Value of Money TVM variables press mm followed by the desired TVM key To recall the stored value of a TVM variable press 5 RCL followed by the key of the desired TVM variable Note pressing Es does not calculate the variable it recalls the current value Recalling a Menu Item Value in a Menu In a menu you can recall the current value of a menu item For example open the Interest Conversion menu IConv by pressing E With Nom displ
23. of o non integer y ER x O Frac Attempted calculation of x non integer y ER Out of Bounds Input out of bounds ER Invalid P YR Returned by TVM functions if payments per year are invalid lt 0 or non integer ER Invalid Input Returned if arguments are invalid for any reason ER Invalid 1 Returned by finance functions if is 10096 ER No Solution Returned when there is no solution to the problem ER Many or No Solutions Returned if there is no solution or more than one solution to the problem Table 11 1 Error Messages Errors Error Message ER Many Solutions Status Returned when there are many solutions to the problem ER Invalid N Returned by TVM Amort if N is invalid ER User Abort Returned by long functions if user stops the calculation prior to completion ER Result Returned if the result is infinite ER Insufficient Data Returned by statistics functions if there is insufficient data for analysis ER No Payback Returned by payback function if there is no payback on this problem ER Unique solution to IRR Not Found Returned if IRR tries to calculate a solution but cannot find it User should supply a new guess ER Stack Stack overflow when performing calculations with more than 12 pending operations ER Parenthesis An error linked to use of parentheses unmatched too many etc
24. the compounding per year C YR option in time value of money TVM calculations This option is primarily used for Canadian mortgage calculations For more information refer to the section titled Canadian Mortgages TVM Canada in Chapter 3 T Pressing toggles between these options Changing the Calculation Mode After viewing the default settings suppose you wantto change the calculation mode from Chain to RPN See Table 1 2 Table 1 2 Changing the Calculation Mode Keys Es Display Description FLY a Opens the Mode menu starting with first setting 239 option F X the number of digits displayed to the right of the decimal point v Chai ae Scrolls to the current setting for the calculation mode zn EA Chain Press five times RPH T Selects RPN as the active setting Note the small mm Press two times RPN annunciator to the right EJ Exits the Mode menu and returns you to the default 1 calculator screen Basic Features Key Presses and the Secondary Function Z Key To execute the function associated with a key press and release the desired key Most of the 20b s keys have two functions the primary function and the secondary function The primary function is printed on the top of the key The secondary function is printed on the bevel of the key See Figure 2 Primary Function Secondary shifted Function Figure 2 Primary and Secon
25. 00000 Description Calculates the current value for the unknown item 3200 units would have to be sold to return a profit of 10 000 00 To resetthe menu items to their default values with any item of the Break even menu displayed press E 33 With BrkE ven displayed press to reset the menu or to cancel Press again to exit the menu 52 8 Business Problems DWN DWN Mkup P DW Part Tot DW INPUT INPUT Change Mkup C DWN Part Tot DWN DWN Nb Period Figure 1 The Menu Map for the Percent Calculation 96calc Menu The Percent Calculation Menu Press E to open the menu There are four items in this menu markup as a percentage of cost Mkup C markup as a percentage of price Mkup P part as a percentage of total Part 6 Tot and percent change Change These E E INPUT items allow you to access sub menus Press or repeatedly to scroll to the desired sub menu then press to open it See Figure 1 To change the value of a displayed item key in a number and press Once you have entered all known data press or repeatedly to scroll to the unknown item and press to calculate it ue To return to the percent calculation menu from anywhere within the menu or sub menus press C To exit the menu press ga 53 Business Problems Note for business problems margin is based on price markup is based on cost The examples below are shown with RPN as
26. C EMC Directive 2004 108 EC Compliance with these directives implies conformity to applicable harmonized European standards European Norms which are listed on the EU Declaration of Conformity issued by Hewlett Packard for this product or product family 71 Warranty Regulatory and Contact Information This compliance is indicated by the following conformity marking placed on the product ce CEO This marking is valid for non Telecom This marking is valid for EU non harmonized products and EU harmonized Telecom Telecom products products e g Bluetooth Notified body number used only if applicable refer to the product label Hewlett Packard GmbH HG TRE Herrenberger Srasse 140 71034 Boeblingen Germany Japanese Notice CORB ARUBRESRRMSREMAMBRAS VCCI PRW CD TIA BAREHRB CT CORB KERA CEMT AZE SR Line CORBMIVFOT LEY a YRC T MASNSL SBEeE SDxECLCIDmSSO0x3 FRR SAAB IC hho CIEL SRO RWSL TRA Perchlorate Material special handling may apply This calculator s Memory Backup battery may contain perchlorate and may require special handling when recycled or disposed in California Disposal of Waste Equipment by Users in Private Household in the European Union This symbol on the product or on its packaging indicates that this product just not be disposed of with your other household waste Instead it is your responsibility to dispose of your waste equipment by handing it over to a designated collection po
27. HP 20b Business Consultant Financial Calculator Manual For free training visit www hp com go calctraining HP part number F2219 90201 A First edition August 2008 Lei nv e Legal Notices This manual and any examples contained herein are provided as is and are subject to change without notice Hewlett Packard Company makes no warranty of any kind with regard to this manual including but not limited to the implied warranties of merchantability non infringement and fitness for a particular purpose Hewlett Packard Company shall not be liable for any errors or for incidental or consequential damages in connection with the furnishing performance or use of this manual or the examples contained herein Copyright O 2008 Hewlett Packard Development Company L P Reproduction adaptation or translation of this manual is prohibited without prior written permission of Hewlett Packard Company except as allowed under the copyright laws Hewlett Packard Company 16399 West Bernardo Drive MS 8 600 San Diego CA 92127 1899 USA Revision History Revision History Revision Date Edition 1 v 12 August 7 2008 Contents Contents Legal Notices Revision HIStOFy rtr eee Dee centu sei uu Pe rude er ca ep ee Eee eu 2 HP 20b Business Consultant Keyboard Keyboard Map Legend 3 tte tee gap die d Or Tes 6 1 Basic Features Welcome to the HP 20b Financial Calculator emn 7 Turning the Calculator
28. On and Off nennen 7 Selectingia Language EE 1 Adjusting the Display Contrast rare nnne nnns 7 CUPS OF asit o de S tette tira edem 7 Two Line Display 8 The Mode Menu Setting Preferences ssssssssssssee enemies 8 Changing the Calculation Mode nennen nnns 10 Key Presses and the Secondary Function C Key 11 AnhUnclators rnit meer dde reel eager dfi ne ain d e p p e oe e Ye p uen 11 The Keer asia aviar ut met e tt gg eee i RANT 12 The d 12 Using the and KOVS E DERE E Hd 12 Editing and Clearing Entries AAA 13 The On CE Key tante denter tt E hr ep rr bu Rule EE 13 The Reset al c M ett as acta e Do mE a dtu rao teda o TOS d 13 Notes about Special Menus eene enne ener enne enn nnns 13 Memory and the Memory Menu 13 Accessing Menus and Menu Maps nennen nnne 14 2 Mathematical Calculations Mathematical F rictloris meo be d ccs e e ER LIH a esee ide bibi tied 16 Number Entry and Display etate eee e uenti uie Dr qe DR Ies 16 Chaim Mode zt aate e e uu 17 Algebraic Mode eee races dr arta rt dr ride da da ee Vae dae denen ota 17 Reverse Polish Notation RPN Mode AA 18 The REN Stacks foe ch hack eR t eg 18 East Un cette e Rb once ite etu edet tiim 19 One Number Functions and the Math Menu 22 The Math 23 Be Menu ite reete hi en ina e e e s 23 The Probability Sub menu etre rti eH ete DU eed e esencia 25 Two Number E nctloris dto item d P d er
29. Svizzera italiano 022 567 5308 T rkiye www hp com support Taiwan E 852 28052563 Thailand na 65 6100 6682 United Kingdom 0207 458 0161 United States 800 HP INVENT Uruguay 0004 054 177 Venezuela 0 800 474 68368 Vi t Nam 65 6100 6682 Warranty Regulatory and Contact Information Product Regulatory amp Environment Information Federal Communications Commission Notice This equipment has been tested and found to comply with the limits for a Class B digital device pursuant to Part 15 of the FCC Rules These limits are designed to provide reasonable protection against harmful interference in a residential installation This equipment generates uses and can radiate radio frequency energy and if not installed and used in accordance with the instructions may cause harmful interference to radio communications However there is no guarantee that interference will not occur in a particular installation If this equipment does cause harmful interference to radio or television reception which can be determined by turning the equipment off and on the user is encouraged to try to correct the interference by one or more of the following measures Reorient or relocate the receiving antenna Increase the separation between the equipment and the receiver Connect the equipment into an outlet on a circuit different from that to which the receiver is connected Consult the dealer or
30. TVM displayed press Atthe TVM Reset prompt press to reset or to cancel To exit the menu press once again With the menu set to its default settings P YR and C YR are both setto 12 payments compounding periods per year 38 4 Cash Flows CF 1 CF 3 CF 5 5 000 00 0 00 5 000 00 CF 6 rT Ty e 4 500 00 4 000 00 1 5 CF 0 80 000 00 Figure 1 Cash Flow Diagram In the calculator a cash flow listis a set of numbered pairs CF n and CF n where nis the index of the cash flow list Each pair represents one or more cash flows in a cash flow diagram As with TVM problems it helps to sketch a cash flow diagram as a first step in solving cash flow problems For some examples of cash flow diagrams see Figure 3 atthe end of this chapter CF n represents the monetary value of the cash flow CF n represents the number of consecutive occurrences of that cash flow By default 4CF n is equal to 1 as most cash flows occur only once However in cases where a cash flow is repeated multiple times using CF n instead of entering the cash flow value multiple times saves calculation time and memory space in the calculator To enter a cash flow list press to open the cash flow menu For each cash flow item first enter the monetary value followed by then enter the number of occurrences followed by Lei 4 INPUT INPUT s If a cash flow occurs once you do not need to type Simply press or
31. US of the cash flow with the given interest E L rate 43 Cash Flows Table 4 4 NPV and IRR Example Keys Display Description C SES xcu Displays the number of periods required for the cash flow to repay the investment v x OE Scrolls to the total value ofthe cash flow IRRA c Displays the IRR for the cash flow 130 Editing Cash Flows In the cash flow list you can view and modify the current monetary value of a specific cash flow or cash flows Press or repeatedly to scroll through the list To modify the displayed entry type a new number and press For example to change the current monetary value of the cash flow three CF 3 in the example in Table 4 2 from O to 200 with CF 3 7 displayed press followed by You can also modify the number of occurrences of a cash flow in the same manner with 4CF n displayed Pressing fes EA with a cash flow displayed erases the displayed cash flow Pressing fest inserts a cash flow into the list before the displayed cash flow 44 Cash Flows Sample Cash Flow Diagrams Compound Growth Savings Plan Savings Account Pension Fund Appreciation Annuity Due Mortgage Direct Reduction Installment Loan Amortization Ordinary Annuity Mortgage with Balloon Payment Amortization Ordinary Annuity Lease Lease with Buyback Option Residual Amortization Amortization Annuity Due Annuity Due Figure 3 Sample Ca
32. Valid item for function active geste the key Low batteries INPUT NH BEG STO lt RCL RAD 360 RPN active Figure 3 Annunciator Symbols in the Screen Display The Key INPUT i x The key is used to input values for variables and execute menu items The key is also used in Reverse Polish Notation RPN mode to enter a number on the stack or duplicate it The Key The key is used atthe end of a mathematical operation to calculate the final result For example returns a final result of 3 The key when pressed outside of a mathematical operation also allows you to request a calculation for the value of an item This request only applies to items that can be calculated Using the and Keys Suppose you wanted to calculate the effective interest rate for a 12 nominal interest rate with 12 payments per year in the Interest Conversion IConv menu To open the IConv menu press Nom displays on the top line and the current value assigned to the nominal interest rate is displayed on the bottom line With this screen displayed press ESA BE to input a new value for the nominal rate Press followed by to calculate the value for the effective rate See Figure 4 ER ES 1258 Figure 4 12 Basic Features When an item for which the key is valid displays the small annunciator is displayed on the top line at the right of the screen Do not confuse this small annunciator with the larger annunciator
33. an experienced radio or television technician for help Modifications The FCC requires the user to be notified that any changes or modifications made to this device that are not expressly approved by Hewlett Packard Company may void the user s authority to operate the equipment Declaration of Conformity for products Marked with FCC Logo United States Only This device complies with Part 15 of the FCC Rules Operation is subject to the following two conditions 1 this device may not cause harmful interference and 2 this device must accept any interference received including interference that may cause undesired operation If you have questions about the product that are not related to this declaration write to Hewlett Packard Company P O Box 692000 Mail Stop 530113 Houston TX 77269 2000 For questions regarding this FCC declaration write to Hewlett Packard Company P O Box 692000 Mail Stop 510101 Houston TX 77269 2000 or call HP at 281 514 3333 To identify your product refer to the part series or model number located on the product Canadian Notice This Class B digital apparatus meets all requirements of the Canadian Interference Causing Equipment Regulations Avis Canadien Cet appareil num rique de la classe B respecte toutes les exigences du R glement sur le mat riel brovilleur du Canada European Union Regulatory Notice This product complies with the following EU Directives low Voltage Directive 2006 95 E
34. and Chi operations or their inverse 1 Enter the number of degree s of freedom by typing the number and pressing or E 2 Type the number for which you wantto calculate the probability or for the inverse the probability for which you wantthe number 3 Navigate to the appropriate function in the P robability sub menu of the Math menu To perform F Distribution operations or their inverse 1 Enter the two degrees of freedom by typing each number followed by or EA 25 Mathematical Calculations 2 Type the number for which you want to calculate the probability or for the inverse the probability for which you wantthe number 3 Navigate to the appropriate function in the Probability sub menu of the Math menu Table 2 6 Probability Example Keys Display Description Trisonome Enters 10 degrees of freedom and the number for which Te probability is to be calculated Opens the Math menu Esta Tele Chg Selects the Probability menu item and scrolls to Chi2 Dan EA UJ i Validates the result 231 L3 Table 2 7 Inverse Probability Example Keys Display Description Tri3anome Enters 10 degrees of freedom and the probability Opens OI 3 the Math menu mano CLJ Est AL Chiri Selects the Probability menu item Scrolls to Chi 1 Memory nn v UU v or Validates the result 800 Two Number Functions Apart from t
35. as 1is the default 39 Cash Flows To erase a cash flow list with any cash flow displayed press KSE The number of cash flows in the list is displayed on the bottom line along with Cash Flowz Atthis prompt press You will be asked to confirm your choice Either press to confirm the reset or to cancel Table 4 1 lists the keys used for cash flow problems For a cash flow example see Table 4 2 Table 4 1 Cash Flow Keys Key Description Opens the cash flow list Inputs new values for variables in the cash flow list the Net Present Value NP V menu and the Internal Rate of Return IRR menu Scrolls up and down Inserts cash flows into a cash flow list Removes cash flows from a cash flow list DEL Opens the Internal Rate of Return IRR and Net Present Value NP V menus Cash Flow Example After an initial investment of 80 000 00 cash flow 0 you expect returns over the next five years as follows Cash Flow Cash Flow Amount Occurrences Number 1 5 000 00 1 2 4 500 00 1 3 0 00 1 4 4 000 00 1 5 5 000 00 5 6 115 000 00 1 Given this information calculate the total of the cash flows and the internal rate of return IRR of the investment Calculate net present value NPV and net future value NFV assuming an annual investment interest rate of 10 596 See Figure 1 for the cash flow diagram and Table 4 2 for how to enter the cash flows The example is shown with RPN as th
36. ay vary by region please visit www hp com support for latest information General Terms HP warrants to you the end user customer that HP hardware accessories and supplies will be free from defects in materials and workmanship after the date of purchase for the period specified above If HP receives notice of such defects during the warranty period HP will at its option either repair or replace products which prove to be defective Replacement products may be either new or like new HP warrants to you that HP software will not fail to execute its programming instructions after the date of purchase for the period specified above due to defects in material and workmanship when properly installed and used If HP receives notice of such defects during the warranty period HP will replace software media which does not execute its programming instructions due to such defects HP does not warrant that the operation of HP products will be uninterrupted or error free If HP is unable within a reasonable time to repair or replace any product to a condition as warranted you will be entitled to a refund of the purchase price upon prompt return of the product with proof of purchase HP products may contain remanufactured parts equivalent to new in performance or may have been subject to incidental use Warranty does not apply to defects resulting from a improper or inadequate maintenance or calibration b software interfacing parts or supplies not
37. ayed pressing recalls the nominal rate This feature is useful when you need to insert the contents of a menu item into an algebraic operation Rounding Numbers All calculations are performed internally with 15 digit precision and are rounded to 12 digits when returning the results In certain instances calculations are performed internally with greater than 15 digit precision When displayed a number is further rounded to the number of digits after the decimal point set by the F X item in the Mode menu The default setting is two digits to the right of the decimal point For more information refer to the section titled The Mode Menu Setting Preferences in Chapter 1 Note the FIX setting only affects the display it does not affect the actual numbers Percentages In Algebraic or Chain modes pressing divides a number by 100 For example pressing returns 0 25 28 Mathematical Calculations To find a percentage of a given number enter the number and multiply it by the desired percentage followed by a For example to find 25 of 200 press to return a result of 50 To add or subtract a percentage of a number enter the first number followed by or and the percentage followed by Ea Finish your calculation with For example to add 10 to 50 press to return a result of 55 In RPN mode the key calculates x of the number on Level 2 of the stack when x is the number on Level 1 of the stack It does not modify the number on
38. ayed press EJ With Date INPUT displayed press to reset the menu or to cancel Press again to exitthe menu 50 7 Break even DWN Figure 1 The Menu Map for the Break even Menu The Break even Menu To open the Break even menu press To change the value of the displayed item key in a number and press EE Once you have entered all known data press or repeatedly to scroll to the unknown item and press Ea to calculate it Z Quantity The break even function allows you to study problems involving a profit when a quantity of items with a cost to manufacture and a fixed price to develop and market is sold at a given price See Figure 1 Break even Example The sale price of an item is 300 00 the cost is 250 00 and the fixed cost is 150 000 00 How many units would have to be sold to make a profit of 10 000 00 Table 7 1 Break even Example Keys Display Description mm Fixed Opens the Break even menu starting with the current nnn uuu value for fixed costs DEBE E o on cost ES S 9 e Debes Inputs 150 000 00 for fixed cost uL Cost See Inputs 250 00 for variable cost per unit GJ Ge 35000 ad ID a mem Ea 2 ILS Price Inputs 300 00 for price Profit ER cad Inputs 10 000 00 for profit CJ aY UY UJ U inininnnn WUU o J o J input 51 Table 7 1 Break even Example Break even Keys Et Display Guspnkbku 3
39. dary Key Functions To activate the secondary function of a key press and release followed by the key with the desired secondary function printed on the bevel Unlike the shift key on a typewriter or computer keyboard itis notnecessary to press and hold while pressing another key When is active the down arrow annunciator appears on screen indicating that the next key pressed will execute the secondary function of the key To cancel an accidental press of Pk simply press m a second time In this manual commands using the secondary key functions are represented by the secondary function key symbol fes followed by the key with the secondary function For example to execute sine press EUG Note how the S N portion of the key is highlighted while the 7 is grayed out This highlighting focuses on the function of the key that will be activated in a given command and it is used throughout the manual to make the examples easier to follow Key commands for example problems are provided throughout the text and in tables Key symbols are placed in the order they are to be pressed from left to right Annunciators Annunciators are symbols that appear in the display as messages or after certain keys or key combinations have been pressed Annunciators are special symbols indicating a specific status in the calculator Figure 3 illustrates the annunciator symbols in the display 11 Basic Features Secondary Valid item for the
40. e At the Del Data or Del CF prompts press to confirm or to cancel Accessing Menus and Menu Maps Many of the calculator s functions are located within menus To access a menu press the key or secondary function key combination for the menu in which you wish to work To exit a menu press For example to access the Break even menu press E Once opened you can scroll through the items in the menu by pressing DES repeatedly When you arrive at the last item in a menu pressing returns you to the first item Similarly pressing one time on the first menu item scrolls to the last item in the menu Most items consist of two parts a name and an associated number For example the Fixed item in the Break even menu Figure 7 displays as shown in Figure 5 Figure 5 The large 2 annunciator shows thatthe value assigned to Fixed is 120 000 If you perform a calculation with this item displayed by pressing for example Fixed is still selected as the current item but the large annunciator is now turned off indicating the 3 is notthe value assigned to Fixed see Figure 6 Fixed ve j Figure 6 Atthis point to return to the display of the Fixed menu item shown in Figure 5 press coj Some menus have sub menus If an item represents a sub menu pressing with that menu item displayed opens the sub menu 14 Basic Features In this manual diagrams called Menu Maps are included atthe beginning of each section
41. e active operating mode 40 Table 4 2 Cash Flow Example Cash Flows Keys Display Description Opens the cash flow list a LL STI Inputs 80000 as the monetary value of the initial LU cash flow Note the sign of the cash outflow is negative f for CF 0 T cra Accepts 1 as the number of occurrences for CF 0 UUU Displays the current monetary value of CF 1 CEO Inputs 5000 as the monetary value of CF 1 pre os LU Displays the current value 1 for the number of times CF 1 occurs E f for CF 1 T CPG Accepts 1 as the number of occurrences for CF 1 LLLI Displays the current monetary value of CF 2 ER ER ER ER err CF 2 Inputs 4500 as the monetary value of CF 2 inn LLLI Displays the current value 1 for the number of times CF 2 occurs A las th ber of for CF 2 UT CPU ccepts J as the number of occurrences for CF 2 UUU Displays the current monetary value of CF 3 Neur tary value of CF 3 Displ A STI Accepts 0 as the monetary value of C p isplays LU the current value 1 for the number of times CF 3 OCCUIS f for CF 3 UT CFIS Accepts 1 as the number of occurrences for CF 3 ULL Displays the current monetary value of CF 4 CF 4 Inputs 4000 as the monetary value of CF 4 SH LU Displays the current value 1 for the number of times CF 4 occurs E f
42. e SE EET otia eee ze ds ede tend 26 Storing and Recalling Numbers enne 27 Recall Anthmele aote Su NU Und 28 Storing and Recalling with Time Value of Money TVM Keys 28 Recalling a Menu Item Value in a Menu nennen 28 Rounding Numbers itid ttes eb d t ne SET pda dpa s eco Saad 28 PerCONtages sara MEC ECL 28 3 Time Value of Money Time Value of Money TVM Keys sssssssssseenememeeeemmeemnnennn ener nnne 30 Calculating Payments on a Loan 32 AIMOMIZ AON NEE 33 Creating an Amortization Schedule errar 34 Interest Conversion Men 35 Using the Interest Conversion Men 35 Canadian Mortgages TVM Canada 36 Canadian Mortgage Example rrenan aaa arena araras 38 4 CashFlows Cash Flow Example 2 ectetuer a Dia DO in tree tari Dat apo de oa ret due es 40 Analyzing Cash RJOWS isc odia n UR ERR REEL buds tens 42 Editing Cash Flows ettet Hee CIRCA RE PI II e MEM 44 Sample Cash Flow Diagrams eoe Rer eed 45 5 Bonds The Bond Mehl uic mee EENS 46 Bond Calculation Example nnne enne 47 6 Date Calculation The Date Calculation Men 49 Date Calculation Example essen eene nennen 49 7 Break even The Break even Menus ette rito er tette Ph be dua td if eti Eis ra EIE ebe 51 Break even Example cas m oiii RR RR ee ee ae 51 8 Business Problems The Percent Calculation Menuen aeeie a eiie 53 Percent Calculation Examples A 54 9 Depreciation The Depreciation Men 56
43. e remaining after the first year ua 3322 111 t MR Principal m Displays the current amount of the principal applied towards 11803 the loan for the first year EA z SS l Interest Displays the amount of interest paid on the loan for the first TD l year The amount of your payments applied towards interest for the first year is about 14 000 00 ZSEart in Displays the first payment in the next period to amortize the 13806 second year Note thatthe calculator automatically updates Startto the next group of periods to amortize 34 Time Value of Money To reset the menu items to their default values with any item of the Amortization menu displayed press BS Ea With TVM displayed press Atthe TVM Reset prompt press to reset or to cancel DWN Figure 3 The Menu Map for the Interest Conversion Menu Interest Conversion Menu D WR To open the Interest Conversion menu IC onv press E Table 3 5 Interest Conversion Menu Items Item Description Nom O Nominal interest rate the stated annual interest rate compounded as represented by P YR such as 18 compounded monthly P YR 12 Eff 96 Effective annual interest rate taking compounding into account CNR Compounding periods per year Default is 12 Using the Interest Conversion Menu Find the effective rate of a 36 596 nominal rate compounded daily See Table 3 6 See Figure 3 for help with navigating through the menu
44. ear a X b regression line 7 INPUT T Pred E Inputs 7as the Prediction X value month 7 wu EES Ea x Pred y Calculates Prediction Y value sales at month 7 8450 A z Displays value for a the slope ofthe regression 500 line k Displays current value for b the y intercept of the 4900 vu i Lu regression line Correlati Displays value for Correlation use IRR i fes E E qd Opens Sums sub menu Displays the sum of all y Bea values Sigma Y vw J eur J v To resetthe menu items to their default values with any item of the Data or Statistics menus displayed press E At the prompt Stats press EE Confirm your choice by pressing 64 INPUT 11 Errors Error Messages and Calculator Status Table 11 1 Error Messages Error Message ER Underflow Status The calculation generated an underflow result of 0 ER x 0 Division by zero ER 0 0 Zero divided by zero ER 0 Infinite multiplied by zero ER 2 0 Infinite divided by infinite ER W x lt 0 Square root of a negative number ER LN 0 LN of 0 ER LN x lt 0 LN of a negative number ER ATrig x gt 1 ASIN or ACOS of a number for which the absolute value is gt 1 ER 1 Attempted calculation of 1 Infinite ER x lt 0 Attempted calculation of the infinite power of a negative number ER 40 Attempted calculation of 0 ER Frac Attempted calculation
45. eciation 56 Interest Conversion 35 IRR 42 Math 22 Memory 13 Mode 8 NPV 42 Payment per year 36 Percent Calculation 53 Reset 13 Statistics 60 TVM 30 TVM Canada 36 menu item value recalling 28 menus items types of 15 maps 14 special 13 sub menus opening 14 mode menu key 7 N N key 32 natural exponent e to the power of x key 23 nCr 27 negative numbers 16 net future value 43 net present value 43 net uniform series 43 nPr 27 NPV key 42 NPV IRR menu items 43 number entry 16 number period compounding 55 number periods amortization 33 numbers rounding 28 storing and recalling 27 O off calculator off 7 Off key 7 on calculator on 7 On key 7 P P YR key 32 parentheses use in Chain mode 17 parentheses swap and roll down keys in RPN 21 payback 43 percent calculation 96 calc key 53 percentage 96 key 28 percentage of total 53 percentages simple 28 periodic payment PMT key 32 PI See Math Menu population 61 power functions 23 Predictions sub menu See Statistics present value PV key 32 price break even 51 face value See bonds percent calculation 54 principal 33 probability 25 product x and y values 63 profit 51 Q quantity break even 52 R radians 9 random function RAND key 23 recall arithmetic 28 recalling numbers RCL key 27 reciprocal 1 x key 23 regression line 61
46. ere working with in the Bond menu Notes about Special Menus The Mode Memory Math and Reset menus are special menus if you were working in a menu prior to entering one of these special menus pressing to exit them returns you to your previous menu This feature allows you to work in two or more menus simultaneously without having to exit a menu Memory and the Memory Menu The Memory menu contains the following items memories 1 9 Mem 1 9 and 0 Mem 0 Cash Flow Statistics Stats and Memory To enter the menu press JL Press or repeatedly to scroll through the items starting with memory 1 Mem 1 When a memory item is displayed you can enter a new number and modify the value of the memory by pressing 13 Basic Features For more information about storing and recalling numbers refer to the section titled Storing and Recalling Numbers in Chapter 2 The Cash Flow and Statistics menus share the same memory and are limited to a combined total of 50 memory slots The number displayed with Memory refers to the number of remaining memory slots When the cash flow or statistics items are displayed a number also appears on the bottom line This number indicates the number of memory slots used by the menu Pressing with this number displayed resets the memory of the displayed menu item and erases all entered data Since entering data in these menus can represent a significant amount of work you will be asked to confirm your choic
47. f the squares of the x values Sigma Y The sum of the squares for the y values Sigma XY The sum of the products of the x and y values Statistics Example Sales for the last five months are represented by the pairs of values shown below with the month number as x and the sales values as y Enter these into the Data menu Using the Statistics menu for Predictions predict sales for month seven What is the linear regression line What is the sum of all the y values See Tables 10 2 and 10 3 Table 10 3 Statistics Example Table 10 2 Months and Sales Month Sales Values 1 150 2 165 3 160 4 175 5 170 Keys Display Description ES SN Opens Data menu LI LI INPUT MU Inputs values for X 1 and Y 1 omea P ER Neur KESI Inputs values for X 2 and Y 2 DEDE 3 ER cea E s Inputs values for X 3 and Y 3 a 4 M Inputs values for X 4 and Y 4 RAND Ban 5 nes SIN 63 Table 10 3 Statistics Example Statistical Operations Keys Display Description INPUT x KIG Inputs values for X 5 and Y 5 IRR fes E 2 Ware Opens Stats menu INPUT E das Mb Therm Opens Descriptive sub menu UU EI F Men EJ z y Mean Displays average y 6400 a b Opens Predictions sub menu Note this example performs calculations based on a lin
48. g operations An operation is pending when it is waiting for the input of a number or the result of an operation of higher priority Reverse Polish Notation RPN Mode To set the calculator in RP N mode refer to the section titled The Mode Menu Setting Preferences in Chapter 1 In RPN mode numbers are entered first separated by pressing Or followed by an operation key Note pressing or is optional after entering a number if the next key pressed is an operation Each time you press an operation or function key in RPN the answer is calculated immediately and displayed For example Suppose you wanted to add two numbers in RPN 1 and 2 Press ES The result 3 00 is calculated and displayed immediately on the bottom line along with the symbol on the top line Note in RPN mode when you are in a menu for which or are valid pressing these keys enters the number but it also performs the action associated with the key for the menu item which is generally saving the number in the variable or calculating the item s value The RPN Stack RPN works by placing numbers in storage registers called the stack The RPN stack has four levels numbered 1 4 The levels are stacked on top of one another See Figure 3 Stack Level 4 Stack Level 3 Stack Level 1 Stack Level 2 Figure 3 The RPN Stack In Figure 3 the stack contains four numbers 23 41 12 and 15 Each level 1 4 contains one number When a number is typed a
49. grees 9 delete DEL key 44 delete key 44 deleting See Reset menu depreciation 56 Depr key 56 example 58 methods 56 descriptive sub menu See Statistics menu discounted payback 43 display 7 two lines 8 down arrow key See scroll E EEX key See scientific notation end mode End key 32 error messages 65 F factor declining balance See depreciation factorial key 23 F distribution 25 Fix display precision See Mode menu function one number 22 74 functions two number 26 future value FV key 32 IConv key See interest conversion INPUT key 12 insert INS key 44 interest accrued See bonds towards loan payment See amortization interest conversion example 35 interest rate effective 35 nominal 35 nominal I YR key 32 inverse tail normal distribution 25 IRR key 42 K key highlighting 11 presses 11 primary function 11 secondary function 11 keyboard map 6 L language selection 7 last number 19 ANS key 19 life See depreciation line regression 61 log LN key See Math menu logarithmic functions 23 lower tail normal distribution 25 M markup as cost 53 as price 53 math Math key 23 math functions 16 Math menu Absolute value 24 Hyperbolic 24 Log 24 Probability 24 Trigonometry 24 mean 61 memory 13 key 13 menu Amortization 33 Bond 46 Break even 51 Cash Flow 39 Date Calculation 49 Depr
50. he three additional two number functions accessible on the keyboard are e YX 26 Mathematical Calculations e nCr e nPr YX is the power function nCr stands for the number of combinations of n items taken rata time and nPr stands for the number of permutations of n items taken rata time Combination n r n r n n r Perform calculations with these functions in the same way you would perform calculations with and ES but press to access the secondary function key For example to calculate 153 1 3 2 Press EC 3 Press The results are shown Figure 9 Permutation Figure 9 In RPN mode key in the numbers first followed by mm then press the function key For example for the power function INPUT example above in RPN press GO Storing and Recalling Numbers The calculator has ten memories available for use during calculations These memories are numbered from 1 9 and 0 To store a number ina d Ges mm Rey followed by the key representing the memory number To recall a number stored in a memory press RCL followed by the key representing the memory number You can use the store and recall functions for these memories any time a number is displayed or when you wish to enter a number 1 5 RCL f1 For example to store 15 in memory 1 press fes Ea ES RCL f 1 To recall the number in memory 1 press EA RCL You can also perform operations to numbers stored
51. hown in Figure 1 Before you enter dates verify the date is set in the format required for your problem Date and calendar formats may be setin the Mode menu For more information on setting the preferences in the Mode Menu see the section titled The Mode Menu Setting Preferences in Chapter 1 To change the value of a displayed item key in a number or a date and press Once you have entered all known data press or repeatedly to scroll to the unknown item and press to calculate it Date Calculation Example How many days remain in the 2010 fiscal year if today s date is June 4 2010 Assume the fiscal year ends on October 31st and you wish to calculate the actual number of days Actual Table 6 1 Date Calculation Example Key Display Description ES Date 1 randa Opens the Date Calculation menu Note 2 in the right of 01 2888 e the display represents the day of the week 2 represents Tuesday Data 1 PEE Inputs the starting date in the selected format Co C3 C23 b 04 d LL i oer RAND nPr Memory 49 Table 6 1 Date Calculation Example Date Calculation Key Display DS ii mo JU 1r JU se J eo el INPUT Description Inputs the ending date in the selected format Days Bekis M n 900 Calculates the number of actual days between the starting and ending dates To reset the menu items to their default values with any item of the Date menu displ
52. int for the recycling of waste electrical and electronic equipment The separate collection and recycling of your waste equipment at the time of disposal will help to conserve natural resources and ensure that it is recycled in a manner that protects human health and the environment For more information about where you can drop off your waste equipment for recycling please contact your local city office your household waste disposal service or the shop where you purchased the product Chemical Substances HP is committed to providing our customers with information about the chemical substances in our products as needed to comply with legal requirements such as REACH Regulation EC No 1907 2006 of the European Parliament and the Council A chemical information report for this product can be found at http www hp com go reach 72 Warranty Regulatory and Contact Information FmPAsASMANAANEMREE REHE BTS mss EDS ABASVARNTE BES dr 3 Pb Hg S Cd AGM Cr VI SRB PBB Sam PBDE PCA x O O o o o RT o o O o o o O Sm UB SB EUBTERSMENURISEUM E BIS 8195 SJ T11363 2006 MER XE RS BR E SER DU S X AR VUB EUR EUR ze IP TE ALBDERS 3 19 EUSEB B E E HE SJ T11363 2006 MEREK ER EE ERR S dB X HATA ABH A A BROHS EM BI IN SA BE SA 2003 F 1 A27AKF RF BRE HR rb 8 F3 CEU I LR 2002 95 ECSHT MASA RHS SMR AT 77 in IE 36 TL EB E 73 Index l key 23 96 96 change 53 yield 47 key 12 A a slope 62 absol
53. nd entered into the stack by pressing this new number is pushed into level one of the stack and each number already in the stack moves up one level The number in Level 4 15 is pushed out and is lost 18 Mathematical Calculations When an operation is performed on the stack addition G3 for instance the calculator pops or moves the two numbers from the bottom levels Levels 1 and 2 out of the stack performs the operation and pushes the results back into the stack With the numbers entered into the stack as shown in Figure 3 pressing changes the stack as shown in Figure 4 Note that when the numbers are popped out to add 23 and 41 Level 4 of the stack remains unchanged 15 15 La 1 N 64 Figure 4 The RPN Stack of Figure 3 after the Addition Operation Last Number Each time you perform a mathematical operation the content of Level 1 of the stack is saved Pressing mm recalls that number This functionality can be used to undo an erroneous key press or if you want to reuse a number such as 56 123 in the expression 1 23 56 123 56 123 See Table 2 2 for an example using the ast number function Table 2 2 Last Number Keys Display Description EC E BE ET m Sets FIX to 3 000 EE RPH e Selects RPN as the operating mode m Inputs 1 23 and 56 123 56 ie3 HE LGL Mathematical Calculations Table 2 2 Last Number Keys Display Description LE FE
54. ne 4 2020 for the maturity date pena Aee Ir oPr JU nPr steht 5 CPRH eee Inputs 6 75 for the value for CPN sor bis Memory 47 Table 5 2 Bond Calculation Example Bonds Key Display EA Call WL Description Displays current call value Default is 100 Note if Call requires another value key in the number followed by INPUT Yield x Inputs 4 75 for Yield sx y Price Calculates the current value for Price 11588 RCL 1 i E Price Stores 115 89 in memory 1 11588 Accrued Displays the current value for accrued interest Chi Rev 1 i i Accrued Returns the result for total price value of price value 11858 of accrued interest The net price you should pay for the bond is 118 58 To resetthe menu items to their default values with any item of the Bond menu displayed press fes fa With Bond INPUT displayed press to resetthe menu or to cancel Press again to exitthe menu 48 6 Date Calculation DW DW DWN Days Between DW m mer Figure 1 The Menu Map for the Date Calculation Menu Actual Cal 360 The Date Calculation Menu The Date Calculation menu is used to calculate the number of days between two dates or a second date given a number of days from an initial or final date To open the Date Calculation menu press EE Press or repeatedly to scroll through the items s
55. nitial investment PV always occurs at the beginning of the first period PMT edi Stores or calculates the amount of each periodic payment Stores the number of payments or compounding periods per year Stores or calculates the future value F V a final cash flow FV always occurs atthe end ofthe last compounding period Sets Begin mode Beg Payments occur at the beginning of each compounding period eg Sets End mode End Payments occur at the end of each compounding period Calculating Payments on a Loan You borrow 140 000 00 for 30 years 360 months at 6 5 annual interest compounded monthly What is your monthly payment to the lender Note at the end of the 30 years you expect to have a zero balance FV 0 Table 3 2 TVM Example Keys Display Description 1 PMT BAIS On Inputs 12 as the number of payments per year or Cu compounding periods per year H 2 m Inputs 360 as the number of payments over 30 years N 36000 50S AR mut 63 as e ami ER E zs Inputs 6 5 as the nominal interest rate percentage per year PU nm Inputs the present value of the loan atthe time of the first ee Co 0 IMULDUUUU payment This value is positive itis money you receive FU E Inputs 0 as the future value of the loan the remaining Ann uuu balance 32 Time Value of Money Table 3 2 TVM Example Keys Display Description PMT PHT z E Returns
56. ns below titled The Mode Menu Setting Preferences and Accessing Menus and Menu Maps Adjusting the Display Contrast To adjustthe contrast of the display press and hold while pressing the or keys Each press of the or keys slightly increases or decreases the contrast of the display Cursor When you enter a number the cursor blinks in the display and indicates you are in number entry mode Basic Features Two Line Display There are two lines in the display screen as shown in Figure 1 S IH ncn Lau Figure 1 Display Screen The top line of the screen displays operation status operator symbols annunciators and abbreviations of the registers variables and menu names Throughout this manual this line is referred to as the top line In Figure 1 S N is on the top line The bottom line displays numbers you have entered or results Throughoutthis manual this line is referred to as the bottom line When no operations have been entered and no operations are pending the bottom line of the screen displays 0 00 This state of the calculator is referred to as the default calculator screen The Mode Menu Setting Preferences The Mode menu allows you to customize the calculator To access the Mode menu press C Press or repeatedly to scroll through the menu starting with F X 2 the number of digits displayed to the right of the decimal point Once an item is displayed press to cycle through the other optio
57. ns for that setting To exitthe Mode menu press Table 1 1 lists the items in the Mode menu Basic Features Table 1 1 Mode Menu Settings Setting top line FIX 2 Description Display precision number of digits displayed to the right of the decimal point Default is 2 Key in the number of digits you want and press EE or press until the number of digits you wantis displayed The display precision can be any number from 0 11 Ifyou specify 1 the calculator displays numbers with the most appropriate number of digits after the decimal point If you find you need to change the FIX setting often use the following shortcut 1 Press E and release it Check thatthe secondary function indicator is displayed 2 Press BS again and without releasing it press a key through that corresponds to the desired F X setting FIX settings for 10 and 11 are not available using this shortcut If you press instead of a numbered key FIX 1 is selected Degree or Radian Angular mode in degrees or radians for trigonometric functions Defaultis Degree T n Pressing toggles between these options Date mm ddyyyy or dd mmyyyy Formatfor dates December 3 2010 is entered as 12 032010 in mm ddyyyy format or 3 122010 in dd mmyyyy format Note the in both formats separating the first and second groups Default is mm ddyyyy format Pressing toggles between these options Note that when a date is displayed a number
58. nts occurring at the beginning or end of the compounding period PMT P YR Payments per Year E IPMT LN PMT Dollar amount paid out in N Number of payments or FV Final Loan equal payments at regular Value if any intervals compounding periods Figure 1 Cash Flow Diagram Example with Corresponding TVM Keys The TVM functions of the calculator can solve problems with at least one cash flow and problems in which all the cash flows except the first and last are of the same value To solve other types of cash flows refer to the section below titled Canadian Mortgages TVM Canada or Chapter 4 Cash Flows Figure 1 illustrates a cash flow diagram and how the data in the diagram corresponds to the TVM keys For a complete list of keys used for TVM problems along with their descriptions see Table 3 1 31 Time Value of Money To save values for the TVM variables enter the desired number followed by the corresponding TVM key To calculate an unknown value enter all known values and press the key ofthe item you want solved Table 3 1 TVM Keys Keys Description Stores or calculates the number of payments or compounding periods Multiplies a value by the number of payments per year and stores as N Stores or calculates the nominal annual interest rate Stores or calculates the present value P V To a lender or borrower PV is the amount of a loan to an investor PV is the i
59. of a sub menu 96calc menu changing a mode or setting Mode menu or erasing data Reset menu 15 2 Mathematical Calculations Mathematical Functions Mathematical functions are located e On keys such as GJE5EJEA BA etc e On shifted or secondary functions such as fes E e Inthe Math menu fes Number Entry and Display Numbers are entered by pressing e Numbered keys SES e The decimal point e The key e The fes ES keys To correct a number entry press the backspace key Ea Each press of erases the last digit or symbol you entered To enter a number in the display press the number digits successively A number can have up to 12 digits To change the sign of a number from positive to negative press Use scientific notation to enter very large and very small numbers For example to enter the number 1 23 x 10 in scientific notation first enter the mantissa 1 23 and then press fes ES and enter the number 127 representing the exponent The exponent must have a value between 499 and 499 ig 3 ie Figure 1 Scientific Notation in FIX 2 Mode 16 Mathematical Calculations Chain Mode Calculations in Chain mode are interpreted in the order in which they are entered For example entering the following numbers and operations as written from left to right returns 9 See Figure 2 ann JL Figure 2 Calculation in Chain Mode Note if you press an operator key LOSST after the
60. ror ER Invalid P YR will occur If you set C YR to 0 the resulting interest conversions are calculated assuming a continuous compounding As stated above Ois not a valid value for P YR or C YR when used in TVM calculations and you will have to reset it to a valid value before performing TVM calculations To reset the menu items to their default values with any item of the Interest Conversion menu displayed press E Ea With Conv displayed press to reset or to cancel To exit the menu press once again Canadian Mortgages TVM Canada DW pm cl ore Figure 4 The Menu Map for the P YR Menu In Canada interest rates for mortgages are by law given as a nominal interest rate compounded twice yearly This means that the compounding period for the per period interest rate calculation differs from the compounding period used to calculate the nominal rate By default the HP 20b performs calculations assuming that the number of compounding periods always equals the number of payments per year You can however enable the TVM Canada option in the Mode menu which enables you to selectthe number of compounding periods per year For more information refer to Chapter 1 Basic Features 36 Time Value of Money With TVM Canada enabled in the Mode menu the following TVM features change 1 The P YR key E EJ now opens a menu with two items P YR and C YR in which you can specify the number of payments and compounding periods per
61. s Previous Value Pressing or when you are not entering a number duplicates the number on Level 1 Thatis the number on Level 1 is pushed on the stack making Levels 1 and 2 equal In the example above pressing after duplicates 77 on the stack making Levels 1 and 2 equal See Figure 5 Previous Value Previous Value Figure 5 Duplicating a Number on the Stack In RPN the parentheses keys C3 manipulate the stack Pressing performs a roll down of the stack A roll down causes the stack to ro towards the bottom of the stack during which the number in Level 2 moves down to Level 1 the number in Level 3 moves down to Level 2 the number in Level 4 moves down to Level 3 and the number in Level 1 moves up to Level 4 The key has a small down arrow on itas a reminder of the roll down feature With the numbers entered into the stack shown in the left column in Figure 6 pressing performs the roll down of the stack shown in the right column 21 Mathematical Calculations Figure 6 The RPN Stack and the Roll Down Operation Pressing C3 performs a swap A swap operation exchanges the numbers on Levels 1 and 2 ofthe stack The C3 key has a small symbol on it as a reminder of the swap feature With the numbers entered into the stack shown in the left column in Figure 7 pressing C3 performs a swap to the stack as shown in the right column Figure 7 The RPN Stack and the Swap Operation Note when no menu is selected
62. s one variable 1 Var or one variable weighted 1 Weight After selecting the type of statistical operation you want select a sub menu by pressing or EA and press to open it Once in a sub menu press or repeatedly to view the results To return from the sub menu to the Statistics menu press E ES Note in one variable modes there are no items for y and the Predictions sub menu is not available Pressing with the Predictions sub menu displayed opens a sub menu in which you can choose among six different types of regression lines See Figure 1 To selecta specific type of regression line in the Predictions sub menu press to cycle through the options Note if you press the calculator automatically selects the curve that is the best fit for your data Once you select a regression line press to see the regression line parameters and perform predictions 61 Statistical Operations Table 10 1 The Statistics Menu Items Menu Item Description Nb Item Number of items X Mean Average of X values Y Mean Average of Y values X Std Dev Standard deviation for X a measure of how dispersed the x data values are aboutthe mean Y Std Dev Standard deviation for Y a measure of how dispersed the y data values are aboutthe mean X Population Dev Population Standard deviation for X a measure of how dispersed the X data values are aboutthe mean assuming the data constitutes a complete set of data
63. sh Flow Diagrams 45 5 Bonds DWN Get Date DWN Mat Date DWN CPN DWN DWN Annual SENG Actual Yield mn nnn fow Cal 360 Semi annual Figure 1 The Menu Map for the Bond Menu The Bond Menu Before you enter the Bond menu be sure to verify the date format is set appropriately for your problem The default setting is mm ddyyyy but it can be set for dd mmyyyy Bond day counts 360 365 and annual or semiannual coupon payment schedules may be set from either the Mode menu or the Bond menu For more information on setting the preferences in the Mode menu see the section titled The Mode Menu Setting Preferences in Chapter 1 To open the Bond menu press d Press or repeatedly to scroll through the items shown in Figure 1 To change the value of the displayed item key in a number or a date and press Once you have entered all known data press or repeatedly to scroll to an unknown item and press to calculate it Table 5 1 lists the items in the Bond menu Table 5 1 Bond Menu Items Variable Description Settlement Date Settlement date Displays the current settlement date Note input only Maturity Date Maturity date or call date The call date must coincide with a coupon date Displays the current maturity Note input only CPN Coupon rate stored as an annual Note input only 46 Bonds Table 5 1 Bond Menu Items Variable Description Call Call value Defaul
64. splayed press to resetthe menu or to cancel Press to exitthe menu 59 10 Statistical Operations DE Press to X n Y n ions X n Win select the options 2 Vars X n Fn 1 Var 1 Weight Descriptive Y items 2 Vars Only INPUT Nb Item DWN X Mean DWN Y Mean i 3 X Std Dev i 3 Y Std Dev Sigma XY i DWN DWN X Population DWN Y Population Sub menu J scrolls through items below and returns to DWN selected regression line Pred Y DWN a b Covariance Figure 1 The Menu Maps for the Data and Statistics Menus 60 Statistical Operations The Data and Stats Menus Statistics analysis functions are located in the Data and Statistics menus accessible with the E and E keys See Figure 1 for assistance with navigating through the menus Press E to open the Data menu In this menu enter a list of x values for one variable statistics a list of pairs x F for weighted one variable statistics a list of numbers xfor one variable statistics or a list of pairs x y for two variable statistics To enter data key in a number and press 1 Press E to analyze the data If you attempt to open the Statistics Stats menu before entering data you will be redirected to the Data menu When opened the Stats menu displays 2 Vars for two variable statistics Press repeatedly to select the type of statistical operations desired two variable 2 Var
65. sset in years Start Start refers to the date or month in which the asset is first placed into service Depending on the type of depreciation this can be the month 1 12 or in the case of French Straight line and Amort F the actual date in the selected format Note for non French depreciations if the asset were placed into service in the middle of March for example you would enter 3 5 for Start Cost The depreciable cost of the asset at acquisition 57 Depreciation Table 9 2 Depreciation Menu Items Item Description Salvage The salvage value of the asset at the end of its useful life Factor The declining balance factor as a percentage This is used for declining balance and declining balance crossover methods only Year Year for which you want to calculate the depreciation Depreciation Depreciation in the given year R Book Value Remaining book value at the end of the given year R Depreciable Value Remaining depreciable value atthe end of the given year Depreciation Example A metalworking machine purchased for 10 000 00 is to be depreciated over five years Its salvage value is estimated at 500 00 Using the straight line method find the depreciation and remaining depreciable value for each of the first two years of the machine s life See Table 9 3 Table 9 3 Straight Line Depreciation Example Key Display Description E zLine er Opens the Depreciation menu starting
66. supplied by HP c unauthorized modification or misuse d operation outside of the published environmental specifications for the product or e improper site preparation or maintenance HP MAKES NO OTHER EXPRESS WARRANTY OR CONDITION WHETHER WRITTEN OR ORAL TO THE EXTENT ALLOWED BY LOCAL LAW ANY IMPLIED WARRANTY OR CONDITION OF MERCHANTABILITY SATISFACTORY QUALITY OR FITNESS FOR A PARTICULAR PURPOSE IS LIMITED TO THE DURATION OF THE EXPRESS WARRANTY SET FORTH ABOVE Some countries states or provinces do not allow limitations on the duration of an implied warranty so the above limitation or exclusion might not apply to you This warranty gives you specific legal rights and you might also have other rights that vary from country to country state to state or province to province TO THE EXTENT ALLOWED BY LOCAL LAW THE REMEDIES IN THIS WARRANTY STATEMENT ARE YOUR SOLE AND EXCLUSIVE REMEDIES EXCEPT AS INDICATED ABOVE IN NO EVENT WILL HP OR ITS SUPPLIERS BE LIABLE FOR LOSS OF DATA OR FOR DIRECT SPECIAL INCIDENTAL CONSEQUENTIAL INCLUDING LOST PROFIT OR DATA OR OTHER DAMAGE WHETHER BASED IN CONTRACT TORT OR OTHERWISE Some countries States or provinces do not allow the exclusion or limitation of incidental or consequential damages so the above limitation or exclusion may not apply to you The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services HP shall not
67. t is set for a call price per 100 00 face value A bond at maturity has a call value of 100 of its face value Note input only Y ield96 Yield96 to maturity or yield96 to call date for given price Note input output Price Price per 100 00 face value for a given yield Note input output Accrued Interest accrued from the last coupon or payment date until the settlement date for a given yield Note this item is Read only Actual C al 360 Actual 365 day calendar or Cal 360 30 day month 360 day year calendar INPUT Press to toggle between these options Annual S emiannual Bond coupon payment frequency Press to toggle between these options Bond Calculation Example What price should you pay on April 28 2010 for a 6 7596 U S Treasury bond maturing on June 4 2020 if you want a yield of 4 7596 Assume the bond is calculated on a semiannual coupon payment on an actual actual basis See Table 5 2 The example below is shown with RPN as the active operating mode Table 5 2 Bond Calculation Example Key Display Description ZSebblemers m Opens the Bond menu ma onan Gt cogs Annusl ser Scrolls to bond coupon payment frequency INPUT EI A i i Zemi Anm E Selects semiannual coupon payment as required by the example Sebblener Ze Inputs April 28 2010 for the settlement date mm ddyyyy o o 4 e8 eu iu format ID RAND EE Ee Inputs J u
68. the key performs the same function as the key The key performs the inverse operation called roll up One Number Functions and the Math Menu The key presses for the one number mathematical functions listed in Table 2 4 below apply to all modes Chain Algebraic and RPN To execute one number functions with a number displayed press the key or key combination corresponding to the operation you wish to execute The result is displayed on the bottom line 22 Mathematical Calculations For example to calculate Je press CE EJ the result of 2 45 is calculated immediately and displayed on the bottom line The square root symbol J appears on the top line Note before doing any trigonometric calculations in the Math menu check whether the angle mode is set for degrees Degrees or radians Radians You will need to change the setting if the active mode is not what your problem requires For more information on the Mode menu and calculator settings refer to the section titled The Mode Menu Setting Preferences in Chapter 1 Table 2 4 lists one number functions along with their corresponding keys Table 2 4 Shifted Function Mathematical Operations Keys kl Description Calculates sine fa Ee Calculates cosine Es Calculates tangent kl Calculates natural log Calculates natural exponent to the power of x ed EJ Calculates square of x ed ES Calculates square root le
69. the monthly payment This result is negative it is n B6430 money you pay out To resetthe TVM variables to their default values with any TVM variable displayed press E Press or repeatedly until TVM displays Press to reset the TVM values or press to cancel Amortization Refer to Figure 2 for a menu map of the Amortization menu Amort Table 3 3 lists the keys and variables of the Amortization amort E P menu To open the menu press ES The Amortization menu calculations are based on values stored in the following TVM WYR PV PMT PMT registers Ex CH il and Ex To enter values for the TVM variables enter a number followed by the corresponding key For an amortization example see Table 3 4 DWN Nb Per p DWN Balance ko Principal o Interest Figure 2 The Menu Map for the Amortization Menu Table 3 3 Amortization Menu Items Menu Item Key Description Opens the Amortization menu Nb Period Number of periods to group together in the amortization calculation The default value is the number of payments per year defined by the key Start Period on which to start amortization Defaultis 1 If you wantto amortize for the second year with 12 payments per year enter 13 the second year starts atthe 13 payment with 12 payments per year Balance The loan balance atthe end of the assigned amortized period Principal Amount of the loan payment applied to the principal atthe
70. to assist you with navigating through the menus used for that section For an example of a menu map see Figure 7 Es DWN Figure 7 The Menu Map for the Break even Menu Z Quantity There are four types of menu items 1 Read write Read write menu items such as Fixed in the Break even menu shown above are easily recognizable because when they are selected both the INPUT and small annunciators are lit When lit these annunciators indicate that entering a number and pressing will store the entered number in the displayed menu item Pressing outside of a mathematical operation calculates the value for that item based on available data 2 Read only Read only items such as Internal Rate of Return R R in the IRR menu are display only they are calculated values computed internally by the calculator 3 Write only Write only items such as investment interest rate Inv 1 in the Net Present Value NP V menu are similar to read write items in that the INPUT annunciator is lit when these items are selected indicating that entering a number and pressing stores that number in that menu item However the key does not calculate a value for that item 4 Special items Special items such as the Degree Radian option in the Mode menu the items of the Reset menu and the items of the Percent Calculation Y calc menu perform an action when is pressed Depending on the menu this action can be the selection
71. ures of your new 20b Financial Calculator It includes menu maps example problems and solutions with key presses screen shots and examples of cash flow diagrams There are also sections which list the error messages and explain how RPN works Refer to the section titled Contents for quick access to various topics If you need more information about your calculator or about calculator operation and features please refer to the training materials available at www hp com go calctraining Turning the Calculator On and Off fonce owce To turn on your calculator press E To turn it off press E Turning the calculator off does not erase any data The calculator automatically turns itself off after approximately five minutes to conserve energy If you see the low battery symbol 4 in the display replace the batteries See Chapter 12 Warranty Regulatory and Contact Information for instructions on replacing the batteries Selecting a Language English is the default language for messages displayed on the screen To select a language other than English Press E to access the Mode menu F X displays on the top line of the screen Press repeatedly until English displays on the screen Press until the desired language is displayed The displayed language is the active setting SCH per cp E Press to return to the default calculator screen For more information on accessing menus and changing calculator settings refer to the sectio
72. ute value See Math menu Algebraic mode 17 amortization Amort key 33 example 34 menu items 33 annual bond 47 annunciators 11 ANS See last number B b y intercept 62 backspace key 16 balance amortization 33 begin mode Beg key 32 bond annual semiannual 10 example 47 key 46 menu items 46 bonds 46 bottom line display 8 break even BrkEv key 51 example 51 business problems 53 percent calculation examples 54 C calculation mode Chain Algebraic and RPN 10 calendar Actual Cal 360 10 call value 47 Canada TVM example 38 Canadian TVM 36 cash flow example 40 keys 40 sample diagrams 45 cash flows 39 analyzing 42 editing 44 number per year 43 Chain mode 17 Chi 25 clearing See Reset menu compounding periods N key 32 compounding periods per year P YR key 32 Compounding per year 35 contents 3 contrast 7 correlation 61 62 cosine COS key 23 cost depreciation 58 fixed See break even variable per unit See break even coupon rate 46 covariance 61 62 CshFl key See cash flow cursor 7 D Data key See Statistics data menu 61 date actual 47 maturity 46 settlement 46 Date 1 See Date calculation Date 2 See Date calculation date calculation Date key 49 example 49 date format 9 days between See Date calculation decimal point 9 decimal separator point or comma 9 default calculator screen 8 de
73. with the straight line method v INPUT mt i Life Inputs 5 for the useful life LILI Skart Displays the current value of Start 1 J anuary is the iin LU default value For this example this value remains unchanged since the depreciation of the machine starts January 15 1 00 T SCH Cost n Inputs 10 000 00 for the cost of the item 0 eee Salvase Inputs 500 00 for the salvage value of the item 50 esr e Year for which to calculate the depreciation Year 1 is OU the default value To calculate for a year other than 1 INP type a number and press 1 DePreciak Depreciation of the asset in year one 90000 58 Table 9 3 Straight Line Depreciation Example Depreciation Key Display Description R Boohk M Remaining book value after year one aang ILL D Debrechs Remaining depreciable value after year one 520080 OULU Ea Year The next year for which to calculate the depreciation To DU calculate for a year other than 2 type a number and press DePreciak Depreciation of the asset in year two annnn JUJU D Book Us Remaining book value after year two 5ennnn LLL E DePreci Remaining depreciable value after year two 570000 TUL To reset the menu items to their default values with any item of the Depreciation menu displayed press E With EL INPUT Depreciation di
74. year Press or to scroll through the menu See Figure 4 To change the value of an item with the item displayed enter the number desired followed by In the Interest Conversion menu the C YR item has the same value as the C YR item in the P YR menu and C YR and no longer affects P YR Note however if you now change the value of P YR the calculator automatically sets C YR so it equals your new value assigned to P YR This means that if you modify P YR you also need to modify C YR if P YR and C YR are different values in your TVM problem 37 Time Value of Money Canadian Mortgage Example Calculate the monthly payment for a 25 year N 300 Canadian mortgage valued at 350 000 00 if the nominal interest rate is 6 0 compounded twice yearly C YR 2 with 12 payments per year P YR Table 3 7 Canadian Mortgage Example Keys Display Description E pp m Opens the Mode menu starting with the current FIX value DU number of digits to the right of the decimal point INPUT TUM Cana Scrolls to TVM mode and sets mode to TVM Canada Returns to default calculator screen nnn UUL Em ipm Grp Opens P YR menu Inputs 12 for PAYR and 2 for C YR CO a aa ER Ol PE Exits menu and inputs values for N I YR and PV a para Ea 2990000 nr o _o nPr nPr PHT Calculates the monthly payment as required by the example SE To resetthe menu press mm With

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