Apple Paper: Calculator Keystroke For The HP-10BII

Topics: Time value of money, Net present value, Rate of return Pages: 6 (1531 words) Published: February 27, 2013
******* NOTE: The HP calculators come from the factory with the PMTS/YR set to 12.  Change this setting to 1 PMT/YR by going to #6 below.  Change this setting before you do any of the time value of money problems!!!!  You only have to change the PMT/YR setting one time!  ********* GENERAL:  Note that every HP-10BII calculator key has two functions, the main ones are in WHITE LETTERS and a second function in ORANGE.  To access the second function, you simply enter the ORANGE key first, and then press the key to access the function in ORANGE.  There is also a PURPLE button, which accesses some statistical functions that we will not be using in this class. In the examples below, the slash symbol: / is used to separate keystrokes 1. SETTING THE NUMBER OF DECIMAL PLACES:

Orange Key / = Key (DISP) / Number of desired decimal places Examples:
Orange Key / = / 2      (to set display to two places, good for bond prices, e.g. $975.42) Orange Key / = / 4      (to set display to four places, good for ex-rates, e.g. $1.5074 / £) NOTE:  Setting to two decimal places is not appropriate when calculating answers involving certain percentages or interest rates.  For example, suppose your answer is an interest rate: .0851, or 8.51%.  If your calculator is set to two decimal places, it will round your answer to .09 or 9%, which is almost .5% away from 8.51%.  Be sure in this case that you set your calculator to display three or four decimal places, since 9% would not qualify for full credit when the true answer is 8.51%!!  With experience, you will get used to changing the decimal display to the appropriate setting, based on the problem.  

To clear the calculator display (screen) only, use the C key (bottom left corner).  This will NOT clear any of the financial registers, memory registers, or statistical registers. To clear EVERYTHING (all registers), Enter the ORANGE KEY and then the C key to access the "C ALL" function.  

General format: A variable goes from X1 to X2, what is the percentage change in X? First number (X1) / INPUT / Second Number (X2) / Orange Key / % Key (to access %CHG)

Example: Find the inflation rate if the Consumer Price Index goes from 114 to 120: Solution: 114 / INPUT / 120 / Orange Key / %         (Answer: 5.26%)  
Example: Real GDP goes from $8800B to $9200B, what is the growth rate of real output? Solution:  8800 / Input / 9200 / Orange Key / %      (Answer: 4.55%)  
Example: If the $/£ rate goes from $1.80 to $1.90, what is the percentage change in the UK pound? Solution: 1.8 / Input / 1.9 / Orange Key / %          (Answer: 5.56%)  
General format: Variable X increases (decreases) by Y%.
Example: A stock is $62 and increases by 5%.
62 / + / 5 / % / =         (Answer: $65.10)
Example: Sales in 2006 are $7m and fall by 2% in 2007.
7 / - / 2 / % / =         (Answer: $6.86m)
Example: The current ex-rate is $1.80 / £.  The pound is expected to appreciate over the next year and is selling at a one-year forward premium of 4%.  What is the forward rate for the pound? 1.8 / + / 4 / % / =  (Answer: $1.8720 /  £ )

The + / -  key will change the sign of a number.
Example: To enter $950 as a negative number for PV:
950 /  +/-  /  PV
The factory default setting is 12 PMTS / YR.  You should change this setting to 1 PMT per Year for this class, using the P/YR key (in orange below the PMT key)! Example: 1 / Orange Key / PMT Key         (Sets Payments/YR to 1) Most of the problems in this class will be 1 PMT/YR.

The BEG/END key (in Orange below the MAR key for the HP-10BII) will change PMTS/CFs from End-of-Period to Beginning-of-Period To set to BEG of period: a) Orange Key / MAR (You will now see the word "BEGIN" on your display) for HP-10B. The normal assumption is that CFs...
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