Clearing tvm, Begin and end modes, Loan calculations – HP 10B User Manual
Page 56: Part 1, Example: a car loan
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Clearing TVM
Press
BICLEAR ALLI lo dear the TVM registers. This sets
N, f/YR, PV,
PM Ty
and
FV
to zero and briefly displays the current value in
P/YR,
Begin and End Modes
IL
OOODOQj
OOOOOC'
CZDOOOCii
OOOOCl
ooooc^
oooac
{OBOOc:
Before you start a TVM calculation, identify whether the
first periodic payment occurs at the beginning or end of the
first period. If the first payment occurs at the end of the first
period, set your HP-lOB to End mode; if it occurs at the
beginning of the first period, set your calculator to Begin
mode.
To switch between modes, press BlBEG/ENDl. The BEGIN annunciator is
displayed when your calculator is in Begin mode. No annunciator is
displayed when you arc in End mode.
Mortgages and loans typically use End mode. Leases and savings plans
typically use Begin mode.
Loan Calculations
Example: A Car Loan.
You arc financing a new car with a three year
loan at 10.5% annual nominal interest, compounded monthly. The price
of the car is S7,250. Your down payment is $1,500.
Part 1
. What arc your monthly payments at 10.5% interest? (Assume
your payments start one month after the purchase or at the end of the
first period.)
5: Time Value of Money Calculations S3