Keys, Display, Description – HP 10B User Manual
Page 67: Step 1
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Ii‘ the annual interest rate is 18%, what is the capitalized value of the
lease?
Begin Mode
PV = ?
This solution requires four steps.
1. Calculate the present value of the 47 monthly payments:
(4x12) -1 = 47.
2. Add the value of the additional advance payment.
3. Find the present value of the buy option.
4. Sum the values calculated in steps 2 and 3.
Step 1-
Find the present value of the monthly payments.
Set to Begin mode. Press BIBEG/ENDI if annunciator is not displayed.
Keys:
121[P/Y~R1
47(H)
2400 (EMI
Display:
12.00
47.00
-2,400.00
Description:
Sets payments per year.
Stores number of
payments.
Stores monthly payment.
64
5: Time Value of Money Calculations