HP 20b Business Consultant

HP 20b Business Consultant
Financial Calculator Quick Start Guide
For free training, visit www.hp.com/go/calctraining
HP part number: F2219-90001
First edition: January 2008
Basic Features
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, noninfringement 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 © 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
2
Contents
Legal Notices
2
HP 20b Business Consultant
4
1
Basic Features
6
2
Mathematical Calculations
20
3
Statistical Operations
34
4
Time Value of Money
40
5
Cash Flows
50
6
Business Problems
62
7
Bonds
68
8
Depreciation
74
9
Break-even
81
10 Warranty, Regulatory, and Contact Information
3
84
HP 20b Business Consultant
HP 20b Business Consultant
4
HP 20b Business Consultant
Keyboard Map Legend
No.
Feature
Chapter(s)
No.
Feature
Chapter(s)
1
Time Value of
Money keys
4
16
Annunciator
display area
2
Cash Flows, IRR,
and NPV menus
5
15
Amortization and
Depreciation
menus
4,8
3
Data and Statistics
menus
3
14
% key and
Percent
Calculation menu
2,6
4
Input
1
13
Store and Recall
1
5
Memory
1
12
Break-even menu
9
6
Up/Insert and
Down/Delete keys
1
11
Backspace key
and Reset menu
1
7
Shift key
1
10
Math Menu
2
8
On/Off
1
9
Mathematical
functions (rows)
2
5
1
Basic Features
1
Basic Features
Welcome to the HP 20b Financial Calculator
This guidebook is designed to get you started with your new 20b Financial
Calculator. If you require more detailed information about calculator operation
and features, please refer to the training materials available at:
www.hp.com/go/calctraining.
Turning the Calculator On and Off
To turn on your calculator, press O. To turn it off, press :a.
Turning the calculator off does not erase any data you have stored. The
calculator automatically turns itself off after approximately five minutes to
conserve energy. If you see the low battery symbol () in the display, replace
the batteries. See Chapter 10, Warranty and Contact Information for instructions
on replacing the batteries.
Selecting a Language
English is stored as the default language. To select a language other than
English for messages on the display:
1.
Press :u to access the Mode menu. FIX= displays on the top
line of the screen.
6
Basic Features
2.
Press > repeatedly until English displays on the screen.
3.
Press I until the desired language is displayed. The displayed
language is the active setting.
4.
Press O to return to the default calculator screen.
For more information on accessing menus and changing calculator settings, refer
to the section below titled, Accessing Menus.
Adjusting the Display Contrast
To adjust the brightness of the display, press and hold O while pressing the
+ or - keys.
Each press of the + or - keys slightly increases or
decreases the brightness of the display.
Cursor
When you enter a number, the cursor (-) blinks in the display and indicates you
are in number entry mode.
Two Line Display
There are two lines in the display screen as shown in Figure 1-1:
Figure 1-1 Display Screen
7
Basic Features
The top line of the screen displays operation status, operator symbols,
annunciators, and abbreviations of the registers, variables, and menus.
Throughout this manual, this line is referred to as the top line. In Figure 1-1, SIN
and RPN on the far right are on the top line.
The bottom line displays numbers you have entered, or results. Throughout this
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. 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 :u. Press > or < repeatedly to scroll through the
menu starting with FIX=2 (the number of digits displayed to the right of the
decimal point). Once an item is displayed, press I to cycle through the
other options for that setting. To exit the Mode menu, press O. Table 1-1
below lists the items in the Mode menu.
8
Basic Features
Table 1-1 Mode Menu Settings
Setting
Display Description
FIX= 2
The current number of digits displayed to the right of the
decimal point. Default is 2.
Key in the number of digits you want and press I, or
press = until the number of digits you want is displayed.
Degree or
The current angular mode in degrees or radians.
Radian
Default is Degree.
Pressing I toggles between these options.
Date:
The current format for dates entered into menus: mm dd yyyy
mm dd yyyy
or dd mm yyyy. December 3, 2010 is entered as 12.032010 in
or
mm dd yyyy format, or 3.122010 in dd mm yyyy format. Note
dd mm yyyy
the (.) in both formats separating the first and second groups.
Default is mm dd yyyy format.
Pressing I toggles between these options.
1.23 or 1,23
The current decimal separator as a decimal point or comma.
Default is decimal point, 1.23
Pressing I toggles between these options.
9
Basic Features
Table 1-1 Mode Menu Settings
Setting
Display Description
Decimal or
The current thousands separator. Decimal (1000.00 or
Comma
1,000.00); Comma (1000,00 or 1.000,00).
Default is decimal. Pressing I cycles through these
options.
Chain,
The current operation mode.
Algebraic, or
Default is Chain.
RPN
Pressing I cycles through these options.
English,
The current language option.
Français,
Default is English.
Deutsch,
Pressing I cycles through these options.
Español
Actual or
The current calendar options for bonds and date calculations.
Cal.360
Default is Actual
Pressing I toggles between these options.
Annual or
The current bond type.
Semiannual
Default is Annual.
Pressing I toggles between these options.
10
Basic Features
Changing the Operating Mode
After viewing the default settings, suppose you want to change the operating
mode from Chain to RPN. See Table 1-2.
Table 1-2 Changing the Operating Mode
Keys
Display
Description
:u
Opens the Mode menu, starting
with first setting option, FIX=, the
number of digits displayed to the
right of the decimal point.
<<<<
<
Scrolls to the current setting for
the operating mode, Chain.
(Press five times)
II
Selects RPN as the active
(Press two times)
setting. Note the RPN
annunciator to the right.
> or <
Pressed repeatedly, scrolls
through other settings in the
menu. The displayed settings
are the active settings.
11
Basic Features
Table 1-2 Changing the Operating Mode
Keys
Display
Description
O
Exits the Mode menu and returns
you to the default calculator
screen.
Key Presses and the Shift : Key
To activate a key, press and release the desired key.
Most of the 20b's keys have two functions: the primary function and the shifted, or
secondary function. The primary function is printed on the top of the key. The
secondary function is printed on the bevel of the key.
To activate the secondary function of a key, press and release
: followed by
the key with the secondary function printed on the bevel. Unlike the shift key on a
typewriter or computer keyboard, it is not necessary to press and hold
: while
pressing another key.
In this manual, commands with secondary key functions are represented by the
shift key symbol, :, followed by the key with the secondary function. For
example, to activate sine, press :p.
12
Basic Features
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 :, simply press : a second time.
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. Table 1-3 lists the annunciators.
Table 1-3 Annunciator Symbols
Annunciator Symbol
(•)
Status
The shift key has been pressed. When
another key is pressed with this symbol
displayed, the secondary function printed on
the bevel of the key is activated.
Big (=) symbol
When displayed with an item, for example,
Price =, it indicates the value assigned to that
variable.
13
Basic Features
Table 1-3 Annunciator Symbols
Annunciator Symbol
Small (=) symbol
Status
Indicates an item for which the = key is
valid. This symbol appears on the upper right
of the display screen.

Battery power is low.
BEG
Begin mode is activated.
STO
Stores a number in memory.
RCL
Recalls stored numbers.
RAD
Radians setting is active.
RPN
RPN mode is active.
360
The 360-day calendar option is active.
INPUT
Input mode is activated.
The I Key
The I key is used to input values for variables and execute menu items.
14
Basic Features
The I 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 at the end of a mathematical operation to calculate the final
result. For example, 1+2= returns a final result of 3.
The = key also allows you to request a calculation for the value of an item.
This request only applies to items that can be calculated.
For example, when you select the nominal interest rate (Nom. %= ) in the Interest
Conversion (Iconv) menu, pressing = outside of a mathematical operation
calculates and displays the nominal interest rate based on the stored data in the
other variables in the 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. At this screen, press 12I to enter a new current value for the
nominal rate. Press < followed by = to calculate the current value for the
effective rate. See Figure 1-2.
Figure 1-2
15
Basic Features
When an item for which the = key is valid displays, the small indicator (=) is
displayed on the top line at the right of the screen. Do not confuse this small
annunciator (=) with the larger annunciator (=) found to the right of a variable.
Editing Entries and Clearing
The On/CE O Key
Pressing O one time cancels current number entries, mathematical operations,
or a menu selection, in that order.
Pressing O repeatedly while performing multiple actions or operations, or with
multiple operations pending, cancels one operation at a time, from the latest to the
earliest.
The Reset :x 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 :x. TVM displays on the top line. Press
< repeatedly to scroll to a specific item.
If you select the command to reset all
values, All , you will be prompted to confirm your choice. To reset, press
At the All Reset message, press O or
I.
I to exit.
Pressing :x while working within a particular menu takes you directly to the
item of the Reset menu that allows you to reset that menu. Say, for example, you
16
Basic Features
are working in the Bond menu and you wish to reset all your entries in the Bond
menu. From anywhere in the Bond menu, press :x. Bond displays on
screen. At this prompt, pressing I resets the Bond menu and returns you
to the last item you were working with in the Bond menu.
Notes about Special Menus
The Mode, Memory, Math and Reset menus are special menus, because when
you exit them by pressing
O, you return to the previous menu (if any).
This
feature allows you to work in two or more menus simultaneously without having to
exit a menu and lose your work.
Memory
The Cash Flow and Statistics menus share the same memory and are limited to a
combined total of 50 memory slots.
Macros can record up to 120 keys.
Since entering data in menus can represent a significant amount of work, when
the reset commands for the macro, cash flows, statistics and delete all (Del.All? )
functions are used, you will be asked to confirm your choice. At the prompt, press
I to confirm, or O to cancel.
17
Basic Features
Accessing Menus and Menu Maps
Many of the 20b's functions are located within menus. To access a menu, press
the key, or shift key combination for the menu in which you wish to work. To exit a
menu, press O.
For example, to access the Break-even menu, press
:!.
Once opened,
you can scroll through the items in the menu by pressing >< 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.
In this manual, diagrams called Menu Maps are included at the beginning of each
section to assist you in navigating through the menus used for that section. For
an example of a menu map, see Figure 1-3 below.
Figure 1-3 The Menu Map for the Break-even Menu
18
Basic Features
There are four types of menu items:
1.
Read/write. Read/write menu items, such as Price= in the Breakeven 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
I will store the entered number in the displayed menu item.
pressing = (outside of a mathematical operation) you will then
By
calculate the value for that item based on data entered elsewhere in the
menu.
2.
Read-only. Read-only items such as Internal Rate of Return (IRR%= )
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.
I%= ) in the Net Present Value (NPV) 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 I stores
that number in that menu 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 (%calc ) menu perform an action when I is
pressed. Depending on the menu, this action can be the selection of a
sub-menu in the %calc menu, changing a mode or setting in the Mode
menu, or erasing data with the Reset menu.
19
Mathematical Calculations
2
Mathematical Calculations
Mathematical Functions
Mathematical functions are located:

On keys, such as, +-*/ etc.

On shifted, or secondary functions, such as, :p

In the Math menu :s
Number Entry and Display
Numbers are entered by pressing:

Numbered keys, 0-9

The decimal point .

The } key

The :w keys
To correct a number entry, press {. Each press of { erases the last digit or
symbol you entered.
Change how numbers are displayed on screen with the options in the Mode
menu. For more information on calculator display settings, see the section titled,
The Mode Menu: Setting Preferences.
20
Mathematical Calculations
To enter a number in the display, press the 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 12345.12123 in scientific notation, first enter the mantissa,
12345, then press :w and enter the number representing the exponent,
123. The exponent must have a value between -499 and +499.
Chain Mode
By default, calculations are performed in Chain mode. To change the calculating
mode, refer to the section titled, The Mode Menu: Setting Preferences.
Calculations in Chain mode are interpreted in the order in which they are entered.
For example, enter the following numbers and operations as written from left to
right: 1+2*3. See Figure 2-1. Note how if you press an
operator key, +-*/, after =, the calculation is continued using
the currently displayed value.
Figure 2-1 Calculation in Chain Mode
In Chain mode, if you wish to override the left to right order of entry, use
parentheses () to prioritize operations.
21
Mathematical Calculations
For example, to calculate 1+ (2 x 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+
(2*3)
Sets operational priority, inputs
numbers, and multiplies 2 and
3.
=
Adds 1 to 6 and returns 7.00
on the bottom line as the final
result.
Algebraic Mode
To set the calculator in Algebraic mode, refer to the section titled, The Mode
Menu: Setting Preferences.
In Algebraic mode, multiplication and division have a higher priority than addition
and subtraction. For example, in Algebraic mode, pressing 1+2*3
returns a result of 7.00. In Chain mode, the same key presses return a result of
9.00.
In Algebraic mode, operations have the following priority:
22
Mathematical Calculations

First priority: the power function (y x)

Second priority: combinations and permutations

Third priority: multiplication and division

Fourth priority: addition and subtraction
For example, key in 1+2 x 5 nPr 2 2 in Algebraic mode by pressing:
1+2*5:b2:m=. The result is 241.
Reverse Polish Notation (RPN) Mode
To set the calculator in RPN mode, refer to the section titled, The Mode Menu:
Setting Preferences.
In RPN mode, numbers are entered first, separated by pressing I, followed
by an operation key.
Note: pressing I is optional after entering a number if the next key pressed
is an operation.
Each time you press an operation or function key, the answer is calculated
immediately and displayed. For example, suppose you wanted to add two
numbers in RPN, 1 and 2. Press 1I2+. The result, 3.00, is
calculated and displayed immediately on the bottom line along with the (+) symbol
on the top line.
23
Mathematical Calculations
You do not need to enter parentheses to set the priority of your operations in
RPN. 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 operations outside of the parentheses. See
Table 2-2 below.
Table 2-2 Simple Arithmetic Calculations in RPN Mode
Keys
Display
Description
Inputs the numbers and the
3I4+
operation in the first set of
parentheses. Intermediate results
are displayed. Note the (+) and
(RPN) annunciators.
5I6+
Inputs the numbers and the
operation in the second set of
parentheses. Intermediate results
are displayed. Note the (+)
annunciator.
24
Mathematical Calculations
Table 2-2 Simple Arithmetic Calculations in RPN Mode
Keys
Display
Description
*
Continues the operation with the
displayed results.
=
Validates the final result of 77.
Note the absence of the (*)
annunciator.
One-Number Functions and the Math Menu
The key presses for the one-number mathematical functions listed in Table 2-3
below apply to all modes, Chain, Algebraic, and RPN. To execute one-number
functions:
1.
Key in a number, x , into the display.
2.
Press the key or key combination corresponding to the operation you
wish to execute. The results are displayed on the bottom line.
For example, to calculate
6 , press 6:n. A result of 2.45 is
calculated immediately and displays on the bottom line. The
on the top line.
25
symbol appears
Mathematical Calculations
Note: before doing any trigonometric calculations in the Math menu, check
whether the angle mode is set for degrees (Degrees) or radians (Radians).
You can 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.
Table 2-3 lists one-number functions along with their corresponding keys.
Table 2-3 Shifted Function Mathematical Operations
Keys
Description
:w
Keys in numbers with explicit powers of 10.
:p
Calculates sine.
:q
Calculates cosine.
:r
Calculates tangent.
:k
Natural log.
:l
e x. Calculates natural exponent to the power of x.
:m
X2. Returns square of x.
:n
Calculates square root.
26
Mathematical Calculations
Table 2-3 Shifted Function Mathematical Operations
Keys
Description
:f
Executes the Random function. Returns a random
number in the range 0 < x <1.
:g
Calculates factorial of x (where 0 ≤ x ≤ 253).
:h
y x. Returns y to the x power.
:i
Reciprocal.
:e
Rounds x internally to the number specified by the
display format. Default is two digits to the right of the
decimal point.
The Math :s Menu
There are additional one-number functions available in the Math menu. To open
the Math menu, press :s. See Figure 2-2 for the menu map of the Math
menu.
27
Mathematical Calculations
Figure 2-2 The Menu Map for the Math Menu
28
Mathematical Calculations
Press < to scroll through the menu items, starting with Trigonometry. The
Trigonometry, Hyperbolic, and Probability items have sub-menus. Press I
with an item displayed to access the functions within the sub menus.
Press O to cancel the Math menu and return to current work.
Press :s to return to the top of the Math menu.
Using the Math menu, calculate Sin -1 (0.5). See Table 2-4.
Table 2-4 Math Menu Example
Keys
Display
Description
.5I
Enters 0.5 and opens the Math
:s
menu starting with Trigonometry.
I<
Selects the Trigonometry menu item
and scrolls to ASIN. Note the value
for Sin -1 is calculated immediately
and displayed.
I or =
Validates the result.
Note: in the Math menu, PI does not perform calculations; it overrides the current
number by PI. You may start an operation, use the Math menu to execute a
29
Mathematical Calculations
function, and continue calculating with your original operation without losing your
work.
Two-Number Functions
Apart from +-*/, the three additional two-number functions
accessible on the keyboard are:

Yx

nCr

nPr
Y x is the power function; nCr stands for the number of combinations of elements,
r, among n, and nPr stands for the number of permutations of elements, r, among
n.
nCr=n!/(r!(n-r)!)
nPr=n!/(n-r)!
Perform calculations with these functions in the same way you would perform
calculations with +-/ and *, but press : to access the
secondary function key. For example, to calculate 15 3 :
1.
Press
15.
2.
Press
:h.
30
Mathematical Calculations
3.
Press
3=.
The results are shown Figure 2-3.
Figure 2-3
In RPN mode, key in the numbers first, followed by
I, then press the
function key. For example, for the power function example above, in RPN press:
15I3:h.
Storing and Recalling Numbers
EURO has ten calculation memories available for use during calculations. These
memories are numbered from 0-9. To store numbers, press :$; to recall
them, press L. You can use the store and recall functions for these memories
any time a number is displayed, or when you wish to enter a number. To store a
number in a memory:
1.
Key in a number, x.
2.
Press :$.
3.
With STO displayed on the top line, key in a number, 0-9, to identify the
number of the memory register where you wish to store x.
31
Mathematical Calculations
4.
To recall a number, press L. With RCL displayed in the top line, key
in the number of the memory you used.
You can also perform operations to stored numbers. For example, press
5:$2 to store 5 in memory 2. To add 12 to the value of memory 2,
press 12:$+2. Later on, during a calculation, you can
press L2 to recall memory 2. Note how the new current value is 17, (5
+12). +-* and / are valid mathematical operations in the storage
memories.
Recalling Stored Numbers
In RPN, typing 12L+2= adds the value of memory 2 to 12,
but it will not modify the stored value of memory 2. You can also use
-*
and / after L.
In Algebraic and Chain modes, press 12+L2=.
Rounding Numbers
The 20b performs all calculations internally with 15-digit precision and rounds to
12 digits when returning the results.
When displayed, a number is rounded to the number of digits after the decimal
point set by the FIX= 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.
32
Mathematical Calculations
Note: the FIX= setting only affects the display; it does not affect the actual
numbers.
Simple Percentages
In Algebraic or Chain modes, pressing % divides a number by 100. For
example, pressing 25% returns 0.25.
To find a percentage of a given number, enter the number and multiply it by the
desired percentage, followed by = to return the result. For example, to find
25% of 200, press 200*25%= to return a result of
50.
To add or subtract a percentage of a number, enter the first number, followed by
+ or - the percentage, followed by %. Finish your calculation with
=, if desired. For example, to add 10% to 50, press
50+10%= to return a result of 55.
In RPN mode, the % key calculates x percent of the number on level two of the
stack, when x is the number on level one of the stack. It does not modify the
number on level two of the stack, allowing you to perform an addition or a
subtraction after pressing % to add or subtract x % from the number.
For example,
200I25% returns 50, but 200
is still on
level two of the stack, and pressing - returns 150, or 200-25%, with the (-)
annunciator displayed on the top line.
33
Statistical Operations
3
Statistical Operations
Figure 3-1 The Menu Map for the Data and Statistics Menus
34
Statistical Operations
Statistics operations require the use of two secondary function keys: :y
and :z. See Figure 3-1 for assistance with navigating through the menus.
Press
:y to open the Data menu.
In this menu, enter a list of x values for
one-variable statistics, a list of pairs, (x, w) for weighted, one-variable statistics, or
a list of paired values (x, y) for two-variable statistics. To enter data, key in a
number and press I.
Press :z 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 menu displays 2 Vars. Press I repeatedly to scroll through
the menu items, two-variable, (2 Vars ), one-variable, (1 Var ), and one-variable
weighted, (1 Weight ). Press < with an item displayed to open the first submenu. To return from the sub-menu to the menu above it, press >.
To reset the Stats and Data menus, press :x. At the prompt, Stats=,
confirm your choice by pressing I.
The first sub-menu contains the following items: Descriptions, Predictions (2 Vars
only) and Sums. Press > or < repeatedly to scroll through the items. With
an item displayed, press I to open its sub-menu. Press > or <
repeatedly to view the results.
Note: in one-variable and one-weight items, there are no items for y. For an
example using the Stats menu, see Tables 3-1 and 3-2. The example is shown
with RPN as the active operating mode.
35
Statistical Operations
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 Stats menu for Predictions, predict sales for
month seven. What is the slope and y-intercept of the linear regression line?
What is the sum of all the y values?
Table 3-1 Months and Sales Numbers
Month
Sales Values
1
150
2
165
3
160
4
175
5
170
Table 3-2 Statistics Example
Keys
Display
Description
:y
Opens Data menu starting
with the current value for
X(1).
36
Statistical Operations
Table 3-2 Statistics Example
Keys
Display
Description
1I1
50I
Inputs current values for X(1)
and Y(1). Displays current
value for X(2).
2I1
65I
Inputs current values for X(2)
and Y(2). Displays current
value for X(3).
3I1
60I
Inputs current values for X(3)
and Y(3). Displays current
value for X(4).
4I1
75I
Inputs current values for X(4)
and Y(4). Displays current
value for X(5).
5I1
70I
Inputs current values for X(5)
and Y(5). Displays current
value for X(6).
:z
Opens Stats menu.
37
Statistical Operations
Table 3-2 Statistics Example
Keys
Display
Description
<
Opens Descriptive submenu.
I<<
Displays current value for y
average.
:z<<
I
Opens Predictions sub-menu
<
Scrolls to current value of
starting with Linear.
Prediction X.
7I
Inputs current value for
Prediction X (month).
<=
Calculates predicted Y value
(sales).
<
Displays current value for
slope.
<
Displays current value for yintercept.
38
Statistical Operations
Table 3-2 Statistics Example
Keys
Display
Description
<
Displays current value for
Correlation.
:z<<
<I<
Opens Sums sub-menu.
Displays current value for the
sum of all y values (Sigma
Y).
39
Time Value of Money
4
Time 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.
:&
DWN
NOM%=
DWN
EFF%=
DWN
P/YR=
Figure 4-1 The Menu Map for the Interest Conversion Menu
Interest Conversion Menu
To open the Interest Conversion menu (Iconv) press
:&.
To reset the variables to their default values, from anywhere inside the menu,
press :x. With Iconv displayed, press I to reset, or
O to
cancel. To exit the menu, press O once again. See Figure 4-1. Table 4-1
describes the items of the Iconv menu.
40
Time Value of Money
Table 4-1 Interest Conversion Menu Items
Item
Description
Nom%=
The stated annual interest rate compounded periodically,
such as 18% compounded monthly.
Eff%=
The rate, that compounded only once, that is, annually,
would produce the same final value as the nominal rate.
P/YR=
Payments or compounding periods per year. Default is 12.
Using the Iconv menu, find the effective rate of a 36.5% nominal rate
compounded daily. See Figure 3-1 for help with navigating through the
menu. This example is calculated with RPN as the active operating mode.
See Table 4-2.
Table 4-2 Interest Rate Conversion Example
Keys
:&
Display
Description
Opens the Iconv menu, starting with
the current value of the nominal
percentage rate.
36.
5I
Inputs 36.5 as the current nominal
percentage rate.
41
Time Value of Money
Table 4-2 Interest Rate Conversion Example
Keys
Display
>
Description
Scrolls to payments per year, P/YR.
Default value is 12.
365
I
Inputs 365 as the current value for the
number of compounding periods or
payments per year.
>=
Scrolls to the variable for the effective
rate, Eff%=. Returns the effective rate.
A 36.5% nominal rate compounded
daily equals an effective rate of
44.03%.
TVM Keys and Entering Values
For a list of keys used for TVM problems along with their descriptions, see Table
4-3.
To reset the TVM variables to their default values, with any TVM variable
displayed, press :x. With TVM displayed, press I. At the TVM
Reset prompt, press I or O.
42
Time Value of Money
To input current data, enter a number followed by the TVM key for the required
item. To calculate an unknown value, enter all known values and press the key of
the item you want solved. For a TVM example, see Table 4-4.
Table 4-3 TVM Keys
Keys
Description
N
Stores or calculates the number of payments or
compounding periods (N).
^
Multiplies a value by the number of payments per year and
stores as N.
Y
Stores or calculates the nominal annual interest rate as a
percentage.
V
Stores or calculates the present value (PV). To a lender or
borrower, PV is the amount of a loan; to an investor, PV is
the initial investment. PV always occurs at the beginning of
the first period.
M
Stores or calculates the dollar amount of each periodic
payment (PMT). Payments can occur at the beginning or
end of each compounding period.
[
Stores or calculates the number of payments or
compounding periods per year.
43
Time Value of Money
Table 4-3 TVM Keys
Keys
Description
F
Stores or calculates the future value (FV), a final cash flow.
FV always occurs at the end of the last compounding period.
?
Sets Begin mode (Beg). Payments occur at the beginning of
each compounding period.
]
Sets End mode (End). Payments occur at the end of each
compounding period.
You borrow $140,000.00 from a credit union for 30 years (360 months) at
6.5% annual interest, compounded monthly. What is your monthly payment
to the credit union? Note: at the end of the 30 years, you expect to have a
zero balance (FV=0 ). The example below in Table 4-4 is shown with RPN
as the active operating mode.
Table 4-4 TVM Example
Keys
12:[
Display
Description
Inputs 12 as the current value for the
number of payments, or compounding
periods.
44
Time Value of Money
Table 4-4 TVM Example
Keys
Display
Description
360
N
Inputs 360 as the current value for the
6.5
Y
Inputs 6.5 as the current value for the
1400
00V
Inputs the present value of the loan at
number of payments over 30 years.
interest rate percentage per year.
the time of the first payment. This
value is positive (+); it is money you
receive.
0F
Inputs the future value of the loan (or
remaining balance) as 0.
M
Returns the monthly payment. This
result is negative (-); it is money you
pay out.
Amortization
Refer to Figure 4-2 for a menu map of the Amortization menu. Table 4-5 lists the
keys and variables of the Amortization menu. To open the menu, press
45
A.
Time Value of Money
The Amortization menu calculations are based on values stored in the following
TVM keys: N,
Y, V, M and [.
To enter current data for the TVM keys, enter a number followed by the key for the
required item.
To reset the variables to their default values, from anywhere in the
A menu,
press :x. With TVM displayed, press I. At the TVM Reset
prompt, press I or O.
For an amortization example, see Table 4-6.
Figure 4-2 The Menu Map for the Amortization Menu
Table 4-5 Amortization Menu Items
Menu Item/Key
Description
A
Opens the Amortization (amrt) menu starting with
Nb Per=.
46
Time Value of Money
Table 4-5 Amortization Menu Items
Menu Item/Key
Description
Nb Per=
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. Default is 1. If
you want to amortize for the 2nd year, enter 13 (the
second year starts at the 13th payment).
Balance=
The loan balance at the end of the assigned amortized
period.
Principle=
Amount of the loan payment applied to the principle at
the end of the amortized period.
Interest=
Amount of the loan payment applied to the interest at
the end of the amortized period.
Enter the values for the TVM keys from the example below. Press A followed
by > or < to view the amortization schedule.
You borrow $140,000.00 for 360 months at 10% interest from a credit union.
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
47
Time Value of Money
Table 4-6. The example below is shown with RPN as the active operating
mode.
Table 4-6 Amortization Example
Keys
Display
Description
12:
Inputs current value of payments per
[
year as 12.
30:
Inputs 360 (30 times 12 payments per
^
year) as the current value for the
number of payments for the 30-year
loan.
10Y
Inputs 10 as the current interest rate
percentage per year.
1400
00V
0F
Inputs the current present value of the
loan at the time of the first payment.
Inputs the current future value of the
loan as 0 (zero balance).
M
Returns the result for the monthly
payment.
48
Time Value of Money
Table 4-6 Amortization Example
Keys
A
Display
Description
Displays the current period of
amortization in months. Default is 12.
<
Displays the number of the starting
payment in first period to amortize.
<
Displays the current balance remaining
after the first year.
<
Displays the current amount of principle
applied towards the loan for the first
year.
<
Displays the amount of interest paid on
the loan for the first year. The amount
of your payments applied towards
interest for the first year is about
$14,000.00.
<
Displays the first payment in the next
period to amortize (the 2nd year).
49
Cash Flows
5
Cash Flows
Figure 5-1 Cash Flow Diagram
A cash flow list is a set of numbered pairs, CF(n) and #CF(n), where n is the
index of the cash flow list. Each pair represents a single cash flow.
CF(n) represents the monetary value of the cash flow; #CF(n) is the number of
consecutive occurrences of that cash flow. By default, #CF(n) is equal to 1, as
most cash flows occur only once. However, in cases where a cash flow is
50
Cash Flows
repeated multiple times in a list, using #CF(n) instead of entering the cash flow
value multiple times can save you time and memory space in the calculator.
To enter a cash flow list, press
C to open the cash flow menu.
For each cash flow item, enter the cash flow followed by
I; then enter the
number of occurrences followed by I.
If a cash flow occurs once, you do not need to type 1I; you can simply
press I, as 1 is the default.
To reset a cash flow list to its default values, with any cash flow displayed, press
:x.
The number of cash flows in the list, along with Cash Flow= , displays.
I. You will be asked to confirm your choice. Either
press I to confirm and O to return to the cash flow list, or press O
to cancel. Pressing O once again after you cancel the reset command also
At this prompt, press
returns you to the cash flow list.
Table 5-1 lists the keys used for cash flow problems. For a cash flow example,
see Table 5-2.
Table 5-1 Cash Flow Keys
Key
Description
C
Opens the cash flow list.
51
Cash Flows
Table 5-1 Cash Flow Keys
Key
Description
I
Inputs current values to variables in the cash flow list
as well as the Net Present Value (NPV) and Internal
Rate of Return (IRR) menus.
><
Scrolls up and down.
o
Inserts cash flows into a cash flow list.
j
Removes cash flows from a cash flow list.
RP
Opens internal rate of return (IRR) and Net Present
Value (NPV) menus.
After an initial investment of $80,000.00, you expect returns over the next
five years as follows: cash flow 1, $5,000.00, cash flow 2, $4,500.00, cash
flow 3, $0.00, cash flow 4, $4,000.00, cash flow 5, $5,000.00, 5 times, cash
flow 6, $115,000.00.
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 10.5%. See Figure
5-1 and Table 5-2. The example below is shown with RPN as the active operating
mode.
52
Cash Flows
Table 5-2 Cash Flow Example
Keys
Display
Description
C
Opens the cash flow list starting
with the current value of the
initial cash flow, CF(0).
8000
0}
Keys in -80000 as the value of
the initial cash flow. Note: the
sign of the cash outflow is
negative.
I
Inputs the current value
of -80000 for CF(0). Displays
the current value, 1, for the
frequency of CF(0).
I
Inputs the current value of 1 for
the frequency of CF(0). Displays
the current value of CF(1).
5000
Keys in 5000 as the value of
CF(1).
53
Cash Flows
Table 5-2 Cash Flow Example
Keys
Display
Description
I
Inputs the current value of CF(1)
as 5000. Displays the current
value,1, for the frequency of
CF(1).
I
Inputs the current value of 1 for
the frequency of CF(1). Displays
current value of CF(2).
4500
Keys in 4500 as the current
value of CF(2).
I
Inputs the current value of CF(2)
as 4500. Displays the current
value, 1, for the frequency of
CF(2).
I
Inputs the current value of 1 for
frequency of CF(2). Displays the
current value of CF(3).
54
Cash Flows
Table 5-2 Cash Flow Example
Keys
Display
Description
I
Inputs the current value of CF(3)
as 0. Displays the current value,
1, for the frequency of CF(3).
I
Inputs the current value of 1 for
the frequency of CF(3). Displays
the current value of CF(4).
4000
Keys in 4000 as the current
value of CF(4).
I
Inputs the current value of CF(4)
as 4000. Displays the current
value, 1, for the frequency of
CF(4).
I
Inputs the current value of 1 for
the frequency of CF(4). Displays
the current value of CF(5).
5000
Keys in 5000 as the current
value of CF(5).
55
Cash Flows
Table 5-2 Cash Flow Example
Keys
Display
Description
I
Assigns the current value of
CF(5) as 5000. Displays the
current value, 1, for the
frequency of CF(5).
5
Keys in 5 as the current value
for the frequency of CF(5).
I
Inputs the current value of 5 for
the frequency of CF(5). Displays
the current value of CF(6).
11500
0
Keys in 115000 as the current
I
Inputs the current value of CF(6)
value of CF(6).
as 115000. Displays the current
value, 1, for the frequency of
CF(6).
I
Inputs the current value of 1 for
frequency of CF(6). Ends list.
56
Cash Flows
Analyzing Cash Flows
The various functions used to analyze cash flows are located in the NPV
P and
IRR R menus.
If you press R or P 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 5-2. Table 5-3
describes the items within these menus.
57
Cash Flows
Figure 5-2 The Menu Map for the NPV and IRR Menus
58
Cash Flows
Table 5-3 NPV and IRR Menu Items
Item
Description
Inv. I%=
Investment or discount rate. Enter the investment rate
or discount rate for the cash flow followed by I.
Net PV=
Net present value. Returns the value of the cash flows
at the time of the initial cash flow, discounting the future
cash flows by the value set for Inv. I%.
Net FV=
Net future value. Returns the value of the cash flows at
the time of the last cash flow, discounting the earlier
cash flows by the value set for Inv. I%.
Net US=
Net uniform series. The per-period payment of a
regular, periodic cash flow of equivalent present value
to the cash flow list.
Payback=
Payback. The number of periods for the investment to
return value.
Discounted Payback=
Discounted Payback. The number of periods required
for the investment to return value if the cash flows are
discounted using the value set in Inv. I%.
59
Cash Flows
Table 5-3 NPV and IRR Menu Items
Item
Description
Total=
The sum of all the cash flows, equivalent to NPV if Inv.
I% is 0.
RIRR%=
Internal rate of return. This is the discount rate for the
cash flow that returns a Net Present Value of 0.
See Table 5-4 for an example of the NPV and IRR functions using the cash flow
example in Table 5-2. Press P and R to open the menus. At Inv. I%, key in
a number followed by I. Scroll through the menus by pressing > or
< repeatedly.
The example below is shown with RPN as the active operating
mode.
Table 5-4 NPV and IRR Example
Keys
P
Display
Description
Opens NPV menu starting with current
value of Inv. I%.
10.
5I
Inputs 10.5 as current Inv. I%.
<
Scrolls to current value for NPV.
60
Cash Flows
Table 5-4 NPV and IRR Example
Keys
Display
<
<
<
<<
Description
Scrolls to current value for NFV.
Scrolls to current value for Net US.
Scrolls to current value for Payback.
Scrolls to current value of cash flow
total.
R
Returns current value for IRR.
Editing Cash Flows
In the cash flow list, you can view and modify the current values of a specific cash
flow, or cash flows. Press > or < repeatedly to scroll through the list. To
modify an entry, type a new number and press I with a cash flow displayed.
For example, to change the current value of CF(7) in the example in Table 5-2
from 0 to 200, with CF(7)= displayed, press 200 and press I.
You can also modify the frequency of a cash flow in the same manner with the
frequency, #CF(n) =, displayed. Pressing :j with a cash flow displayed
erases the displayed cash flow. Pressing :o inserts a cash flow into the
list before the displayed cash flow.
61
Business Problems
6
Business Problems
Figure 6-1 The Menu Map for the Percent Calculation (%calc) Menu
Press :# 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 ),
percent change (%Change ), and part as a percentage of total (Part%Tot. ).
These items allow you to access sub-menus. Press
62
> or < repeatedly to
Business Problems
scroll to the item you require. Press I with a menu item displayed to
access its-sub menu. To enter data in the sub-menus, select the appropriate
menu item, key in the number, and press I. Press > or < to select
the menu item you need solved and press = to calculate it.
To return to the menu items from within a sub-menu, press
O.
Note: for business problems using 20b, margin is based on price; markup is based
on cost.
To reset the menu items to their default values, from anywhere in the %calc menu
press :x. With TVM displayed, press > or < to scroll until %Calc
displays and press I. Press O to exit the menu. See Tables 6-1
through 6-3 for examples of calculations in the %calc menu. The examples below
are shown with RPN as the active operating mode.
1.
Find the markup on an item if the cost price is $15.00 and the
selling price is $22.00. See Table 6-1.
Table 6-1 Markup Example
Keys
Display
Description
:#
Opens the %calc menu starting
with Mkup.%C.
I
Displays the current value of
Cost=.
63
Business Problems
Table 6-1 Markup Example
Keys
Display
Description
15I
Inputs 15 as the current value for
cost.
<
Scrolls to Price= and displays the
current value.
22I
Inputs 22 as the current value for
price.
<
Scrolls to Mkup.%C variable. Note
the (=) symbol. Displays the
current value of markup.
=
Returns result of 46.67 for markup.
2.
Find the percent change between 20 and 35 with no
compounding.
64
Business Problems
Table 6-2 Percent Change Example
Keys
Display
Description
:#
Opens the %calc menu starting
with Mkup.%C.
<<<
Scrolls to %Change.
I
Displays the current value for Old=.
20I
Inputs 20 as the current value for
Old=.
<
Displays the current value for
New=.
35I
Inputs 35 as the current value for
New=.
<
Displays the current value for
%Change=. Note: the (=) symbol.
=
Calculates the current value for
%Change=.
65
Business Problems
3.
What is 30% of 80?
Table 6-3 Part % of Total Example
Keys
Display
Description
:#
Opens the %calc menu starting
with Mkup.%C.
<<
Scrolls to the Part %Tot. menu
item.
I
Displays the current value for
Total=.
80I
Inputs 80 as the current value for
Total=.
<
Scrolls to the current value of
Part=.
30I
Inputs 30 as the current value for
Part=.
<
Scrolls to the current value for Part
% Tot.=. Note the (=) symbol.
66
Business Problems
Table 6-3 Part % of Total Example
Keys
Display
Description
=
Calculates the current value of Part
% Tot.=. 30 is 37.50% of 80.
67
Bonds
7
Bonds
Figure 7-1 The Menu Map for the Bond Menu
Before you enter the Bond menu, be sure to check that the date format is set in
the format required for your problem. The default setting is mm.dd yyyy, but it
can be set for dd.mm yyyy. 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.
To open the Bond menu, press B.
68
Bonds
Press > or < repeatedly to scroll through the items shown in Figure 7-1.
I.
Press > or < repeatedly to scroll to an unknown item, and press = to
To input current data, with an item displayed, key in a number and press
calculate it.
To reset the values to their default values, from anywhere in the Bond menu,
press :x. With Bond displayed, press I to reset the menu or O
to cancel. Press O again to exit the menu.
Table 7-1 lists the items in the Bond menu. For an example of calculating price
and yield in the Bond menu, see Table 7-2.
Table 7-1 Bond Menu
Variable
Description
Settlement Date=
Settlement date. Displays the current settlement
date in either mm.ddyyyy or dd.mmyyyy format.
Note: input only.
Maturity Date=
Maturity date or call date. The call date must
coincide with a coupon date. Displays the current
maturity date in either mm.ddyyyy or dd.mmyyyy
format. Note: Input only.
CPN%=
Coupon rate stored as an annual %. Note: Input
only.
69
Bonds
Table 7-1 Bond Menu
Variable
Description
Call=
Call value. Default 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.
Yield%=
Yield% to maturity or yield% 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: Input/Output.
Actual/Cal.360
Actual (365-day calendar) or Cal.360 (30-day
month/360-day year calendar).
Annual/Semiannual
Bond coupon (payment) frequency.
What price should you pay on April 28, 2010 for a 6.75% U.S. Treasury bond
maturing on June 4, 2020, if you want a yield of 4.75%? Assume the bond is
calculated on a semiannual coupon payment on an actual/actual basis. See
70
Bonds
Table 7-2. The example below is shown with RPN as the active operating
mode.
Table 7-2 Bond Calculation Example
Key
Display
Description
B
Opens the Bond menu starting with
the current settlement date.
>
Scrolls to bond coupon (payment)
frequency.
I
Selects semiannual coupon
payment, as required by the
example.
<
Inputs semiannual coupon
payment and returns to the current
settlement date.
4.28
2010
I
Inputs the current settlement date
in mm.ddyyyy format. Note: 3 in
the display represents the day of
the week.
71
Bonds
Table 7-2 Bond Calculation Example
Key
Display
Description
<
Displays the current maturity date
in mm.ddyyy format.
6.04
2020
I
Inputs the current maturity date.
<
Displays the current value for
Note: 4 in the display represents
the day of the week.
CPN%=.
6.75
I
Inputs 6.75 as current value for
<
Displays current call value. Default
CPN%=.
is 100. Note: if Call= requires
another value, key in the number
followed by I.
<
Displays the current value of
Yield%=.
4.75
I
Inputs 4.75 as the current value for
Yield%=.
72
Bonds
Table 7-2 Bond Calculation Example
Key
Display
Description
<
Displays the current value for
Price=.
=
Calculates the current value for
Price=.
:$1
Stores 115.89 in memory 1.
<
Displays the current value for
accrued interest.
:$2
Stores 2.69 in memory 2.
OL1+
L2=
Returns the result for total price
(value of price + value of accrued
interest). The net price you should
pay for the bond is $118.58.
73
Depreciation
8
Depreciation
Figure 8-1 The Menu Map for the Depreciation Menu
Press :\ to open the Depreciation menu. Press I to cycle through
the depreciation methods. With a depreciation method displayed, press > or
< repeatedly to view the items of the sub-menu.
a number and press I.
To enter current data, key in
To reset the Depreciation menu, press :x. With Depreciation displayed,
press I to reset the menu or O to cancel. Press O again to exit the
menu.
74
Depreciation
Brief descriptions of the methods used to calculate depreciation are provided in
Table 8-1. Table 8-2 describes the items found in the depreciation sub-menus.
For an example calculating depreciation using the straight-line method, see Table
8-3.
Table 8-1 Depreciation Methods
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 based on the idea that the years of an asset's
useful life are divided by the sum of the years counting
backwards. For example, a five year useful life would be
shown as 5 + 4 + 3 + 2 + 1= 15. Press 4 / 15, then
press = to return a 27% depreciation for the first year.
In RPN, press 4 I 15 /.
75
Depreciation
Table 8-1 Depreciation Methods
Depreciation
Method
DecBal
Description
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.
ACRS
Accelerated Cost Recovery System calculates the amount
of tax deduction under U.S. Accelerated Cost Recovery
System.
Sl Fr
Straight line French. This method of depreciation is similar
to the Straight line method, except an actual calendar date
in mm.dd format is entered in for Start= to indicate when
the asset was first placed into service.
76
Depreciation
Table 8-2 Depreciation Menu Items
Item
Description
Life=
The expected useful life of the asset in whole 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, or the actual
date in mm.dd format.
Cost=
The depreciable cost of the asset at acquisition.
Salvage=
The salvage value of the asset at the end of its
useful life.
Year=
Assigns the value of the year for which you want the
depreciation.
Depreciation=
Depreciation calculation used for straight line,
SOYD, and declining balance methods only.
R.Book Value=
Remaining book value.
R.Depreciable Value=
Remaining depreciable value.
77
Depreciation
Table 8-2 Depreciation Menu Items
Item
Description
Factor=
The declining balance factor as a percentage. This
is used for declining balance and declining balance
crossover methods only.
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 8-3.
Table 8-3 Straight Line Depreciation Example
Key
Display
Description
:\
Opens the Depreciation menu
starting with the straight line
method.
<
Displays the current value of the
useful life. 1 is the default value.
5I
Inputs 5 as the current value for
the useful life.
78
Depreciation
Table 8-3 Straight Line Depreciation Example
Key
Display
Description
<
Displays the current value of
Start=. 1 is the default value.
<
Displays the current value for
Cost=.
1000
0I
Inputs the current value for cost as
<
Displays the current value for
10,000.00.
Salvage=.
500I
Inputs the current value for salvage
as 500.00.
<
Displays the current year of the
depreciation. 1 is the default value.
<
Displays the current depreciation
amount after year 1.
<
Displays the current remaining
book value after year 1.
79
Depreciation
Table 8-3 Straight Line Depreciation Example
Key
Display
Description
<
Displays the current remaining
depreciable value after year 1.
<
Displays the current year of the
depreciation.
<
Displays the current depreciation
amount after year 2.
<
Displays the current remaining
book value after year 2.
<
Displays the remaining depreciable
value after year 2.
80
Break-even
9
Break-even
Figure 9-1 The Menu Map for the Break-even Menu
Press :! to open the Break-even menu. Starting with Fixed=, input known
data by entering a number and pressing I. Scroll to the unknown variable
by pressing > or < repeatedly. Press = to calculate it.
To reset the Break-even menu, from anywhere in the menu press :x. With
BrkEven displayed, press I to reset the menu or O to cancel. Press
O again to exit the menu.
The sale price of an item is $300.00, the variable cost price is $250.00, and
the fixed costs are $150,000.00. How many units would have to be sold to
break even (profit = 0%)? This example is shown in Table 9-1 with RPN as
the active operating mode.
81
Break-even
Table 9-1 Break-even Example
Keys
Display
Description
:!
Opens the Break-even menu
starting with the current value for
fixed costs.
1500
00I
Inputs the current value for fixed
<
Displays the current vale for Cost=.
250I
Inputs the current value for cost as
costs as 150,000.00.
250.00.
<
Displays the current value for
Price=.
300I
Inputs the current value for price as
300.00.
<
Displays the current value for
Profit=.
I
Inputs the current value for profit as
0.
82
Break-even
Table 9-1 Break-even Example
Keys
Display
Description
<
Displays the current value for
Quantity=.
=
Calculates the current value for the
unknown item. 3000 units would
have to be sold to return a 0%
profit.
83
Warranty, Regulatory, and Contact
Information
10
Warranty, Regulatory, and Contact Information
Replacing the Batteries
Use only fresh batteries. Do not use rechargeable batteries. EURO takes two, 3volt CR2032 lithium batteries. To install a new battery:
1.
With the calculator turned off, slide the back cover off.
2.
Remove the old batteries.
3.
Insert new batteries, 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 (may vary by region, please visit www.hp.com/support
for latest information)
General Terms
84
Warranty, Regulatory, and Contact
Information
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 likenew.
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 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.
85
Warranty, Regulatory, and Contact
Information
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 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.
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. A complete list is available on the web at: www.hp.com/support.
86
Warranty, Regulatory, and Contact
Information
Regulatory 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 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.
87
Warranty, Regulatory, and Contact
Information
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 InterferenceCausing Equipment Regulations.
Avis Canadien
Cet appareil numérique de la classe B respecte toutes les exigences du Règlement
sur le matériel brouilleur du Canada.
88
Warranty, Regulatory, and Contact
Information
European Union Regulatory Notice
This product complies with the following EU Directives:
• Low Voltage Directive 2006/95/EC
• 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.
This compliance is indicated by the following conformity marking placed on the
product:
xxxx*
This marking is valid for non-Telecom products
and EU harmonized Telecom products (e.g.
Bluetooth).
This marking is valid for EU non-harmonized
Telecom products .
*Notified body number (used only if
applicable - refer to the product label)
Hewlett-Packard GmbH, HQ-TRE, Herrenberger Srasse 140, 71034 Boeblingen,
Germany
89
Warranty, Regulatory, and Contact
Information
Japanese Notice
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 must 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 point 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.
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.
90
Warranty, Regulatory, and Contact
Information
Table 10-1 Contact Information
Country/Region
Contact
Africa (English)
www.hp.com/support
Africa (French)
www.hp.com/support
Argentina
0-800-555-5000
Australia
1300-551-664
Austria
01 360 277 1203
Belgium (French)
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
Chile
800-360-999
China
010-68002397
91
Warranty, Regulatory, and Contact
Information
Table 10-1 Contact Information
Country/Region
Contact
Colombia
01-8000-51-4746-8368
Costa Rica
0-800-011-0524
Czech Republic
296 335 612
Denmark
82 33 28 44
Ecuador
800-711-2884
El Salvador
800-6160
Finland
09 8171 0281
France
01 4993 9006
Germany
069 9530 7103
Greece
210 969 6421
Guatemala
1-800-999-5105
Honduras
800-711-2884
Hong Kong
852 2833-1111
Hungary
www.hp.com/support
92
Warranty, Regulatory, and Contact
Information
Table 10-1 Contact Information
Country/Region
Contact
India
www.hp.com/support/india
Indonesia
+65 6100 6682
Ireland
01 605 0356
Italy
02 754 19 782
Japan
81-3-6666-9925
Korea
www.hp.com/support/korea
Malaysia
+65 6100 6682
Mexico
01-800-474-68368
Middle East International
www.hp.com/support
Netherlands
020 654 5301
New Zealand
0800-551-664
Nicaragua
1-800-711-2884
Norway
23500027
Panama
001-800-711-2884
93
Warranty, Regulatory, and Contact
Information
Table 10-1 Contact Information
Country/Region
Contact
Paraguay
(009) 800-541-0006
Peru
0-800-10111
Philippines
+65 6100 6682
Poland
www.hp.com/support
Portugal
021 318 0093
Puerto Rico
1-877 232 0589
Russia
495 228 3050
Singapore
6100 6682
South Africa
0800980410
South Korea
2-561-2700
Spain
913753382
Sweden
08 5199 2065
Switzerland (French)
022 827 8780
Switzerland (German)
01 439 5358
94
Warranty, Regulatory, and Contact
Information
Table 10-1 Contact Information
Country/Region
Contact
Switzerland (Italian)
022 567 5308
Taiwan
+852 2805-2563
Thailand
+65 6100 6682
Turkey
www.hp.com/support
United Kingdom
0207 458 0161
Uruguay
0004-054-177
United States
800-HP INVENT
Venezuela
0-800-474-68368
Vietnam
+65 6100 6682
95