HP 17bII Owner's Manual

hp 17b II Fi nancial Calc ulator Owner ’s M anual Edition 2 Part Number F2234-90 020
File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Notice For warranty and regulatory information for this calculator, see the owner’s manual. This manual and any examples contained herein are provided “ as is ” and are subject to change withou t notice. Hewlett-Pa ckard Com pany makes no warranty o f any kind with regard to this manual, including, but not limited to, the implie d warranties of merchantab ility and fitne ss for a p articular purp ose. Hewlett-Packard Co. shall not be liable for any error s or for incidental or consequential damages in connection wi th the furnishing, performance, or use of this manual or the ex amples contained herein. © Copyright 2003 Hewlett-Packard Development Company, L.P. Reproduction, adaptation, or translation of this manual is prohibited withou t prior written permission of Hewlett- Packard Company , except as allowed under the copyright laws. The programs that control y our calculator are copyrighted and all rights are reserved. Reproduction, adaptation, or translation of those prog rams without prior written permission of Hewlett-Packard Co. is also prohibited. 4995, Murphy C anyon Rd, Suite 301 San Diego,CA 921 23 Printing H istory Edition 1 June 2003 Edition 2 Januar y 2004
Welcome to the h p17bII 3 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Welcome to the hp 17bII The hp 17bII is part of Hewlett-Packar d’s new generation of calculators:  Th e two-line display has s pace for me ss age s, pr ompts , and labels .  Menus and me ssages sho w you opti ons and guide y ou thr ough pr oblems.  Built-in applications s olve th ese busines s and financ ial tasks:  Time Value of M oney . For loans , sav ings , leasing, and amorti z ation .  Interest Co nversion s. Bet w een nominal and effe cti ve r ate s.  Cash Flows. Discounted cash f l o w s for calc ulating net pre sent value and inter nal rate o f r eturn .  Bonds. Pr ice or y ield on any date. A nnual or semi-an nual cou pons; 30/3 6 0 or actual/ac t ual calendar .  Deprecia tion. Using methods o f str aight line , dec lining balance , sum-of-the -years ’ digits , and accelera ted cos t r eco very s y stem .  Business P ercentag e s. P er cent change , per cent total , mar ku p .  Curre ncy Exc ha ng e. Exc han ge calcu lations bet w een two c urr encie s.  Statistic s. Mean , corr elatio n coeffi ci ent , linear estimate s, and other statis tical calc ulations.  Clo ck. T ime, date , and appo intments.  Use the Sol ver f o r pr oblems that ar en ’t built in: ty pe an equati on and then solv e f or any u nknow n v alue . It’s easier than pr ogramming!  Ther e are 2 8K b ytes of memory to stor e data , lists , and equati o ns.  Y ou can print informat ion using the hp 8 2 2 40 Inf rar ed Printer .  Y ou can choos e either AL G (Algebr aic) or RPN (R ev erse P olish No tation ) entry logic f or y our calc ulations .
4 Contents File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Contents 13 List o f Examples 16 Important Information 1 17 Get ting Started 17 P ow er On and Off; C ontinu ous M emor y 17 Adjust in g t he Di sp lay C on trast 18 Setting the Language 18 What Y ou S ee in the Display 19 Th e S h i f t Key ( @ ) 19 Backs pacing and Clear ing 21 Doing Ar ithmetic 22 K e y ing in Negativ e Numbers ( & ) 22 Usin g th e Me nu Ke ys 23 The MAIN Menu 25 Choosing Me nu s and Reading Menu Map s 27 Calculation s Using Menus 28 Ex iting Menus ( e ) 28 Clear i ng V alue s in Menus 29 Solv i ng Y o ur Own E quatio ns (SOL VE) 30 T yping W ords and Char acter s: the ALPHA betic Menu 31 E diting ALPHAbetic T ext 32 Calc ulating the Ans wer (CAL C) 34 Contr olling the Display Form at 34 Dec imal P laces 34 Internal Pr ec ision 34 T empor aril y SHO Wing ALL 35 R ounding a Number 35 Ex changing P eri ods and Commas in Nu mbers
Contents 5 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 36 Err o r Messages 36 Modes 37 Calculato r Memo ry ( @M ) 2 38 Arithmet ic 38 Th e C a l cu l a t o r Li n e 38 Doi ng Calculations 40 Using P arenthes es in Calc ulations 40 T he P ercent K e y 40 The Mathematical F uncti ons 41 The P o wer F uncti on (Exponentiati on) 42 T he MA TH Menu 43 Sav ing and Reus ing Numbers 43 The H i story Stack of Number s 44 Re us i n g t he L a st Re s ul t ( @L ) 45 Stor ing and Recalling Nu mbers 46 Doing Ar ithmetic Inside R egisters and V ar iables 47 Sc ie nti fic Not ation 48 R ange of Numbers 3 4 9 P ercentage Calcu lations in Busi ness 50 Us in g t he BUS Men us 50 Examples Using the BUS Menus 50 Pe r c e n t C h a n g e ( % C H G ) 51 P er cent of T otal (%T O TL) 52 Ma rk up as a P er cent of Cos t (MU%C) 52 Mar ku p as a P er cent of Pr ice (MU%P) 53 Sharing V ar iables Between Menu s 4 54 Currency Exchange Calc ulation 54 The CURRX Menu 55 Sel ec ti n g a Se t o f Cu rren cies 57 Entering a R ate
6 Contents File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 59 Con v er ting between T w o Curr enci es 59 Stor ing and Re calling Sets o f Cur renc ies 60 Clearing the Cu rrency V ari ables 5 61 Time V alu e of Mo ney 61 The TVM Menu 64 Cash F low Diagr ams and Signs of Numbers 66 Using th e T VM Menu 67 L o an Calc ulations 71 Sa vings Calc ulations 74 Leasing C alcu lations 77 Amortiz ati on (AMR T) 78 Display ing an A m orti zati on Sc hed ule 82 Pr inting an Amorti z ation T a ble 6 84 Interest Rate Conversions 85 Th e I C N V M e n u 85 Conv er ting Inte res t Rates 87 Compounding P er iods Diff er ent fr om P ay ment P er iods 7 91 Cash Flow Calculat ions 91 Th e C FL O Me n u 92 Cash Fl ow Diagr ams and Signs of Number s 94 Cr eating a Cash-F lo w Lis t 95 Enter ing Cash F low s 97 V ie w ing and Corr ecting the L ist 98 Cop y ing a Number fr om a L ist to the Cal culator Li n e 98 Naming and R enaming a Cash-F low L i st 99 Starting or GETting A nother L ist 99 Clearing a Cash-F low L ist and Its Name 100 Cash-Flo w Calculations: IRR , NPV , NUS , NFV 10 7 Doing Other Calc ulati ons with CFL O Data
Contents 7 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 8 108 Bonds 108 Th e B O N D Me n u 110 Doing Bond Calculations 9 114 Depreciation 114 Th e D E P RC M en u 116 Doi ng Deprec iation Calculati o ns 116 DB , SO YD , and SL Methods 118 Th e A C RS M et h o d 119 P artial- Y ear Depr ec iation 10 121 Running T o tal an d Statistic s 12 2 The SUM Menu 12 3 Creating a S UM L ist 12 3 Entering Number s and Vie wing the T OT AL 12 4 Vie wing and C orrec ting the L ist 12 6 Cop y ing a Number fr om a L ist to the Cal cu lator Li n e 12 6 Naming and R enaming a S UM Lis t 12 7 Starting or GETting A nother L ist 12 7 Clearing a S UM Lis t and Its Name 12 7 Doing Statis tical Calc ulations (CAL C) 128 Calculati ons with One V ari ab le 130 Calculati ons with T w o V ar iables (FR CS T) 133 Curv e Fitting and F orecas ting 138 W ei ghted Mean and Gr ouped Standar d Dev iation 13 9 Summation S tatistic s 140 Doing Other Calc ulations w ith S UM Data 11 141 Time, Appointme nts, an d Date Arit hmetic 141 Vie wing the T ime and Date
8 Contents File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 14 2 Th e Ti m e M e n u 143 Setting the Time and Date (SE T) 144 Changing the T ime and Dat e F ormats (SE T) 144 Adju sting the Cloc k Setting (AD JST) 145 Appointments (AP PT) 145 Vi ew ing or Setting an Appoi n tment ( APT1-APT10) 14 7 Ac know ledging an Appointment 148 Unackno wledged Appointm ents 148 Clear i ng Appo intments 14 9 Date Ar ithmetic (CAL C) 150 Determining the Da y of the W eek for An y Date 150 Calcu l ating the Number of Da y s bet ween Date s 151 Calc ulating P as t or F utur e Dates 12 15 3 The Equation Solver 15 3 Solv er Exam ple : Sales F orecas ts 15 6 Th e SO L V E M en u 15 7 Entering E quations 158 Calculating U sing Solv er Menu s (CA L C) 161 E diting an E quation (EDI T) 161 Naming an E quation 16 2 Finding an E q uation in the S olv er L ist 16 2 Sh ared V ariables 16 2 C l e ari n g V a ri ab l es 163 Deleting V ari ables and E quations 164 Deleting One E quation or Its V ari ables (DELET) 164 Deleting All E quations or A ll V ari able s in th e Solv er ( @c ) 164 W riting E quati ons 166 What Can Appear in an E qu ation 168 So lver Fun ct io n s 17 4 Conditi onal Expr es sions w ith IF 17 6 The Su mmation F uncti on ( ∑ ) 177 Acce ssing CFL O and SUM Lists f rom the Solv er 17 8 Creating Menus f o r Multip le Equations (S F unction)
Contents 9 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 17 9 How the Solv er W o rks 180 Halting and Re starting the Numer ical Sear ch 181 Entering Guess es 13 184 Printing 185 Th e P ri n t e r ’ s P owe r S o urc e 185 Double -Space Pr inting 185 Printing the Displa y( P ) 186 Printing Other Inf ormation ( @p ) 186 Pri nt in g V a riables, Lists, a nd Ap poi nt me nt s (L IS T ) 188 Pri nt i ng Descrip tive Mess ag es (MSG) 188 T r ace Printing (TRA CE) 18 9 How to I nterru pt the Printer 14 190 Addit ional Examples 190 Lo a n s 190 Simple A nnual Intere st 191 Y ield of a Discoun ted (or Premiu m) Mo rtgage 19 3 Annu al P er centage Rate f or a L oan with F ees 19 5 L oan w ith an Odd (P ar tial) F irst P eri od 19 7 Canadian Mor tgages 199 Adv ance P a yments (Leasing) 200 Savi ng s 200 V alue o f a F und with R egular Withdr aw als 20 2 Deposits Needed for a Child’s C ollege Account 206 V alue of a T ax-F r ee Account 208 V alue o f a T ax able Retir ement Account 209 Modifie d Internal R ate of R eturn 213 Price of an Insur anc e P olicy 215 Bonds 216 Di scounted Notes 217 St at i st ics 217 Mov ing Av erage 219 Chi -Squared ( χ 2 ) Statis tics
10 Contents File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 A 2 2 2 Assistan ce, Batteries, Mem or y , and Service 222 Obtaining Help in Operatin g the Calculator 222 Ans wer s to Common Questions 224 P o wer and Batter ies 224 Low - P owe r I n d ic at io n s 225 Installing Batter ies 227 Managing Calcu lator Memory 22 8 Re se t t i n g t h e C a l cu l a t o r 229 Erasing Co ntinuous Memory 23 0 Clo ck Accur a cy 23 0 Env ir onmental Limits 23 0 Determining If the Cal cu lator Req uires Serv ice 232 Co nfirmin g Calculato r Ope r a tion : Self-T est 23 3 Wa r r a n t y 23 5 Ser v i c e 237 Re g u la t o r y i n fo rm a t io n 237 Noise Declar ation B 23 8 M or e A b o u t C a l c ul a t io n s 23 8 IRR% Calculati o ns 23 8 P ossible Ou tcomes of Cal culating IRR% 239 Halting and Re starting the I RR% Calcu lation 239 Stor ing a Gues s for IRR% 24 0 So lver Ca l cul a t io ns 24 0 Direct S ol utions 242 Iterati v e Soluti ons 24 6 E quations Us ed b y Built-in Menus 24 6 Actuar ial F uncti ons 24 7 P er centage Calcu lations in B usiness (B US) 24 7 Time V alue of Mone y (T VM) 24 7 Amortiz ati on 24 8 Inter est R ate Conv ersi ons
Contents 11 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 24 8 Cash-Flow Calculations 215 Bond Calc ulations 25 0 Depr eciati on Calculati ons 25 1 S um and S tatistics 25 1 For e c a s t i ng 252 E quations Us ed in (Chapter 14) 252 Canadian Mortgages 253 Odd-P eriod C alculati ons 253 Ad v anc e P a yments 253 Modif ied Internal R ate of R eturn C 2 5 4 Men u Maps D 26 1 R P N: S u m m a r y 26 1 Abo ut RP N 26 1 About RPN on the hp 17bII 262 Se t t in g RP N M o de 26 3 Wher e the RPN Functi on s Ar e 26 4 Doing Calc ulations in RPN 26 4 Ar ithmetic T opic s Aff ec ted b y RPN M ode 26 4 Simp le Arith met ic 26 6 Calcu lations w i th S T O and R CL 26 6 Ch ain Cal culations － No P ar enthese s! E 26 8 R P N : T h e S t a c k 26 8 What the S tack Is 269 R e vie wing the S tack (R oll Do w n) 269 Ex changing the X- and Y - R egisters in the S tack 270 Arit hme tic － How the S tack Do es It 27 1 Ho w ENTER W orks 272 Clear ing Numbers 273 The LAS T X R e gister 273 R etrie v ing Numbers fr om LAS T X
12 Contents File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 273 R eusing Number s 27 4 Ch ain Calculation s 275 Exer c i ses F 2 7 6 RPN: Sele cted Examples 283 Error M essag es 289 In dex
List of Example s 13 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 List of Exa mples The following list groups the examples by categor y. Get ting Started 25 Usi ng M enus 29 Using the S olver Arithmet ic 40 Calc ulating Simple Intere st 17 8 Unit Con versi o ns 190 Simple Intere st at an Ann ual Rate (RPN e xample on page 2 7 6) General Business Calc ulatio ns 50 Pe r c e n t C h a n g e 51 P er cent of T otal 52 Mark up as a P er cent of Cos t 52 Mark up as a P er cent of Pr ice 53 Us in g Sh ared V a riabl es 15 9 Re t u rn o n Equ i t y Currency Ex c hang e Calcu lations 57 Calculating an E x change Rate 58 Stor ing an Ex change R ate 59 Con verting between Hong K ong and U .S Dollar s Time V al ue o f M on ey 67 A Car L oan 68 A Ho me Mortgage 69 A Mortgage with a Balloon P ay ment 71 A S av ings Accou nt
14 List of Example s File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 72 An Indi vi dual Retir ement A ccount 74 Calc ulating a Lease P ay ment 75 Pre sent V alue o f a Leas e with A dv anced P a yments and Option to Buy 80 Displa ying an A mor ti z ation S chedule f or a Home Mort gage 82 Printing an Amo r ti zati on Sc hedule 17 2 Calculati ons for a L oan w ith an Odd F irs t P er iod 191 Discounted Mort gage 19 3 APR f or a L oan with Fee s (RPN e xample on page 2 7 6) 19 4 Loan fr om the Lender’s P oint of V iew (RPN e xample on page 2 77) 19 6 Loan w ith an Odd F irst P er iod 19 7 Loan w ith an Odd F irst P er iod P lu s Balloon 19 8 Canadian Mor tgage 200 Leasing with A dv ance P a y m ents 200 A Fund w ith Re gular W i thdr a w als 20 2 Sav ings for C ollege (RPN ex ample on page 2 7 8) 20 7 T ax- Fr ee Account (RPN e xam ple on page 2 80) 208 Ta xa b l e R e t i r e m e n t A c c o u n t (RPN e xample on page 2 8 2) 214 Insurance P o licy Interest Rate Conversions 86 Conv erting fr om a Nominal to an Eff ect iv e Inter es t Ra te 89 Balance of a Sa v ings Account Cash Flow Calc ulat ions 97 Entering C ash Flo ws 10 2 Calculating IRR and NPV o f an Inv es tment 104 An Inv es tment with Gr ou ped Cash F lo ws 105 An Inv estment w ith Q uarterl y Retu rns 210 Modified IRR
List of Example s 15 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Bonds an d Notes 111 Price and Y ie ld of a Bond 112 A Bond with a C all Featur e 113 A Zer o -Cou pon Bond 215 Yi eld to Matur it y and Y ield to C all 217 Price and Y ie ld of a Discounted Note Depreciation 117 Declining-Balance Deprec iation 118 AC R S D e d u c t i o n s 120 P artial- Y ear Deprec iation Running T otal an d Statistic al Calcu lations 125 Updating a Checkbook 128 Mean, Median , and Standar d Dev iation 134 Cu r ve Fi t ti n g 138 We i g h t e d M e a n 218 A Mov ing Av erage in Manufactur ing 22 0 Expected T hro ws of a Di e ( 2 χ ) T ime, Alarms, and Date Arithmeti c 144 Setting the Date and Time 148 Clearing and S et ting an Appointme nt 151 Calculating the Number of Da ys between T w o Dates 15 2 Determining a F utur e Date How to Use the Equ ation So lv er 15 9 Re t u rn o n Equ i t y 166 Sales F o recas ts 17 2 Us in g a So lver Functio n (USP V) 17 5 Nested IF Fu nctions 181 Using Guesses to F ind a S olution Iter ati v ely Printing 18 9 T race-Printing an A rithmeti c Calc ulation
16 Important Information File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Important Informatio n  Take the tim e to r e ad chapte r 1 . I t gi ves yo u a n ove r view o f h ow t h e calcu lator wor ks , and intr oduces ter ms and concepts that are u sed thr oughout the manual . After r eading chap ter 1, y ou’ll be r ead y to start u sing all of the calc ulator’s f eatur es.  Y ou can choos e either AL G (Algebr aic) or RPN (Re ver se P olish Nota tion) m ode for your calculatio ns. Thr ough out t he manua l, the “ v “in the mar gin indicate s that the e x amples or k ey str ok es m ust be performed dif fer ently in RPN . Appendi xe s D , E , and F ex plain how to use y o ur ca lculator i n RPN mod e.  Matc h the pr oblem y o u need to s olv e with the calc ulator ’s capabiliti es and r ead the r elated top ic. Y ou can locate inf ormati on about the calcu l ator’s feature s using the table o f contents , the sub ject inde x, the list o f e x amples, and the menu maps in appendi x C (the gold-edged pages).  Bef ore do ing any time -v alue -of-mone y or cash-flo w pr oblems, r efe r to pages 64 and 9 2 to learn ho w the calc ulator us es positiv e and negativ e number s in financ ial calculati ons.  F or a deeper tr eatment of s pecif ic t y pes of calc ulations, re fer to cha pter 14, “ Additi onal Exam ples. ” If y ou es pec ially lik e learning b y e xample , this is a good re fe r ence spot f or y ou .
1: Getting Started 17 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 1 Getting Started Watch for this symbol in the margin. It identifies examples or keystrokes that are shown in ALG mode and must be performed differently in RPN mo de. Appendixes D, E, and F explain how to use y our calculator in RPN mode. The mode affects only ari thmetic calculations—all other operations, including the Solver, work the same in RPN and ALG modes. P ow er On and Of f; Co ntinuous M emo r y To turn on the calculator, press C ( clear ) (note ON printed below the key). To turn it off, press @ and then C . Thi s shifted function is called o (note OFF printed above the key ). Since the calculator has Con tinuo us Mem ory , turning it off does not affect the information you’ve stored there. To conserve en ergy, the cal culator turns itself off after 10 minutes of no use. If you see the low battery symbol ( ) at the top of the di splay, you should replace the batteries as soon as possible. Follow the instructions on page 224. Adjusting the Display Contr ast The display’s brightness depends on lighting, your vi ewing angle, and the display contrast setting. To chan ge the display c ontrast, hold do wn the C key and press or - . v
18 1: Getting Started File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Setting th e Lang uage The calculator can display information in six different languages. The language initially used by the calculator was preset at the fac tory. To change the langu age: 1. Pre ss the @ > . 2. Pre ss  to displa y the INTL menu , w hich stands f or "inter national". 3. Pr ess the appr opr iate menu ke y to c hange the language . Tabl e 1-1. Key s for l angua ge Key Descr iption   German   English   Spanish   French   Italian   Portuguese Wh at Y ou See in the Displa y Menu Label s. The bottom line of the displa y shows the menu labels for each of the six major menus (work areas) in the calculator. M ore about these later in this chapter. The Calculator Line. The calculator line is where yo u see numbers (o r letters) that you enter, and the results of calculations. Annunciators. The symbols shown here are called annunciators . Each one has a special significance.
1: Getting Started 19 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Th e S h if t Key ( @ ) Some keys have a second, shifted function printed in color above the key. The colored shift key acc esses these operations. For example, pressing an d releasing @ , then pressing C turns the calculator off. This is written @o . Pressing @ turns on the shift annu nciator ( ). This symbol stays on until you p ress the next key. I f you ever pr ess @ by mistake, ju st press @ again to turn off the . Bac kspac ing and Clearing The following keys erase typ ing mistakes, entire numbers, or even lists o r sets of data. Shift ( @ ) is active. (page 19) Sendin g information to the printer. (page 184) Alarm going off (or past due). (page 147) Batteries low. (page 224) Calculator line Cursor Menu labe ls for th e MAIN menu. To display the MAIN menu, press @A (that is, first @ , then e ). Annunciators
20 1: Getting Started File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Tabl e 1-2. Key s for Cl earing Key Descr iption < Backspace; erases the ch aracter before the cursor. C Clear; clears the calculator line. (When the calc ulator is off, this key turns the calculator on, but without clearing anything.) @c This clears all information in the cu rrent work area ( menu ). For example, it will erase all the n umbers in a list if you are currentl y viewin g a list (SUM or CFLO). In other menus (like TVM ), @c clears all of the values that h ave been stored. In SOLVE, it can delete all equations. The cursor (  ) is visible while you are keying in a number or doing a calculation. When the cursor is visible, pressing < deletes the last character you keyed in. When the cu rsor is not visible, pressing < erases the last number. Keys: Display: Description: 12345 << .66   Backspacing removes the 4 and 5. @t  Calculates 1/1 23.66. <  Clears the calculator line. In addition, there are more drastic clearing operations that erase more information at once. Refer to “Resetting the Calculator” on page 228 in appendix A.
1: Getting Started 21 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Doing Ar ithmetic The “ v ” in th e margin is a reminder that the exampl e keystrokes are for ALG mode. This is a brief introduction to doing arithmetic. More information on arithmetic is in chapter 2. Remember that y ou can erase errors by pressing < or C . To calculate 21. 1 ＋ 23.8: Keys: Display: Description: 21.1  23.8  =  = completes calculation. Once a calculation has b een comple ted, pressing another digit key starts a new calculation. On the other hand, pressing an operator key continues the calcu lation: 77.35 -  Calculates 77.35 – 90.89 90.89 =  65 @v * 12 =   New calculation: 65 x 12. / 3.5 =  Calculates 96.75 ÷ 3.5. You can also do long calculations without pressing = after each intermediate calculation — just press it at the end. The operators perform from left to right, in the orde r you enter them. Compare: 65 12 12 and 65 3. 5 3. 5 65 12 / 3.5 =   Operations occur in the order you see them.
22 1: Getting Started File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 65 ( 12 / 3.5 )=   Use parentheses to impose an order of calculation. K ey ing in Negativ e Numbers ( & ) The & key changes the sign of a number.  T o k ey in a nega tiv e nu mber , ty pe that number , then pr ess & .  T o change the sign o f an alread y displa yed number (it m ust be the ri ghtmost nu mber), pre ss & . Keys: Display: Description: 75 &  Changes the sign of 75. * 7.1 =  Multiplies － 75 by 7.1. Using t he M enu Ke y s The calculator usu ally displays a set of labels across the bottom of the display. The set is called a menu because it presents yo u with choices. The MAIN menu is the starting point for all other menu s. v
1: Getting Started 23 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 () () Menu K eys Menu Labels The top row of keys is related to the labels along the bottom of the display. The labels tell you what the keys do. The six keys are called menu keys ; the labels are called menu labels . The MAIN M enu The MAIN menu is a set of primary choices leading to other menu options. No matter which menu yo u currently see, pressing @A redisplays the MAIN menu. The menu str ucture is hierarchical .
24 1: Getting Started File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Tabl e 1-3. The M AIN Menu Menu Labe l Operations Don e in This Category Covered in: TVM: Time value of money: loans, savings, leasing, amortization. Chapter 5 ICNV: Interest conversio ns. Chapter 6 CFLO: Lists o f cash flows for internal rate of return and net present value. Chapter 7 BOND: Yields and prices for bonds. Chapter 8   (Finance) DEPRC: Depr eciation using SL, DB , and SOYD methods , or ACRS. Chapter 9   (Bus iness P erc enta ges) Percent of total, percent change, marku p on cost, markup on price. Chapter 3   (Statistics) Lists of numbers, running total, mean, weighted statistics, forecasting, summation statistics, and more. Chapter 10   (Time Manager) Clock, calendar, appointments, date arithmetic. Chapter 11   (Equation Solver) Creates customized men us from your own e quations for cal culat ion s you do oft en. Chapter 12   (Currency Ex chang e) Converting any currency to its equivalent in another currency Chapter 4
1: Getting Started 25 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Choosing Menus and Reading Menu Maps Below is a menu map illustr ating one possible path through three levels of menus: from the MAIN menu to the BUS men u to the MU%C ( markup as a percent of cost ) menu. There are no menu s that branch f r o m t h e MU%C menu because the MU%C menu is a final d estinat io n — y ou use it to do calcu lations, rather than to choose anothe r menu . FIN %CHG BUS %T O T L SU M MU %C TIME MU %P SOL V E C U R R X M%C PR I C E COST MA IN me n u BUS menu MU %C m enu EXIT EX I T MAIN  Pre ss  to c hoose the BUS men u . Then p res s  to c hoos e the MU%C men u .  Pre ss e to r eturn to the pre v ious menu . P re ssing e enough times r eturns y ou to the MAIN menu .  Pre ss @A to r eturn to th e MAIN menu dir ectly . When a menu has more than six labels, the label  appears at the far right. Use it to switch between sets of menu labels on the same “level”. Example: Using Me nus. Refer to the men u map for MU%C (above) along with this example. The exampl e calculates th e percent markup on cost of a crate of oranges that a grocer buy s for $4.10 and sells for $4.60. Step 1. Dec ide whic h menu y ou want to us e. T he MU%C (mark up as a per cent of cost) men u is our destinati on. If it ’s not obv ious to y ou w hic h menu y o u need , look up the top ic in the su bject
26 1: Getting Started File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 inde x and ex amine the menu ma ps in appendi x C. Displaying t he MU%C me nu : Step 2. T o dis play the M AIN men u , pre ss @A . This step lets you start fr om a kno wn lo cation on the me nu map . Step 3. Pr es s  to displa y the BU S menu . Step 4. Pres s  to displa y the MU%C menu . Using the M U%C menu: Step 5 . K ey in the cost and pr ess  to store 4. 10 as the COS T . Step 6. K e y in the pr ice and pre ss  to s tor e 4.6 0 as the PRI C E . Step 7 . Pre ss  to calc ulate the mark up as a per cent of cost . T he answ er:    . Step 8. T o leav e the MU%C menu , pre ss e twi ce (once to get back to the B US menu , and again to get to the MAIN men u) or @A (to go di re ctly to the MAIN menu) .
1: Getting Started 27 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Calculations Using Menus Using menus to do calculations is ea sy. You don’t have to remember in what order to enter numbers and in what order results come back. Instead, the menus guide yo u, as in the previous exa mple. All the keys you need are together in the top row. The men u keys both sto re numbers for the calculations and start the calcu lations. The MU%C menu can cal culate M%C , the percent markup on cost, given COST and PRICE . CO ST P RICE M%C Ca l c u l a t or Memo ry Store 4.60 Store 4.10 Ca lcu lat e 1 2 .2 0 Keys : 4 . 60 Displa y: Ke y s : 4 . 1 0 Displa y: Ke y s : Displa y: Then the same menu can calculate PRICE given COST an d M%C . COS T PRICE M%C Cal c u la t or Memo r y Store 2 0.0 0 Sto re 4.1 0 Calculate 4.92 Ke y s : 2 0 Display : Keys : 4 . 1 0 Displa y: Ke y s : Display : Notice that the two calculations use the same three variables; each variable can be used both to store and calculate values. These are called built-in variables , becau se the y are permanently built into the calculator.
28 1: Getting Started File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Many menus in this calculator work like the example abov e. The rules for using variables are:  To s t o r e a v a l u e , ke y in the n umber and pre ss the menu k ey . ∗ † Ar ithmetic calc ulations , as w ell as single v alue s, can be stor ed .  T o calcul ate a value , pre ss the menu k ey w ithout firs t ke y ing in a number . The calcu lator disp lay s    wh en a va l u e i s being calc ulated.  To verif y a s tore d va lu e , pre ss R ( re c a ll ) follo wed b y the menu k ey . F or ex ample , R  dis play s the value stor ed in COS T .  T o transfer a value to ano t her menu , do nothing if it is dis pla y ed (that is, it is in the cal culator line). A number in the calc ulator line re mains ther e when y ou s w itch men us. T o transf er more than one v al ue fr om a menu , use s torage r egisters . See page 4 5, “Stor ing and R ecalling Numbers . ” Exiting Menus ( e ) The e key is used to leave the current menu and go back to the previously displayed menu (as shown in the previous example). This is true for menus y o u might pick by accident, too: e gets you out. Cl earing V alues in Menus The @c key is a p o werful feature to clear all the data in the currently displayed menu, giving y ou a clean slate for new calculations.  If the cu rre nt menu has v aria bles (that is , if the display sho ws men u labels f or var iables , such as CO ST , PR IC E , and M%C in the MU %C menu), pre ssing @c clear s the value s of those v aria bles to ze ro. * If you have just switched menus and wa nt to store the result already in the calculator line, th en you should press s before t h e menu key † To store the same number in to two different variables, u se s for the second variable, e.g. 25  s 
1: Getting Started 29 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9  I f t h e c u r r e n t m e n u h a s a l i s t ( S U M , C F L O , o r S o l v e r ) , p r e s s i n g @c clear s the values in the lis t. To see what value is currently stored in a variable, press R menu label . Solv ing Y our Own Equations (SO L VE) This chapter has introduced some of the built-in menus the calcu lator offers. But if the solu tion to a problem is not built into hp 17bII , you can turn to the most v ersatile feature of all: the Equation Solv er . Here you define your own solu ti on in term s of an equation. The Solver then creates a menu to go with your eq uatio n, wh ich yo u can use over an d over again, ju st like the other menus in the calcu lator. The Solver is covered in chapter 12, but here is an intr oductory example. Because equations usually use letters of the alphabet, this section also explains how to type and edit letters and other characters that aren’t on the keyboard. Example:Using the Solver . Suppose you frequently buy carpet and must calculate how much it will co st. The price is quoted to you per square yard. Regar dle ss of ho w you do t he ca lcula tion (even if yo u do it longhand), you are us ing an equation. ×× = P/YD L W COST 9 To type this equation into the Solver, u s e the ALPHA menu. Price per square yard Len g th (feet) Co nve r t s squ a re fe e t t o sq ua re ya rd s Width (feet)
30 1: Getting Started File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 T yping W or ds and Characters: t he ALPHAbetic Menu The ALPHAbetic menu is automatically displayed when you need it to type letters and characters. The ALPH A menu also includes characters not found on the keyboard:  Uppercas e let ter s.  Space .  Pu nctuation and spec ial c haracter s .  Non -English letters. ABC DE FG HI JK L M spa c e OTH ER OTH ER RS T U V : < > # $ , . / Alph a menu NOPQ R S TUV WXYZ F G H I & ! @ * Letter s, spa c e OT H E R c har ac te rs To type a letter you need to press two keys; for example,  is produced by the keystrokes   . Each letter menu has an  key for accessing punctu ation and non-English characters. The letter me nus with just four letters (for example, FGHI) include a space character (  ). To familiarize yourself with the ALPHA menu, type in the equation for the cost of carpeting. The necessary key strokes are shown belo w. (Note the access to the special char acter, “/”.) Use < , if necess ary, to make corrections. If you need to do further editing, refer to t he next section, “Editing ALPHAbetic Te xt.” When you’ re satisfied that the equation is correct, press I to enter the equation into memory.
1: Getting Started 31 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Keys C haracters @A                   *   *     /9=                   I     Note that the  is just a character, part of the variable’s name. It is not an operator, which ÷ is. Editing ALPHAbetic T ext The companion to the ALPHA menu is the ALPHA-E dit menu. To display the ALPHA-Edit menu, press  in the SOLVE menu (or press e in the ALPHA menu). DEL ABCDE FGHI JKLM NO PQ R STUV WXYZ A LPHA EX IT EX IT
32 1: Getting Started File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Table 1- 4. Alphabet ic Editing Operati on Label or K ey to Press ALPHA-Ed it Menu Inserts character before the cursor. Any character. Deletes character at the cursor.   Moves the cursor far left, one display-width.  Moves the cu rsor left.  Moves the cursor right.  Moves the cursor far right, one display-width.  Displays the A LPHA menu a gain.  Keyboa rd Backspaces and erases the character before the cursor. < Clears the calculator line. C Calculating th e Ans wer (CAL C) After an equation is input, p ressing  verifies it and creates a new, customized menu to go with the equation. Menu l abels for y o ur var i ables Each of the variables you ty ped into the equation now appears as a menu label. You can store and calculate values in this menu the same way yo u do in o ther m enus.
1: Getting Started 33 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Calculate the cost of c arpet needed to cover a 9’ by 12’ room. The carpet costs $22. 50 per square yard. Starting from the MAIN menu (press @A ): Keys: Display: Description:   Displays the SOLVE men u and the current equation. *   Displays the customized menu for carpeting. 22.5    Stores the pric e per square yard in P/YD . 12   Stores the length in L. 9   Stores the width in W.   Calculates the cost to cover a 9’ x 12’ room . Now determine the most expensive carpet you can buy if the maximu m amount you can pay is $300. Notice that all you need t o do is enter the one value you are changing —there is no need to re-enter the other values. 300   Stores $300 in COST.    Calculates the maximum price per square yard you can pay. ee  Exits Solver . * If you entered this equati on but don’t see it now, press [ or ] until you d o.
34 1: Getting Started File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Contr olling the Displa y F ormat The DSP menu (press D ) gives you options for formatting nu mbers. You can pick the nu mber of decimal places to be displayed, and whether to use a comma or a period to “punctuate” your nu mbers. Decimal Places To change the number of display ed decimal places, first press the D key. Then either:  Pre ss  , ty pe the number of dec imal places y ou w ant (fr o m 0 to 11) , and pr es s I ; or  Pre ss  to see a n um ber as pr ec isely as poss ible at any time (12 digits max imum). Internal Pr ec ision Changing the number of displayed decimal places affects what y o u see, but does not affect the internal representation of numbers. The number inside the calculator always has 12 digits. Yo u s e e o n l y t h e s e d i g i t s i n 2 . . . ...b u t the se digi ts are also pr e sent internal l y . T empor aril y SHO Wing ALL To temporarily see a nu mber with full precision, pre ss @S .This shows you the ALL format for as long as you hold down S .
1: Getting Started 35 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Rounding a Number The @r function rounds the nu mber in the calculator line to the number of displayed decimal places. Su bsequent calculations use the rounded value. Starting with two displayed decimal places: Keys: Display: Description: 5.787  D  4 I   Four decimal places are displayed. D   All significant digits; trailing zeros dropped. D  2 I   Two decimal places are displayed. @S (hold)     Temporarily shows full precision. @r @S (hold)   Rounds the number to two decimal places. Ex c hanging P eriods a nd Commas in Numbers To exchange the periods and comma s used for the decimal point and digit separators in a number: 1. Pre ss D to acce ss the DSP ( displa y ) menu . 2. Spec if y the decimal point b y pres s ing  or  . Pre ssing  sets a period as the dec imal point and c omma as the digit separ ator (U. S. mode). (F or ex ample , 1, 000, 000.00.) Pre ssing  sets a comma as t he dec imal point and per iod as the digit separ ator (non -U .S . mode) . (F or ex ample , 1.000. 000, 0 0.)
36 1: Getting Started File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Err or M essages Sometimes the calculator ca nnot do what you “ask”, such as when you press the wrong key or forget a numb er for a calculat ion. To help you correct the situation, the cal culator beeps and displays a message.  Pre ss C or < to c lear the err or message .  P re ss any other ke y to clear the mess a ge and perform that k e y’s functio n. For more explanations, refe r to the list of erro r messages just before the subject index. Modes Beeper. Beeping occurs when a wro ng key is pressed, when an error occurs, and during alarms for appointments. You can su ppress and reactivate the beeper in the MODES men u as follows: 1. Pre ss @> . 2. Pr essing  w ill simultaneou sly change and dis play the cur - re nt setting f or the beeper:     beeps f or err ors and a ppointments.        beeps onl y for a ppointments.     silences the beeper completel y . 3. Pre ss e w hen done. Print. Press @>  to specify whether or not the printer ac adapter is in use. Then press e . Double Space. Press @>  to turn double-spaced printing on or off. Then pres s e . Algebra ic. Press @>  to select algebraic entry logic. RPN. Press @>  to select Reverse Polish Notation entry logic.
1: Getting Started 37 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Language. Press @>  to change the language. Calculator M emor y ( @M ) The calculator stores many different types of informatio n in its memory. Each piece of information r equires a certain amount of storage space. * You can monitor the amount of av ailable memory by pressing @M . Number of byt es o f mem ory s t ill f re e P ercen ta ge of to ta l me mor y s t ill f re e The amount of memory av ailable for storing information and working problems is about 30,740 bytes. (U nits of memory space are called bytes .) The calculator give s you complete flexibility in h ow you use that available memory (such as for lists of numbers or equations). Use as much of the memory as you want for any task you want. If you use nearly all of the calculator’s memory, you’ll encounter the message      . To remedy this situation, you must erase some previously stored information. Refer to “Managing Calculator Memory” on page 227 in appendix A. The calculator also allows you to erase at once all the in formation stored inside it. This procedure is covered in “E rasing Continuous Memory” on page 229. * Stor ing numbers in menus like TVM (non-Solver menus) does not use any of your memo ry space.
38 2: Arithmetic File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 2 Arithmetic If you prefer RPN to algebraic logic, please read appendix D before you read this chapter. The “ v “ in the margin is a re minder that the example keystrokes are for ALG mode. The Calculator L ine The calculator line is the part of the display where numbers appear and calculations take place. Sometimes this line includes labels for resu lts, such as    . Even in this case you can use the number for a calculation. For example, pressing 2 = would cal culat e 124.60 plus 2, and the calculator would display the a nswer, 126.60. There is always a number in the calculator line, even though some- times the calculator line is hidden by a message (such as     ). To see the number in the calc ulator line, press < , which removes the message. Doing Calculations Simple calculating was introdu ced in chapter 1, page 21. Often longer calculations involve more than one operation. These are called chain calculations because several operations are “chained” together. To do a chain calculation, you don’t need to press = after each operation, but only at the ve ry end. For instance, to calcu late 750 12 360 × you can type either: 750 * 12 =/ 360 = or 750 * 12 / 360 = v v
2: Arithmetic 39 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 In the second case, the / key acts like the = key by displaying the result of 750 x 12. Here’s a longer chain calculation. 4 56 - 75 68 18. 5 1.9 × This calculation can be written as: 456 − 75 ÷ 18.5 x 6 8 ÷ 1.9. Watch what happens in the display as you key it in: Keys: Display: 456 - 75 /  18.5 *  68 /  1.9 =  Using P ar enth eses in Calculations Use parentheses when you want to postpone calculating an intermediate result until you’ve entered more numbers. For example, suppose you want to calculate: 30 x 9 85 - 12 I f y o u w e r e t o k e y i n 3 0 / 85 - , th e ca lculato r w ould cal culate th e inter mediate r esult , 0.3 5 . Ho we ver , that’s not w hat y ou want . T o de - lay the division until you’ve subt racted 12 from 85, use parentheses: Keys: Display: Description: 30 /( 85 -  N o calculation is done. 12 )  Calculates 85 − 12. * 9  Calculates 30 / 73. =  Calculates 0.41x 9. v
40 2: Arithmetic File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Note that you must include a * for multiplication; parentheses do not imply multiplication. T he P er cent K e y The % key has two functions: Finding a Percentage. In most cases, % divides a number by 100. The one exception is when a plus or minus sign precedes the nu mber. (See “Adding or Subtracting a Percentage,” below.) For instance, 25 % results in  . To find 25% of 200, press: 200 * 25 % = . (Result is   .) Ad ding or S ubt racting a Perc entag e. You can do this all in one calculation: For instance, to decrease 200 by 25%, just enter 200 - 25 % = . (Result is   .) Example: Cal culating Sim ple Interest. Yo u borrow $1,250 from a relative, and agree to repay the loan in a year with 7% simple interest. How much money will y ou owe ? Keys: Display: Descript ion: 1250 7 %  Interest on the loan is $87.50. =  You must repay this amount at the end of one year. The Mathematical F unc tions Some of the math fu nctions appear on the keyboard; others are in the MATH menu. Math fu nction s act on the last number in the display. v
2: Arithmetic 41 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Table 2- 1. Shifte d Math Functions Key Descr iption @t reciprocal @v square root @w square Keys: Display: Descript ion: 4 @t  Reciprocal of 4. 20 @v  Calculates 20 . 47.2 *  Calculates 4.47 47. 20. 1.1 @w  Calculates 1.1 2 . =  Completes calculation of (4.47 47.2) x1.1 2 . T he P ower F unction (Exponentiation) The power function, u , raises the preceding number to the power of the following number. Keys: Display: Descript ion: 125 @u 3 =  Calculates 125 3 . 125 @u 3 @t=   Calculates the cube root of 125, which is the same as (125) 1/3 . v v v v
42 2: Arithmetic File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 The MA TH M enu To display the MATH menu, press @m (the shifted % key). Like the other mathematics functions, the se functions operate on only the last number in the display. Table 2- 2. The MATH Menu Labels Menu Labe l Descript ion   Common (base 10) logarithm of a positive number.   Common (base 10) antilogarithm; calculates 10 x .  Natural (base e ) logarithm of a positive number.   Natural antilogarithm; calculates e x .  Factorial.  Inserts the value for π into the display. Keys: Display: Description: 2.5 @m    Calculates 1 0 2.5 . 4    Calculates the factorial of 4. e  Exits MATH menu. You can access the MATH menu when another menu is displayed. For instance, while using SUM you might want to u se a MATH function. Just press @m , then perform the calculation. Pressing e returns you to SUM. The MATH result remains in the calculator line. Remember, however, that you must exit MATH before you resume using SUM.
2: Arithmetic 43 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Sa ving and Reusin g Numbers Sometimes you might want to include the resu lt of a previous calculation in a new calculation. There are several ways to reus e numbers. T he History Stack o f Numbers When you start a new operation, the previous result moves out of the display b ut is still accessible . U p to f o ur l i ne s o f n u mb er s ar e sa v e d : o n e in the display and three hidden. These lines make up the histo ry stack . "Inv is ible" nu mbe rs r emaining fr om pr ev io u s r esults. The ] , [ , and @~ ke y s “ r o ll ” th e h is t o ry s ta c k do w n o r up o n e l i n e, bringing the hidden results back into the di splay. If you hold down [ or ] , the history stack wraps around on itself. However, you cannot roll the history stac k when an incomplete calcu lation is in the display. Also, y ou cannot gain acce ss to the stack while using lists (SUM, CFLO) in ALG mode, or SOLVE in either ALG or RPN mode. All numbers in the history stack are retained when you switch menus. Pressing @x exchanges the contents of the bottom two lines of the display.
44 2: Arithmetic File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Pressing @c clears the history stack. Be careful if a menu is active, because then c also erases the data associated with that menu. Keys: Display: Descript ion: 75.55 - 32.63 =   150 / 7 =  42.92 move s out of display. Now, suppose yo u want to multiply 42.92 x 11. Using the histo ry stack saves you time. ]  Moves 42. 92 back to calculator line. * 11 =  Reusing th e Las t Result ( @L ) The @L key copies the last result—that is, the number just above the calculator line in the history stack—into a current calcu lation. This lets you reuse a nu mber without retyping it and als o lets you break up a complicated calcul ation. 39 8 123 17 Keys: Display: Descript ion: 123 17 =  Calculates 123 17. @ v  Calculates 140 . 39 8 =/ @L   Copies 11.83 to the calculator line. =  Completes the calculation. v v
2: Arithmetic 45 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 An equivalent keystroke seq uence for this problem would be: 39 8 / ( 123 17 ) @v = St oring and R ecalling Number s The s k e y c o p i e s a n u m b e r f r o m t h e c a l c u l a t o r l i n e i n t o a designated storage area, called a stor age register . There are ten storage registers in calculator memory, numbered 0 through 9. The R key recalls s tored numbers back to the calculator l ine. lf there is more than one nu mber on the calculator line, s stores only the last number in the display. To store or recall a number: 1. Pre ss s or R . (T o cancel this s tep , pr es s < .) 2. K ey in the r egister number . The following example uses two storage registers to do two calculations that use some of the same numbers. 　　　　 　　　　　　　 4 75.6 560.1 475.6 39.15 39.15 Keys: Display: Descript ion: 475.6 s 1  Stores 47 5.6 into register 1. / 39.15 s 2   Stores 39.15 (rightmost number) into register 2. =  Completes calculation. 560.1 R 1   Recalls contents of re gister 1. /R 2  Recalls register 2. =  Completes calculation. v v
46 2: Arithmetic File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 The s and R keys can also be used with v ariable s. For example, s  (in the MU%C menu) stores the rightmost nu mber from the display into the variable M%C . R  copies the contents of M%C into the calculator line. If ther e is an expression in the display (such as  ), then the recalled number replaces only the last number. You do not need to clear sto rage registers befo re using them. By storing a number into a register, you overwrite whatever existe d there before. Doing Ar it hmetic Inside Register s and V ariables You can also do arithmetic inside storage registers. Keys: Display: Descript ion: 45.7 s 3  Stores 45.7 in reg. 3. 2.5 s* 3  Multiplies contents of re g ister 3 by 2.5 and stores result (114.25) back in register 3. R 3  Displays register 3. Table 2-3. Arithmetic in Registers Keys N ew Regis ter Conten ts s old register contents displayed number s- old register contents – displayed nu mb er s* old register contents x displayed number s/ old register contents ÷ displayed number s @u old register contents ^ displayed number v
2: Arithmetic 47 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 You can also do arithmeti c with the values stored in variables. For example, 2 s*  (in the MU%C menu ) multiplies the current contents of M%C by 2 and stores the product in M%C . Scientific Notation S c i e n t i f i c n o t a t i o n i s u s e f u l w h e n w o r k i n g w i t h v e r y l a r g e o r v e r y s m a l l number s. Sc ientif ic notati on show s a small number (less than 10) times 10 rais ed to a pow er . F or e xam ple , the 19 84 Gr oss National Pr oduct of the United S tates was $3, 6 6 2 ,800, 00 0, 000. In sc ientif ic notati on, this is 3. 6 6 28 x 1 0 12 . F or very small nu mbers the decimal po int is mov ed to the ri ght and 10 is raised to a negativ e pow er . For e x ample , 0. 00000 7 5 2 can be w ritten as 7 . 5 2 x 10 − 6 . When a calculation produces a resu lt with more than 12 digits, the number is automatically display ed in scientific notation, using a capital E in place of “x10^”. Remember that & changes the sign of the entire number, and not of the exponent. Use - to make a negative exponent. Type in the numbers 4.78 x 10 13 and − 2.36 x 10 − 15 . Keys: Display: Descript ion: 4.78 @\ 13  Pressing @\ starts the exponent. @c  Clears number. 2.36 @\ - 15   Pressing - before an exponent makes it negative. &  Pressing & makes the entire number negative. @c  Clears number.
48 2: Arithmetic File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Range o f Numbers The largest positive and negative nu mbers available on the calculator are ± 9.999999 99999 x 10 499 ; the smallest positive and negative numbers available are ± 1 x 10 –499 .
3: Percentage Calculations in Busi ness 49 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 3 Percentage Calculations in Business The business percentages (BUS) menu is used to solve fo ur types of problems. Each ty pe of problem has its own menu . FIN %CH G BUS %T O TL SU M MU %C TIME MU%P SOL V E CU R R X Table 3-1 . The Business Percentages (BUS) Menus Menu Description Percent change (  ) The difference between two numbers ( OLD and NEW ), expressed as a percentage (% CH ) of OLD . Percent of total (  ) The portion that one number ( PART ) is of another ( TOTAL ), expressed as a percentage ( %T ). Mark up on c ost (  ) The difference between price ( PRICE ) and cost ( COST ), expressed as a percentage of the cost ( M%C ). Mark up on p rice (  ) The difference between price ( PRICE ) and cost ( COST ), expressed as a percentage of the price ( M%P ).
50 3: Percentage Calculations in Busi n ess File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 The calculator retains the values of the BU S variables until you clear them by pressing @c . For example, pressing @c while in the %CHG menu clears OLD , NEW , and %CH . To see what value is currentl y stored in a variable, press R menu label . This shows you the value without recalcu lating it. Using the BU S Menus Each of the four BUS men us has three variables. Yo u can calculate any one of the three variables if you know the other two. 1. T o displa y the %C HG , %TO TL , MU%C , or MU%P menu f r om the MAIN menu , pres s  , then the a ppr opriate men u label. Pr essing  , f or e xam ple, dis play s: 2. Stor e each v alue you know b y k e y ing in the number and pres sing the appr opri ate menu k ey . 3. Pres s the menu k ey f or the v a lue y ou want to calc ulate. Ex amples Using t he BUS M enus P er cent Change (%CHG) Example. Total sales last year were $90,00 0. This year, sales wer e $95,000. W hat is the percent change between last year ’s sales and this year’s ? Keys: Display: Description:    Display s %CHG menu.
3: Percentage Calculations in Busi ness 51 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 90000    Stores 90,0 00 in OLD . 95000   Stores 95,0 00 in NEW .    Calculates percent change. W h a t w o u l d t h i s y e a r ’ s s a l e s h a v e t o b e t o s h o w a 1 2 % i n c r e a s e f r o m last year ? OLD remains 90,000, so you do n’t have to key it in again. Just enter %CH and ask for NEW . 12   Stores 12 in %CH .   Calc ulates the value 12% greater than 90,000. P er cent of T o tal (%T O TL) Example. Total assets for your co mpany are $67,58 4, The firm has inventories of $23,457. What percentage o f total assets is inventory ? You will be supplying values for TOTAL and PART and calculating %T . This takes care of all three v ariables, so there is no need to use c to remove old data. Keys: Display: Description:    Displays %TOTL men u. 67584   Stores $6 7,584 in TOTAL. 23457   Stores $2 3,457 in PART .   Calculates percent of total.
52 3: Percentage Calculations in Busi n ess File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Mark up as a P er cent of Cost (MU%C) Example. The standard markup on costume jewelry at Balkis’s Boutique is 60%. The boutique just received a shipment of chokers costing $19.00 each. Wh at is the retail price per choker ? Keys: Display: Description:    Displays MU%C menu. 19   Stor es cost i n COST . 60   Stores 60 % in M%C .   Calculates price. Mark up as a P er cent of Price (MU%P) Example. Kilowatt Electron ics purchases television s for $225, with a discount of 4%. The televisions are so ld for $300. What is the markup of the net cost as a percent of the selling price ? What is the markup as percent of price without the 4% discount ? Keys: Display: Description:    Displays MU%P menu. 225 - 4 %    Calculates and stores net cost in COST . 300   Stores 300 in PRICE .   Calculates markup as a percent of price. Use $225 for COST and leave PRICE alone. 225   Stores 22 5 in COST .   Ca lcul ates mark up. v
3: Percentage Calculations in Busi ness 53 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Sharing V ariables Bet ween Menus If you compare the MU%C menu and the MU%P menus, you’ll see that they have two menu labels in common —  and  . COST COST Shared variab le s %CHG PRIC E PRI C E %T O TL M%C M%P MU %C MU %P The calculator keeps track of the va lues you key in accord ing to those labels. For example, if you key in COST and PRICE in the MU%C menu, exit to the BUS menu, and then display the MU%P menu, the calc ul ato r retains those values. In oth er words, the variables are shared between the two menus. Example: Using Share d Variable s. A food cooperative buy s cases of canned soup with an invoice cost of $ 9.60 per case. If the co- op routinely us es a 15% markup on cost, for what price should it sell a case of soup ? Keys: Display: Description:    Displays MU%C menu. 9.6   Stores 9. 60 in COST . 15   St ores 15% i n M%C.   Calculates retail price. What is the markup on price ? Switch menus b ut keep the same COST and PRICE . e   Exits MU%C menu and displays M U %P menu.   Calculates markup as a percent of price.
54 4: Currency Exchange Cal culation File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 4 Currency Exchange Calculations The CURRX menu does c urrency exchange calculations betwe en two currencies using an ex change rate that you calculate or store. The CURRX M enu BUS FIN SU M TIME SOL V E CU R RX SEL CT US$ EU R RA T E C. ST O C.R CL To display the currency exchange menu from the MA IN menu, press  . C u r re n c y # 2 i s E U R (E URO Dolla r ) C u r r e n c y # 1 i s U S $ (U .S Dollar)
4: Currency Exchange Cal culation 55 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Tabl e 4-1. The CURRX Menu Menu K ey Descript ion curr1 Cu rrent currency #1 ;stores o r calculates the number of units of this currency . curr2 Cu rrency currency#2 ;stores or calculates the number of units of this currency .   Stores or calc ulates the exchange rate between the two current currencies. The rate is expressed as the number of units o f currency #2 equival en t to 1 un it of currency #1 .  Stores the current currency # 1 , currency #2 , and RATE.  Recalls a previously stored pair of currencies and RATE .  Selects a ne w set of curre ncies. Selec ting a Set o f Curr encies To select a pair of currencies: 1. Pre ss  to dis pla y the men u of c urr enc ies . Pr ess mor e , if necess ar y , to see additional c urr enci es ( s ee table 4 - 2 ) . 2. Pre ss a men u k ey to s elect cu rr e n c y # 1 . 3. Pre ss a menu k ey to select cu rr e n c y # 2 . RA TE is au tomatically r eset to 1. 000 0. 4. Enter an ex change r ate . Ther e are tw o w ay s enter the RA TE :  Ca lculate the rate fr om a kno wn eq uiv alen cy (see the e xample ”C alcu lating an Exchange R ate , ” page 5 7.) . Calc ulating an e x change rate is usuall y the easier wa y to enter a corr ect r ate , since the order in whic h y ou selected the two curr enc ies doesn ’t mater .  St o re the ex change r ate b y k ey ing in the v alue and pr es sing  (see “S toring an Ex change R ate ” on page 5 8) .
56 4: Currency Exchange Cal culation File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Tabl e 4-2. Curren cies         United States of Americ a (Dolla rs) Austria, Belgium, Germa ny, Spain, Finlan d, France, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Vatican City (EURO) Canada (Dolla rs) United Kingd om (Pound s)          Switzerland (Francs) Israeli (Ne w S h ekel ) Denmark (Kroner) Norwa y (Kroner) Sweden (Kronor)          Russia (Roub le) South Africa (Ban d) Saud i Arab ia (Riyals) Argentina Vanuatu (Bolivar ) Brazil Per u          Bolivia Ch ile, Colombia, Mexico, Philippines, Uruguay (Pesos) Hong Ko ng (Dolla rs) Taiwan (New Dollars) China (Yua n Renminbi ) South Korea (Won)           Japan (Yen) Australia (Dolla rs) Malaysia (Ringgit s) New Z eala nd (Dolla rs) Indonesia (Rupia hs)          Singapore (Dolla rs) Thailand (Baht) India (Rupee) Pakistani (Rupees) Miscellaneous* * Use for currencies not shown in table
4: Currency Exchange Cal culation 57 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Entering a Ra te The following two examples illustrate the two wa ys to enter an exchange rate. Example: Calculating an Exchange Rate. You have just flown from Canada to United States, and y ou need to exchange your Canadian Dollars for U.S Dollars. The conversion chart looks this : United S tates Conv ersion Chart (in U S$) Currency Rate Euro (EUR€) 1.0842 Canadian (CAN$) .6584 Hong Kong (HK$) .1282 The chart states these equiva lencies: * 1 EU R € i s e quival en t t o 1.084 2 US$ 1 CAN$ i s e qu iva l e n t t o 0 . 6584 US $ 1 HK$ is equiv alent to 0.12 8 2 US$ Part 1: Select the currencies, and c alculate an exchange rate form them. Keys: Display: Description:      Display the CURRX men u       Sele ct CAN$ as currency #1     Select US$ as currency #2 1   Store number of CAN$ * The chart is in terms of United States dollars. Many charts have two columns–a “Buy” column and a “Sell” c olumn. Th e “Buy” column is used for tran sactions in which the “B ank” buys the listed cu rrency from yo u in ex change for United States dollars. Thus, if you a rrive in United States with CAN$ , the exchange rate in the “B uy” column appli es for buying US$ with your CAN$ . The “Sell” column applies f or selling US$ in exchange for CAN$ .
58 4: Currency Exchange Cal culation File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 0.6584   Stores equivalent n umber of US$   Calc ulates the RATE . Part 2: The following keystr okes show that yo u can reverse the order in which the two currencies are selected. Keys: Display: Description:      Select US$ as currency #1     Select CAN$ as currency #2 1   Store number of CAN$ 0.6584   Stores equivalent n umber of US$   Calc ulates the RATE . (1 ÷ 0.6584 ) Example : Storing an Exchange Rate. If yo u ch oo se t o sto re t h e e x change rate dir ectly , y ou must s elect the cur renc ie s in the correc t or der , since the RA TE is de fined as the nu mber of units o f currenc y # 2 equi valent to one unit of curre n cy# 1 Use the United States conver sion chart on page 57 to store an exchange rate for converting be tween Hong Kong Dollars and U.S. Dollars. Keys: Display: Description:      Display the CURRX men u            Select HK$ as currency #1     Select US$ as currency #2 0.1282   Store the RATE
4: Currency Exchange Cal culation 59 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Con verting Bet wee n T w o Currencies Once the currencie s are selecte d and a RATE has been entered, you can convert any number of units of o ne currency to the other. Example : Converting between Hong Kong an d U.S Dollars. Part 1: Use the exchange rate sto red in the previous example to calculate how many U. S d ollars you wo uld receive f or 3,000 Hon g Kong Dollars. Keys: Display: Description: 3000   Stor e number of HK$   Calculates equivalent US$ Part 2: A wool sweater in a shop window costs 75 US$. W hat is its cost in HK$ Dollars ? Keys: Display: Description: 75   Store number of US$   Calculates equivalent HK$ Stor ing and Recalling Sets o f Currencies Pressing  or  displays the C.STO/C.RCL menu, which is used to store and recall sets of currencies and the rates. The menu can store up to six sets of currencies. Initially, the menu contains six blank labels. Storing Sets of Currenc ies. To store the c urrent set of currenc ies and the rate, press. Then, press  any menu key to assign the set to that key. For example, storing the currencies in the previous example stores currency #1 = HK$ , currency #2 = US$ , and RATE = 0.1282. ( The values US$ = 75 and HK$ = 585.02 are not sto red.)
60 4: Currency Exchange Cal culation File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Recalling Set s of Currencies. To recall a stored set of curre ncies and their exchange rate, press  , followed by the appropriate menu key. The hp 17bII automatically returns to the CURRX menu. The equivalency message and menu labels show the recalled currencies and RATE . Cl e ari ng th e C urrency V aria bl es Pressing @c while the CURRX men u is displayed sets the R ATE to 1.0000. The val ues of the two current currencies are cleared to 0.
5: Time Value of Mon ey 61 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 5 Time Val ue of Mone y The phrase time value of money describes calcu l ations based on money earning interest over a period of time. The TVM menu performs compound-interest calculations and ca lculates (and prints) amortization schedules.  In compound int ere st calc ulations , inter est is added to the pr incipal at specified compou nding peri ods , thereb y also earning inte res t. Sa vings accounts , mortgages, and leas es ar e compound-inter est calcu lations.  In simple inter est calc ulations, the in tere st is a per cent of the pr incipal and is r epaid in one lump sum . Simple inter es t calculations can be done using the % k e y (p age 40). For an e xam ple that calculate s simple inter est u sing an annual inter est r ate , see page 19 0. Th e T V M M e nu FIN BUS SUM TIME TVM I%YR BE G N P/YR ICNV PV END CFL O PM T BOND FV DEP R C OT H E R A MR T SOL V E CUR RX
62 5: Time Value of Money File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 The time value of money (TVM) menu does many compound-interest calculations. Specifically, y ou can use the TVM menu for a series of cash flows (money received or money paid) when:  The dollar amount is the same f o r eac h pay ment . *  The pa yments occ ur at regu lar intervals .  The pa yment per iods coinc ide w ith the compounding per iods. Pa y m e n t m o d e : t h e end o f each per iod 12 pay ments (or peri ods) per y ear To s e c o n d l e v e l o f T V M Figure 5- 1. The First L evel of TVM The first level of the TVM m enu has five menu labels for v ariables plus  . The  key ac cesses a second-le vel menu used to specif y payment conditions (the payment mode ) and to call up the AMRT ( amortization ) menu. Figure 5- 2. The Second Level of TVM * For situations where the amou nt of the payment varies, use the CFLO ( cash flows ) me nu.
5: Time Value of Mon ey 63 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Table 5- 1. TVM Menu Labels Menu Label D e s c r i p t i o n First Level   Stores (or calculates) the total number of payments or compounding periods. *† (For a 30-year loan with monthly payments, N ＝ 12 x 30 ＝ 360. ) @  Shortcut for N: M ultiplies the number in the display by P/YR , and stores the result in N . (If P/Y R were 12, then 30 @  would set N ＝ 360.)  Stores (or calculates) the nominal annual interest rate as a percentage.  Stores (or calculates) the present value—an initial c ash flow or a discou nted value of a series of fu ture cash flows ( PMTs FV ). To a lender or borrower, PV is the amount of the loan; to an inve stor, PV is the initial investment. If PV paid ou t , it is negativ e. PV always occurs at the beginning of the first period.  Stores (o r calculat es) the do llar am ount o f each peri odic payment. All pa ymen ts are equal, and no payme nts are skipp ed. (If th e pa yment s are unequ al, use C FLO, not TVM.) P aym ents c an occ ur at the be ginnin g or en d of each period. If PMT repr esents mone y paid out, it i s negative. Stores (or calculates) the future value—a final cash flow or a compou nded value of a series of prev ious cash flows ( PV PMTs ). FV always occurs at the end of the last period. If FV is paid out , it is negativ e .  e  Second Level  Specifi es th e numb er of paymen ts or compo undin g period s per year. † (it m ust be an intege r, 1 thro ugh 999.) * When a non - integer N (an “odd period”) is calc ulated, the answer m ust be interpreted carefully. See the saving s account example on page 71. Calcula tions using a stored , non-int eger N produce a mathemati cally correct result, but this result has no simple interpretation. Th e example on page 172 uses the Solver to do a parti al-period (non -integer) calculation in which interest begins to accrue prior to the beginning of the first regular payment peri od. † The numb er of payme nt period s must eq ual the numb er of compo und ing period s. If this is not true, see pa ge 87. For Canadian mortgages, se e pag e 197.
64 5: Time Value of Money File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Table 5- 1. TVM Menu Labels (C ontinue d) Menu Labe l Descript ion Second Le vel (Conti nued)   Set s Begin mode : payments occur at the beginning of each period. Typical for sav ings plans and leasing. (The Begin and End modes do not matter if PMT ＝ 0.)  Sets End mode : payments occur at the end of each period. Typical for loans an d investments.  Accesses the amortization menu. See page 7 8. The calculator retains the values of the TVM variables until you clear them by pressing @c . When you see the first-level TVM men u, pressing @c clears N , I%YR , PV , PMT , and FV . When the second-level menu (  ) is displayed, pressing @c resets the payment conditions to     . To see what value is currentl y stored in a variable, press R menu label . This shows you the value without recalcu lating it. Cash Flo w Diagrams and Signs of Numbers It is helpful to illustrate TVM calculations with cash-flow diagrams . Cash-flow diagrams are time lines divided into equ al segments called compounding (or payment ) periods . Arrows show th e occurrence of cash flows (payments in or ou t). Money received is a positive number (arrow up) and money paid out is a negativ e number (arrow down). The correct sign (positive or negative) for TVM numbers is essential. The calculations will make sense only if you consistently show payments out as negative and payments in No t e
5: Time Value of Mon ey 65 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 (receipts) as positive . Perform a calculation fr om the point of view of either the lender (investor) or the borrower, but not both! 12 34 5 PM T Equ a l p erio d s Equ a l p ayme n t s (FV i s Fut u re V a l u e, if a ny ; e .g. a ba lloo n pa y me nt) Mo ney r e - cei v ed is a po siti v e nu mb er Mo ney paid ou t is a nega tive nu mb er (L oan) Figure 5-3. A Cash Flow Diagram for a Loan fro m Borrower’s Point o f View (End Mode) 12 345 Lo a n Figure 5-4. A Cash Flow Diagram for a Loan fro m Lender’ s Point o f View (End Mode)
66 5: Time Value of Money File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Payments occur at either the beginning o f e a c h p e r i o d o r t h e end of each period. End mode is shown in the last two figures; Begin mode is shown in the next figure. 12 345 Capit ali z e d va lu e of lea se Figure 5-5. Le ase Payments Made at the Beginning of Each Period (Begin Mode) Using the TVM M enu First draw a cash-flow diagram to match your problem. Then: 1. Fr om the MAIN menu , pre ss   . 2. T o clear pr ev iou s T VM v alues, pr ess @c . (Note:Y o u d on ’t need to clear data if you e nter new v alue s f or all fi v e v a r i a b l e s , o r i f yo u wa n t to r etain pr e vi ous v alues .) 3. R ead the mes sage that desc ribes the n umber of pa yments per y ear and the pa y ment mode (Begin, End). If you need to ch ange either of th ese se t ti ngs, press  .  T o change the n umber of pay ments per y ear , ke y in the n ew v al ue and pre ss  . (If the number of pa yments is diff erent fr om the numbe r of com pounding per iods, s ee “Comp o unding P er iods Differ ent fr om P a yment P er iods , ” page 8 7.)  T o change the Begin/End mode , pres s  or   Pre ss e to r eturn t o the pr imary T VM menu .
5: Time Value of Mon ey 67 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 4. Stor e the values y ou kno w . (Enter each nu mber and p re ss its menu key . ) 5. T o calcu late a v alue , pr es s t he appr opri ate menu ke y . You must give ever y variable—except the o ne you will c alculate—a value, even if that val ue is zero. For example, FV must be set to zero when you are calculating t he periodic payment ( PMT ) required to fully pay back a loan. There are two way s to set values to zero:  Befor e storing an y T VM values , pr es s @c to clear the pre vi ous TVM v a lue s .  Stor e z ero; f or e xample , pr essing 0  sets FV to z er o . Loan Calculations Three example s illustrate co mmon loan calculations. (For amortization of loan payments, see page 77.) Loan calculations typically use End mode for payments. Example:A Car Loan. You are financing the purchase of a new car with a 3-year loan at 10.5% annual interest, compounded monthly. The purchase price of the c ar is $7,250. Your down pay ment is $1,500. What are your monthly payments ? (Ass ume payments start on e month after purchase—in other words, at the end of the first period.) What interest rate would reduce your monthly pay ment by $1 0 ? 1 2 35 36 3 12 X 0 10. 5 12 ; End mo de 7, 2 5 0 _ 1,500
68 5: Time Value of Money File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Keys: Display: Description:    Displays T VM menu. @c     Clears history stack and TVM variables.  @c e       If needed: sets 12 payment periods per year; End mode. 3 * 12    Fi g ures and stores number of payments. 10.5   Stores annual interest rate. 7250 - 1500    Stores amou nt of the loan.   Calculates payment. Negati ve value mea ns money to be paid out . To calculate the interest rate that reduces the payment b y $10, add 10 to reduce the negative PM T value. 10   Stores the reduced payment amount.   Calculates the annual interest rate. Example: A Home Mort gage. After careful consi deration of y our personal finances, you’ve decided that the maximum monthly mortgage payment you can afford is $630. You can make a $12,000 down payment, and annual interest rates are currently 11.5%. If you take out a 30-year mortgage, what is the maximu m purchase price you can afford ? v v v
5: Time Value of Mon ey 69 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Keys: Display: De scription:     Display TVM menu. @c     Clears history stack and TVM variables.  @c e      If needed: sets 12 payment periods per year; End mode. 30 @   Pressing @ first multiplies 30 by 12, then stores this number of payments in N . 11.5   Stores annual interest rate. 630 &    Stores a negative monthly payment.   Calculates loan amount. 12000 =  Calculates total price of the house (loan plus down payment). Example: A Mortg age wit h a Balloon Payment . Yo u’ve taken out a 25-year, $75,2 50 mortgage at 13.8% ann ual interest. Yo u anticipate that you will own the house for four years and then sell it, repaying the loan in a “balloon payment.” What will be the size of your balloon payment ? v
70 5: Time Value of Money File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 12 4 7 4 8 Balloon . 4 12 X 13 . 8 12 ; En d mode 7 5 , 250 The problem is done in two steps: 1. Calculate the mo nthly pa y m ent wit hout the balloon ( FV =0) . 2. Calculate the ballo on pay ment after 4 year s. Keys: Display: De scription:    Display TVM me nu. @c     Clears history stack and TVM variables.  @c e      If needed: sets 12 payment periods per year; End mode. Step 1. Calculate PMT for the mortgage. 25 @   Figures and stores the number of monthly payments in 25 years. 13.8   Stores annual interest rate. 75250   Stores amount of the loan.   Calculates monthly payment.
5: Time Value of Mon ey 71 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Step 2. Calculate the balloon payment after 4 years. 894.33 &    Stores rounded PMT val ue for exact payment amount (no fractional cents). * 4 @   Figures and stores number of payments in 4 years.   Calculates balloon payment after four years. This amount plus last monthly payment repays the loan. Sa vings Calculations Example: A Sav ings Acc ount. You deposit $2, 000 into a savings account that pays 7.2% an nual interest, compounded annually. If y o u make no other deposits int o the account, how long w ill it take for the account to grow to $3,000 ? S ince this account has no regular payments ( PMT =0), the pay ment mod e (End or Beg in) is irrelevant. 3, 000 _ 2 , 000 0 7. 2 1 * The PMT stored in the previous step is the 12-di git number—894.3305 57971. The calcul ation of the b alloon p ayment must use the act ual monthly p ayment amount: the roun ded number $894.33, an exact dolla rs-and-cen ts amount.
72 5: Time Value of Money File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Keys: Display: De scription:    Dis plays TVM menu. @c     Clears history stack and TVM variables.  1  e     Sets one compou nding per./yr. (one interest pmt./yr.). Payment mode does not matter. 7.2   Stores annual interest rate. 2000 &   Stores amount of deposit. 3000   Stores fu t ure account balance in FV .   Calculates number of compounding periods (years) for the account to reach $3,000. There is no conventional way to inte rpret results based on a non-integer value (5.83) of N . Sinc e the calculated value of N is between 5 and 6, it will take 6 years of annual compounding to achieve a balance of at least $3,000. The actual balance at the end of 6 years can be calculated as follows: 6   Stores a whole number of years in N .   Calculates account balance after six year s. Example: An In dividual R etirement Account (IR A). Yo u opened an IRA on April 15, 2003, with a deposit of $2,000. Thereaf ter, you deposit $80.00 into the acco unt at the end of each half-month. The acco unt pays 8.3% annual interest, compounded semimonth ly. How much money will the account c ontain on April 15, 2018 ?
5: Time Value of Mon ey 73 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 1 2 35 9 360 _ 80 _ 2,0 0 0 4 / 1 5 / 2 0 1 8 4 / 1 5 / 2 0 0 3 8.3 2 12 ; End mode X 15 12 2 X X Keys: Display: De scription:    Dis plays TVM menu. It is not necessary to clear data because you do not need to set any of the values to zero.  24   e       Sets 24 payment periods per year. End mode. 15 @   Figures and stores number of deposits in N . 8.3   Stores annual interest rate. 2000 &   Stores initial deposit. 80 &   Stores semimonthly payment.   Calculates balance in IRA after 15 years.
74 5: Time Value of Money File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Leasing Calculations Two common leasing calculations ar e 1) finding th e lease payment necessary to achieve a specified yield, and 2) finding the present value (capitalized value) of a lease. Le asing calculations typically use “advance payments”. For the calculator, this means Begin mode because all payments will be made at the beginning of the period. If there are two payments in advance, then one payment must be combined with the present value. For example s with two or more advance payments, see pages 74 and 199. Example: Calcu lating a Le ase Pa yment. A new car valued at $13,500 is to be leased for 3 years. The lessee has the optio n to purchase the car for $7,500 at the end of th e leasing period. What monthly payment s, with one payment in advance, are necessary to yield the lessor 14% annually ? Calculate the payments from the lessor’s po int of view. Use Begin payment mode because the first payment is due at the inception of the lease. 13 23 4 3 5 3 6 _ 13,5 00 7, 5 0 0 14 12; B e gin mode 36 Keys: Display: De scription:    Dis plays TVM menu.  12   e       Sets 12 payment periods per year, Begin mode. 36   Stores number of payments.
5: Time Value of Mon ey 75 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 14   Stores annual interest rate. 13500 &    Stores car’s value in PV . (Money paid out by les sor.) 7500   Stores pu rchase option value i n FV . (Money received by lessor.)   Calculates monthly payment received. Example: Present Value of a Lease with A dvance Payment s and Option to Buy. Your company is leasing a mach ine for 4 years. Monthly payments are $ 2,400 with two pa yments in advance. Yo u have an option to buy the machine for $15,000 at the end of the leasing period. What is the capitalized value of the lease ? Th e interest rate you pay to borrow funds is 18%, compounded monthly . 13 24 4 4 5 4 6 4 7 4 8 _ 15, 000 － 4,800 2 _ 2 , 400 18 12; Beg in m ode 47 The problem is done in four steps: 1. Calc ulate the pre sent v alue of 4 7 monthl y pay ments in Begin mode. (Begin mode mak es the f irst pa yment an ad vance pa yment . ) 2. Add one additi onal pay ment to the cal cu lated pres ent valu e. T his adds a second ad vance pa yment to the beginning o f the leasing per iod , replac ing w hat would ha ve been the f inal (4 8th) pay ment . 3. Find the pr esent v alue of the buy option . 4. Add the pre sent v alues calcu lated in step s 2 and 3.
76 5: Time Value of Money File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Keys: Display: De scription:    D isplays T VM menu. @c     Clears history stack and TVM variables.  12   e       Sets 12 payment periods per year; Begin mode. Step 1: Find the present val ue of the monthly payments. 47   Stores number of payments. 18   Stores annual interest rate. 2400 &   Stores monthly payment.   Calc ulates present (capitalized) value of the 47 monthly payments. Step 2: Add the additional advance payment to PV . Store the answer. 2400 =  Calculates present value of all payments. s 0  Stores result in register 0. Step 3: Find the present val ue of the buy option. 48   Stores number of payment periods. 15000 &    Stores amou nt of the buy option (money paid out). 0   There are no payments. v
5: Time Value of Mon ey 77 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9   Calc ulates present value of the buy option. Step 4: Add the results of step 2 and 3. R 0 =  Calc ulates present, capitalized value of lease. Amor tiz ation (AMRT) The AMRT menu (press    ) d i s p l a y s o r p r i n t s t h e following values:  The loan balance after the p ay ment(s) are made .  The amount o f the pay ment(s) applie d tow ard inte re st .  The amount o f the pay ment(s) applied to war d princ ipal . TVM I% YR INT BEG N #P P/YR PV PRI N END PM T BA L FV NEXT OT H E R TA B L E AM R T v
78 5: Time Value of Money File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Table 5- 2. AMRT Menu Labels Menu Label Description  Stores the number of payments to be amortized, and calculates an amortization schedule for that many payments. Successiv e schedules start where the last schedule left off. #P can be an integer from 1 through 1,200.   Displays the amount of the payments applied toward interest.   Displays the amount of the payments applied toward principal.   Displays the balance of the loan.   Calculates the next amortization schedule, which contains #P payments. The next set of payments starts where the previous set left off.   Displays a menu for printing an amortization table (schedule). Display i ng an Amor ti zation Sc h edule For amortization cal culations, you need to know PV , I%YR, and PMT . If you have ju st finished doing these calculations with the TVM menu, then skip to step 3. To calcul ate and dis play a n amortization s chedule: * 1. Pre ss   to dis play the TVM menu . * Amortization calcul ations use values of PV , PM T , and INT rounded to the number of decim al places specified by th e current display setting. A setting of  2 means that these calcul ations will be rounded to two decimal places.
5: Time Value of Mon ey 79 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 2. Stor e the values f or I%YR , PV , and PM T . (Pre ss & to mak e PM T a negativ e number .) If y ou ne ed to calculate one of these v al ues , follow the instru ctions under “Usin g the T VM Menu , ” on page 66. T hen go on to s tep 3 . 3. Pre ss  to dis play the r est o f the T VM menu . 4. If neces sary , c hange the number of pay ment peri ods per y ear stored in  . 5. If neces sar y , change the pa yment mode b y pre ssing  or  . (Mos t loan calculations u se End mode .) 6. Pr ess  . (If y ou w ant to pr int the amortiz ati on sc hedule , go to page 8 2 to co ntinue .) 7. K ey in the n umber of pa yments to be amorti z ed at one time and pr ess  . F or e xample , to s ee a y ear of monthl y pay ments at one time , set #P to 12 . T o amortiz e th e entire li fe of a loan at one time , set #P equal to the to tal number of pa y ments ( N ). If #P = 12 , the displa y would show : C u r r e n t s e t o f pa ym ent s t o be amorti ze d Number of pay ments amo rti z ed at one t ime Pr es s t o s ee r esu lts 8. T o di spl ay t h e resul t s, p ress,  ,  and  (or pr ess ] to v iew the r esults f rom the s tack). 9. T o continue calc ulating the sc hedule for sub sequent pay ments, do a or b . T o start the s chedule o ve r , do c . a. To c a l c u l a t e t h e n e x t su cces si ve amor ti zati on sc hedule , with the same nu mber of pay ments , pr ess  .
80 5: Time Value of Money File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Ne xt set o f p aymen ts auth oriz e d succ essi ve b. T o calc ulate a subs e quent s chedule w i th a diffe rent num be r o f pa y ments, ke y in that nu mber and pr ess  . c. T o start ov er fr om pay ment #1 (using the same loan infor mation) , pre ss @c and pr oceed fr om step 7 . Example: Displa ying an Amortiz ation Schedule . T o p u r c h a s e y o u r new home, you have taken out a 30-year, $65,000 mortgage at 12. 5% annual interest. Your monthly payment is $693.72. Calculate the amount of the first year’s and second year’s payments that are applied toward principal and interest. Then calculate the loan balance after 42 payments (3½ years). Keys: Display: Description:    Displays TVM menu. 12.5   Stores annual interest rate. 65000   Stores loan amou nt. 693.72 &    Stores monthly payment.  @c      If needed: sets 12 payment periods per year; End mode.      Display s AMRT menu.
5: Time Value of Mon ey 81 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 12     Calculates amortization schedule for first 12 payments, but does not display it.    Displays interest paid in first year.   Displays principal paid in first year.   Displays balance at end of first year.     Calculates amortization schedule for next 12 payments.    Displays results for second year.     To calculate the balance after 42 payments (3½ y ear s), amortize 18 additional payments (42 － 24＝ 18): 18     Calculates amortization schedule for next 18 months.    Displays results.    
82 5: Time Value of Money File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Printing an Amorti zation T abl e (T ABLE) To print an amortization schedule (or “table”) do steps 1 through 5 for displaying an amortization schedule (see page 78). 6. Pr ess  . I gn o re the messa g e       . 7 . Pr ess  . 8. K ey in the pa y ment number of the firs t payment in the sc hedule and pre ss  . ( F o r i n st a n c e, for t h e ver y fi rst p aym e nt, FIRS T = 1.) 9. K ey in the pa yment n umber of the las t pay ment in the sc hedule and pre ss  . 10. K ey in the incr ement—the n umber of pay ments sho wn at o ne time—and pre ss  . (F or ins tance , f or one y ear of monthl y pa y ments at a time, INCR =12 .) 11 .Pr ess  . Values are retained until you exit the TABLE menu, so yo u can print successive amor tization schedules by re-entering only those TABLE values that change. Example: Printin g an Amo rtizatio n Schedule. For the loan described in the previous example (page 80), print an amortization table with entries for the fifth and sixth years. You can continu e from the AMRT menu in the previous example (step 7, above) or repeat steps 1 through 6. Starting from the AM RT menu: Keys: Display: Description:     Displays menu for printing amortization table. 4 * 12 1   The 49th is the first payment in year 5. v
5: Time Value of Mon ey 83 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 6 * 12   The 72nd is the last payment in year 6. 12   Each table entry represents 12 payments (1 year).   Calculates and prints amortization schedule shown below.                                          v
84 6: Interest R ate Conve rsions File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 6 Interest Rat e Conversio ns The interest conversion (ICNV) menu converts betwe en nominal and effective interest rates. To co mpare investments with different compounding periods, their nominal interest rates are c onverted to effective interest rates . This allows you, for ex ample, to compare a savings account that pays interest quarterly with a bond that pays interest semiannually.  The nominal r ate is the stated ann ual inter est r ate compounded per iodicall y , suc h as 18% per y ear compou nded monthl y .  The eff ectiv e rate is the rate that , compou nded only once (that is, annuall y) , would pr oduce the s ame final v alue as the no minal rate . A nominal annu al rate of 18% compounded mo nthly equ al s an effec tiv e annual r ate of 19 . 5 6%. When the compounding period for a given nominal rate is one y ear, then that nominal annual rate is the same as its effectiv e annual rate.
6: Interest Rate Conversions 85 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Th e I C N V M e nu FIN TVM NOM% NOM% PER BUS ICNV EFF% EFF% CO NT SU M CFL O P TIME BOND SOL V E DEP R C CURRX The ICNV menu converts between nominal and effective interest rates, using either:  P eriodi c compounding; f or e xam ple , quarterl y , monthl y , or dail y compou nding .  Contin uous com pounding. Con verting Interest Rates To convert betwe en a no minal annual interest r ate a nd an effective annual interest rate that is compounded periodic ally : 1. Pre ss   to dis play the inter est con v ersions menu . 2. Pr ess  fo r per iodi c . 3. K ey in the n umber of compounding per iods per y e ar and pre ss  . 4. T o con vert to the e ffecti ve r ate , fir st k e y in the n ominal r ate and pr ess  , then pr ess  . 5. T o con vert to the nominal ra te, f irst ke y in the effec tiv e rate and p res s  , then pr ess  .
86 6: Interest R ate Conve rsions File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 To convert betwe en a no minal annual interest r ate a nd an effective annual interest rate that is compounded continuously : 1. Pre ss   to get the inte re st con ver sions menu . 2. Pr ess  f or “ continu ous ” . 3. T o con vert to the eff ecti v e rate , k ey in the nom inal ra te and pres s  , then pr ess  . 4. T o conv ert to the nominal r ate, k ey in the e ffecti ve r ate and pres s  , then pr ess  . Values of EFF% and NOM% are shared between the PER and CONT menus. For example, an effective interest rate in CONT remains stored in EFF% when you exit the CONT menu and enter the PER menu. Pressing @c in either menu clears NOM% and EFF% in both. NOM% NOM% PER ICNV EFF% EFF% CO N T P Sh ared variable s bet ween P ER an d CO NT Example: Converting from a Nomina l to an E ffectiv e Interest R ate. You are considering o pening a sa vings account in one of three banks. Which bank has the most favorable interest rate ? Bank #1 6.7% annu al interest, compounded quarterly. Bank #2 6.65% annual interest, compou nded monthly. Bank #3 6.65% annual interest, compounde d continuously. Keys: Display: Description:    Displays ICNV me nu.     Displays PER menu.
6: Interest Rate Conversions 87 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 4   Stores numb er of compounding periods per year for bank #1. 6.7   Stores nominal annual interest rate for bank #1.   Calculates effective interest rate for bank #1. 12   Stores numb er of compounding periods per year for bank #2. 6.65   Stores nominal annual interest rate for bank #2.   Calculates effective interest rate for bank #2. e    Display s CONT menu. Previous v alues of NOM% and EFF% are retained.   Calculates effective rate for bank #3. The calculations show that bank #3 is offering the most favorable interest rate. Compounding P eriods Differ ent from Pa y m e n t Pe r i o d s The TVM menu assumes that the compounding periods and the pay ment periods are the same. However, regularly occurring savings- account deposits and withdrawals do not nece ssarily occur at the same time as the bank’s compounding periods. If they are not the same, you can adjust the interest rate using the ICNV menu, and then u se the adjusted
88 6: Interest R ate Conve rsions File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 interest rate in the TVM m enu. (You can also use TVM if PMT = 0, regardless of the compounding periods.) 1. Call u p the peri o dic in teres t -rate con versi on menu (    ). 2. Calculate the e f fecti v e annual inter est r ate fr om the nominal ann ual inter est r ate giv en b y the bank . a. Stor e annual in tere st r ate in  . b. Stor e nu mber of compounding per iods per y ear in  . c. Pre ss  . 3. Calc ulate the nominal annu al inter est r ate that corr esponds to y our pa y ment periods . a. Stor e the number of r egular pay ments or withdr aw als you w ill be making per y ear in  . b. Pre ss  . 4. Retur n to the T VM menu ( ee  ). 5. Stor e the ju st-calcu lated nominal inter es t rate in I%YR (pre ss s  ). 6. Stor e the nu mber of pa yments or w ithdra wals per y ear in  and set the a ppropr iate pa y ment mode. 7. Co ntinue w ith the T VM calculati o n . (R emember that money pai d out is negati ve; mone y r ecei ved is po sitiv e .) a. N is the total n umber of per iodic depo sits or withdr aw als. b. PV is the initial deposit. c. PM T is the amount of the r egular , per iodic depo sit or wi thdra wal . d. FV is the fu tur e value . When the interest rate is the u n known variable, first calculate I%YR in the TVM menu. This is the nominal annual rate that corresponds to yo ur payment periods. Next, use the ICNV menu to convert this to the
6: Interest Rate Conversions 89 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 effective interest rate based on your pa yment periods. Last, convert the effective rate to the nomin al rate based on the bank’s compounding periods. Example: Balan ce of a S avings Account. Starting today, you make monthly deposits of $25 into an account paying 5% interest compounded daily (365-day basis). At the end of 7 years, how much will you re ceive from the accou nt ? Keys: Display: Description:         Periodic interest-rate conversion menu. 365   Stores bank’s compounding periods. 5   Stores bank’s nominal interest rate.   Calculates effecti ve interest rate for daily com pounding. 12   Stores numb er of deposits per year.   Calculates equivalent nominal interest rate for monthly compounding. ee  <   Switches to TVM menu; NOM% value is still in calculator line. s   Stores adjusted nominal interest rate in I%YR .  12   e      Sets 12 payments per year; Begin mode.
90 6: Interest R ate Conve rsions File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 7 @  25 &  0     Stores 84 deposit periods, $25 per deposit, and no money before the first regular deposit.   Value of account in 7 years. If the interest rate were the un k nown, yo u woul d f irst d o the T VM calculation to get I%YR (5.01). Then, in the ICNV PE R menu, store 5.01 as NOM% and 12 as P for monthly compou nding. Calculate EFF% (5.13). Then change P to 365 for daily compo unding and calculate NOM% (5.00). This is the bank’s rate .
7: Cash Flow Calculations 91 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 7 Cash Flow Calculations The cash flow (CFLO) menu stores and analyzes cash flows (money received or paid ou t) of un e qu al ( ungro uped ) amounts that occur at regular intervals. * Once you’ve entered the cash flows into a list , yo u can calculate:  The total am ount of the cash flow s.  The inter nal r ate of r eturn (IRR%).  The net pr esent value (NPV) , net unif orm se ri es (NUS), and net fu tur e v al ue (NFV) f o r a spec if ied per iodic in tere st ra te (I%) . You can store many separate lists of cash flows. The maximum number depends on the amount of available calcu lator memory. Th e CF LO m e n u FIN TVM CAL C TOT A L BUS ICNV INS R IR R% SU M CFL O DELE T I% TIME BOND NAME NPV SO L V E DEP R C GE T NUS NFV CURRX The CFLO menu creates cash- flow list s and performs calculations with a list of cash flows. * You can also use CFLO with cash flows of equal amounts, but these are usua lly handled more easily by the TVM menu.
92 7: Cash Flow Calculations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Table 7- 1. CFLO Menu Labels Menu Labe l Descript ion  Accesses the CALC menu to calculate TOTAL , IRR% , NPV , NUS , NFV .   Allows you to insert cash flows into a list.   Deletes cash flows from a list.   Allows you to name a list.   Allows y o u to switch from o ne list to another or create a new list .   Turns the prompting for #TIMES on and off. To see the calculator line when this menu is in the display, press I once. (This does n ot affect number entry.) To see this menu when the calculator line is in the display, press e . Cash Flo w Diagrams and Signs of Numbers The sign conventions used for c ash flow calculations are the same as those used in time-value-of-money calculations. A typical series of cash flows is one of two ty pes:  Ungrou ped cash flow s. T hese occur in ser ies of cash flo w s wi t h o u t “ gr oups ” of equ al, consecuti v e flow s. * Becau se each flo w is diff ere nt fr om the one be for e it , the number o f times eac h flo w occu rs is one . * Any cash flow series can be treated as an ungroupe d one if you en ter each flow indi vidually.
7: Cash Flow Calculations 93 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 $200 $100 $300 $200 $0 $ _ 50 $ 250 $12 5 Time per i ods Mon ey r ece iv ed is a po siti ve nu mber Mon ey pai d ou t is a nega tive nu mb er 12 345678 Figure 7- 1. Cash Flows ( Ungroup ed) The horizontal timeline is divided into equal compounding periods. The vertical lines represent the cash flows. For money received, the line points up (positive); for money paid ou t, the line points down (negative). In this case, the investor has invested $700. This investment has generated a series of cash flows, starting at the end of the first period. N o t i c e t h a t t h e r e i s n o c a s h f l o w ( a c a s h f l o w o f z e r o ) f o r p e r i o d f i v e , and that the investor pays a small amount in period six.  Grou ped cash flo w s. T h e s e o c c u r i n a s e r i e s c o n t a i n i n g “ g r o u p s ” o f equal , co nsec utiv e flow s . C onsec utiv e, eq ual cash flow s ar e called gr ouped cash flo ws. T h e seri es shown here is g r o uped i nt o t wo sets of consecu tiv e, eq ual cash flo w s:
94 7: Cash Flow Calculations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 1234 56789 $ _ 1 0 0 $ _ 1 0 0 $ _ 1 0 0 $ _ 1 0 0 $ _ 1 0 0 $ _ 2 0 0 $ _ 2 0 0 $ _ 2 0 0 Figure 7- 2. Grouped Ca sh Flows After an initial payment of $100, the in vestor pays $100 at the end o f periods 1 through 5, and $ 200 at the end of periods 6 thro ugh 8. The investment returns $1,950 at the end of period 9. For every cash flow you enter, the calculator prompts you to indicate how many times ( #TIMES ) it occurs. Creating a Cash-F l ow L ist To use CFLO, be su re your cash flows are occu rring at regular intervals and at the end of each period. * If a period is skipped, enter zero for its cash flow. If there are any gro uped (consecutive and equal) cash flows, the #TIMES prompting makes entering the data easier. * If the cash flows occur at the beginnin g of each period, th en combine the first flow with the initial flow (which can increase or decrease the flow), and move each cash fl ow up one period. (Remember: a paymen t made at the beginning of period 2 is equi valent to the same payment made at th e end of period 1, and so on. Ref er to pages 64-92.)
7: Cash Flow Calculations 95 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Entering Cash F low s To enter cash flows into a CFLO list: 1. Pre ss   . Y o u will see eit her   if the cu rr ent list is em pt y , or   or mor e  if the lis t is not e mpt y . This is the bottom of th e curre n t l i st. 2. If the list is not empty , you can do either a or b : a. Clear the list b y pr essing @c  (see als o page 99.) b. Get a new lis t by pre ssing   (The ol d li st must b e named fir st. Pr ess  or see page 9 7.) 3. If the c ash flo ws ar e un gr o uped (that is, the y ar e all differ ent) , then pre ss  to turn      . F or gr ouped cash flo ws , lea v e this prom pting on. (F or mor e inf ormation , see “Pr ompting f or #T IME S, ” nex t page.) 4. K ey in the value o f the initial cash flow , FL OW(0) (r emember that mone y paid out is negati ve—u se & to change the si gn) , and pres s I . * 5. Af ter b riefly show in g FL OW(0) , th e d isp lay s hows   . (T o view FL O W (0) longer , ho ld dow n I bef ore releasing it .) K e y in the v alu e f or FL O W(1) and pr ess I . The pr ompt f or the next item appear s. 6. For grouped cash flow s: T h e displa y now sho ws   . I f i t d o e s n o t , p r e s s e  to turn the #TIME S pr ompting on . (See “Pr ompting f or #TIME S ,” b e l o w. ) #TIME S is the number o f consec utiv e occu rr ences of FL O W(1) . #T IMES has * Yo u can do calcu l ations with a number before ent ering it . This does not interfere with the list. When yo u press I , the evaluated expression or number is entered into the list.
96 7: Cash Flow Calculations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 been automati cally s et to 1, and  is displa ye d on t he calcu lator li ne. Do eit her a or b : a. T o re tain the v alue 1 and go on to the ne xt flo w , pre ss I (or ] ). b. To c h a n g e #TIME S , ke y in the number and pr ess I . * Given #TIME S Calculator line 7. Continu e entering eac h cash flo w and, f or gr ouped flo w s , the number of times it occ urs. T he calculator r ecogniz es the end o f the list w hen a flo w is left blank (no v alue is enter ed) . 8. Pre ss e to end the list and r esto re the CFL O menu . Y ou can n ow pr oceed to corr ect the lis t, name the lis t, get an other list , or do calcu lations w i th the v alues . Use these same instructions to enter additional lists. Prompting for #TIMES (#T ? ). When the calculator displays   , it is prompting y ou for the numb er of times the current flow occurs. If all your cash flows are different ( #TIMES always 1), then you don’t need the   prompt. You can tu rn t he prompting for #TIMES on and off by pressing  in the CFLO menu . This produces a brief message: either      , or      . While prompting is off, all c ash flows you enter will have #TIMES = 1. When you are viewing a c a sh-flow list with the #TIMES prompting off, the calculator displays only those #TIMES values that are not 1. * The ma ximum #TIMES for each c ash flow is 999.
7: Cash Flow Calculations 97 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 The #TIMES prompting is usually on , because it is automatically turned on whenever you cl ear or get a cash-flow list. Example: Entering Cash F lows. Enter the following ungrouped cash flows in a list and find the p ercentage internal rate of return (IRR). 0: $ － 500 2: $ 275 1: 125 3: 200 Keys: Display: Description:    @c    Asks for confirmation.   Clears data from list and prompts for initial flow.     Sets prompting off be- cause it is not needed. 500 &I   Enters initial flow; then immediately prompts for next flow. 125 I   Enters FLOW(1) ; prompts for next flow. 275 I   Enters FLOW(2) ; prompts for next flow. 200 I   Enters FLOW(3) ; prompts for next flow. e       Ends list and displays CALC menu.   Calculates IRR. Vie wing and Cor recting the List To display a particular list, use  (see page 99).
98 7: Cash Flow Calculations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 The [ and ] keys move u p and do wn one number at a time. @[ and @] display the beginning and end of the li st. Changing or Clearing a N umber. To change a number after it’s been entered: display the number, key in the new value, and press I . Use this same method to clear a number to zero. (Do not press C or < , which clear the calculator line, not the cash-flow entry.) Inserting Ca sh Flo ws into a List . Insertion occurs before ( above ) the current flow. Pressing  inserts a zero cash flow and renumbers the rest of the list. You can then enter a new cash flow and its #TIMES . For example, if FLOW(6) is in the display, pressing  puts a new, zero flow between the previo usly numbered FLOW(5) and FLOW(6) . Deleting Cash F lows from a List. Pre ssing  deletes both the current flow and its #TIMES . Cop ying a Number from a List to the Calc ul ator Line To copy a number from the list into the calculator line, use ] or [ to display the number, then press R I . Naming and Renamin g a Cash-Flo w List A new list has no name. You may name it before or aft er filling the list, but you mu st name it in order to store another list. To name a list: 1. Pre ss  fr om the CFL O menu . 2 . Us e the ALPHA menu to type a name . (The ALPH A and ALPHA- E dit menu s are co ver ed on page s 30 - 3 2.) T o c lear a name , pr ess C . 3 . Pr ess I .
7: Cash Flow Calculations 99 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 The name can be up to 22 characters l ong and include any character except: ＋ － x ÷ ( ) < > : = space * But only the first three to five characters (depending on letter widths) of the name are used for a m enu label. Avoid names with the same first characters, since their menu labels will look alike. Viewing the Name of the Current List. Press  , t hen e . St arting or GE Tting Another L ist When you press  , the cash-flow list that appears is the same as the last one used. To start a new list or switch to a different one, the current list mu st be named or cleared. If it is na med, then: 1. Pre ss  .The GE T menu contains a men u label f or each named list plu s  . 2. Pr ess the k ey f or the desir ed list. (  bring s up a new , empty list .) Clearing a Cash-Fl ow L i st and Its Name To clear a list’s numbers and name: 1. Display the list y ou w ant to c lear , then pre ss @c  . This re mov es the n umbers . 2. If the l ist is named , y ou ’ll see       Pre ss  to r emov e the name. Pr es s  to r etain the name w ith an empty list . * CFLO does accept these exceptional charac ters in list nam es, but the Solver function s SIZEC, FLOW, and #T do not.
100 7: Ca sh Flow Calculations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 To remove just one v alue at a time from a list, use  . Cash-F low Calculations: IRR, NPV , NU S, NFV Once you hav e entered a list of cash flows, you can calculate the following values in the CALC menu.  Sum ( TO T A L ).  Internal r ate of re turn ( IRR% ). T h is is a per iodi c ra t e o f ret ur n. T o calcu late an annual n o m i n a l r a t e w h e n t h e p e r i o d i s n o t a y e a r , multi ply th e IRR% by the n u mber of per iods per y ear . If y ou want the IRR% as an effect iv e annual r ate , then us e the FIN ICNV menu to conv er t f r om the nominal ann ual rate to the eff ectiv e annual r ate .  Net pre sent value ( NPV ) , net unifor m seri es ( NUS ), and net futu re va l u e ( NF V ) for a s pecif ied , peri odic i nt ere st rat e, I% .
7: Cash Flow Calculations 101 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Table 7- 2. The CALC Menu for CFLO Li sts Menu Labe l Descript ion  Calculates the sum of the cash flows.  *  Calculates the internal rate of return —the interest (discount) rate at which the net present v al ue of the cash flows equals zero.   Stores the periodic interest rate , expressed as a percentage (sometimes calle d cost of capital , discount rate , or requ ired rate of return ).   Given I% , calculates the net present value—th e present value of a series of cash flows.   Given I% , calculates the net uniform series —the dollar amount of constant, e qual cash flows having a present value equivalent t o the net present value.   Given I% , calculates the net future value of a series of cash flows by finding the futu re value of the net present value. * The calculations f or internal rate of return are c omplex and m ay take a relatively long time. To interrupt the calculation, press any key. In certain cases, the calculator displays a messa ge indicating that the ca lculation cannot continue without further information from you, or that there is n o solution. Ref er to appendix B f or additional in formation about calculating IRR% . About the Internal R ate of Return (IRR%). A “conventional investment” is considered attractive if IRR% exceeds th e cost o f capital. A conventional investment meets two criteria—(1) the sequence of cash flows changes sign o nly onc e, and (2) the sum ( TOT AL ) of the cash flows is positive . Remember that the calculator determines a periodic IRR% . If the cash flows occur monthly, then IRR% is a monthly valu e, too. Multiply it by 12 for an annual valu e.
102 7: Ca sh Flow Calculations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Example: Calcu lating IRR an d NPV of an Investment. An investor makes an initial investment of $80, 000, and expects returns over the next five years as illustrated below. $ _ 80, 000 1 2345 5, 000 4, 50 0 5,500 4 , 000 115, 000 (Ini tial flo w) Calculate the total of the cash flows and the internal rate of return of the investment. In addition, calculate the net present value and net future value, assuming an annual interest rate of 10.5%. Start the problem with an empty cash-flow list. Since the cash flows are ungrouped, e ach one occurs ju st once. Turn off the #TIM ES prompt to make cash-flow entry faster. Keys: Display: Descri ption:    Displays current cash-flow list and CFLO menu keys. @c  or       Clears current list or gets a new one. The empty list prompts for its initial cash flow.     Briefly shows the status of  , then returns to the list. With prompting off, all cash flows are assumed to occur jus t once.
7: Cash Flow Calculations 103 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 80000 & I   Prompts for next cash flow. Calculator line shows last number entered. 5000 I  Stores $5,0 00 for FLOW(1) , prompts for next flow. 4500 I  Stores FLOW(2) . 5500 I  Stores FLOW(3) . 4000 I  Stores FLOW(4) . 115000 I  Stores final cash flow and shows end of list. e     Calculates sum of the cash flows.   Calcu lates internal rate of return. 10.5   Stores periodic interest rate.   Calculates NPV .   Calculates NFV . Now calculate the net present value at an interest rate of 10.5% if cash flow #4 is reduced to $1,000. e  Displays the bottom of the list. [[  Moves to cash flow #4. 1000 I  Changes cash flow #4 to $1,000. e     Calculates new NP V .
104 7: Ca sh Flow Calculations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Example: An Investment with Grou ped Cash Flows. Yo u are considering an investment that requ ires a ca sh outlay of $9,000, with the promise of monthly cash flows as shown. Calculate IRR% . Also f ind NPV and NFV at an annual interest rate of 9%. $ _ 9, 0 0 0 0 5 0 0 5 0 0 5 0 0 1 , 0 0 0 1 , 0 0 0 1 , 0 0 0 1 , 0 0 0 1 , 5 0 0 1 , 5 0 0 1 , 5 0 0 Since some of these ca sh flows are gro uped (consecutive and equal), the #TIMES prompting must be on so you can specify a number other than 1. Group Number Amount Number of Times Initial 1 2 3 4 － 9,000 500 1,000 0 1,500 － 3 4 1 3 Keys: Display: Descript ion:    Current cash-flow list and CFLO menu. @c    Clears curre nt list. #TIMES prompting is turned on. 9000 & I  Stores the initial cash flow.
7: Cash Flow Calculations 105 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 500 I  Stores FLOW(1) and prompts for #TIMES(1) . 3 I  FLOW(1) occurs 3 times; prompts for next cash flow. 1000 I 4 I   Stores FLOW(2) four times. 0 I I   Stores FLOW(3) one time (the 1 is automatically entered). 1500 I 3 I   Stores FLOW(4) three times. e   Di splays the CALC m enu.   Calculates monthly IRR%. 9 / 12    Stores the periodic, monthly interest rate.   Calculates NPV.   Calculates NFV. Example: An Investmen t with Quarter ly Cash R eturns. You have been offered an opportunity to invest $2 0,000. The in vestment returns quarterly payments over four years as follows: Year 1 4 payments of $500 Year 2 4 payments of $1,000 Year 3 4 payments of $2,000 Year 4 4 payments of $3,000 v
106 7: Ca sh Flow Calculations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 5 0 0 5 0 0 5 0 0 5 0 0 1 , 0 0 0 1 , 0 0 0 1 , 0 0 0 1 , 0 0 0 2 , 0 0 0 2 , 0 0 0 2 , 0 0 0 2 , 0 0 0 3 , 0 0 0 3 , 0 0 0 3 , 0 0 0 3 , 0 0 0 Calculate the annual rate of return for this inv estment. (The prompting for #TIMES should be on.) Keys: Display: Descript ion:    Current cash-flow list. @c  or       Clears the current list or gets a new one. This sets the #TIMES prompting on. 20000 & I   Stores the initial cash flow. 500 I  Stores FLOW(1) , then prompts for number of times this flow occurs. 4 I  FLOW(1) occurs four times. 1000 I 4 I 2000 I 4 I 3000 I 4      Stores FLOW(2) , FLOW(3) and FLOW(4) , and the number of times each flow occurs.
7: Cash Flow Calculations 107 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 I  e     Calculates quarterly rate of return. * 4 =  Calculates nominal annual rate of return from quarterly rate. Doing Other Calc ulations w it h CFL O Data If yo u would l ike to do o the r cal cul ations with c ash flows besides those in the CALC menu, you can do so by writing your own Solver equations. There are Solver functions th at can a ccess data sto red in CFLO lists, and there is a summation function that can c ombine all or part of the v alues stored in specific lists. Refer to “Accessing CF LO and SUM Lists from the Solver” in c hapter 12. v
108 8: Bonds File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 8 Bonds The BOND menu calculates the yield to maturity or price of a bond. It also calculates yield to call on a coupon date and accr ued interest . You can specify the:  Calendar basis : 30/3 6 0 or actu al/actual (da ys per mo nth/day s per y ear). Munic ipal, state , and co rpora te bonds issued in the United State s are ty picall y 30/3 60 . U. S. T reasury bonds ar e actual/actual .  Co upon payments : semi-annual or ann ual. Mos t U .S . bonds are semi-ann ual. Th e BO N D M e n u FIN TVM TYP E YLD% BUS ICNV SE T T PRI C E SU M CFL O MA T A CC RU TIME BOND CPN% SOL V E DEP R C CALL MORE MO RE CURRX Pressing  shows you the BOND menu and the type of bond curre ntly spe cified:   or  ;   or   .
8: Bonds 109 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Table 8- 1. BOND Menu Labels Menu Label Description  Displays a menu of bond types: 30/360 or actual/actual, semi-annual or annual.   Stores the settlement (p urchase) date according to the current date format ( MM.DDYYYY or DD.MMY YYY; see page 143).   Stores the maturity date or call date according to the current date format. The call date mu st coincide with a coupon date.   Stores the annual coupon rate as a percentage. Stores the call price per $100 fac e value. For a yield to maturity , make su re CALL equals 1 00. (A bond at maturity has a “call” value that is 100% o f its face value. )      Stores or calculates the yield (as an annual percentage) to maturity or yield to call date.   Stores or calculates the price per $100 face val ue.   Calculates the interest accrued from the last coupon-payment date until the settlement date, per $100 face value. The calculator retains the values of the BOND variables until you clear them by pressing @c while the BOND menu is displayed. Clearing sets CA LL to 100 a nd all other variables to zero. To see the value currently st ored in a variable, press R menu label .
110 8: Bonds File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Doing Bond Calculations Remember that values in the BOND menu are expresse d per $100 face valu e or as a percentage . A CALL value of 102 means that the bond will be worth $102 for ever y $100 of face value whe n called. So me corporate bonds in the United States use the convention that the price of the bond is set to 100 if the coupon ra te equ als the yield, whether or not the settlement date is a coupon date. The BOND men u does not us e th is convention. To calcul ate the pri ce or yield of a bond: 1. Display the BON D menu: pr es s   . 2. Pr ess @c . T his sets CAL L =100. 3. Define the type o f bo nd . If the mess age in the display does not matc h the type y ou w ant, pr ess  . Calendar basis Interest period  Pre ssing  sets the calendar basis to a 3 0 -day month and a 36 0 - d a y ye a r .  Pre ssing  sets the calendar basis to the ac tual calendar month and to the ac tual calendar y ear .  Pre ssing  sets s emi-annual cou pon pay ments.  Pre ssing  sets ann ual coupon pa yments . Pre ss e to r estor e the BOND men u. 4. K ey in the settlement da te ( MM.D D YYYY or D D .MMYY YY depending on the date f ormat; see c hapter 11) and pres s  . 5. K ey in the matu rity date or call date and pre ss  . 6. K ey in the cou pon rate as an annual per cent and pre ss  . 7. K ey in the call v alue , if any , and pres s . F or a bond held to
8: Bonds 111 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 matur it y , the CALL v al ue mu st equal 100. (See step 3 .) 8. T o calculate a re sult, f irst pr es s  to acces s the re maining menu labels . Do either a or b : a. K ey in the y ield and pr ess  . P r es s  to calc ulate the pri ce. b. K e y in the pr ice and pres s  . Pr ess  to calc ulate the yi e l d. To calculate the accrued interest, press  . The total amount owed the seller is PRICE ACCRU , that is :   = . Ca lc ulat ing Fr acti onal V alues. When given a fractional v alue that must be entered in decimal form, do the arithmetic and the n store the result directly into a v ariable. Do not clear th e arithmetic and then retype the result before storing it—thi s is an unn ecessary step that c an cause incorrect answers due to rounding. See how the follo wing example stores 8 3 / 8 in YLD% . Example: Price and Yie ld of a Bond. What price should you pay on August 10, 2003 fo r a 6¾% U.S. Treasury bond that matures on May 1, 2018 if you wish a yield of 8 3 / 8 % ? The calendar basis is actual/actual and the coupon payments are semi-annual. (The example ass umes MM.DDY YYY date format.) Keys: Display: Descript ion:   @c  Since there is no c all on this bond, set CALL = 100 by clearing variables.    e    Sets bond type, if necessary. 8.102003      Stores settlement (purchase) date. 5.012018  Stores maturity date. v
112 8: Bonds File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9    6.75   Stores annual cou pon rate.  3 / 8 8     Stores desired yield (displayed rounded to two decimal places). *   Result: price is $86.38 per $100 face value.   Adds accrued interest owed the seller. =  Net price. Suppose that the market q uote for the bond is 88¼. What yield does it represent ? 88.25   Stores quoted price.   Result: yield to maturity. Example: A Bon d with a Call Featu re. What is the price of a 6% corporate bond maturing o n March 3, 2022 and purchased on May 2, 2003 to yield 5.7% ? It is callable on March 3, 2006 ( a coupon date), at a value of 102.75. Wh at is the yield to the call date ? Use a 30/360 calendar with semi-annual coupon pay ments. Keys: Display: Descri ption:   @c  Display s BOND menu, clears variables.    e    Sets bond type, if necessary. * To see the full precision of the number, press @S . v v v
8: Bonds 113 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 5.022003     Stores purchase date ( MM .DDYY YY format). 3.032022    Stores maturity date. 6   Stores annu al coupon rate.  5.7    Stores yield.   Calculates price.  3.032006  102.75     Changes maturity date to call date and stores a call value.    Calculates yield to call. Example: A Zero-Coupon Bond. Calculate the price of a zero-coupon, semi-annual bond using a 30/360 calendar basis. The bond was purchased on May 1 9, 2003 and will mature on June 30, 2017, and has a yield to maturity of 10%. Keys: Display: Description:   @c  Clears BOND variables, setting CAL L to 100.    e    Sets type if necessary (check the display ). 5.192003     Purchase date ( MM .DDYY YY format). 6.302017     Maturity date. 0   Coupon rate is zero.  10   Yield to maturity.   Calculates price.
114 9: Depreciation File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 9 Depreciation The DEPRC ( depreciation ) menu calculates depreciation valu es and remaining depreciable values one year at a time. The m ethods available are:  Declining balance.  Sum -of-the- years’ digit s.  Straight line.  Accelerated Cost Re covery S ystem. Th e D EPRC M e nu FIN TVM BAS IS YR# BUS ICNV SAL V FA C T % SU M CFL O LIFE DB S O Y D SL TIME BOND A CRS % SOL V E DEP R C AC RS MORE MO RE CURRX Pressing  displays the DEPRC menu .
9: Depreciation 115 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Table 9- 1. DEPRC Menu Labels Menu Label Description  Stores the depreciable cost basis of the asset at acquisition.   Stores the salva ge value of the asset at the end of its useful life. If there is no salvage value, set SALV =0.   Stores the exp ected useful life (in whole years) of the asset.   Stores the appropriate Accelerated Cost Recovery System percentage from the published ACRS tables. Calculates the ACRS deduction based on BASIS and ACRS% . (The values in SAL V , LIFE , FACT% , and YR# do not matter.)      Stores the number of the ye ar for which you want the depreciation (1, 2, etc.).   Stores the declining-balance factor as a percentage of the straight-line rate. This is for the DB method only . For example, for a rate 1¼ times (125%) the straight-line rate, enter 125.   Calculates the declining-balance depreciation for the year.   Calc ulates the sum-of-the-ye a rs‘-digits depreciation for the year.   Calculates the straight-line d epreciation for the year. ]  Displays the remaining depreciable value, RDV , after you have pressed  ,  , or  . The calculator retains the values of the DEP RC variabl es until you clear them by pressing @c while the DEPRC menu is display ed.
116 9: Depreciation File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 To see the value currently st ored in a variable, press R menu label . Doing Depr eciation Calculations DB , SO YD , and SL Methods To calcul ate the depre ciati on for an a sset: * 1. Display the DEPRC menu: pr ess   . 2. Define the c haracter istics o f the ass et: a. K e y in the cost basis and pr e ss  b. K ey in the s alv age v alue and pres s  . If there is no salv age v al ue , enter z er o . c. K ey in the use ful life and pr ess  . 3. Pre ss  f or the r es t of the DE PR C menu . 4. K e y in the number for the y ear of depr eciati o n y ou w ant to calcu l ate (1, 2 , 3, et c.) and pr ess  . 5. If y ou ar e using the declining-balance method , enter the DB f actor (a per centage) and pre ss  . 6. Pre ss  ,  , or  to calc ulate the appr opr iate depr ec iation . 7. T o see the remaining depr eci able value (basis-salv age v alu e - accu mulated deprec iation), pr es s ] . 8. T o calculate the dep rec iation f or another y ear , ju st c hange YR# and pre ss  ,  , o r  again . * The calculated values of RDV , DB , SOY D , an d SL are rounde d internally to th e number of decim al places specified by th e current display setting. A setting of  2 means that these valu es will be rounded intern ally to two decimal places.
9: Depreciation 117 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Example: Declining- Balanc e Depreciation . A metalworking machine, purchased for $10,000, is to be depreciated over 5 years. Its salvage value is estimated at $500. Find the depreciation and remaining depreciable value for each of the first 3 years of the machine’s life using the double-declining-balanc e method ( 200% of the straight-line rate). Fo r comparison, find the straight-line depreciation, as well. Keys: Display: Descript ion:    Displ ays DEPRC men u. 10000   Cost basis. 500   Salvage val ue. 5   Useful life.  1   First year of depreciation. 200   DB percentag e factor.   Depreciation in first year. (Salva g e value i g nored at this point.) ]  Remaining depreciable value after first year ( BASIS - SALV - 4,000). 2    Depreciation in second year. ]  Remaining depreciable value after second year. 3    Depreciation in third year. ]  Remaining depreciable value after third year.   Straight-line depreciation for each year.
118 9: Depreciation File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 ]  Remaining depreciable value after third year using SL. Th e AC R S M e t h o d To calculate the amount of tax dedu ction und er the U.S. Accelerated Cost Recov ery System: 1. Display the DEPRC menu: pr ess   . 2. Enter the cost basis o f the asset and pr es s  3. The Inter nal Re ven ue Service pu blishes tables that lis t the per centage of an as set’s basis that can be deducted eac h year of its pre scr ibed life . L ook up that v alue, ente r it, and pr es s  . 4. Pre ss  to calculate th e value of the deducti on. Example: ACRS Deductions. Use the ACRS method to find the in- come-tax deduct ion for a $25,000 asset o ver 3 years of a 5-year life. Use this hypothetical ACRS table: Year Perce ntage Deductible 1 2 3 4 5 15 25 20 20 20 Keys: Display: Descript ion:    DEPR C menu. 25000   Enters basis. 15   Tabular value, year 1.   Deduction in first year.
9: Depreciation 119 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 25   Tabular value, year 2.   Deduction in second year. 20   Tabular value, year 3.   Deduction in third year. P artial- Y e ar Depreciation When the acquisition date of an asset does not coincide with the start of the tax or fiscal year, then the amounts of depreciation in the first and last years are computed as fractions of a full y ear’s depr eciation. Except in SL, the intermediate years are computed as sums of fractions. This does not apply to the ACRS method. Suppose you acquired an asset in Oc tober and wanted to depreciate it for 3 years. (Your f i scal year begi ns Janu ary 1st.) The depreciation schedule would affect parts of 4 years, as shown in the illustration. The 3 months from October to D ecember equal ¼ year. Nu mber of mo nth s Ca len da r yea rs De pr ec i at i o n yea rs 1 1 2 2 3 3 4 39 3-y ear l ife For SL depreciation, partial-year calc ulations are easy: calculate the SL value, then use ¼ of that value for the first year, the full amount the second and third years, and ¾ of that amount the fourth ye ar. For DB and SOYD depreciation, each ye ar’s depreciation value is different, as shown in the table:
120 9: Depreciation File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Calendar Ye ar Depreci ation Value 1 (Oct.-De c.) 2 3 4 (Jan.-Sept.) ¼ x year 1 (¾ x year 1) (¼ x year 2) (¾ x year 2) (¼ x year 3) ¾ x year 3 Example: Partia l-Year Depr eciation. A movie cam era bought for $12,000 has a useful life of 10 years with a salvage value of $500. Usi ng the sum-of-the-years’-digits method, find the amount of depreciation for the fourth y ear. Assu me the first depreciation year was 11 months long. Keys: Display: Descript ion:    Di splays DEPRC men u. 12000  500  10   3      Stores know n values.   Calculates depreciation for year 3. / 12 = s 1  Stores 1 month’s depreciation from year 3. 4    Calculates depreciation for year 4. * 11 / 12 =  Figures 11 months’ depreciation from year 4. R 1 =  Figures total depreciation for year 4. v v v
10: Running Total and Statistics 121 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 10 Runni ng Tot al and Statistics The SUM menu stores and statistically analy zes sets of numbers. As you enter the numbers, the calculator displays their ru nning total. Once you’ve entered the n umbers into a list , you c an:  Calcu late the mean, medi an, s tandard de vi ation, and r ange .  Display the larges t and smal les t number in the list .  Sort the list fr om smalle st n umber to lar ges t number . With two lists of numbers, you can:  Do cu r ve -f it ting and for ecasting calc ulations us ing two S UM lists and one of f our models—linear , exponential , logar ithmic, and po wer . (Cu r ve f it ting f o r the linear model is called linea r reg ressio n .)  Calculate the w eig hted mean and gr ouped s tandard dev iation .  Find the su mmation statisti cs ( ∑ x , ∑ x 2 , ∑ y, ∑ y 2 , ∑ xy ). You can store many separ ate lists of numbers in SUM. The maximum number depends on the amount of available calculator memory.
122 10: Running Total a n d Statistics File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 The SU M M enu FIN CAL C TOT A L MIN BUS INSR ME AN MAX SU M DEL ET MED N SORT F RCST TIME NAME STD E V SOL V E GE T T O T AL RAN GE M ORE MO RE … CURRX The SUM menu creates lists of number s and performs calculations with a SUM list. Table 10 -1. SUM Menu Labels Menu Label Description  Accesses the CALC menu to calculate the total, mean, median, standard deviation, range, minimu m, maximum, sorting, and lin ear regression (including weighted mean and summation statistics).   Allows you to insert numbers into the list.   Deletes n umbers from the list.   Allows you to name the list.   Allows you to switch from one named list to another or to create a new list .   Displays the total of all the items in the list.
10: Running Total and Statistics 123 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 To see the calculator line when this menu is in the display, press I once. (This does n ot affect number entry.) To see this menu when the calculator line is in the display, press e . Cr eating a SUM L ist To keep a running total of a list of numbers or do statistical calculations with sets of data, first create a SUM list of the values. Entering Numbers and Vie wing the T O T AL To enter numbers into a SUM list: 1. Pre ss  . Y ou ’ll see   if the cu rre n t list is empty , or   2 or more  if the lis t is not empty . This is the bottom of the curre n t l ist. 2. If the list is em pt y , start fillin g it (step 3). If the cur rent list is not empty , you c an do ei th er a or b : a. Clear the lis t by pr essing @c  (see als o page 12 7.) b. Get a new lis t b y pre ssing   (The ol d li st must b e named fir st. Pr ess  or see page 12 6.) 3. K ey in the v alue of the fir st item, I TEM(1) (pre ss & for a ne gat iv e number ) , and pre ss I . * (T o v ie w IT EM ( 1 ) longer , hold do wn I be fo re rel ea s i n g it.) * Remember that yo u can do calculations wit h a number before ent ering it. T his does not interfere with the list. Whenever you press I , the number (or evaluated expression) in the ca lcu lator line is entered into the list. If you need to use the MATH menu, just pre ss @m , do the calculation, then press e ) to return to where you were in SUM.
124 10: Running Total a n d Statistics File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Af ter b riefly showing IT E M( 1 ) , the display sho ws       = numbe r TOTA L is the u pdated, ru nn ing TOTA L of all the n umbers in the lis t (only one nu mber , so f ar). 4. To e n t e r IT E M( 2) , ke y in the value and pr ess I . T he prom pt for ITE M(3 ) and the new , updated total appear . 5. Continu e entering v alue s for ITE M( 3 ) , ITE M (4 ) , etc. T he calculator re cogni z es the end of the lis t when an item is le f t blank (no v alue is enter ed) . 6. Pr ess e to end the list and r estor e the SUM menu . Y ou can no w pr oceed to corr ect the lis t, name the lis t, get an other list , or do statis tical calc ulations. Use these same instructions to enter additional lists. Vie wing and Cor recting the List To display a particular list, use  (see page 127) . The [ and ] keys move up and down the list one number at a time. @[ and @] display the beginning and end of the li st. Changing or Clearing a N umber. To change a number after it’s been entered: display the number, key in the new value, and press I . Use the same method to c lear a number to zero. (Do not press C or < , which clea rs the calcu lator line.) Inserting Nu mbers into a L ist. Insertion occurs before (or above ) the current entry. Pressing  inserts a zero item and renumbers the rest of the list. You can then enter a new value. For example, if ITEM(6) is in the display, pressing  pu ts a new, zero item between the previously n umbered ITEM(5) and ITEM(6) .
10: Running Total and Statistics 125 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Deleting Number s fro m a List . Pressing  deletes the current item. Example: Updat ing a Chec kbook. On May 31, y our checking accoun t balance was $267.82. The transac tions for the first 10 days in June are: Date Transaction Amount Da te Transac tion Amoun t 6/1 Balanc e 267.82 6/3 Check － 128.9 0 6/1 Deposit 837.42 6/7 Check － 65. 35 6/1 Check － 368.2 3 6/10 Deposit 55.67 6/2 Check － 45.36 Update the checkbook by calculating the ru nning balan ce. Keys: Display: Descript ion:  *  @c   Displays empt y SUM l ist. 267.82 I   Enters beginning balance and shows running total. 837.42 I   Enters deposit on 6/1. 368.23 & I 45.36 & I 128.90 & I 65.35 &        Enters remaining transactions. * If you want to preserve the current list, skip the next step (pressing @c ). Instead, name the list and then press   .
126 10: Running Total a n d Statistics File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 I 55.67 I    e  Ends list and displays SUM menu again. Cop ying a Number from a List to the Calc ul ator Line To copy a number from the list into the calculator line, use ] or [ to display the number, then press R I . Naming and Renaming a SUM L ist A new list has no name. You may name it before or aft er filling the list, but you mu st name it in order to store another list. To name a list: 1. Pre ss  fr om the S UM men u . 2. Use the ALP HA menu to type in a name . (The ALP HA and ALPHA-E dit menu s are co ver ed on page s 30 - 3 2.) T o c lear a name , pr ess C . 3. Pre ss I . The name can be up to 22 characters l ong and include any character except: ＋ － x ÷ ( ) < > : = space * But only the first three to five characters (depending on letter widths) of the name are used for a m enu label. Avoid names with the same first characters, since their menu labels will look alike. Viewing the Name of the Current List. Press  , then e . * SUM does accept these exceptional charac ters in list na m es, but the Solver functions SIZES and ITEM do not.
10: Running Total and Statistics 127 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 St arting or GE Tting Another L ist When you press  , the SUM list that appears is the last one used. To start a new list or switch to a different one, the current list mu st be named or cleared. If it is na med, then: 1. Pre ss  . T he GET menu contains a menu la bel for eac h named list plu s  . 2. Pre ss the k ey f or the desir ed list . (  br ings u p a ne w , empty list .) Clearing a SUM L ist and Its Name To clear a list’s numbers and name: 1. Displa y the list y ou w a nt to c lear , then pr ess @c  . This re mov es the n umbers . 2. If the list is named , you ’ll see      Press  to r emo ve the name . Pr es s  to r etain the name w ith an empty list . To remove just one v alue at a time from a list, use  . Doing Statistic al Calculations (CAL C) Once you have entered a list of numbers, you can calculate the following values.  For one variable: the total , mean, medi an, s tandard de v iation , r ange, minimum , and max imum . Y ou can als o sort the numbers in or der of incr easing v alue .  For two v ariables: x -e stimates and y -estimate s (this is also called fo rec a st i n g ) , th e c orrela tio n c oef ficient for d if ferent t ypes of cur ves (this is cur ve -fi t t in g ) , the slope and y -inter cept of the line , and summation s tatistics . Y ou can also f ind the we ighted mean and the gr ouped standar d dev iation .
128 10: Running Total a n d Statistics File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Calculations with On e V ariable The CALC menu calculates the following statistical values using one SUM list. Tabl e 10-2. Th e CALC Menu for SUM Lists Menu K ey Descri ption   Calculates the sum of the numbers in the list.   Calculates the arithmetic mean (average).   Calculates the median.   Calculates the standard deviation. * Calculates the difference between the largest and smallest number.      Finds the smallest (minimum) number in the list.   Finds the largest (maximum) number in the list.  Sorts the list in ascending order.  Displays a series of menus for c alculations with two variables for curv e fitting, estimation, weighted mean and grouped standard deviation, and summation statistics. * The calculator finds the sample stan dard deviation. Th e formula assumes that the list of numbers is a sam pling of a larger, complete set of data. If the list is, in fact, the en tire set of data, the true population standard dev iation can be computed by calc ulatin g the mean of the original list, placing that value into the li st, and then calculatin g the standard devi ation. Example: Mean, M edian, and Stand ard Deviation. Suppose your shop had the following phone bills during the past six months:
10: Running Total and Statistics 129 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Month Phone Expense Month Phone Expense 1. May 2. June 3. July $340 $175 $450 4. August 5.September 6. October $780 $245 $625 Calculate the mean, median, and standard deviation of the monthly phone bills. Then display the smallest value in the list. Keys: Display: Descript ion:  Displays current SUM list and SUM menu keys. @c  or       Clears curren t list or g ets a new one. 340 I   Stores M ay’s phone bill; shows total. 175 I   Stores June; updates total. 450 I 780 I 245 I 625 I      Stores phone bills for July-October and keeps a running total. e   Displa ys CALC men u.   Calculates mean.   Calculates median.    Calculates standard
130 10: Running Total a n d Statistics File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 deviation.   Displays re st of CALC menu.   Finds smallest number. Calculations with T wo V ariables (FRCS T) The FRCST menu does the following two-variable calculations using two SUM lists:  Fi t s x - and y -data to a linear , logarithmic , expone ntial , or po wer cur ve.  Fo recas ts es timated value s b ased on that curv e.  Finds the w eig hted mean and gr ouped s tandard de viati on.  Show s you the summation statis tics ( Σ x , Σ x 2 , Σ y, Σ y 2 , Σ xy, et c.) .
10: Running Total and Statistics 131 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 CAL C TOT A L x-l i st X X 2 Y 2 X Y Y MO DL MIN ME AN y- list W. M N MAX MED N CO R R G. S D SORT F RCST (s elec t x an d y) STD E V M RAN GE B SIZ E MO RE MO RE MO RE MO RE MO RE LIN L OG EXP PWR After pressing  , you must specify two previously created lists—one for the x-variable and one for the y -variable. The two lists must have the same number of items.
132 10: Running Total a n d Statistics File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Table 1 0-3. FRCS T Menu Labels Menu Labe l Descript ion list name for x - variable list name for y-variable These specify the two lists of data to be compared. Also used for estimations:sto re x and estimate y , or vi ce-v ersa.  is the menu label for an u nnamed current list.  * Calculates the correlation coefficient , a number between － 1 and ＋ 1 that measures how clo sely the x ,y data points match the calculated curve.  * Calculates M . For the linear model, this is the slope. Calculates B . For the linear model, this is the y -intercept.  *   Displays a choice of the four curv e-fitting models:  ,  , , a nd .   Calculates the weighted mean of the x -values using the weights in the y -list.   Calculates the standard deviation of a set of x -values grouped by frequencies specified in the y -list. The number of items in either list.      Sum of items in x -list.   Sum of items in y -list.   Sum of squar es of items in x -list.   Sum of squar es of items in y-list.   Sum of produ cts of items in x - and y -li sts. * For the non-l inear models, the calculation uses the transformed data values.
10: Running Total and Statistics 133 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Curve Fitting and F orecasting Curve fitting is a statistical method for finding a relationship between two variables, x and y. Based on this relationship, you can estimate new values o f y based on a given x -value, and vice-versa. Each SUM list holds the numbers (data val ues) for one variable. You c an select one of four curv e-fitting models : * Lin ear C urve Fit Lo g arith m ic Cur ve Fit Expone ntial C urve Fit Po we r Cu r v e F i t y y y y x x x x Mx M * The exponential, logari thmic, an d power models are calculate d using transformations that allow the data to be fitte d by standard li n ear regression. The equations f or these transformations appear in appendix B. The logarithmic m odel requires positive x -values; the exponential model requires positive y -values; and the power curve requi res positive x - and y -values.
134 10: Running Total a n d Statistics File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 To do cur ve fitting a nd for ecasting : 1. Enter the data into t w o S UM lists: one f or the x -v alues and one for the y - val u es. M a ke s ure e ach l i st h a s t h e s am e nu m b er o f i t em s so th a t th e items are in matched pair s. 2. Fro m th e SU M m en u, p r es s    to d ispla y a menu of S UM-list names . T h e cu rrent lis t is labeled  unl ess na m ed otherwis e. 3. Pre ss a men u ke y to selec t a lis t of x -v al ues ( independent v aria ble ). 4. Select a lis t of y -v alues ( dep endent v aria ble ). 5. Now y ou see the FRCS T menu . Whic hev er c urve -f i ttin g model w as u s e d l a s t i s n a m e d i n t h e d i s p l a y . I f y o u w a n t t o s e l e c t a d i f f e r e n t model , pre ss   , and then the menu ke y for the model . 6. T o calculate t he cu r ve-fitting results, pr ess,  ,  and  . 7. T o forecast ( estimate ) a valu e: a. K e y in the know n value and pr es s the menu k ey for that v aria ble. b. Pres s the menu k ey f o r the v ari able w hose v alue you w ant to fo rec a st. Example: Curve F itting. BJ’ s Dahlia Garden advertises on a local radio station. For the past six weeks, the manager has kept records of the number of minutes of advertising that were purchased, and the sales for that week.
10: Running Total and Statistics 135 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Number of Minut es of Radio Advertis ing (x-values, MINUTES ) Dollar Sale s (y-values, SALES ) Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 2 1 3 5 5 4 $1,400 $ 920 $1,100 $2,265 $2,890 $2,200 BJ’s wants to determine whether there is a linear relationship between the amount of radio advertising an d the weekly sales. If a strong relationship exists, BJ’s wants to use the relationship to forecast sales. A graph of the data looks like this: 01 23456 7 x 1, 000 2 , 000 3, 000 y SAL ES i n D o l la r s B of A dv ertising (f ore cas te d) M4 2 5 . 8 8 ＝
136 10: Running Total a n d Statistics File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Keys: Display: Descri ption:   Displays current SUM list and SUM menu keys. @c    Clears curre nt list. 2 I 1 I 3 I 5 I 5 I 4 I        Stores minu tes of advertising ( x -values) in to a SUM list. e   MINUT ES I   Names this list. (See page 30 to use the ALPHA menu.) Now enter and name the second list.    Gets a new, empty list. 1400 I 920 I 1100 I 2265 I 2890 I 2200 I        Stores weekly sales ( y -values) into a second SUM list. e   SALES I  Names y -li st.        Identifies the lists for curve-fitting.
10: Running Total and Statistics 137 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9         *  Selects MI NUTE S as x -list, SALES as y -list, indicates current curv e-fitting model, and displays FRCST menu.   Correlation coefficient for linear model. The correlation coefficient calculated above is acceptable to BJ’s. Using the linear model, estimate what the level of sales would be if the business purchased 7 minutes of advertising time per week. 7    Stores 7 in variable MINUT ES.    Fo recasts the sales resulting from 7 minutes of radio advertising. How many minutes of advertising shou ld BJ’s buy if it wants to attain sales of $3,000 ? 3000       The business should buy about 6 minut es of advertising for sales of $3,000. † * If the model named here is no t the one you want to u se, press   and select the one you want. † This resu lt is not the same as it would be if SALES were the independent ( x ) variable, and MIN UTES were the dependent ( y ) variable.
138 10: Running Total a n d Statistics File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 W eighted Me an and Gr o uped Standar d Deviation D at a i n o n e li st ( x ) can be weighted or gro uped (by frequency) by data in another list ( y ). To find the mean of weighted data and the standard deviation of grouped data: 1. Enter the data valu es—the x -v aria ble —into a S UM list . 2. Enter the corr esponding w eig hts or fr equenc ies—the y -v aria bles— into anothe r list . (T o calc ulate G.S D , the y -v alues should be integers .) 3. Fro m t he SUM m en u, p re s s    to displa y a menu of SUM -l ist na m es. The cu rrent li st i s  unle ss named otherw ise . 4. Pres s the menu k ey f or the list o f x - v al ues . 5. Now s elect the list w ith the w eights (or fr equenc ies) ( y ). 6. T o calculate the w eigh ted mean , pres s   . 7. T o calc ulate the grou ped standar d dev iation , pr ess  . Example: We ighted Mea n. A survey of 266 one-bedroom rental apartments reveals that 54 of them rent for $200 per month, 32 for $205, 88 for $210, and 92 for $216. What is the average monthly rent and its standard deviation ? Create two SUM lists. The first, called RENT, should contain the numbers 200, 205, 210, and 216, in that order. The second c an be unnamed and should contain the numbers 54, 32, 88, and 92, in that order. Keys: Display: Descript ion:   @c  or       Clears current list or g ets a new one. 200 I 205 I 210 I    Stores rents into a list.
10: Running Total and Statistics 139 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 216 I   e  RENT I   Names this list RENT. (See page 30 to use the ALPHA menu.)    Gets a new, empty list. 54 I 32 I 88 I 92 I      Stores frequencies into second list. e        Displays names of all SUM lists.       Specifies RENT as the x -list.   Specifies the current, unnamed list as the y -list and then displays the FRCST menu. (Ignore model type.)    Averag e monthly rent.   Standard deviation of the rents. Summation Statistics The summation values are of interest if you want t o perform other statistical calculations besides those prov ided by the calculator. To find Σ x , Σ x 2 , Σ y, Σ y 2 , Σ ( xy ), and n , the number of elements in either list: 1. Display the FR CS T menu and select the x - and y -lis ts as e xplained in steps 1-4 of the instructions on page 13 4. T o find the summation
140 10: Running Total a n d Statistics File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 sta ti stic s fo r just o ne li st of dat a, sp ecif y th e sa me li st fo r bo t h x and y . 2. T o see n , pre ss   . 3. Pr ess  again t o displa y the summation menu , a nd pre ss the menu la bel for the v alue y o u w ant. Doing Other Calc ulations w it h SUM Data If you would like to do other statistical calculations with S UM data besides those in the CALC menu, you can do so by writing your own Solver equation. There are Solver fu nctions that can access data stored in SUM lists, and there is a summation function that can combine all or part of the values stored in specific lists. Refer to “Accessing CF LO and SUM Lists from the Solver” in c hapter 12.
11: Time, Appointments, and Date Arith metic 141 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 11 Time, Appointments, and Date Arithmetic The calculator contains a clock and calendar in the TIM E menu. You can select a 12-hour or 24-hour clock, and a month-day-year or day- month-year calendar. You can:  Recor d appointme nts that set alar ms w ith optional me ssages .  Determine the day of the week f or a par tic ular date .  Calc ulate the number o f day s between tw o dates u sing the 36 0 -day , the 3 6 5-day , or the actual c alendar . Vi ewi ng t h e Ti m e and D a t e To view the time and date, press  in the MAIN menu. If you overwrite the time and date, you can resto re them to the display by pressing C .
142 11: Time, Appointments, and Date Arithmetic File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 T he T I ME M enu FIN BUS CAL C A PT 1 SU M APPT A PT 2 TIME A DJST SOL V E SE T A PT 10 CURRX Table 11 -1. The TIME Menu Labels Menu Labe l Descript ion   Displays the CALC menu , for calculating the day of the week and other date arithmetic.   Displays the APPT menu for setting and viewing appointments.   Displays the ADJST menu for adjusting the clock setting.   Displays the SET menu for setting the time and date, and for selecting the time and date formats.
11: Time, Appointments, and Date Arith metic 143 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Setting th e Ti me and Da te ( SET) Table 11 -2. The SET Menu Labels Menu Labe l Descript ion  Sets the date to the displayed number ( M M.DDYYYY or DD.MMYY YY ).  S ets the time to the displaye d number ( HH.MMSS ) .  S witches between AM and PM (12-hour clock) .  S witches betw een month/day/year and day.month.year formats.  S witches betw een 12-hour and 24-hour clock formats.  Displays the formats for entering the cloc k’s date and time. To set the time: 1. Pre ss   to dis play the SE T menu . 2. K ey in the corr ect time in t he curr ent f ormat (  or  indicate s the 12 -hour c lock). For e xam ple , for 9 :08:3 0 p.m . enter 9 . 08 30 in a 12 -hou r cloc k or 21. 08 30 in a 2 4 -hour c lock . 3. Pre ss  to s et the new time. 4. For 12 -h our format: pre ss  to s w itc h bet w een AM and P M. T o s et th e date: 1. K ey in the c orr ect date in the c urre nt for mat. For e x ample , for A pril 3, 200 3 enter 4. 03 200 3 in month/day/y ear format or 3 .0 4 2003 in da y .month.y ear fo rmat. 2. Pr ess  .
144 11: Time, Appointments, and Date Arithmetic File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Example: Setting the Date and Time. Set the date and time to April 5, 2003, 4:07 p.m. Keys: Display: Descript ion:   Displ ays SET menu. 4.052003     time  Sets date. 4.07       xx  Sets time. Press  if necessary. Changing the Time and Date F ormats (SE T) Use the SET menu to change the time and date formats. To switch between the 12- and 24-ho ur clocks, press  . To switch between the month/day/year and day.month.year calendars, press  . Adjusting the Clock Setting (AD JST) The ADJST menu adj usts the time setting forward or backward in increments of hours, minutes, or sec onds. 1. Pre ss   . 2. Pres s the appr opriate men u k ey(s) until the cor re ct time is displa y ed. F or ex ample , if the curr ent time se tting is 1 1:20: xx AM (i gnoring seconds), pr es sing  tw ice change s the time to 1:20 P M. Then , pre ssing  thr ee times c hanges the time to 1:17 P M.
11: Time, Appointments, and Date Arith metic 145 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Appointments ( AP PT) You can record up to ten appointments, each with an alarm. An appointment can contain a message. You can also create repeating appointments —appointments that recur at regular intervals. APT1 DAT E A PP T APT2 TIM E A/ PM MS G R PT MOR E AP T9 A PT 1 0 HEL P fo r e ac h ap poi ntmen t Vie wing or Setting an A ppointment ( APT1-APT10 ) Table 11 -3. Menu Labe ls for Sett ing Appoin tments Menu Labe l Descript ion  Sets the appointment date.  Sets the appointment time, and automatically enters the current date (if the existing appointment date was in the past).  Sets AM or PM for 12- hour clock.  Displays the ALPHA menu and any existing message.  Displays the existing repeat interval and the menu for changing the repeat interval.   Displays the format for entering the date and time. Before setting an appointment, you mu st set the current date and time. (refer to “Setting the Time and Date (SET)” on page 143.)
146 11: Time, Appointments, and Date Arithmetic File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 To set a n appoint ment or v iew its curr ent setting: 1. Pre ss  , then  . T he displa y tells y o u w hich appointments (number ed 1-10) are set and w hic h are pas t due (ex pir ed w ith unac know ledged alarms). Pr es sing  displa y s the status and menu labels for appo intments 6 thr ough 10. 2. Pres s a menu k e y—  thr ough  . The dis play show s the cu rrent appointme nt, if a ny , and the menu labels f or setting appointments . 3. Optional: pr ess @c to r emov e an y old inf ormatio n. 4. Se tti ng the app ointm ent tim e: Us e 12 -hou r or 2 4 -hour time , as appr opri ate. K e y in the time as a n umber in the for m HH.MM. Fo r e xample , 2:2 5 p .m. w ould be 2 .2 5 (12 -hour f ormat) or 14.25 (2 4 -h our forma t) . Press  . The date is a utomaticall y set to the cu rrent date if the e xis ting date is in the past or w as c leared . F or 12 -hour f ormat: pre ss  to s w itc h between A M and P M. 5. Set ting the appo intment d ate: K e y in the date in the cur rent date for m at . F or e xample , enter October 4, 200 3 as 10. 04 2003 (month/day/y ear format) or 4.10 2003 (da y .m onth.y ear format). Pre ss  . If the appo intment is w ithin a y ear fr om today , you can omit the y ear . Message Repeat interval Menu f o r setting appointments Appo intment number
11: Time, Appointments, and Date Arith metic 147 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 6. The appointme nt message (optional) : T o se t, ch ang e , or j u st v ie w a mess ag e , pres s  . T ype th e message (refer to pa ge 30 for usin g the ALPH A menu) . Mess ages ar e limited to a max imum of 2 2 char acters . Pre ss I whe n d o n e. ( P res s e to ne ga te any change s and retain the or iginal me ssage.) 7. The repeat inter val (optio nal) : T o set , vi ew , or c hange a repeat interval , pr ess  . K ey in an integer and pre ss the appr opr iate k e y . F or ex ample , 2  cau ses the appo intment to go off at the same time e very other da y; 9 0  sets the r epeat interval to 1½ hours .  sets the a ppointment to n o n - r epeating . Y ou can spec ify repeat interv als up to 104 w eeks in length (7 2 8 day s, 17 ,4 7 2 hours , etc . ) 8. When done , pr ess e to r eturn to the AP PT men u . The a ppointment you just set wil l b e rec o rded, such a s   Yo u c a n c h e c k a n appointment b y pr essing its men u ke y (suc h as  ). C restores an appointment’s time and date to the display if it has been overwritten by other operations. Acknowledging an Appointm ent To acknowledge the appointment and clear the message, press any key (except @ ) during the beeping. Appointments not acknowledged within 20 seconds become past due. When an appointment “comes du e,” the alarm starts beeping and the alarm annunciator ( ) is displayed, even if the calculator was off. *† The message (or, if none, the time and date) is displaye d. * If the calculator is in the middle of a complex calculati on when an appointment c omes due, the alarm ann unciator comes on and the calculator beeps once. When the calculatio n is done, the alarm goes off . † The beeping can be suppr essed or restricted to appointments. See “Beeper On and O ff,” page 36.
148 11: Time, Appointments, and Date Arithmetic File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Unacknowledged Appointments An appointment not acknow ledged du ring its alarm becomes past due. The alarm annunciator remains on. T o ackn ow l edge a past- due appo intment : 1. Pre ss   . 2. Pres s the menu k ey f o r the past-due appointment . 3. Pre ss e to r eturn to the AP PT menu . T he ackno wledged appointment is no longer list ed as past due . A repeating appointment is deactivated while it is past due and will not go off subsequently until the past-due appointment has been acknowledged. Cl earing Appointments To cancel an appointment or to get rid of a repeating appointment, y ou need to clear the appointment. Clearing changes the date and time to 00/00/00, 12: 00 AM, and remo ves the message and the repeat interval. To clear an appointment, press the menu label for that appointment and press @c To clear all ten appointments, display the APPT menu (the menu with  ,  etc.) and press @c  . Example: Clearing and Se tting an Appointment. T oday is Sunday, April 20, 2003. You want to se t appointment #4 to go off every Tuesday at 2:15 p.m. to remind you of a staff meeting. Assume 12-hour time format and month/day/year date format. Keys: Display: Descript ion:    Displays setting for
11: Time, Appointments, and Date Arith metic 149 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9  appointment #4. @c    Clears appt. #4. 2.15      Stores appt. time and supplies current date.      Sets appt. time to PM. 4.22      Stores appt. date.  STAFF I      Enters message: “staff”.   Displays RPT me n u. 1        Sets repeat interval. e  Returns to APPT menu Appt. 4 is “set.” Date Arithmetic (CAL C) The CALC menu performs date arithmetic:  Determines the da y of the week f or any date .  Determines the nu mber of day s between dates using on e of thr ee calendars—actu al, 3 6 5-day , or 3 60 -da y .  Adds or subtr acts da ys fr om a date to dete rmine a new date. The calendar for date arithmetic runs from Octo ber 15, 1582 to December 31, 99 99. To display the CALC menu, press  , th en  .
150 11: Time, Appointments, and Date Arithmetic File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Table 1 1-4. CA LC Menu Labels for D ate A rithmetic Menu Label Description   Stores or calculates a date. Also displays the day of the week. If you omit the year, the calc ulator uses the current year.  Stores or calculates the number o f actual days between DAT E1 and DATE2 , recognizing leap years.   Calculates the number of days between DATE1 and DATE2 usin g the 360-day calendar (30-da y months).  Calculates the number of day s betwe en DATE1 and DATE2 , using the 365-day calendar, ignoring leap years.  A shortcut: recalls the cu rrent date, which can then be stored in DATE1 or DATE2 . The calculator retains the values for the TIME CALC v ariables DATE1 , DATE2 , DAYS until you clear them by pressing @c while the CALC menu is displayed. To see what value is currentl y stored in a variable, press R menu label . Determining the Da y of the W eek for An y Date To find the day of the week for any date, key in the date and press  or  . Calculating the Numb er of D a ys betwee n Dates To calculate the number of days between two dates: 1. K ey in the firs t date (for today ’s date , us e  ) and pre ss  .
11: Time, Appointments, and Date Arith metic 151 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 2. K ey in the s econd date and pr ess  . 3. Pre ss  ,  , or  to calc ulate the number of da ys us ing that calendar . Example: Calculatin g the Number of D ays between Two Dates. Find the number of days between April 20, 2003 and August 2, 2040, using both the actual calendar and the 365-day c alendar. Assume the date format is month/day/y ear. Keys: Display: Descri ption:    Displays CALC menu. 4.202003      Stores Apr. 20, 2003 as first date and displays its day of the week. 8.022040      Stores Aug. 2, 2040 as second date.     Calculates actual number of intervening days.    Calculates number of intervening days by a 365-day ca lendar. Calcul ating P ast or Futu re Dates To calculate a date a specified nu mber of days from another date: 1. K ey in the know n date (fo r today ’s date, u se  ) and pr ess  . 2. K e y in the number o f day s. T his number shou ld be negativ e if the unkno w n date precede s the know n date. P re ss  .
152 11: Time, Appointments, and Date Arithmetic File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 3. Pre ss  . This calculation always u se s the actual calendar. Example: Determining a Future Date. On February 9, 2003, you purchase a 120-day option on a piec e of land. Determine the expiration date. Assume the date format is month/day/year. Keys: Display: Descript ion:    Displays CALC me n u. 2.092003      Stores Feb. 9, 2003. 120    Stores number of days into the future.     Calculates expiration date ( DATE2 ).
12: The Equation Solver 153 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 12 The Equation Solver The Equation Solver (the SOLVE menu ) stores equations that you enter and creates menus for them. You can then use those menus to do calculations. Enter Solver e quations in algebraic form regardless of the calculation mode (AL G or RPN ). The Solver can store ma ny equations—the n umber and length of equations is limited only by the amount of memory available. The equations are stored in a list . FIN BUS CAL C SU M EDIT TIM E DEL E TE SO L V E NEW CURR X Solv er Ex ampl e: Sales For ecasts Suppose part of your job inclu des making sales forecas ts, and that these forecasts are revised based on new information. For instance,  A change in the pr ice of the pr oduct will aff ect sale s by a f orecas ted per centage, A %.  A change in s ales-for ce training w ill aff ect sale s by a f orec asted per centage, B %.  A competitor ’s ne w pr oduct w ill affec t sales b y a fo recasted per centage, C %.
154 12: The Equation Solver File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 R e g a r d l e s s o f h o w y o u d o t h i s c a l c u l ation (even if you do it longhand), you are using an equation: Next Fore cast = Old Forec ast Change in Old Forecas t = Old Forecast (Pro jected Percentage Changes xOld Forecast) or: NEXT = OLD (( A % B % C %) ÷ 100 x OLD ) Using the SOLVE and ALPHAbetic menus, y ou can type in this equ ation as       and then automatically create this menu—which c ontains all the variables’ labels—by pressing I  : * Each menu label represents a variable . You can use them to store and calculate values the same way yo u use other menus and their built-in variables. Entering a Solver Equatio n. To type this equation, you must use the ALPHA menu. If you are not familiar with the ALPHAbetic menu, refer to “ Typing Words and Characters ” on page 30. Keys: Display: Description:       Displays SOLV E menu, then ALPHA menu. NEXT = OLD  The equ ation is too long * Because the Solver u ses arithmetic priority (  ,  before  ,  ), a second set of parentheses (before A % and after the sec ond OLD ) is not nece ssary. See “Order of Calculati ons,” page 165.
12: The Equation Solver 155 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 ( A % B % C % )/ 100 * OLD      for the display. I   Enters equation into list.         Controls view of full equation. e   Displays SOLV E menu. Calculating wit h the Solver. Suppose last month’s forec ast for a product was 2,000 units. In the mean time, three market changes have occurred that affect this forecast. A) The price of the product has dropped, causing an expected 20% increase in sa les. B) A major sales-force training program started, causing an ex p ected 5% increase in sales. C) A competitor is introducing a new produ ct, causing an expected 15% drop in sales. Calculate the new forecast for next month. Menu Labe l: Display: De scription:    Verifies that equation is valid; creates Solver menu with menu labels for this equation. 2000   Stores old forecas t. 20    Stores e ffect of price drop on sales. 5    Stores effect of sales-force training on sales.
156 12: The Equation Solver File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 15 &    Stores e ffect of competitor’s new product on sales.   Calculat es new f orecast f or ne xt month . Suppose yo ur boss wants n ext month’s forecast to be 2, 300 units. You can’t affect A % or C %, but y ou can affect B % through the sales training program. Determine what B% must be for NEX T to equal 2, 300 units. All you need to do is re-enter the o ne value you are changing: Keys: Display: Description: 2300      The training program would need to re sult in a 10% increase in sales to effect a new forecast of 2,300. Th e SOL VE M e n u If the Solver list is empty, you wi ll see an instruction for entering an equation when you press  : If the Solver list is no t empty, you will see the c urrent equation—the last one entered or selected. Pressing [ , ] , @[ , and @] moves you through the list.
12: The Equation Solver 157 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Table 12 -1. The SOLVE Me nu Labels Menu Label Description  Verifies the current equation and creates menu labels for it. This is necessary be fore doing any calculations.  Accesses the ALPHA-E dit menu (page 31) so yo u can alter the current equation. The arrow keys move long equations across the display.  Deletes the current equation or just its variables (that is, the space allotted in memory for the v ariables).  Allows you to enter a new equation. While you’re working wit h a specific equ ation in the Solver, the equation’s own menu appears in the display. To retri eve the primary SOLVE menu, press e . Entering Equations To make an entr y into the Solver list: 1. Pre ss   . (T o in sert the new entry at the bottom of the lis t, pre ss @] .) 2. Use the ALP H A menu to ty pe in char acters (see page 3 0) , and us e the r egular k ey board to ty pe in digits and arithmeti c operat ors ( , =, y x , etc.). If y ou make a mis take , us e < to backspace or C to start o v er . Or pre ss e to br ing up the ALP HA -E dit menu . 3. Pre ss I to st ore the eq uation . 4. Pre ss  to v er if y that the equ ation is v alid, and to c reate its menu labels. Y ou now can pr oceed with y our cal culation s. When you press  the calculator displays:    
158 12: The Equation Solver File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 while the Solver checks that the eq uation is mathematically v alid. (However, the Sol ver has n o way of checking wh ether the eq uation is the right one for your prob lem.) If the equation cannot be solved, the calculator briefly displays :      and the cursor will blink at the first character that the Solver could not interpret. (It is possible that your mis take is somewhere else, but this is a good place to start looking, since this is where the Solver got stuck.) The ALPHA-Edit menu appears so you can make changes. Check to be sure you ’ve made no typing m istakes, and that you’v e followed the rules for writing equations given on page 16 6 under “What Can Appear in an Equ ation.” An entry that is not an eq uation will be stored when you press I , but it cannot be verified when you press  . Calculating Using Sol ver Menus (CAL C) If pressing  creates a Solver menu for your equation, then the equation is g ood (that is , ma thematically valid). If the equation contains more than si x variables, the Solver uses the label  to switch betwe en sets of menu labels. Calculator line Solver men u T o t e s t w h e t h e r y o u r e q u a t i o n i s i n f a c t c o r r e c t , t e s t i t o u t b y e n t e r i n g some values for which y ou already know the result, and see if the Solver’s result is correct. To do a cal culation usi ng a Solver menu:
12: The Equation Solver 159 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 1. Stor e values in all but one of the v ari ables (f or ex ample , 2000  , et c. ) . Rem e m be r t ha t you c an veri f y sto red va lu e s by p ress in g R menu la bel . 2. T o start the calc ulation, pr ess the men u ke y for the v a r iable you w ant to calc ulate . In most cases, this is all yo u need to know abo ut how t he Solver works. However, certain types of equations are more difficu lt to solve. If, during the calculation, t he display temporarily sho ws two lines of changing numbers, such as         then the Solver is searching for a result for the variable A . Read the section, “How the So lver Works,” starting on page 179 . Example: Return o n Equity . T h e R e tu rn o n E q u i ty o f a b u s i ne s s c a n be defined as: RO E ＝ −− Oper at i n g inc om e Int ere st Ta xes Common equi t y Find the ROE of a small firm with $2,000 in assets. T he assets earned 10% while its debt cost it 8%. The assets were financed using $500 of common equity and $1,500 of debt. The firm paid no taxes. Operating income ＝ assets × percentage earnings on assets ＝   Interest ＝ debt × percentage interest paid on debt ＝   Common equity ＝ amount of common equity used for financing ＝  The Solver equation wo uld be:  
160 12: The Equation Solver File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Keys: Display: Descript ion: @A  Restores MAIN men u.      Displays A LPHA menu. ROE = ( ASSET * % ERN - DEBT * % INT - TAX ) / EQTY         Entering the equation. I   Stores the equation.   Verifies the equation and displays the menu labels for ROE , ASSET, %ERN, DEBT , %INT , and (press  ) TAX and EQTY . 2000    10   1500   8    0   500          Stores the values for the assets, the percentage earnings on asse ts, the amount of debt, the percentage interest paid on the debt, the taxes paid, and the common equity.        The return on equity is 16%.
12: The Equation Solver 161 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Editing an Equation (EDI T) If you have an     , the cursor stops over the first character that the Solver cou ld not logically interpret. You can alter the current equa tion using the ALPHA-Edit menu: 1. Pre ss  to ac ces s the ALPHA-E dit menu . (See “E diting ALPHA betic T ext , ” page 31.) Y o u can use < (backs pace) and C (clear ) , as w ell . 2. To insert letters, pr ess  and the appr opr iate letters. Pr ess e to br ing back the editing me nu . 3. Pre ss I to r eplace th e pre vi ous v ersi on with the edited v ersi on. Editing an equation clears its variables. To abort an editing operation withou t saving an y of the changes, press e . Nam ing an E quat io n Naming equations helps yo u identify them later. The name precedes the equation, separated by a colon. If you don’t name an equation initially, you can name it later using  . Type the name just as you type the rest of the equation. The calculator knows that whatever comes before th e colon is not part of the equation. The name is for your visu al aid only; the calculator can not recognize it. Names can be any length and contain any character ex cept ＋ － x ÷ ( ) ＜ ＞ ^ ： ＝ space
162 12: The Equation Solver File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 F i nding an Equation in the Solv er List To display an entry in the Solver list, display the SOLVE menu and move through the list using the [ and ] keys. @[ moves to    and @] moves to    . Shar ed V ariables If two or more equations contain the same v ariable, that variable is shared among those equatio ns. For example, suppose your Solver list of equations includes these two equations labeled RUG, which figures the cost of a carpet, and TOT AL, which figures the total cost of buying a carpet and installing it:         COST is a shared v ariable. You can calculate a valu e for COST using the RUG equation, then switch to the TOTAL equation and calculate CHARGE after entering HOURS . Since the value for COST is shared, you do not need to store it again. No sharing occurs between variables outside the Solver and those within the Solver. For example, this COST variable in the Solver is not shared with the COST v ariable in the MU%C and MU%P menus in BUS . To transfer values between built-in variables and Solver variables, store them into storage registers. Recall them after switching menus. Remember that the value in the calc ulator line stays there when you switch menus. Cl e ari ng V ariab le s You can clear the variables in a Solver equation just as you clear variables in other menus: p ress @c while the menu with those variables is displayed.
12: The Equation Solver 163 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Make sure that the menu for the variables is in the display. (The equation itself should not be in the display. If it is, press  .) Pressing @c now sets NEXT ; OLD , A% , B% , and C% to zero. Variables are also cleared when their equation is edited. If the SOLVE menu is displayed (rather than the S O LVE CALC menu), then pressing @c will prompt    . Press  , otherwise yo u will lose the variables in all the equations . (See “Deleting All Equations or Variables in the Solver,” page 164.) Deleting V ar i ables and Equations Each equation in the Solver list uses calculator memory to store 1) itself, and 2) its variables. * Deleting a variable is quite different from clea ring it:  Clearin g a v aria ble sets it to z er o ; the v ari able r etains its s tor age location in memory . This do es not sa ve memory s pace.  Deleti ng a v aria ble erase s its valu e and its stor age location . This is a w ay to sa ve memory s pace. If a v ari able is shared , its valu e is lost to all equati ons that share it . The memory space for a deleted v ar iable is re-cr eated the next time y ou use that eq uation. * An equation that ha s not been verified (  pressed) does not have any variables allocated to it. Therefore, it has no variables to be cl eared or deleted. Not e
164 12: The Equation Solver File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Deleting On e Equation or Its V ar iables (DE LE T) To delete an equation or its v ariables: 1. Display the equation . 2. Pr ess  in the S OL VE menu . 3. T o delete the equati on, r espond  to both qu estions:         (If the entry has no var iables allocated , then only the s econd questi on appears .) 4. T o d el ete just th e variab l es, resp on d  to     . T his pre ser v es the equati on. Deleting Al l Equations o r All V ariables in th e Solver ( @c ) To delete all the equations i n the Solver, or just all the variables in all the equations: 1. Display the S O L VE menu . It do esn ’t matter whic h equation is displa yed . 2. Pr ess @c . T o delete all equati ons, re spond  to both quest io ns:          3. T o de le te just th e variab l es, respo n d  to     . This pr eserv es all equations . W riting Equations An equation in a book looks different from an equ ation in the Solver. A numerator and denominator might be separated by a bar, su ch as
12: The Equation Solver 165 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 −× abc de f Since a Solver equation appears all on one line, you must gro up the numerator and denominator separately by using parentheses , such as   Order of Cal culations. Op erations occur from left to r ight but do:  Exponent iation first. F o r e xam ple,  is interp reted as A × B 3 = C . B is rais ed to the 3rd po w er and then multipli ed by A . T o rai s e A × B to the 3rd p ow er , w rite the equati on as  .  M ultiplic ation and divisio n before addition and su btraction. Fo r e xample ,  is interpr eted as A ( B / C ) = 12 . T o div ide the sum of A B by C , enter the equ ation as   . Parentheses. Par entheses o verride the above rules of priority. When in doubt, use p arenth eses. It never hurts to use parenthes es ─ even multiple parentheses. (Do not use brackets or braces.) For example, earlier (page 154) we used the equation Next F orecast ＝ Old F or ecas t () ×    %% % O l d F o r e c a s t 100 ABC , which was entered into the calculator as    . × A BC w ould be ente red as  × × BC A DE could be enter ed as 
166 12: The Equation Solver File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 × × (5 ) BC A DE c o uld be enter ed as  What Can Appear in an Equation Long Equations. There is no limit on the length of an equation (or the number of variables it has) if there is enough memory to store it. An equation longer than one display line (22 characters) moves to the left and adds an ellipsis (...). To view a long equation, move the cursor using the arr ow keys on the ALPHA-Edit menu. For example:      looks like   when it is stored. Press    to view successive portions of the equation:   Spaces. You can use as many spaces as you like between v ariables, operators, and numbers. Names of Varia bles. A variable’s name can be up to 10 characters long, but cannot contain the characters ＋ － x ÷ ^ ( ) ＜ ＞ ＝ ： space The first three to five characters (depending on their wi dths) become the variable’s menu label. Therefore, make sure no two variables in the same equation have the same first three to five characters. Do no t use AND, NOT, OR, XOR , or PI as va ria ble na mes b ecau se th ey will be interpreted as functions. Numbers ( Constant s). Do not put commas or other characters in numbers. For instance, type  for ten thousand ( no t  ).
12: The Equation Solver 167 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Parentheses. Do not use brackets or braces. Parentheses det ermine order, but do not imply multiplication. For example, the equation P sn ＝ P s (1 － F ) would be typed into the Solver as   . The × sign must be inserted between  and the parenthesis. Functions and Co nditional Expressions. An equation can contain any of the functions and c onditional expressions given in the table on pages 168-171. Some o f these func tions also have typing aids . Math Operators (“Typing Aids”). All of the math operators are located either on the keyboard ( / , @t , etc.) or in the MATH menu (  ,  , etc.). Any of these operators except % can b e included in an equation. (In the Solver,  is just a character.) You can call u p the MATH menu from the Solver. Many of these operators look different in an equation: pressing @v produces   , for exa m ple. You then supply a number or variable followed by a closing parenthesis. The list of Solv er functions on pages 168-171 shows the spelling o f each fu nction. Note that you supply the number after supplying the function. You can also type these fu nctions le tter by letter using the ALPHA menu. However, it is faster to s elect math operators directly on the keyb oard or in the MATH menu. This is called a typing aid . For instance, these two methods of placing 25! (fa ctorial) into an equation are equivalent. Sta rting after   : 1. Using the ALPHA M enu Keys: Display: Descript ion:         
168 12: The Equation Solver File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9         ( 25 )=      This calculates 25! (factorial). 2. Using a T yping Aid Keys: Display: Descript ion: @m  MATH menu labels appear.    The ALPHA menu automatically returns after one MATH selection. 25 )=      This also calcu lates 25! , and with fewer keystrokes. Solv er Functions Here is a complete list of functions that you can include in Solver equations. The items inside parenthes es must be replaced by specific numbers, variables, or algebraic expressions. In addition, you can use the arithmetic operators ( ＋ , － , x, ÷ , y x ), bu t not % . (In the Solver,  is just a character, not an operator.)
12: The Equation Solver 169 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Tabl e 12-2. Solv er Functions for Equations Function Description ABS( x ) Absolute value of x . ALOG( x ) Common (base 10) antilogarithm; 10 x . CDATE Cu rrent date. CTIME Cu rrent time. DATE( d1:n ) The date n days after (when n is positive) or before (when n is negative) date d1. The format for d1 is set in the TIME/SET menu. DDAYS( d1:d2 :cal ) Number of days between dates d1 and d2 . Formats for d1 and d2 are set in the TIME menu; cal designates the calendar:  cal ＝ 1 for the actual calendar, which recognizes leap years.  cal ＝ 2 for the 365-day calendar, which ignores leap years.  cal ＝ 3 for the 360-day calendar, which uses 12, 30-day months. EXP( x ) Natural antilogarithm; e x . EXPM1( x ) e x － 1. FACT(x) x !; factorial of a positive int eger. FLOW(CFLO-listname:flow#) Valu e of the specified cash f low. FP( x ) Fractional part of x . G( x ) Returns (Get) the value of the variable. The variable will not appear in the SOLVE menu if it is only us ed in L and G functions. See L function on page 170.
170 12: The Equation Solver File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Table 12- 2. Solver Functions for Equa tions (Continued) Function Description HMS( time ) Converts time in decimal hou rs to HH.MM SS format. HRS( time ) Converts time in HH.MMSS format to decimal hours. IDIV( x :y ) Integer part of the quotient of x/y. IF( cond : expr 1 : expr 2 ) Conditional expression: if c o nd is true, us e expr 1 ; if cond is false, use expr 2 . See page 174. INT( x ) Greatest integer less than or equal to x . INV( x ) Invers e of x; 1/x. IP( x ) Integer part of x. ITEM( SUM-listname:it em# ) Value of the specified SUM- list item. L(x: expr ) Store the value of expr in the variable x. The variable will not appear in the SOLVE menu if it is only us ed in L and G functions. This is useful if y o u have a complex expression that uses the sam e sub expression multiples times for example: (1 i) ^N x PV ((1– (1 i)^ N)/ (1–(1 i))) x PMT FV It can be written:      . LN( x ) Natural (base e) log of x. LNP1( x ) In (1 x) LOG( x ) Common (base 10) log of x. MAX( x :y ) Compares x and y, and returns the larger of the two. MIN( x :y ) Compares x and y, and returns the smaller of the two. MOD( x : y ) Remaind er of the d ivision x/y. MO D(x, y) = x － y x INT(x/y) PI π ; 3.14159265 359 (12 digits). RND( x :y ) Rounds x to y dec imal places if 0 ≤ y ≤ 11, or rounds x to y significant digits if － 12 ≤ y ≤ － 1. y must be an integer. S( variable name ) Used in an IF function t o test if solving for the variable named. Used to combine related equations into one Solver menu. See page 178. SGN( x ) Sign of x ( ＋ 1 if x >0, 0 if x ＝ 0,－1 if x <0.
12: The Equation Solver 171 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Table 12- 2. Solver Functions for Equa tions (Continued) Function Description Σ ( cfr: c 1 : c 2 : s: expr ) Summation of the algebraic expression expr for values of the counter ctr , stepping from c 1 to c 2 at increments of s . See page 176. SIZEC ( CFLO-listname ) The number of the last flow in specified CFLO list. SIZES( SU M-listna me ) The number of items in specified SUM list. SPFV ( i%:n ) Future value of a single $1.00 payment; equivalent to (1 i% ÷ 100) n . n is the number of compounding periods. i% is the interest rate per compounding period, expressed as a percentage. SPPV( i%:n ) Present value of a single $1.00 payment; equivalent to 1 ÷ SPFV(i%:n). n is the number of compoun ding periods. i% is the interest rate per compounding period, expressed as a percentage. SQ( x ) Square of x ; x 2 . SQRT( x ) Squa re root of x ; X . #T( CFLO-listname:flow# ) The number of times that specified cash flow occurs. TRN( x : y ) Truncates x to y decimal places if 0 ≤ y ≤ 11, or truncates x to y significant digits if － 12 ≤ y ≤ － 1. y must be an integer. USFV( i% : n ) Future value of a uniform series of $1.00 payments; equivalent to (SPFV( i %:n ) － 1) ÷ (i % ÷ 100). n is number of payments. i % is periodic interest rate, expressed as a percentage. USPV( i% : n ) Present value of a uniform series of $1.00 payments; equivalent to USFV( i %:n ) ÷ SP FV(i %: n ). n is nu mber of payments. i % is periodic interest rate, expressed as a percentage.
172 12: The Equation Solver File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Example Using a Solver Fu nction (USPV): Cal culati ons for a L oan with an Odd First Perio d. Suppose an auto purchase is financed with a $6,000 loan at 13.5% ann ual interest. There are 36 m onthly payments starting in one month and fiv e days. What is the payment amount ? Use the following formula when the t ime until the fi rst payment is more than one month but less than two months. Interest for this odd (non-integer) period is calculated by mu ltiplying the monthly interest by the number of days and dividing by 30. The formula for this loan is: −   −      × =       1 1 1200 1 0 1200 30 1200 N ANNI ANNI DAYS PV PM T ANNI where: ANNI ＝ the annual percentage interest rate. N ＝ the number of payment periods. DAYS ＝ the number of leftover, odd days (an integer from 0 through 30). PV ＝ the amount of the loan . PMT ＝ the monthly pay ment. The formula can be rearranged and simplified u sing USPV, the Solver function for returning the pr esent val u e of a uniform series of payments:      The keystrokes are: PV *( 1 ANNI / 1200 * DAYS / 30 ) PMT * USPV ( ANNI / 12:N )= 0
12: The Equation Solver 173 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Keys: Display: Descri ption:  @]    Displays SOLVE menu and bottom of Solver list.     Displays A LPHA menu. (type in equation as shown above)     Remember that the colon is located after.  (Press    ) I   Enters equation, verifies it, and creates menu. 6000   Stores loan amount in PV . 13.5    Stores annual percent interest in ANNI . 5   Stores number of odd days in DAYS . 36   Stores number of payments in N .   Calculates monthly PMT of $203.99.
174 12: The Equation Solver File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Conditional Expressions w ith IF Equations can include conditional expressions using the function IF. The syntax of the IF function is: IF  condit ional ex press ion  algebraic ex pression  a lge brai c expr essio n  For example, the solver accepts the equation:         According to this equation, if SALES is greater than 3000, then the BONUS equals .02 × SALES ; otherwise (“or else”), BONUS equals .01 × SALES . Logical Operators. Fou r lo gical operators can be used in conditional expressions: AND, OR , XOR, and NOT. Relational O perators. Six relational operators are available for conditional expressions. Operato r K eys ＞ ＜ ＝ ≥ ≤ ≠  (ALPHA menu)  (ALPHA menu) =  =  =   then or else
12: The Equation Solver 175 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Examples of Cond itional E quations.   =         Means: If A is gr eater than 7 and is les s than or equal to 15, then B ＝ 2 x A ÷ 6 ＋C . Otherwis e , B ＝ 3 x A ＋ 10＋C .        Means: If FIR S T is not equa l to 0, then VA L U E ＝ FIRS T ＋ 1 ÷ FIRS T . If FIR S T ＝ 0, then VA L U E ＝FIRS T .        Means: If A or B , but not both , equals 0, then T ＝ W x ( A B ). Otherwis e , T = W x A x B . I n other w ords , When A ＝ 0 and B ≠ 0, T ＝ W x B . When A ≠ 0 and B ＝ 0, T ＝W x A When A ＝ 0 and B ＝ 0, T ＝ 0. When A ≠ 0 and B ≠ 0, T ＝W x A x B . Example: Ne sted IF Functions. A n I F f u n c t i o n c a n b e u s e d a s t h e argument of another IF function. This is called nesting . Su ppose a corporation uses a rating sy stem to determine salar y. Employees are rated on a scale from 1 throu gh 3, and are given the following annual percent raise based on their rating: Rating Percen t Salary Increase 1 2 3 3% 6% 10% The Solver equation to c alculate an employee’s new salary is based on his or her rat ing and old salary . What would be the new annual salary for an employee with a r ating o f 2 who currently earns $27,50 0 annually ?
176 12: The Equation Solver File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Press   , then enter the equ a tion:      To do the calculation: Keys: Display: Descript ion: I   Stores, verifies, and creates menu labels for the equation. 27500   Stores old sa lary. 2   Stores rating.   Calculates new salary. The Summation Fu nction ( ∑ ) The Σ function does summation calculations in an equation:  counter variable  starting value  ending value  step size  algebraic expression  The counter variable takes on a series of values, beginning with the starting value , and incrementing according to the st ep size , until it passes the ending value . For each value of the counter, the algebraic expression is evaluated, and the value is add ed to the previous value. The Σ function returns the final su mmation. For example, when the equation:     is solved for SERIES , the counter I runs from 1 throug h 6 in steps of one ─ that is, 1, 2, 3, 4, 5, 6. For each value I , the expression   is
12: The Equation Solver 177 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 calculated and added to the sum. Thus the stored value of X i s u s e d t o calculate X 2X 2 3 X 3 4 X 4 5 X 5 6 X 6 . The following equation uses a variable as the ending value, 0 as the beginning value, and a step size of 2.     If 8 is stored in LAST , I takes on value s of 0, 2, 4, 6, and 8. Then the stored value of X will calculate 2X 2 4X 4 6X 6 8X 8 . Accessing CFL O and S UM Lists fr om the Solv er You ca n us e a Sol ver eq uat ion to pe rfo rm c alcul ati ons o ther tha n tho se in the CFLO and SUM menus using dat a stored in CFLO and SUM lists. The following Solver function s gain access to these lists.    CFL O -listname  re turns the number o f the last flo w in the spe cified C FL O li st. F o r example, i f t he last flow in t he list INV were    , then   would equal 6 .00.    CFL O-lis tname  flow number  r eturns the v alue of the specified flow .   CFL O-lis tname  flow number  re turns the number of time s the spe c ifie d flow occ urs .    S UM-listname  re turns the number o f items in the spec ifi ed SU M l i s t.   S UM-listname  item nu mber  r eturns the v al ue of the spec ifi ed item. Summation of List Data. The Σ function can be used to sum calcu lations done with numbers in lists. For example, the foll owing equation calculates Σ x i 2 y i 2 for values stored in two SUM lists named XVAR and YVAR, which must have the same number of items:       
178 12: The Equation Solver File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 “Chi-Squared Statistics” in chapter 14 illu strates another use of the Σ function with SUM lists. Creating Menus for Multipl e Equations (S Func tion ) The S ( solving for ) function i s used in conjunction with the IF fu nction to group related equations together and to specify the criteria for choosing one of them to solve. S( variable name ) The advantage over two separate equations is that the single equation gives you a single menu with all possible variables. Tha t way, if you are working with two different but relate d problems, you can keep the same Solver menu labels in the display all the time ─ you don’t have to switch equations. For example, consider these two equations fo r conversions:   and   The following, rearranged single equation can do either c onversion:        Th is mea ns: if you are solving for either KG or LB , t hen u se KG × 2.21 － LB ＝ 0. Otherwise (that is, if you are solving for M or FT ), use M × 3. 28 － FT = 0. The two conversion equations are rewritten so that all the variables appear on one side of each equation, and the other side is set equal to zero. The S function appears as part of the conditional expression of the IF function. You can leave out the “ ＝ 0” and it will be understood that the whole equation is set equal to zero. Example: Unit Conver sions. Use the above eq uation to convert between kilograms and pounds and between meters and feet. Press   then enter the equation:
12: The Equation Solver 179 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9        Press I to store it, th en  to ve rify it and create its menu: 1. Conv ert 2 25 pou nds to kilogr ams. Pre ss 2 2 5     Res u lt i s  . 2. How man y feet equal 100 meters ? Pre ss 100     Result is   Note that y o u do not h av e to clear v ari ables between step s 1 and 2 . The S function considers only those va lues in the part of the equation that it is solving. Ho w the Solver W or ks The Solver has two ways of finding an answer. First, it tries to find a direct solution by rearranging the equ a tion and then solving for the variable. If the Solver finds a direct solution, the calculator display s the result. If the Solver is unable to find a direct solu tion, it tries to find the answer indirectly by iteration . It estimates a set of answers, s ees how clo se they are to a solution, and then makes another set of estimates. The calculator displays the S olver’s curr ent estimates as the Solver searches for an answer. You shou ld keep in mind that there might be more than one solution to an equation , and that it might be necessary for you to enter guesses to influence which solution the Solver finds. If the displayed estimates don’t appear to be proceeding to wards a number you judge to be a reasonable answer, you can stop this i terative process, enter your own guesses, and restart the search. (S ee “Halting and Restarting the Iterative Search” and “Entering Guesses, ” below.)
180 12: The Equation Solver File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 The process of finding a solution iter atively is very co mplex. There are four possible outcomes. Refer to “Solve r Calculations” in appendix B for additional descriptions of th ese outcomes.  Case 1: T h e c a l c u l a t o r d i s p l a y s a r e s u l t . I t i s v e r y l i k e l y t h a t t h i s i s a soluti on to the equati on . T o c heck ho w good this re sult is, y ou can re peat the calc ulation b y pre ssing the menu k ey for the var iable y ou solv ed f or . If the tw o sides of the eq uation hav e not been calculated to be e xactl y equal , the calc ulator displa ys a me ssage w i th the v alues for the le f t and r ight side s of the equati on. R ead “Sol ver Calculati ons ” in appendi x B for an e xplanation o f the meaning of this display .  Case 2: The calculator d ispla ys a mess age with the calc ulated, unequal v alu es o f the left and r ight side s of the equation . The Sol v er has fou nd a possible solu tion , but you must interpr et its v alidity . T o see the ques tionable solu tion , pre ss < or C . Refer to “ Solv e r Calc ulations ” in appendi x B f or more inf ormat ion.  Case 3: The calc ulator displa ys        . The Solv er cannot begin the sear ch w ith the current g uesses. Press < or C to v ie w the starting guesse s. T o supp ly n ew g u esses, see “ En te rin g G uesses, ” be low .  Case 4 : The calc ulator displa ys     . C he ck to see if y our equation and stor ed values are corr ect . If the equati o n is c o r r e c t , y o u m i g h t b e a b l e t o f i n d a s o l u t i o n b y e n t e r i n g v e r y g o o d gu esses. Halting and Restarting the Itera tive Sear ch When the Solver is iteratively searching for a solution ( in other words, when the Solver is displaying sets of estimates), you can halt the calculation by pressing any key except @ . The calculator display s the message   . To see the best estimate the Solver has found so far, press C or < . You can restart the searc h from where it left off by pressing the menu key for the variable you are solving for. Or, you can restart the search using your own guesse s (see “Entering Guesses,” below).
12: The Equation Solver 181 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Entering Gues ses Entering your own guesses serves two purposes. First, it can save time by telling the Solver where to start searching. S econd, i f more than one solution exists, entering g uesses may lead the Solver to a solution in a specified range. The closer your gue sses are to the desired solution, the better chance the Solver has of finding it. You can enter gue sses at these times:  Be for e beginning the calculation , after y o u ’ve stor ed a v alue for e very v aria ble ex cept the unknow n var iable . If you en ter one guess , the Solver ge ne rates a se c on d gu ess.  After y ou ’ve halted the iter ativ e sear ch .  After the Sol v er has r eturned an ans wer , and y ou wish to begin sear c hing for another ans w er . You can enter one or two guesses. If you ent er one guess, the Solver makes a second guess. If you enter two guesses, the Solver uses those two guesses to start searching for a solution. The Solver works most efficiently when the answer is betw een your two guesses. For example, if you know the answer is between 5 and 12, you should enter 5 an d 12 as the starting guesses. T o enter o ne gues s, ke y in the v alue and pre ss the menu ke y t wi c e . For example, 4.5   enters 4.5 as a guess for a Solver variable named A and starts the calculation. To enter two guesses, key in the first guess and press the menu key. Then key in the second guess and press the menu key twice. For example, 0  100   causes the Solver to search for A using 0 and 100. Example: Using Gue sses to Find a Solution Iterative ly. One e quation for calculating the profit fro m a manufacturing operation is:
182 12: The Equation Solver File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Profit ＝ (Price × Quantity) － (Variable costs × Quantit y) － Fixed Costs The C-Sharp Piano Corporation sells pianos for $6,000. Variable costs are $4,100; fixed costs per year are $112,000. Ho w many pianos must C-Sharp sell this year in o rder to earn a profit of $130,000 ? (In past years, C-Sharp has had to sell between 100 and 200 pianos to make an acceptable profit. You can use this information as initial guesses.) Press   , then enter the equ a tion:         Keys: Display: Description: I   Stores, verifies, and creates labels for the equation. 6000   Stores pric e. 4100    112000    130000        Stores variable cost, fixed cost, and profit. The following steps enter guesses for QTY . If the Solver must search iteratively to solve for QTY , it will begin by using the estimates 100 and 200. Keys: Display: De scription: 100    The first guess for QTY . 200    The second guess for QTY .
12: The Equation Solver 183 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9         Solves fo r QTY iteratively.
184 13: Printing File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 13 Printing The calculator can print information u sing the hp 82240 Infrared Printer, which accepts the infrared signal from the printer port. This chapter describes information you can print. Operation of the p rinter is covered in the printer owner’s manual. * Po r t The print annunciator ( )appears in the display whenever th e calculator sends information throu gh its printer port. Because commu nication goes only one way—from calculator to printer—the calculator cannot determin e whether the prin ter is receiving information. If a printing operation inv olves many lines of information, the calculator slows its transmission rate to allow the printer time to print. To preserve battery power, the calc ulator will not transmit data to the printer when the low-power annunciator ( ) is on. If a low-power condition occurs after you ’ ve started a printing operation, printing stops and the calculator displays the message       . * Since the hp-17bII cannot send control characters to the printer, portions of the printer’s m anual pertaining to control c odes and graphic s characters do not apply.
13: Printing 185 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Th e P rin t e r ’s P ower S ou rc e The speed of the printer depends on wheth er it is using its optional ac adapter. To optimize printing performa nce, set the print ing speed mode in the calculator appropriately . To view or change the printing speed mode: 1. Pre ss @> . 2. Pr ess  to change and dis play the ne w mode. If neces sary , pre ss  again to set th e desired mode:           3. Pre ss e . For long printing operations, printing will be faster using the printer’s ac adapter and the calculator’ s appropriate printing speed mode. When the printer is powered by batteries alone, be s ure to change the mode to      so that the calculator will not transmit data too rapidly. Double - Space Printing Press @>  to turn dou ble-space printing on or off. Then press e . Printing the Displa y( P ) To print whatever is in the calculator line, press P . This prints numbers, expressions, single Solv er eq uations, and m essages. Men us cannot be printed.
186 13: Printing File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Printing Ot her Info rmation ( @p ) LIS T S TK REGS PRI N T E R TI ME MSG TRA CE The PRINTER menu provides the ability to print most of the information you’ve stored, including th e contents of variables, lists, appointments, the history stack, registers, and th e current date and time. You can also transmit descriptive notes to label the output. (To print amortization schedules, see “Printing an Amortization Table,” page 82.) From within any menu you can press @p to bring up the PRINTER menu. This table summarizes those printing activities. Table 13 -1. The PRINTER Me nu Labels Menu Labe l Description   Prints data stored or calcul ated in the current menu. See “Printing Variables and Lists,” belo w.  Prints the contents of the history stack.  Prints the contents of registers 0 throu gh 9.  Prints the current date and ti me.  Displays the ALPHA menu for typing a message up to 22 characters long. See page 188.  Switches between Trace On and Trace Off modes. See “Trace Printing,” page 188. Upon completion, all of t hese functions except  retu rn the previous menu to the display. Printing V ariables, Lists, and Appointments (LIS T) You can list specific sets of information stored in menu s by pressing @p  while the relevant menu labels are di splayed.
13: Printing 187 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Printing the Values Stored in Variable s. You can print a listing giv i ng the values of all variables whose menu labels are displayed. For example, if the calculator is in the F IN TVM menu, it displays the labels       . Pressing @p  now produces a print-ou t like this:                Printing Nu mber L ists. To print out the contents of a particu lar SUM or CFLO list, that list must b e the current list. Pressin g @p  while a SUM list named SALE S is the current list produ c es labeled output like this:                 Printing Solver Equat ions. To print one or all S o lver eq uations, display the main SOLVE menu (press  ).  T o print jus t the cur rent eq ua tion , pr ess P .  T o print out the entir e list of equations , pres s @p  .
188 13: Printing File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Printing Appo intment s. To print all stored appointments, display the  menu (press  then press @p  . This produces a listing like this for each appointment:            Menus Not Asso ciate d with Stored Data . Remember that many menu labels do not represent data, bu t rather activities, such as  ,  ,  and  . They contain no information for printing. The calculator beeps if there is nothing to print when you press @p  . Printing Des c ripti ve Messages (MS G) You can include descriptive messages with your printed outpu t by using  . For example, su ppose you wanted to print a number that represents the balance for September. You could start the output with the label “SEPT EMBER B ALANC E”. 1. Pre ss @p , then  . T his bring s up the ALP HA menu . 2. T y pe (and edit) the label or me ssage. 3. Pre ss I to pr int ou t the label or mes sage . Now print out the number itself (if it’s in the calculator line, press P ). T r ace Printing (TRAC E ) Trace printing produces a record of all the keys you’ve pressed and of calculated results. When tracing is off , u se P and @p to print what you want. When tracing is on, the calculator u ses more power and operates more slowly. To switch trace printing on and off: 1. Pre ss @p .
13: Printing 189 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 2. Pr ess  to change t h e setting . A mes sage inf orms y o u that tr ac ing is on or off . If ne cess ar y , pre ss  again to displa y the desir ed message . 3. Pre ss e . Example: Tra ce-Print ing a n Arithmetic Calculat ion. Produce a record of the keystrokes yo u use to do the fo llowing calculation and store the result in the TVM variable PMT . 1 / 12 × 4,800 125 Press @p  to set     . I f y o u see     , press  again. Keys: Print-o ut: e       12 @t        *  4800     125 =          @p      e How t o Interr upt t he Printer Pressing a calculator key during a printing operation will interrupt transmission, but not immediately stop the printing. To stop the printer immediately, tu rn it off. v v v
190 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 14 Additional Examples Loan s Simple Annual Interest See appendix F for RPN keystrokes for this example . Example: Simple Interes t at an Annual Rate. Your g ood friend needs a loan to start her latest enterprise and has reque sted that you lend her $450 for 60 da ys. You lend her the money at 7 % simple annual inter est, to be calculated on a 365-day basis. How much inter est will she owe you in 60 days, and what is the total amount owed ? The interest is: (7% of $450) × 60 da ys 365 da ys Keys: Display: De scription: 450 * 7 %   Annual interest. * 60 / 365   Actual interest for 60 days. 450 =  Add principal to get total debt A Solver Equ ation for Sim ple Annu al Intere st:       DEBT = the total owed at the end of the loan period. LOAN = the original amount (principal) lent . I% = the annual interest rate as a percent. DAYS = the number of days in the loan. v
14: Additional Examples 191 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 For instructions on entering Solver eq uations, see “Solving Yo ur Own Equations,” on page 29. If you know the dates for the course of the loan, rather than the number of days, use this for an actu al-calendar basis:          or use this for a 360-day ba sis:          DATE1 = the date the loan commenc es. DATE2 = the date the loan ends. Y ield of a Discounted (or Premium) Mortgage The annual yield of a mortgage bou ght at a discount or premium can be calculated given the original mortgage amount ( PV ), interest rate ( I%YR ), periodic payment ( PMT ), balloon payment amou nt (if any) ( FV ), and the price paid for the mortgage (new PV ). Remember the cash-flow sign convention: money paid out is negative, money received is positive . Example: Discoun ted Mortgage. An investor wishes to purchase a $100,000 mortga ge taken out at 9% for 2 0 years. Sin ce the mortgage was issued, 42 monthly payments have been made. The loan is to be paid in full (a balloon payment ) at the end of its fifth year. What is the yield if the purchase price of the mortgage is $79,000 ? 1. Si nc e th e payment a moun t ( PM T ) i s n o t g i v e n , c a l c u l a t e i t f i r s t . T o do this, fir st assume 20 y ears ’ amortiz ati on on the or iginal mortgage w ith no balloon pay ment (so N = 20 × 12 , FV = 0, PV = － 10 0, 000, and I%YR = 9) . 2. Since the balloon amount is not gi ven , calcu late it ( FV ) next. Use PM T fr om step 1, but c hange N to 5 yea rs (N = 5 × 12) .
192 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 3. Finall y enter c urr ent v alues for N (le ss number o f pay ment periods alr ead y pass ed, or 5 × 12 － 4 2) and PV (pr oposed pu rc hase pr ice , $7 9 , 000 ); then c alculate I%Y R f or the annual y ield . Step 1: Calculat e PM T . Ma ke s ure FV = 0. Keys: Display: De scription:    @c e        Selects men u; sets 12 payments per year and End mode. 20 @   Figures and stores total number of payments for a full 20-year loan with monthly payments. 9  100000 &     Stores interest rate and amount of original loan. (Money paid out is negative.) 0   Sets FV to zero.   Calculates monthly payment received. Step 2: Enter the new val ue for N given a balloon in 5 years, then find FV , the amount of the ball oon. Keys: Display: De scription: 5 @   Stores number of payments for 5 years.   Calculates balloon due in 5 years.
14: Additional Examples 193 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Step 3: Enter actual, current values for N and PV ; then find new I%YR for discounted mortga ge with balloon. Keys: Display: De scription: R  - 42    Stores number of payments remaining in 5-year loan. 79000 &    Stores propos ed, discounted purchase price (new present value).   Calculates percent annual yield. Annual P er centage Rate for a L oan with Fee s See appendix F for RPN keystrok es for the next two examples . The annual percentage rate , APR, incorporates fees usually charged when a mortgage is issued, which effe ct ively raises the interest rate. The actual amount receiv ed (the PV ) by the borrower is redu ced, while the periodic payments remain the same. The APR can be calculated given the term of the mortgage ( N periods), the annu al interest rate ( I%YR ), the mortgage amount (new PV ), and the basis of the fee charged (how the fee is calculated). Remember the cash-flow sign convention: money paid out is negative, money received is positive . Example: APR for a Lo an with Fees. A borrower is charged two points for the issuance of a mor tgage. (One point is equal to 1% of the mortgage amount.) If the mortgage amount is $ 60,000 for 30 years and the interest rate is 11 ½ % annu all y with monthly payments, what APR is the borrower paying ? v
194 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 1. Since the pay ment amount is not giv en, calc ulate it ( PM T ) f irst . Us e the giv en mortgage amount ( PV = $60, 000) and inter est r ate ( I%YR = 11 1 / 2 %) . 2. T o f i nd the AP R (the ne w I%Y R ) , us e the PM T calculated in s tep 1 and adju st the mortgage amount to ref lect the points pai d (PV = $6 0,000 － 2%) . All other v alues r emain the same (term is 30 y ears; no f utur e va l u e ) . Keys: Display: De scription:    @c e         If necessary, sets 12 payments per year and End mode. 30 @   Fi g ures and stores number of payments. 11.5  60000    Stores interest rate and amount of loan. 0   No balloon payment, so future value is zero.   Borrower’s monthly payment. R  - 2 %     Stores actual amou nt of money received by borrower into PV .   Calculates APR . Example: Loan fr om the Lender’s Point o f View. A $1,000, 000, 10-year, 12% (annual interest) interest-only loan has an origination fee of 3 points. What is the yield to the lender ? Assume that monthly payments of interest are made. (Before figu ring the yield, you must v
14: Additional Examples 195 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 calculate the monthly PMT = ( loan x 12 %) ÷ 12 mos.) When calc ulat ing the I%YR , the FV (a balloon payment) is the entire l o an amount, or $1,000,000, while the PV is the loan amount minus the points. Keys: Display: De scription:    @c e       If necessary, sets 12 payments per year and End mode. 10 @   Stores total number of payments. 1000000 * 12 %/   Calculates annual interest on $1,000,000 ... 12   ...and calculate s, then stores monthly payment. 1000000    Stores entire loan amount as balloon payment. - 3 %= &    Calculates, then stores amount borrowed (total — points).   C alculates APR—the yield to lender. Loan with an Odd (P artial) First P er io d The TVM menu deals with fi nancial transactions in which each payment period is the same length. However, situations exist in which the first payment period is not the same length as the remaining periods. This first period is sometimes called an odd or partial first pe riod . The following Solver equatio n calculates N , I% , PV, PMT , or FV for transactions involving an odd first period, using simple interest for the odd period. The formula is v alid for 0 to 59 days from inception to v v v
196 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 first payment, and a 30-day month is assumed. * A Solver Equation for Odd-Period Calculations:                  (For the  character, press    .) PV = the loan amount. I% = the periodic interest rate. DAYS = the actual number of days until the first payment is made. PMT = the periodic payment. N = the total number of payment periods. FV = the balloon payment. A balloon pay ment occurs at the end of the last ( N th) period and is in addition to any periodic payment. The following examples assume that you have entered the equation named ODD, above, into the S olver. For instructions on entering Solv er equations, se e “Solving Your Own Equations,” on page 29 . Example: Loan with a n Odd F irst Period. A 36-month lo an for $4,500 has an annual interest rate of 15%. If the first payment is made in 46 days, what is the monthly payment amou nt ? Select equation OD D in the Solver. Keys: Display: De scription:    Creates menu . 36   36 payment periods. 4500   Stores loan amount. 15 / 12  Stores periodic , monthly * You do not need to specify Begin or En d mode. If the number of days until the first payment is less than 30, Begin mode is assumed. If the number of day s until the f irst payment i s between 30 an d 59, inclusiv e, End mode is ass umed. v
14: Additional Examples 197 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9   interest rate. 46   Sto res days until first payment. 0   No balloon pay ment.   Calculates payment. Example: Loan with an Odd Fir st Period Plus B alloon. A $10,0 00 loan has 24 monthly payments of $400, plus a bal loon payment of $3,000 at the end of the 24th month. If the payments begin in 8 days, what annual interest rate is being charged ? Select eq uation ODD. Keys: Display: De scription:   Creates menu . 10000  24    Stores know n values. 400 &   3000 &  8         Calculates periodic (monthly) interest rate. * 12 =  Annual interest rate. Canadian Mortg ages In Canadian mortgages, the compounding and payment periods are not the same. Interest is compounded semi-annually while payments are made monthly. To use the TVM men u in the hp 17bII , you need to calculate a Canadian mortgage factor to store as I%YR . 1. Set End mode and stor e 12  . v
198 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 2. Sto re 0  , 6  , and 200  . 3. Add 200 to the annual inter est r ate, mak e the number negative , and stor e it in  . 4. Pre ss  to calc ulate the Canadian mortgage f actor . 5. Co ntinue the pr oblem by su pp ly ing the other mortgage v al ues and solv ing f o r the unkno wn item . Do not c hange I%YR f rom step 4 . Example: Canadian Mortg age. What is the monthly p ayment required to fully amortize a 30-y ear, $30,000 C anadian mortgage if the interest rate is 12% ? Keys: Display: Descript ion:    @c e       Displays TVM men u; sets 12 payments per year with End mode. 0   6   200   12 = &      Calculates I%YR for Canadian mortgage factor. 30 @   Stores othe r values. 30000   0     Monthly payment. A Solver Equation for Canadian Mortgages:                  v
14: Additional Examples 199 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 (For the  operator press @u .) PV = loan amou nt, or present valu e. PMT = monthly payment amou nt. I%YR = annual (Canadian) interest rate as a percent. N = total number of payment periods for the life of the loan. FV = remaining balance, or fu ture value. For instructions on entering Solver eq uations, see “Solving Yo ur Own Equations,” on page 29. Ad vance P ay m ents (Lea sing) Occasionally payments ar e made in advance, su ch as in leasing. Leasing agreements someti mes call for the extra payments to be made when the transaction is closed. A residual val ue ( salvage valu e ) can also exist at the end of the normal term. The following equation calculates the monthly paym ent and the annual yield when one or more payments are made in advance. It can be modified to accommodate periods other than monthly by changing the number 12 to the appropriate number of payment periods per y ear. Remember the cash-flow sign convention: money paid out is negative, money received is positive . A Solver Equation for Advance Pay ments:              (For the  character press    .) PMT = the monthly payment amount. PV = the value of the equipment. FV = the residual value.
200 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 I%YR = the annual interest rate as a percent. N = the total number of payments. #ADV = the number of advance payments. The following example ass umes that yo u have entered the equation ADV, above, into the Solver. For instructions on entering Solver equations, see “Solving Y our Own Equations,” on page 29 . Example: Leas ing with Advance Payment s. Equipmen t worth $750 is leased to you for 12 months. The equipment is assumed to have no salvage value at the end of the lease. You agree to make three payments at the time of closing. What is the monthly payment if the annual interest rate is 10% ? Select the ADV equation in the Solver. Keys: Display: Descript ion:    Creates menu. 750  12  0  3   10       Stores know n values.   Calculates payment. Sa vings V alue of a Fund with Regular Withdr awals Example: A Fund wit h Regu lar Withdraw als. What are the balances after 1, 10, and 20 years of a fund that starts at $750,000, has $20,000 withdrawn at the beginning of eac h quarter, and earns 1 0% annual interest compounded monthly ?
14: Additional Examples 201 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 1. Because the com pounding periods and the w ithdra wal per iods ar e not coinc ident , you mus t f irs t con v er t the nominal in tere st r ate to one in terms o f the withdr aw al per iods. Y o u can do this using the ICNV menu , as e xplained on page 8 7, “Com pounding P er iods Differ ent fr om P a yment P er iods. ” 2. T he res t of the calculati on is a str aightforw ard TVM pr oblem. R emember that mone y deposited is paid out and the ref ore negati ve ; mone y withdr aw n is rece iv ed and there for e positi ve . Step 1: Find the adjusted nominal interest rate. Keys: Display: Descript ion:          Displays perio dic interest-rate conversion menu. 12   Stores numb er of compounding periods. 10   Stores nominal interest rate.   Calculates effective interest rate. 4   Stores numb er of withdrawal periods.   Calculates adjusted nominal interest rate. Step 2: Calculate the future values. Keys: Display: Descript ion: e e   Switches to TVM menu.
202 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 <  Clears message to show NOM% value still in calculator line. s   Stores adjusted nominal interest rate in I%YR .  4   e       Sets 4 payments (withdrawals) per year and Begin mode. 750000 &    Stores present (initial) value of fu nd. 20000   Stores withdrawal amount. 4   Stores numb er of withdrawals in 1 year.   Value of fund at end of year 1. 40   Stores numb er of withdrawals over 10 years.   Calculates value of fu nd at end of year 10. 20 @   Stores number of withdrawals after 20 years.   Calculates value of fund at end of year 20. Deposits Needed for a C hild’s College Account See appendix F for RPN keystrokes for this example .
14: Additional Examples 203 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Suppose you want to start saving now to accommodate a fu ture series of cash outflows. An example of this is saving money for college. To determine how much you need to save eac h period, yo u must know when you’ll need the money, how much you’ll need, and at what interest rate you c an invest yo ur de posits. Use a CFLO list to calculate the net uniform series ( NUS ) of the future withdrawals: 1. Stor e z er o for all cash flo w s e x cept the withdr aw als. F or tho se cash flo ws , stor e the amounts y ou w ill need to w ithdra w (since this is cash rece iv ed, thes e c ash flo ws w ill be positi ve ). 2. Stor e the per iodi c inter es t rate in I% and cal culate NUS . T he NUS equals the amount of the m onthl y deposit you w ill need to mak e. You can also calculate the equivalent present value of all the monthly deposits combined by calcul ating the net present value, NPV . Example: Savings for Coll ege. Your daughter will be going to co llege in 12 years and you are starting a fund for her education. She will need $15,000 at the beginning of each year for four years. The fund earns 9% annually, compounded monthly, and you plan to make monthly deposits, starting at the end of the current month. How much should you deposit each month to meet her educational expenses ? The cash-flow diagram looks like this:
204 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 0 $0 $0 12 $0 $0 $0 144 $0 $0 15 6 16 8 180 $0 $0 $0 $ 1 5 , 0 0 0 $ 1 5 , 0 0 0 $ 1 5 , 0 0 0 $ 1 5 , 0 0 0 Figure 14-1. Flow of Wit hdrawals 13 2 17 8 17 9 180 0 9. 0 0 Figure 14-2. Flo w of Deposits Keys: Display: Descript ion:    Displays current cash- flow list and CFLO menu keys . @c  or      Clears current list or g ets a new one.
14: Additional Examples 205 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Step 1: Set up a CFLO list. 0 I  Sets initial cash flow, FLOW(0) , to zero. 0 I  Stores zero in FLOW(1) and prompts for the number of times it occurs. 12 * 12 - 1 I   Stores 143 (fo r 11 years, 11 months) in #TIMES(1) for FLOW(1) . 15000 I  Stores amou nt of first withdrawal, at end of 12th year. I  0 I  Stores cash flow s of zero... 11 I  ...for the next 1 1 months. 15000 I I   Stores second withdrawal, for sophomore year. 0 I 11 I   Stores cas h flows of zero for the next 11 months. 15000 I I   Stores third withdrawal, for junior year. 0 I 11 I   Stores cas h flows of zero for the next 11 months. 15000 I I   Stores fourth withdrawal, for senior year. e       Done entering cash flows; gets CAL C menu. v
206 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Step 2: Calculate NUS for the monthly deposit. Keys: Display: Descript ion: 9 / 12    Figures the periodic (monthly) interest rate and stores it in I% .   A mount of monthly deposit needed to meet planned withdrawals.   Calculates the net present value of the monthly deposits, which is the same as the NPV of the four futu re withdrawals. V alue of a T ax -Fr ee Account See appendix F for RPN keystrokes for this example . You can use the TVM menu to c alculate the future value of a tax-free or tax-deferred account, such as an IR A or Keog h account. Remember that for calculations with cash flows, money paid out is n egative and money received is positive. (Cu rrent tax law and your current income will determine whether just interest or also principal are tax-free, and for how long. You can solve for either case.) N = the number of payments until retirement. I%YR = the annual dividend rate. PV = the present value of the retirement account. PMT = the amount of your deposit. (It must be constant for the duration of the account.) FV = the future valu e of the retirement account. The purchasing power of that future value depends on t he inflation rate and the duration of the account. v
14: Additional Examples 207 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Example: Tax-Free Accoun t. Consider opening an IRA account with a dividend rate of 8.175%. 1) If yo u invest $2,000 at t he beginning of each year for 35 year s, how much wi ll you have a t retiremen t ? 2) How much will you have paid into the IRA ? 3) How much interest will you have earned ? 4 ) I f y o u r p o s t - r e t i r e m e n t t a x r a t e i s 1 5 % , w h a t i s t h e after-tax future value of the account ? Assume only the interest will be taxed. (Assume the principal was taxe d before deposit. ) 5) What is the purchasing power of that amount, in today’s dollars, assu ming an 8 % annual inflation rate ? Keys: Display: Descript ion:    1   e        Sets 1 payment per year and Begin mode. 35   Stores number of payment periods until retirement (1 × 35). 8.175   Stores dividend rate. 0   Present value of acc ount (before first payment). 2000 &    Annual payment (deposit).   Calculates amount in account at retirement. R  * R  =    Calculates total amount paid into IRA by retirement. R  =   Calc ulate s inte rest you will earn. v v v v
208 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 * 15 % =  Taxes at 15% of interest. & R  =   Subtracts taxes from total FV to calculate after-tax FV .   Stores after-tax future value i n FV . 8  0      Calculates present-val ue purchasing power of the above after-tax FV at 8% inflation rate. V alue of a T ax able Retir em ent Account See appendix F for RPN keystrokes for this example . This problem uses the TVM menu to calculate the f uture value of a taxable retirement account that re ce ives regular, annu al payments beginning today (Begin mode). The annual tax on the interest is paid out of the account. (Assu me the deposits have been taxed already.) N = the number of years until retirement. I%YR = the annual interest rate diminished by the tax rate: interest rate × (1 －tax rate ). PV = the current amount in the retirement account. PMT = the amount of the a nnual payment. FV = the future valu e of the retirement account. Example: Taxable R etirement Ac count. If you inve st $3,000 eac h year for 35 years, with dividends taxed as ordinary income, how much will you have in the account at r etirement ? Assume an annual dividend rate of 8.175% and a t ax rate of 28%, and that paym ents begin to day. What will be the purchasing power of that amount in today’s dollars, assuming 8% annual inflation ? v v v
14: Additional Examples 209 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Keys: Display: Descript ion:    Displays TVM menu.  1   e      Sets 1 payment per year and Begin mode. 35   Sto res year s until retirement. 8.175 - 28 %    Calculates and stores interest rate diminished by tax rate. 0   Stores no present val ue. 3000 &   Stores annual payment.   Calculates future value. 8  0      Calculates present-val ue purchasing power of the above FV at 8% inflation. Modified Internal R ate of Retur n When there is more than one sign change (positive to negative or negative to positive) in a series of cash f lows, there is a potential for more than one IRR% . For example, the cash-flow sequence in the following example has three sign c hanges and hence up to three potential internal rates of return. (This particu lar exa mple has three positive real answers: 1.86, 14.35, and 29.02% mo nthly.) The Modified Internal Rate of Return (MIRR) procedure is an alternative that can be used when your cash -flow situation h as multiple sign changes. The procedure eliminates the sign change problem by u tilizing reinvestment and borrowing rates that you specify. Negative cash flows are discounted at a safe rate that reflects the return on an investment in v v
210 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 a liquid account. The f igure generally us ed is a short-term security (T-bill) or bank passbook rate. Positive cash flows are r einvested at a reinvestment rate that reflects the return on an investment of comparable risk. An average return rate on rece nt market investments might be used. 1. In the CFL O menu , calc ulate the pre sent v alue of the negativ e cash flows ( NPV ) at the safe ra te a n d st ore t h e res u l t i n reg i st e r 0 . E nt e r z er o for an y cash f low that is po siti ve . 2. Calc ulate the futur e v alue of the positi v e cash flo ws ( NFV ) at the r ein ve stment r a t e a n d s t o r e t h e r e s u l t i n r e g i s t e r 1 . E n t e r z e r o f o r a n y cash fl ow that is neg ati v e. 3. In the TV M menu , s tore the total nu mber of per iods in N , the NPV res ul t i n PV , and the NFV res u lt i n FV . 4. Pre ss  to calc ulate the per iodi c inter est r ate . This is the modif ied inter nal rate o f retu rn , MIRR. Example: Modif ied IRR. An investor has an investment opportunity with the following cash flows: Group (FLOW no.) No. of Months (#TIMES) Cash Flow, $ 0 1 2 3 4 1 5 5 9 1 － 180,000 100,000 － 100,000 0 200,000 Calculate the MIRR using a safe rate of 8% and a reinv estment (risk) rate of 13%. Keys: Display: Descript ion:    Displays current cash- flow list. @c   Clears current list or g ets a
14: Additional Examples 211 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 or     new one. 180000 & I   Stores initial cash flow, FLOW(0) . 0 I  Stores FLOW(1) as zero since the flow amount is positive. 5 I  Stores 5 fo r #TIMES(1) . 100000 & I   Stores FLOW(2) . 5 I  Stores FLOW(2) 5 times. You can skip FLOW(3) and FLOW(4) because they are equal to zero for this part. e       8 / 12    Stores monthly safe interest rate.   Calculates NPV of negative cash flows. s 0  Stores NPV in register 0. e  Returns to CFLO menu. @c   Clears list. 0 I  Stores zero as FLOW(0) . (Skip ne g ative flows; store positive flows.) 1000 00 I 5 I   Stores FLOW(1) 5 times. 0 I  Stores zero fo r FLOW(2) , v
212 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 5 I  5 times. 0 I 9 I   Stores zero for FLOW(3) , 9 times. 2000 00 I I   Stores FLOW(4) , 1 time. e        13 / 12    Stores monthly reinvestment rate.    Calculates NFV of positive cash flows. s 1  Stores NFV in register 1. @A    @c e       Switches to TVM menu ; sets 12 periods per year with End mode, if necessary. 20   Stores total number of investment periods. R 0   Recalls present value of negative cash flows and stores in PV . R 1   Recalls future value of positive cash flows and stores in FV . 0   Stores zero in PMT (no payments).   Calculates annu al MIRR. v
14: Additional Examples 213 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Price o f an Insura nce P olic y The price of an insurance policy, other than term life insurance, is rarely apparent at first glance. The price should include not only the premium payments, but also the interest that could have been ea rned o n the cash value o r savings portion of the policy . The following equation calculates the price per $1,0 00 of protectio n for one policy year and the interest rate earned on the savings portion of the policy. To calculate the price, assume some value for interest—for example, the interest rate you could earn on a one-year savings certificate after tax. Similarly, to calculate interest, assu me a price per $1,000 per year for alternative insurance; for example, a l o w - c o s t t e r m p o l i c y o f t h e one-year renewable type. Even complex policies like minimum-de posit plans can be analy zed with this procedure. Use policy surrender values for c ash values and the actual (after-tax) amounts for payments (premiums) and dividends. A Solver Equation for Insurance Price:            INS = the price per $1,000 of protection in one policy year. PREM = the annual premium amou nt. LVAL = the value of the policy at the end of last year. I% = the rate of retu rn, as a percent, on a savings account. VAL = the value of the policy at the end of the current year. DIV = the dollar value of the dividend for one year. FACE = the face v alue of the policy for one y ear. The following example assumes th at you hav e entered the above equation into the Solver. For instruct ions on entering Solver equations, see “Solv in g Your Own E quations,” on page 30.
214 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Example: Insu rance Poli cy. You are eval uating yo ur $50,000 insurance policy. The premium of $1,010 is due at the beginning of the year, and a dividend of $165 is receiv ed at the end of the policy year. The cash value of the policy is $3, 302 at the beginning of the year; it will grow to $4,104 b y the end of the year. You can earn 6% o n a savings account. W hat is the annual price per $1,000 protection ? Select the correc t equation in the Solver. Keys: Display: De scription:   Creates menu . 1010    Stores annual premium. 3302    Stores val ue of policy at end of last year. 6   Stores interest rate you could get elsewhere. 4104    Stores val ue of policy at end of this year.  165     Stores annual div idend. 50000    Stor es face value of policy.     Your protection cost $6.57 per $1,000 fac e (protection) value. Insurance protec tion could be purc hased for $3 per $1,000 face value. Calculate the rate of return on you r savings. Keys: Display: Descript ion: 3    Stores price of alternate insurance.   Calculates rate of return.
14: Additional Examples 215 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 R e f e r e n c e : J o s e p h M . B e l t h , Life Insurance—A Consumer’s Handbook , Indiana University Press, 1973, p. 234. Bonds Example: Yield to Maturi ty and Yield to Call. On March 16, 2003 you consider the purchase o f a $1,000 bond that was issued on January 1, 2001. It has a 10.5% semiannual c oupon using a 30/360 calendar, and matures on January 1, 2031. The bon d is callable on January 1, 200 6 at 110 (that is, $1,100). The bond is now selling at 115.174 (that is, $ 1,151.74). Determine both the yield to maturity and the yield to call for this bon d. First, calculate the yield to matu rity: Keys: Display: Descri ption:     Display s BOND menu.    e    Sets semiannual bond on 30/360 c alendar. @c   Cl ears variables; sets CALL to 100. 3.162003     Stores today as purchase date. 1.012031    Stores maturity date. 10.5   Stores cou pon rate.  115.174    Stores price. Displays only two decimal places, but stores all three.    Calculates yield to maturity.
216 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Second, calc ulate the yield to call: Keys: Display: Descri ption:   Returns to first BOND menu. 1.012006     Changes maturity date to the call date. 110   Stores call v alue.    Calculates a yield to call. Discount ed Notes A note is a w ritten agr eement to pa y to the buyer o f the note a sum of mone y plus inter est . Notes d o not hav e peri odic coupons , since all inter est is pai d at maturity . A discou nted note is a note that is pur c hased below its face value. The following equations find the price or yield o f a discounted note. The calen dar basis is actual/360. Solver E quations fo r Discou nted Notes: To find the price given the discount rate:   To find the yield given the price (or to find the price given the yield):            PRICE = the purchase price per $100 face value. YIELD = the yield as an annual percentage. RV = the redemption value per $100. DISC = the discount rate as a percent. SETT = the settlement date (in current date format). MAT = the maturity date (in current date format).
14: Additional Examples 217 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 The following example assumes th at you have entered the NOTE equations into the Solver. F or instruct ions on entering Solver equations, see “Solv in g Your Own E quations,” on page 30. Example:Price and Yield of a Dis counted Note. What are the price and yield of the following U.S. Trea sur y Bill: settlement date October 14, 2003; maturity date Marc h 17, 2004; discount rate 8.7% ? (Assume month/day/year format.) Select the NOTE:PRIC E equatio n in the Solver. Keys: Display: Descript ion:   Creates menu. 10.142003    Stores know n values. 3.172004  8.7   100         Calculates price. e]    Displays NOTE: YIELD equation, then its menu.     Calculates yield. Statistic s Mov ing A ver ag e Moving averages are often useful in predicting trends in data taken over a period of time. In moving-average calculations, a specified number of points is averaged. Each time a new point is a cquired, the oldest point is discarded. Thus, the s ame number of points is u sed in each calculation.
218 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 A Solver Equation for Mov ing Averages:        name      N = the number of values averaged in each c alculation. LAST = the item number of the most recent value to be averaged. name = the name of the SU M list whose data will be a veraged. When you create and name the SUM list, make sure its name matches the name in the Solver equation. The following example assumes that you have entered the equation MAVG into the Solver, using VOL for the SUM list’s name. For instructions on entering Solver equ ations, see “Sol ving Your Own Equations,” on page 30. Example: A Movi ng Average in Manufactur ing. Calculate a three- month moving average for the number of units manufac tured during the first half of the year. M anuf acturing volumes are: January February March April May June 4400 5360 2900 3670 4040 3200 Keys: Display: De scription:    Displays SUM men u and current list. @c  or      Clears curre nt list or gets a new one. 4400 I 5360 I 2900 I 3670 I     Enters data.
14: Additional Examples 219 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 4040 I 3200 I    e  VOL I   Names the list VOL. e  (use ] and [ if necessary)  Displays the MAVG equation. M ake sure name is VOL.   Display s menu. 3   Stores number of points. 3      Calculates average for months 1, 2, and 3. 4      Calculates average for months 2, 3, and 4. 5      Calculates average for months 3, 4, and 5. 6      Calculates average for months 4, 5, and 6. Chi-Squared ( χ 2 ) Stat is ti c s The χ 2 statistic is a measure of the goodness of fit between data and an assumed distribution. * I t i s u s e d t o t e s t w h e t h e r a s e t o f o b s e r v e d frequencies differs from a set of expected frequencies sufficiently to reject the hypothesis under whic h the expected fr equencies were obtained. * The statistic c an be assumed to be χ 2 distributed with n–1 degrees of freedom if n or some of the E i values are large.
220 14: Additional Examples File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 In other words, it tests wh ether discrepancies betw een the observed frequencies ( O i ) and the expected frequ encies ( E i ) are significant, or whether they might reasonably resu lt from chance. The equ ation is: 2 2 1 () n ii i i OE E χ = − = ∑ If there is a close agr eement between the obs erved and exp ected frequencies, χ 2 will be small. If the agreement is poor, χ 2 will be large. Solver Equations for χ 2 Calculation s: If the expected v alue is a c onstant:    name1    name1     If the expected v alues vary:     name1   name1    name2    name2   (To enter the Σ character, press     .) CHI2 = the final χ 2 value for your data. name1 = the name of the SUM list that contains the observed values . name2 = the name of the SUM list that contains the expec ted values . EXP = the expected val ue when it is a constant. When you create and name the SUM list(s), make sure the name(s) match name1 (and name2 , if applicable) in the S olver equation. To solve the equation, press   once or twice (until you see the message    ). The following example assu mes that you have entered the C HI equation into the Solv er, using OBS for name1 . For i nst ruct io ns on e nte rin g Sol ver equations, se e “Solving Your Own Equations,” on page 30 . Example: Expected Thro ws of a D ie. To determine whether a suspect die is biased, you toss it 120 times and observe the following results. (The expected frequenc y is the same for each number, 120 ÷ 6, or 20.)
14: Additional Examples 221 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Number 123456 Frequency Observed 25 17 15 23 24 16 Keystroke: Display: Description:    Displays SUM menu and current list. @c  or      Clears curren t list or g ets a new one. 25 I 17 I 15 I 23 I 24 I 16 I        Enters observed val ues. e  OBS I   Names the list OBS. e  ( use [ and ] if necessary )  Displays th e CHI equation. M ake sure name1 is OBS.   Displays menu. 20   Stores exp ected val ue.     Calculates χ 2 . The number of degrees of freedom is ( n –1) ＝ 5. Consult statistical tables to find χ 2 to a significance le vel of 0.05 with 5 degrees of freedom. The table shows that 2 00 5 5 χ ., ＝ 11.07. Sinc e the computed value (5.00) is less than 11.07, you can conclude that, to a 0.05 significance level (95% probability), the die is fair.
222 A: Assistance, Batteries , Memory, and Service File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 A Assistance, Batteries, Memory, and Service Obtaining Help in Oper ating th e Calculator Hewlett-Packard is committed to support ing user s of HP calc ulator s. You can obtain answers to your questions about using the calculator from our Calculator S upport department. W e s u g g e s t r e a d i n g “ A n s w e r s t o Common questions,” below, before contacting us. Past experience has shown that many of our customers have similar questions. Ans wers t o Common Q uestions Q: I’m not sure if the ca lculator is malfunctioning or if I’m doing something incorrectly. How can I determine if the calculator is operating properly ? A: Refer to page 232, which descri bes the diagnostic self-test. Q: My arithmetic keys don’t work like I ex pect. I press 12 3 = and get 3.00. A: You may be in the wrong mode. Press @>  to set Algebraic mode. Q: My numbers contain commas as decimal points. Ho w do I restore the periods ? A: Press D  .
A: Assistance , Batteries, Memory, and Service 223 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Q: How do I change the nu mber of decimal place s the calculator displays ? A: The procedure is describ ed in “Decimal Places” on page 34. Q: How do I clear all or por tions of memory ? A: C clears the c alculator line. @c clears the data lists or variables accessible from the cu rrent menu. Erasing the entire contents of memory is covered in “Erasing Continuo us Memory” o n page 229. Q: Why am I getting the wrong answer using the TVM menu ? A: B e s u re t o e n t e r a v a l u e f o r all five TVM variables , even if a value is zero (as FV is for a loan without a balloon). Clearing the variables before starting ( @c ) accomplishes the same thing. Check the appropriate payment mode (mortgages and loans are typically End mode calculations), and sp ecify the number of payments per year (  ). Also check that all figures for money paid out are negative (the cash-flow sign convention ). Q: Can I access the TVM menu functions from the S olve r ? A: No, but you can do the same functions by copying the appropriate financial formulas into the S o lver. The formulas are given starting on page 168. Q: Can I access the data stored in my CFLO and SUM lists from the Solver ? A: Yes. See “Ac cessing C FLO and SU M Lists fro m the Solver,” page 177. Q: How do I indicate multiplication in an equation typed into the Solver ? A: Use the m ultiplication key ( * ). You cannot use the letter  in the ALPHA menu. Q: What does an “E” in a number (for example, 2.51E － 13) mean ? A: Exponent of ten (for ex ample, 2.51 x 10 -13 ). Refer to “Scientific Notation” on page 47. Q: The calculator has displayed the messa ge     . What should I do ?
224 A: Assistance, Batteries , Memory, and Service File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 A: Refer to “Managing Calculator Memory” on page 227 for instructions on how to reclai m memory for your use. Q: The calculator is operating slowly, and the annunciator is blinking. Why ? A: The calculator is trace printing. Press @p  e to turn off tracing. Q: How c an I c han ge th e sign of a numb er in a lis t wit hout keyin g in t he number again ? A: Press R I & I . Q: The beeper is not working. A: Check the beeper mode by pressing @>  . See also page 36. Q: The messages and the menu labels in the display are not in English. How do I restore the English ? A: Mo del s of the hp 17b II so ld i n ma ny c oun tri es o uts id e of th e U nit ed States include a menu to select the langua ge for messages and labels. To select the English langua ge, press @>   . P ow e r and Batteries The calculator is power by two 3- volt lithium coin batteries. When changing batteries, use only fresh button-cell batteries. Both batteries must be changed at the same time. Do not us e rec hargeable batterie s . Lo w-P o wer Indications When the low-battery annunciator ( ) comes on, the calculator can continue normal operation for several hou r s. If the calculator is turned off. Continuous Memory will be preserved for approximately two weeks. To conserve battery power, printing does not function when the battery annunciator is on. Printing mig ht halt during a printing operation
A: Assistance , Batteries, Memory, and Service 225 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 due to a borderline low-battery condit ion. The calculator can detect that there is insufficient power for printing before the battery annunciator comes on. If yo u con tin ue to us e th e cal cula tor after the battery annunciator comes on, power can eventually drop to a level at which the calculator stops powering the display and keyb oard. The calculator will requ ire fresh batteries before it can be turned back on. When you tu rn the calculator on after fresh batteries have been installed, the calculator returns to the previous display if your stored data is intact. If data ha s been lost, the calculator displays    . Please see page 18 for information about the langu age setti ng. After selecting a language, the display will show  . Pressing a ny key will clear this message from the display. In either case, the cl ock’s time might be incorrect. Installing Batteries Once the batterie s are removed, you mu st replac e the batteries within 30 secon ds to prevent loss of C ontinuous Memory. To install batteries: 1. Have tw o fre sh CR203 2 bat teri es at hand. Hold batterie s by the edges . Do not tou ch the co ntacts. Wipe eac h batter y w ith a clean , lint-free c loth to remo ve dirt and oil . 2. M a k e s u r e t h e c a l c u l a t o r i s off . Do not press C again until t he entire procedure for ch anging bat teries is complete d. Chang ing ba tter ie s wi th the ca lculat or on can era se the co nten ts of Continuous Memory . If y ou hav e set an y appointments , make sur e the y will not c ome due w hile the bat teri es are out . 3. T urn the calc ulator o ver and pr i z e off the battery co v er .
226 A: Assistance, Batteries , Memory, and Service File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 4. Never r emove two old batteries at the same time, in case memory lost . Re mov e one o f the two batte ri es once . Insert a ne w battery , making sur e that the positiv e sign ( ) is fac ing outw ar d. W arn ing Do not mutilate, pun cture, or dis pose of batter ies in fire . The batteries c an burst or explode, releasi n g haz ardo us chemicals. 5. R emov e and insert the other batter y as step 4. Mak e sure that the positi ve sign ( ) on eac h battery is fac ing ou twar d. 6. Replace the battery compartment co ver . 7. Pre ss on. Now turn the calculator bac k on. If it does not function, you might have taken too long to change the batteries or inadvertently turned the calculator on while the batteries were out. Remove the batteries again and lightly press a coin against both battery contacts in the calculator for a few seconds . Put the batteries back in and turn the calculator on. You should see   .
A: Assistance , Batteries, Memory, and Service 227 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 M anaging Calculator Memor y The calculator has approximately 30,740 units (or “bytes”) of user memory available. (This is s eparate from the system memory that stores al l the unerasable info rmatio n with which the c alculator is manufac tured.) The calculator displays      if you attempt an operation that uses more memory than is currently available. If you see this message: 1. Complete an y calc ulations i n the calc ulator line (p re ss = or C ). T his fr ees the memor y that was be ing used to stor e each o f the number s and operators . 2. T o further inc reas e the amount of av ailable memory: R ename the named S UM and CFL O lists w ith shorte r names (s ee page 9 8) , and clear an y lists you no l o nger need (see page 9 9) .  Shor ten or dele te any me ssages w ith appointme nts (see page 14 6) .  Delete any Sol ver v aria bles o r equations y ou no longer need (s ee page 164) .
228 A: Assistance, Batteries , Memory, and Service File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 R esettin g the Cal culato r If the calculator doesn’t respond to keystro kes o r is be ha ving un us ually, attempt to reset it. Resetting the calculator halts the cu rrent calculation, clears the calculator line, and display s the MAIN menu. Stored data remains intact. To reset the calculator, hold down C while pressing the third menu key from the left. Repeat if necessary. The calculator displays   to confirm that reset has occurred. The calculator can reset itself if it is dropped or if power is interrupted. If the calculator still does not respond to keystrokes, u se a thin, pointed object to press the reset hole ne ar of the battery compartment. Re s e t h ol e Resetting the calcu lator halts the current calculation, cle ars the calcu lator line, and displays the MAIN menu . Stored data remains intact except setting those conditions: double-s p ace printing off, printer tracing of f, printer without the ac adapter, and beeper on.
A: Assistance , Batteries, Memory, and Service 229 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Er asing Continuous Memory Erasing Continuous Memory is a way of freeing a large amount of memory so that you can use it for ot her things. In addition, the calculator is set to certain “default” settings.  Clears the calc ulator line and his tor y stac k.  Deletes all Sol ver equ ations and their v ari able s, and c lears all other v aria bl es in menu s.  Clears all CFL O and SUM lis ts and their names .  Clears all a ppointme nts.  Return s U. S Dol la rs an d EURO Do ll ars curren c ies an d th e rate e qual s 1. 000 0.  Sets thos e conditions: For English language: Month/da y /y ear date format , 12 -hour cloc k, 2 dec imal places, double-space printing o ff , pr inter tr acing off , pr inter w ithout the ac adapter , and beeper on. For the other langu ages: Day/ month/y ear date for mat, 2 4 -hour c lock , 2 de c imal places, double-space printing o ff , pr inter tr acing off , pr inter w ithout the ac adapter , and beeper on.  Maintains the selected mod e － AL G or RPN － P eri od (.) or comma (,) de c imal point . Erasing Continuous Memory does not affect the current time and date, date and the selected language. To erase Continuous Memory, press and hold down C , the leftmost menu key, and the rightmost menu key. (Press three keys simultaneously). When the three keys are released, the calculator displays    . Continuous Memory can inadvertently be erased if the calculator is dropped or if power is interrupted.
230 A: Assistance, Batteries , Memory, and Service File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Clock Accur ac y The clock is regulated by a quartz cr ystal accurate to within 1.5 minutes per month under normal co nditions. The accuracy of the clock crystal is affected by temperature, physical shock, humidity, and aging. Optimu m accuracy is maintained at 25°C (77° F). En v ironmental L imits In order to maintain product reliability, observ e the following limits:  Operating temper ature: 0° to 4 5°C (3 2° to 113°F) .  Stor age temperatur e: － 20° to 65°C (－ 4° to 14 9°F).  Oper ating and stor age humidity: 9 0% relati ve h umidity at 40°C (104°F ) max i mum . Determ ining If the Calculator R equires Service Use these guidelines to determine if the calculator requires service. If it does, read “Service” on page 235.  If t he calc ulator won’t turn on: 1. Attempt to r eset the calc ulator (see page 2 2 8) . 2. If the calculator fails to r espond after s tep 1, r eplace the batter ie s (see page 2 2 5) . If y ou hav e ju st replaced the batter ies , see page 227 . If thes e steps do not help , the calc ulator r equir es serv ice.  If t he calc ulator doesn’t respond to ke ystrok es: 1. Attempt to r eset the calc ulator (see page 2 2 8) . 2. If the calcu lator still fails to re spond, attempt to er ase C ontinuou s Memory (see page 2 2 9) . This will erase all the info rmation y ou ’ve sto red. If thes e steps do not help , the calc ulator r equir es serv ice.
A: Assistance , Batteries, Memory, and Service 231 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9  If t he calculator responds to ke ystrok es but you suspect t hat it is malfunctioning: 1. Do the self-tes t (des cribed belo w) . If the calc ulator fails th e self tes t, it r equ ires serv ice . 2. If t he cal culator p asses the sel f- t est , it is qui te l ikely y ou’ve mad e a mistak e in operating the calc ulator . T ry r er eading portio ns of the manual , and chec k “ A ns w e rs to C ommon Ques tions ” on page 222 . 3. Contact the Calcu lator Su pport depar tment .
232 A: Assistance, Batteries , Memory, and Service File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Confir ming Calculator Operation: Self- T est If the display can be turned on, but it appears that the calculator is not operating properly, you can do a diagno stic self-test. The self-te st runs con tinuo usly, r epeati ng un til yo u halt it. To run the self-test: 1. T urn the calcu lator on. 2. If y o u ha v e the optional infr ared pr inter , turn it on . Certain diagno stic infor mation is pr inted dur ing the test . 3. If possible , r eturn to the M AIN menu (pr ess @A ). 4. T o start the self-test , hold do w n C w hile y o u pr ess the f if th menu k e y fr om the left. Once the self-test has begun , do not pre ss an y ke ys until y ou are read y to halt the test . 5. During the tes t, the calc ulator beeps per iodically and display s v ariou s patterns and char acter s. W atch f o r one of tw o message s that ar e displa yed be fore the tes t automaticall y repeats:  If the calculator p asses the s elf-test , the calculator displa ys   If the calcu lator displa ys  fo l lo wed by a five -d i gi t n um b e r , the calcu lator req uire s serv ice. 6. T o halt the self-test , hold do wn C w h ile y ou pre ss the thir d menu k ey fr om the le ft. T he calcul ator display s   . If y ou pr es s any other k ey instead, the test halts and the cal culator dis play s a  messa g e. This result s from a n i nco rrect key being pressed, and does not mean that the calculator re quir es s er v ice . 7. If the calcu lator failed the self-test , repeat s teps 4 thr ough 6 to ver if y the re sults. If y ou do not have a prin ter , wr ite dow n the me ssages that ar e displa yed in s tep 5 .
A: Assistance , Batteries, Memory, and Service 233 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Wa r r a n t y hp 17bII Financial Calculator; Warranty period: 12 months 1. HP warrants to you, the en d-us er customer, that HP h ardware, accessories and supplies will be free from defects in materials and workmanship after the date of pu rchase, for the period specified above. If HP recei ves noti ce of such defects d uring 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. 2. HP warrants to you that HP soft ware will not fail to execute its programming instructions after the date of purchase, for the period specified above, due to defects in mat erial and workmanship when properly installed and used. If HP receives notice of such defects during the warranty period, HP will replace software media which do es not execute its programming instructions due to su ch defects. 3. HP does not w arr ant that the operati o n o f HP pr oducts w ill be uninterr upted or err o r f ree . If HP is u n able , w i thin a r easona ble time , to repair or replac e any pr oduct to a con dition as w arranted , you will be entitled to a r efu nd of the pur chase pr ice upon pr ompt r eturn o f the pr oduct. 4. HP products may contain remanufactured parts equivalent to new in performance or may hav e been subject to incidental use. 5. Warranty does not apply to defects resulting from (a) improper or inadequate maintenance or calibration, (b) s oftware, interfacing, parts or suppl ies not supplied by HP, (c) unauthorized modification or misu se, (d) operation outside of the published environmental specifications for the product, or (e) improper site preparation or maintenance. 6. HP MAKES NO OTHER EXP RESS WARRA NTY OR C ONDITIO N WHETHER W RITTEN O R OR AL. TO THE EX TENT ALLO WED BY LOCAL LAW, ANY IMPLI ED WARRA NTY OR CO NDI TION OF MERCHAN TABILITY, SATI SFAC TORY QUALITY, O R FITNESS FOR A PARTICULAR PURP OSE IS LIMIT ED TO THE DURATIO N OF THE EXP RESS W ARRANTY SET FORT H ABOV E. Som e countries, states or provin ces do not allow limitations on the duration of an implied warranty, so the above limitation or
234 A: Assistance, Batteries , Memory, and Service File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 exclusion might not apply to you. This warranty gi ves you specific legal rights and you might also hav e other rights that vary from country to country, st ate to state, or province to province. 7. TO THE EXTEN T ALLOWE D BY LOC AL LAW, THE R EMEDIES IN THIS WARRANTY STAT EMENT ARE YO UR SOLE AND EXCLUSI VE REM EDIES. EXC EPT AS INDIC ATED A BOV E, I N NO EVENT WILL HP O R ITS SUPPLIERS BE LIABLE FOR LOSS OF DATA OR FO R DIRECT, SPECIA L, INCIDE NTAL, CONSEQU ENTIAL (INC LUDING LOST PROFIT O R DATA), OR OTHER DA MAGE, WHETH ER BASED I N CONTRAC T, TORT, OR OTHERWISE. Some countries, States or prov inces do not allow the exclusion or limitation of inci dental or consequ ential damages, so the above limitation or e xclusion may not apply to you. 8. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services . Nothing herein shou ld be construed as constituting an additional warranty.HP shall not be liable for te chnical or editorial errors or omissions contained herein. FOR CO NSUMER TR ANSACTI ONS I N AUST RALI A AND NE W ZEALAND: T HE WAR RANTY T ERMS CONT AINED I N THIS ST ATEM ENT, EXCEPT TO THE EXTENT L AWFULLY PERMITTED, DO NOT EXCLUDE, RESTRICT OR MODIFY AND ARE IN ADDITION TO T HE MANDATORY STATUTORY RIGHTS APPLICABLE TO THE SALE OF THIS PRODUCT TO YOU.
A: Assistance , Batteries, Memory, and Service 235 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Service Europe Country : Telephone numbers Austria 43-1-3602 771203 Belgium 32-2-7126 219 Denmark 45-8-2332 844 Eastern Euro pe countries 420 -5-414225 23 Finland 35-896400 09 France 33-1-4993 9006 Germany 49-69-953 07103 Greece 420-5-414 22523 Holland 31-2-0 654530 1 Italy 39-02- 75419782 Norway 47-638 49309 Portugal 351-22 9570200 Spain 34-915-64 2095 Sweden 46-851 992065 Switzerland 41-1-4395 358 (German) 41-22-827 8780 (Frenc h) 39-02- 75419 782 (Italian) Turkey 420 -5-414 22523 UK 44- 207-45 80161 Czech Republic 420-5-414 22523 South Africa 27-11-237 6200 Luxembour g 32-2-7126 219 Other European countries 420 -5-414225 23 Asia P acific Country : Telephone numbers Australia 61-3-9841 -5211 Singapore 61- 3-9841 -5211 L.America Country : Telephone numbers Argentina 0-810-555- 5520 Brazil Sao Paulo 3747-7 799; ROTC 0-800 -157751
236 A: Assistance, Batteries , Memory, and Service File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Mexico Mx City 52 58-992 2; ROTC 01-80 0-472-668 4 Venezuela 0800-4746- 8368 Chile 800-360999 Columbia 9-80 0-114726 Peru 0-800-1 0111 Central America & Caribbean 1-800-7 11-2884 Guatemala 1-800-999- 5105 Puerto Rico 1-877-232-058 9 Costa Rica 0-800-011- 0524 N.America Country : Tel ephone numbers U.S. 1800 -HP INVENT Canada (905)2 06-466 3 or 800-HP INVENT ROTC = Rest of the country Please logon to http://www.hp.com for the latest serv ice and support information.
A: Assistance , Batteries, Memory, and Service 237 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Regulat or y inform ation This section contains information that shows how the hp 17bII Financial calculator compl ies with regulations in certain regions. Any modifications to the calculat or not expressly approved by Hewlett-Packard co uld void the authority to operate the 17bII in these regions. USA This calculator generates, uses, and can radiate radio fr equency energ y and may interfere with radio and television reception. The calculator complies 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 interferen ce in a residential i nstallation. However, there is no g uarantee that interference will not occur in a particular installation. In the unlikely event that there is interference to radio or television reception(which can be determined by turning the calculator off and on) , the user is encouraged to try to correct the interference by one or more of the fol lowing measures:  R eori ent or relocate the r ecei ving antenna .  Relocate the cal culator , w ith r espect to the r ece iv er . Canada This Class B digital apparatus complies with Canadian ICES-003. Cet appareil numerique de la classe B est conforme a la norme NMB-003 du Canada. Japan この装置は、情 報処理装置等電波障 害自主規制協 議会 (VCCI) の基準 に基づく第二情報技 術装置です。この装置は、家庭環境で 使用することを 目的としていますが、この装置がラジオやテレビジョン受 信機に近接して使 用されると、受信障害を 引き起こすことが あります。 取扱説明書に従 って正しい取り扱 いをしてくださ い。 Noise Declar ation In the operator position und er normal operation (per ISO 7779): LpA < 70dB.
238 B: More About Calcul ations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 B More About Calculations IRR% Calc ulations The calculator determines IRR% for a set of cash flows using mathematical formulas that “search” for the answer. The process finds a solution by estimating an answer an d then using that estimate to do another calculation—in mathematical terms, this is called an iterativ e process. In most cases, the calculator finds the desired answer, sinc e there is usually only one solu tion to the calculation. However, calculating IRR% for certain sets of cash flows is mo re complex. There may be more than one mathematical solution to the problem, or there may be no solution. In these cases, the calculator displa ys a message to help you interpret what has happened. P ossible Outcomes of Ca lc ulating IRR% These are the possible outco mes of an IRR% calculation for which you have not stored a guess.  Case 1: The calc ulator displa y s a positiv e answ er . This is the onl y positi ve answ er . How e v er , one or more negati ve ans w ers ma y e x ist .  Case 2 : The calc ulator find s a negativ e answ er but a s i ngle positi ve sol ut io n a lso exists. I t d i spl ay s:             T o see the negati ve ans w er , pre ss < . T o sear ch f or that positi ve ans wer , y ou mus t input a guess . (Ref er to “Stor ing a Gues s for IRR% ”; below). Ther e might als o be additional negati v e answ ers.  Case 3: The calc ulator displ ay s a negativ e ans w er and no message .
B: More About Calculations 239 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 T his is the only answ er .  Case 4 : The ca l cula to r di spl ays the m essa ge :          The calc ulation is v er y comple x . It might in volv e more than one positi ve or negati ve ans w er , or there ma y be no soluti on. T o continue th e c al cula tio n, you must sto re a guess.  Case 5: The calcu lator displa ys:    Ther e is no answ er . This situ ation might be the r esult of an err o r , suc h as a mis take in ke y i ng in th e cash flo ws . A common mi stak e is to pu t t h e w r o n g si g n f o r a c a sh f l o w . A v a l i d c a s h f l o w s e r i e s m u s t h a v e a t least one po sitiv e and one ne gati ve cas h flo w . Halting and Restarting the IR R% Calculation The search for IRR% may t ake a relatively long time. You can halt the calculation at any time by pressing any key. The calcula tor then displays the current estimate for IRR% . You can res ume the calcu lation by:  Pre ssing s  while the c urr ent e stimate is display ed in the calcu lator line . This contin ues the calcu lation fr om w here it le f t off .  Storing a gue ss for IRR% , disc uss ed below . St oring a Guess f or IRR% To enter a guess, key in an estimate of IRR% and then press s  . You can enter a guess for IRR% at these times:  Bef ore beginning the calc ulation . T his can r educe the t ime re quir ed to calcu late an answ er .  After y ou’v e halted the calculati on.  A fter the calc ulator has halte d the calculati o n due to an y of the abo ve ca ses. For c ases 3 an d 5 , howev e r , no (o th er) so lutio n s will be fo und. When calculating IRR% using a g uess, the calculator dis plays the current estimate of IRR% and the cal culated value of NPV for ea ch iteration. The calculation halts when the calcu lator finds an answer. However, there
240 B: More About Calcul ations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 may be additional positive or negative an swers, or no true solution at all. You can continue searching for other solutions by halting the calculation and entering a different guess. One way to obtain a goo d guess for IRR% is to calculate NPV for various interest rates ( I% ). Since IRR% is the interest rate at which NPV equals zero, the best estimate of IRR% is the interest rate that yields the value f or NPV clo sest to zero. To find a good estimate for IRR% , key in a guess for IRR% and press  Then, press  to calculate NPV for that value. Repeat the calculation of NPV for several values of I% , and look for trends in the results. Cho ose a s your guess for IRR% a val ue of I% that produces an NPV clo se to zero. Solv er Calculations As noted in chapter12, the Solver us es two methods to find solutions, depending on the complexity of the equation: direct an d iterative (an indirect). To use all the calculating power inclu de d in the Solver, it would help to understand, in a general way, how it works. Direc t Solution s When you start a calcu lation (by pressing a menu key), the Solver first tries to find a direct solution by “isolating” the variable you are solv ing for (the unkno wn ). Isolating a variable involves rearrang ing the equation so that the unknown variable is by it self on the left-h and side of the equation. For example, suppo se you enter the equation: PROFIT = PRICE － COST If you’ve st ored val ues for PROFIT and PRICE , pressing  causes the Solver to internally rearrange th e equation algebraically to solve for COST (COS T is the unknown): COST = PRI CE － PROF IT Answers calculated this way are called direct solutions.
B: More About Calculations 241 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 For certain equations, the unknown can be isolated, but an answer cannot be calculated with the val ues stored. Then the c alculator displays:     For example, if you enter an equation: AREA ＝ L x W and then enter values for AREA and W , the Solve r rearranges the equation to: L ＝ AREA ÷ W in order to calcu late L . However, if you enter the value zero for W , the Solver cannot find an answer because div ision by zero is not allowed. The Solver can isolate the unknown variable if the equa tion meets these conditions:  The u nknow n var iable occ urs onl y once in the equ ation. *  The onl y functi ons in w hich t he unknow n var iable a ppea rs ar e AL OG , DA T E , D DA YS (a ct u al c a le n d ar o n ly) , EX P , EX PM1, I F ( i n then and else cl au ses onl y), INV , LN, LNP1, L OG , S, S Q, and SQR T .  The onl y oper ators inv olv ing the unkno wn v ar iable are ＋ , － ,x, ÷ , and ^ (pow er). If y ou ar e solv ing f or a var iable r aised to a positiv e , ev en pow er (f or ex ample , A ^ 2 ＝ 4) , there ma y be more than one s o lution . How e v er , if the Sol ver can is olate the var iable , it will f ind one of the soluti ons using the posit iv e r oot . F o r e xam ple, the S olv er r earr anges A ^ 2 ＝ 4 to A ＝ 4 and calc ulates the ans w er ＋ 2. †  The unkno wn v ar iable does not appear as an e xponent . * Exceptions: (1) Occurren ces of the unknown variable as the argumen t of the S function are ignored. (2) The unknown variable c an appear twice withi n an IF function: once i n the then clause and once in the else clause. † The Solver’s ability to fi nd a solution iteratively can often be enhanced by rewriting the equation so that the un known variable does not appear as a divisor. For example, the So lver may more easily solv e for A if the equation 1 ÷ ( A ^ 2– A) ＝ B is rewritten as (A ^ 2–A ) × B ＝ 1.
242 B: More About Calcul ations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Iter ative Solutions If the Solver is not able t o iso late the unknown variable, it c annot provide a direct solution. In these ca ses, the Solver sea rches iteratively for a solution. * In its iterative search for a solution, the Solver looks for a value that sets the left side of the equation equ al to the right side. To do this, the Solver starts with two initial estimates of the answer, which we’ll call estimate #1 and estimate #2. Using estimate #1, the Solver calc ulates values for the left and right side of the equ ation ( LEFT and RIGHT ) and calculates LEFT minus RIGHT ( LEFT － RIGHT ). Then, the Solver does the same calculations for estimate #2. If neither estimate produces a value of zero for LEFT － RIGHT , the Solver analyzes the results and pr oduces two new estimates that it judges to be clos er to the answer. B y repeating this process many times, the Solver narr ows in on the answer. During this search, the calculator displa ys the two current estimates and the sign of ( LEFT － RIGHT ) for each estimate, as shown. Sign of LEFT － RIGHT for each estimate Since calculators cannot do calculatio ns with infin ite precision (the hp 1 7 b I I u s e s 1 2 d i g i t s i n i t s c a l c u l a t ions), sometimes the Solver will be unable to find an estimate where LEFT － RIGHT is exact ly zero. However, the Solver can distinguish between si tuations where the current estimate could be a solution, and situations where no solu tion is found. * Exceptions: (1) Occurren ces of the unknown variable as the argumen t of the S function are ignored. (2) The unknown variable c an appear twice withi n an IF function: once i n the then clause and once in the else clause.
B: More About Calculations 243 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 The iterative search for a solution sometimes takes several minutes. (You can halt the search at any time by pressing any key except @ ) There are four possible outcomes:  Case 1: The calc ulator displa ys an ans w er . This is v ery lik ely the tr ue soluti on for the u nknow n v aria ble. T here ar e two situations in whi ch the S olv er retu rns a case 1 ans w er:  Case la: LEFT － RIGH T is ex actl y z er o.  Case l b: LEFT － RI GH T is not z er o for e ither estimate . Ho we ver , the Sol v er has f ound two estimate s that cannot get an y clos er together . (Numbers that ar e as clos e together as possible ar e called nei ghbors .) F urthermor e , LEFT － RI GH T is a positiv e v al ue for one e stimate and a negati ve v alue for the other e stimate . Case 1 a : is ex actl y 0 . Case 1 b: is not ex actl y 0 . and ar e re lat i vel y close tog ether . T h e tw o esti m- ate s ar e "nei gh bors". I f yo u wa n t to k n ow wh e t h er LEFT － RIG HT is ex actl y ze ro, p r es s t h e menu k e y f o r the unknow n var iable . If LEFT － RI GHT is not equal to z er o, the cal culator dis play s the v alues of LEFT and RI GH T . The equati on could hav e mor e than one iter ativ e soluti o n . If the ans wer does n o t s eem rea sonable , enter on e or tw o guess es and
244 B: More About Calcul ations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 r es tar t the sear ch .  Case 2 : The calc ulator displa ys the v al ues of LEFT and RI GH T , whi ch are u n equal . T o see the calc ulator’s re sult, pr ess < or C . If LEFT and RIG HT ar e relati v ely c lose to one another in value , the re sult is pr obably a tr ue solution . Other w ise , the result is pr obabl y not a true sol ut io n. If the result s eem s unr easonable , it could be because the equ ation has mor e than one s olution . Y ou might w ant to enter one or tw o gues ses and r es tar t the sear ch . If you want to obtain additional informati on about the answer, press and hold down the menu key for the unknown v ariable until the numbers in the display stop changin g. At this point, the Solver is displaying the final estimates and the signs of LEFT － RIGHT for each estimate. T his informati on can be helpfu l:  Case 2a : If the signs of LEFT － RIGH T are oppo site, and the tw o es timates are as c lose together as two 12 -digit number s can get (nei ghbors), the Solv er f ound two es timates that “br ac ket” an ideal s olution (a solution w her e LEFT － RIG HT equal s z ero) . I f LEFT and RIG HT ar e relati v el y clos e together , the ans wer is pr obabl y a sol ut io n.  Case 2b : If the signs of LEFT － RIGH T are oppo site, and the tw o es timates are not ne ighbor s, be v ery cauti ous abou t accepting the ans wer as a soluti on. If LEF T and RI GHT are r elativ ely clos e together , the ans w er is pr obabl y a soluti on .  Case 2c: If LEFT －RIGHT f or the t w o estimates hav e the same sign , the Sol v er has halted becau se it could f ind no e stimates that further r educed the magnitude of LEFT － RIG HT . Be v ery cauti ous about accepting the ans w er . If the v alues of LEFT and RIGHT are not r elativ ely clos e to one another , y ou should r ejec t the ans wer .
B: More About Calculations 245 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Case 2 a : have opp os ite sign s. The t w o estim ates a re "neighbors". Case 2 b : have op po si te sign s. The t w o estim ates a re far a pa r t. Case 2 c: have th e sam e sign..  Case 3: The calcu lator displa ys:         T h e Sol ver is una ble to begin its iter ativ e sear ch f or a s olution using the cu rre n t initi a l e stimates (guess es) . Y ou might f ind a s oluti on b y
246 B: More About Calcul ations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 enter ing differ ent estimate s. T he clos er you can estimate the ans wer , the mor e lik ely that the Sol ve r will f ind a soluti on.  Case 4: T he calcu lator d isplay s:      T he Sol v er is unable to f i nd a s o luti on. Check your eq uation to mak e sur e you ha v e made no err ors in enter i ng it . Also c heck the v alue of ea ch k n own va ria b le. I f yo ur e qu at i o n a n d vari ab l es a re c o rrec t, yo u might be a ble to find a soluti on by e nter ing v ery good gues ses . Equations Used b y Built-in Menus Actuarial Functions n ＝ number of compounding periods. i% ＝ periodic interest rate, ex pressed as a percentage. Single Payment Present Value Function (Present value of a single $1.00 payment made after n periods.) % (% : ) 1 100 n i SPPV i n    － ＝　 ＋　 Single Payment Future Value Function (Fut ure val ue after n periods of a single $1.00 payment.) % (% : ) 1 100 n i SPFV i n    ＝＋ Uniform Series Present Value Function (Present value of a $1.00 payment that occurs n times.) % 1 1 100 (% : ) % 100 n i USP V i n i    　　 － －　 ＋ 　 ＝ Uniform Series Futu re Val ue Function (Future value of a $1.00 payment that oc curs n times.)
B: More About Calculations 247 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 % 1 1 100 (% : ) % 100 n i USFV i n i    　　 ＋　 －　 ＝ P er centag e Calculations in Business (BUS)  ×    ×    ×    ×   － ＝ ＝ － ＝ － ＝ % 1 0 0 % 100 % 100 % 100 NEW OLD CHANG E OL D PART TOTAL TOTAL PRICE CO ST MAR KUP C COST PRICE CO ST MAR KUP P PRICE Tim e V al ue of M on e y (T VM) S = payment mode factor (0 for End mode; 1 for Begin mode). ×  × × ×   ＝ ＝＋ I% YR i% P/YR % 0 PV 1 ( % : ) 100 iS PMT USPV i n FV SPPV(i% : n) Amortiz a tion ∑ INT ＝ accumulated interest ∑ PRIN ＝ accumulated principal i ＝ periodic interest rate BAL is initially PV rounded to the cu rrent display setting. PMT is initially PMT rounded to the current display setting. % / 100 IY R i PY R × ＝ For each payment amortized:
248 B: More About Calcul ations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 INT ’ ＝ BA L x i (INT ’ is r ounded to the cu rr ent displa y setting; INT ’ ＝ 0 for per iod 0 in Begin mode) INT ＝ INT ’ (with sign of PM T ) PRI N ＝ PM T INT ’ PRI N ＝ PM T INT ’ BA L new ＝ BA L old PRI N ∑ INT new ＝ ∑ INT old INT ∑ PRI N new ＝ ∑ PRIN old PRI N Interest R ate Con versions Periodic compou nding % % 1 1 100 100 P NOM EFF P   − ×   ×    ＝ Con tinuous c omp oundin g % 100 % 1 1 0 0 NOM EFF e  −×   ＝ Cash-F low Calculations j ＝ the group number of the cash flow. CF j ＝ amount of the cash fl ow for group j . n j ＝ # TIMES the cash flow occurs for grou p j . k ＝ the group nu mber of the last group of cash flows . 0 1 total n umbe r of ca sh flow s prior to g roup j ( x ( % : ) ( % :) ) j l l k jj j j Nn NPV CF C F USPV i n x SPP V i N ≤ = ∑ ∑ 1＜ j = ＝ ＝ When NPV = 0, the solution for i % is IRR% .
B: More About Calculations 249 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 × × ∑ ∑ = =0 ＝＝ ＝ ＝ 1 ( % : ) (% : ) ( ) k j j k jj j NFV NPV SP FV i N w her e N n NPV NUS USPV i N TOTAL n CF Bond Calculations Reference: Ly nch, John J., Jr. and Jan H. May le, Standard Securities Calculation Methods , Securiti es Industry Associ ation, New York, 1986. A ＝ accr ued day s, the number of da y s fr om beginning of cou pon peri od to settleme nt date . E ＝ number of da ys in coupon per iod br ack eting settlement date . B y con v ention , E is 18 0 (or 3 60 ) if calendar ba sis is 3 0/3 60. DS C ＝ number o f da ys fr om settlement date t o next cou pon date . ( DSC ＝ E － A ). M ＝ coupon per iods per y ear ( 1 ＝ annual , 2 ＝ sem iannu al ) , N ＝ number of cou pon periods betw een settlement and redem ption date s. If N has a f racti onal part (settlement not on cou pon date), then r ound it to the next higher w hole number . Y ＝ annual y ield as a dec imal frac tion , YLD% / 100. For one or few er coupon period to redemption: % % 1 CPN CAL L AC P N M PRICE DSC Y EM EM     ×     ×     ＝－ For more than one cou pon period to redemption:
250 B: More About Calcul ations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 − −               −×          ∑ = ＝ ＋ 1 1 1 1 % % 1 DSC N E N DSC K K E CALL PRICE Y M CPN AC P N M EM Y M The “end-of-month” conventi on is used to det ermine coupon dates in the following exceptional situations. (This af fects calculations for YLD%, PRICE , and ACCRU .)  If the maturity date f alls on t he last da y of the month , then the cou pon pa y ments will also fall on t he last day o f the month . F or e xam ple, a semi annual bond that matur es on September 3 0 wil l ha v e coupon pa y ment dates on Mar ch 31 and Se ptember 30.  If the matur it y date of a s emi annual bond f alls on Au g us t 2 9 or 30, then the F ebruary coupon p ay ment dates w ill fall on th e last day of F ebruary ( 2 8, or 2 9 in lea p year s) . Depreciation Calculations For the given ye ar, YR# : − × − − ×− × ×  ×−   ＝ ＝ ＝ ＝ (# 1 ) % 100 ( # 1 ) ( 1 ) 2 %/ 1 0 0 ( %/ 1 0 0 ) 1 YR ACRS ACRS BASIS BASI S S AL V SL LIFE BASIS SAL V SO YD LIFE YR LIFE LIFE BASI S FACT FACT DB LIFE LIFE
B: More About Calculations 251 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 For the last year of depreciation, DB equals the remaining depreciable value for the prior year. Sum and Statistics n ＝ number of items in the list. x’ ＝ an element of the sorted list. 1 2 1 for o dd n, w here 2 ( ) fo r e ven n, wh er e 22 ( ) 1 ( - . i i j jj i ii x TOTA L x MEAN x n n MEDIAN x j xx n MEDIAN j xx STDEV n yx WM N == = ′ == ′′ == Σ− = − = Σ Σ Σ 2 2 ) ( ) . () 1 ii i ii yx y x GS D yy − = − ΣΣ ΣΣ RANGE ＝ MAX － MIN F orecasting Model Transfo rmation X i Y i LIN EXP LOG PWR y = B Mx y = Be Mx y = B M ln x y = Bx M y = B Mx In y = ln B Mx y = B M ln x ln y = ln B M ln x x i x i ln x i ln x i y i ln y i y i ln y i
252 B: More About Calcul ations File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 ΣΣ == =Σ − =Σ − =Σ − − 22 Let: 2 ( ) 2 ( ) ( ) ( ) The n: ii ii ii XY XY nn SX X X SX Y Y SXY X X Y Y = 2 SXY M SX B = b for LIN and LOG mod els, and B = e b for EXP and PWR models, where bY M X =− CORR 2 2 SXY SX SY = × Equations Used in Chapter 14 Canadian Mor tgag es − −  − =− −      = −     1 6 1 ( 1 ) ( 1 ) % where: 1 1 200 N N r PV PMT FV r r CI Y R r N = total number of monthly payments CI%YR = annual interest rate (as a percent) PV = loan amount PMT = monthly payment FV = balloon payment
B: More About Calculations 253 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Odd-P eriod Ca lc ulations − −  × =    − − × × × −   1 30 1 ( 1 ) (1 ) (1 ) N N DAYS PV i i iS P M T F V i i Where: PV = loan amount i = periodic interest rate as a d ecimal DAYS = actu al number of days until the first payment PMT = periodic payment amount N = total number of payments FV = balloon payment amount S = 1 if DAYS < 30 S = 0 if DAYS ≥ 30 Ad vance P ay m ents ( # ) (1 ) 1 ( 1 ) # N NA D V PV FV i PM T i A DV i − −− −− =   −     where: PMT = payment amount PV = loan amount FV = balloon payment amount i = periodic interest rate (as a de cimal) N = total number of payments #ADV = number of payments made in advance Modified Internal Rate of R eturn 1 100 1 n P N NFV MIR R NPV      =−  −      where: n = total number of compou nding periods NFV P = net futu re value of positive cash flows NPV N = net present value of negative cash flows
254 C: Menu Maps File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 C Menu Maps The following maps show how to disp lay each of the menus. There is a map for each menu label in the MAIN menu and for each menu found on the keyboard. The menu labels for variables are enc lo sed in boxes to illustrate how they are used: V ariable used to sto re and calculat e v a lues. V ar iable us ed to calculate or displa y v alues; cannot be used to s tore v alues. V ar iable used to store v alues; cannot be u sed to calc ulate va l u e s . %CHG OLD NEW %CH MU %P BUS %T O TL MU%C COST PRI C E M % C TOT A L PA R T % T COST PRI C E M%P Figure C-1. BUS Men u
C: Menu Maps 255 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 CURR1 C.R CL CURRX CURR2 RA TE C. ST O SEL CT Currencies Figure C- 2. CURRX M enu
256 C: Menu Maps File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 FIN TVM I C N V CF L O NOM% EFF% P NO M% EFF% CAL C IN SR DE LE T N AME GE T ＊ NEW Na me s o f List s TOTA L IRR% I% NPV NUS NFV NI % Y R P VP M T F V O T H E R P/ YR B E G EN D A MR T #P INT PR IN BA L NEXT T ABLE FIRS T LAS T I NCR GO Figure C-3. FIN M enu
C: Menu Maps 257 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 FIN BOND D EPR C BAS IS SA L V L I F E A CRS M O RE YR # DB SO YD SL M OR E TYP E SE TT MA T MO RE YLD% P R IC E 360 A /A SEMI A NN Figure C-3 (conti nued). FIN Menu
258 C: Menu Maps File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 SU M CAL C T O T AL Names of lists TOT A L M E A N M E D N RAN G MO RE SORT F R CS T MO R E INSR DELET NA ME GET A LPHA-E dit menu* ALPHA men u * MIN MAX (S ele ct x and y) MO RE x-l i st y- list COR R M B MO RE MO DL W . MN G.SD SI Z E LIN L OG EXP P WR MO RE ** Figure C-4. SUM Me nu * For the complete menu, see pages 30-31.
C: Menu Maps 259 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 TIM E CAL C APPT SET APT1 A P T 2 ...M OR E ... TI M E M/D 12/ 2 4 HELP MIN A/P M MS G RPT H ELP A /P M DA T E 1 DA Y S 360 D 365 D Figure C-5. TIME Menu * * For the complete menu, see pages 30-31.
260 C: Menu Maps File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 * A LP HA-E dit me nu* ALPHA me nu* CAL C ED IT NEW SO L V E Figure C-6. SOLVE Menu FI X ALL . , DI SP LO G MA TH LN EXP N! PI MO DES BEEP PRNT DBL AL G RPN LIS T PRI NT ER ST K REG S TIME MSG TR A C E INTL Figure C-7. DSP, MATH, MODES, and PRI NTER Menus * For the complete menu, see pages 30-31.
D: RPN: Summary 261 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 D RPN: Su mmary About RPN The RPN appendixes (D, E, and F) ar e especially for those of you who want to use or learn RPN —Hewlett-Packard’s original Reverse Polish Notation for operating calculators. This calcu lator can u se either RPN or algebraic logic for calculations—you choose which. HP’s RPN operating logic is based on an unambiguous, parentheses-free mathemati cal logic known as “Polish Notation,” developed by the Polish logician Jan Ł ukasiewicz ( 1878 － 1956). While conventional algebraic notati on places the operators between the relevant numbers or variables, Ł ukasiewicz’s notation places them before the numbers or variables. For op timal efficiency of the stack, we have modified that notation to specify the operators after the numbers. Hence the term Reverse Polish Notation , or RPN . Except for the RPN appendixes, the examples and keystrokes in this manual are written entirely using Algebraic (ALG) mode. About RPN on the hp 17bII This appendix replaces much of chapter 2, “Arithmetic. ” It assumes that you already understand calculator operation as covered in chapter 1, “Getting Started.” Only those fe atures un iq ue to RPN m ode are summarized here:  RPN mode .  RPN fu nctions .  RPN arithmetic , including per centages and s and R ar ithmetic .
262 D: RPN: Summary File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 v All other operations － including the Solver－ work the same in RPN and ALG modes . (The Solv er uses alge braic logic only.) For more information about how RP N works, see appendix E, “RPN: The Stack.” For RPN key strokes of selec ted examples from chapter 14, see appendix F, “RPN: Selected Examples.” Continue readi ng in chapter 2 to learn about the other func tionality of your calculator. Watch for this symbol in the margin earlier in the manu al. It identifies keystrokes that are shown in ALG mode and must be performed differently in RPN mode. Appendixes D, E, and F explain how to use your calcu lator in RPN mode. The mode affects only arithmetic calcu lations － all other operations, including the S olver, work the same in RPN and A LG modes. Setting RPN M ode The calculator operates in ei ther RPN ( Reverse Polish Notation ) or ALG ( Algebraic ) mode. This mode determines the operatin g logic used for arithmetic calculations. To select RPN mode: Press @>  . The calculator responds by displaying   . This mode remains until you change it. The display show s the X register from the stack. To select ALG mode: Press @>  . The calcu lator displays    .
D: RPN: Summary 263 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Wher e the RPN F unctions Are Function Name Defini tion Key to Use ENTER Enters and separate s one number from the next. = LASTX Recalls last number in X-register. @L R ↓ Rolls down stack contents. ~ ( same as ( ) R ↑ Rolls up stack contents. [ (except in lists) X < > Y X-register exchanges with Y-register. x ( same as ) ) CHS Changes sign. &
264 D: RPN: Summary File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Using INPUT for ENTER and ▼ for R ↓ . Except in CFLO and SUM lists , the I key also performs the E function and the ] key also performs the ~ function.  In lis ts: I stores nu mb ers. Use = to enter n umbers into the stac k during ar ithmetic calc ulations.  In lists: [ and ] move th rough li st s. Use ~ t o ro l l t h ro u g h s t a ck conte nts. Doing Calculations in R P N Arithmetic T opic s Affected b y RPN Mode This discussion of arithmetic using RPN replaces those parts of chapter 2 that are affected by RPN mode. These operations are affected by RPN mode:  T wo-number arithmeti c ( , * , - , / , u ).  The per cent functi on ( % ).  The LAS T X function ( @L ) . See appendi x E . RPN mode does not affect the MATH menu, recalling and storing numbers, arithmetic done inside re g i sters, scientific notation, nu meric precision, or the range of nu mbers available on the calculator, all of which are covered in chapter 2. Simple Arithm etic Here are some examples of simple arithmetic. Notice that  E separ ates nu mbers that you k ey in .  The oper ator ( , - , etc.) complete s the calc ulation .  One-number func tions (suc h as v ) work the sa me i n AL G a nd RPN mo des.
D: RPN: Summary 265 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 To select RPN mode, press @>  . To Calculate: Press: Display: 12 3 12 E 3  12 – 3 12 E 3 -  12 x 3 12 E 3 *  12 ÷ 3 12 E 3 /  12 2 12 @w  12 12 @v  1/12 12 @t  You do not need to use E before an operator, only between keyed-in numbers . Key in both numbers (separated by E ) before pressing the operator key. The Power Function (Exponentiat ion). The power function uses the @u key s. To Calculate: Press: Display: 12 3 12 E 3 @u  12 1/3 (cube root) 12 E 3 @t @u  The Percent Function. The % key calculates percentages without usin g the * key. Combined w ith or - , it adds or subtracts percentages. To Calculate: Press: Display: 27% of 200 200 E 27 %  200 less 27% 200 E 27 %-  12% greater than 25 25 E 12 %  Compare these keystrokes in RPN and ALG modes:
266 D: RPN: Summary File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 RP N Mode ALG Mode 27% of 200 200 E 27 % 200 * 27 %= 200 less 27% 200 E 27 %- 200 - 27 %= Calcul ations with S T O and RCL The store ( s ) and recall ( R ) operations work identically in ALG and RPN modes (see “Storing and Recalling Numbers” and “Doing Arithmetic Inside Registers and Vari ables” in c hapter 2). The keystrokes are the same for simple storing and recalling and for doing arithmetic inside registers and variables. When doing arithmetic in t he display with values from storage registers and variables, remember to use RP N. Compare these keystrokes in RPN and ALG modes: RP N Mode ALG Mode Stor e － 2 x 3 in register 5 2 &E 3 *s 5 2 &* 3 =s 5 Find PV － 2   R  2 -   R  - 2 = Find PV less 2%   R  2 %-   R  - 2 % = Find PMT x N   R  R  *   R  *R  = Chain Calc ulations － No P ar enth eses! The speed and simplicity of calcul ating using RPN are apparent during chain calculations － longer calculations with more than one operation. The RPN memory stack (refer to appendix E) store s intermediate results until you need them, then inserts them into the calculation.
D: RPN: Summary 267 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 The cube root example and the perc entage addition ex ample (previous topics) are two simple examples of chain calculations. For another example, calculate 7 x (12 3) Start the calculation inside the par entheses by finding 12 3. Notice that you don’t need to pres s E to save this intermediate result (15) before proceeding. Since it is a calculated result, it is saved automatically － without usin g parentheses . Keys: Display: Descript ion: 12 E 3  Intermediate result. 7 *  Pressing the function key produces the answer. Now study these examples. Note the automatic storage and retrieval of intermediate results. To Calculate: Press: Display: (750 x 12) ÷ 360 750 E 12 * 360 /  360 ÷ (750 x 12) 360 E 750 E 12 */ or 750 E 12 * 360 x/  {(456 － 75) ÷ 18.5} x (68 ÷ 1.9) 456 E 75 - 18.5 / 68 E 1.9 /*   (3 ＋ 4) x (5 ＋ 6) 3 E 4 5 E 6 * 
268 E: RPN: The Stack File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 E RPN: T he St ack This appendix explains ho w calculat ions take place in the automatic memory stack and how this method mi nimizes keystroke s in complicated calculations. What the Stack Is Automatic storage of intermediate results is the reason that RPN mode easily processes complicated calc ulations － without using parentheses. The key to automatic storage is the au tomatic RPN memory stack . The memory stack consists of up to f our storage locations, called registers , which are “stacked” on top of each other. It is a work area for calculations. These registers － labeled X, Y, Z, and T － store and manipulate four cu rrent numbers. The “oldest” number is the one in the T-( top ) register. T 0.00 “Oldest” number Z 0.00 Y 0.00 X 0.00 Display ed (most “recent” number) The most “recent” number is in the X-regist er: This is the number you see in the display .
E: RPN: The Stack 269 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Revie wing th e Stac k (Roll Down) The ~ ( roll down ) fu nction (on the ( key) lets you review the entir e contents of the stack by “rolling” the contents downward , one register at a time. While in RPN mode you don’t need to press the shift key for ~ . The ] key has the same effect as ~ . except in a CFLO or SUM list, when ] affects the l ist and not the stack. Likewise, the [ key rolls the contents of the stack upward, e xcept in lists. Rolling a Full Stack. Suppose the stack is filled with 1, 2, 3, 4 (press 1 E 2 E 3 E 4). Pressing ~ four times rolls the numbers all the way around and back to where they started: T 1 4 3 2 1 Z 2 1 4 3 2 Y 3 2 1 4 3 X 4 ~ 3 ~ 2 ~ 1 ~ 4 When you press ~ , the value in the X-regist er rotates around into the T-register. Notice that the contents of the registers are rolled, while the registers themselves maintain their po sitions. The calculator displays only the X-register. Variable Stack S ize. Cleari ng the stack by pressing @c reduces the stack to one register (X) with a zer o in it. As you ent er numbers, the stack builds up again. The ~ and [ functions roll t hrough as many registers as currently exist (one, two, three, or four). Ex c hanging the X - and Y -Registers in the Stack Another function that manipulates the stack contents is x ( x exchan ge y ), located on the ) key. It swaps the contents of the X- and Y-registers without affecting the rest of the stack. Pressing x again restores the original order of the contents. While in RPN mode y o u don’t need to press the shift key for x .
270 E: RPN: The Stack File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 The x function is used primarily to swap the order of numbers in a calculation. For example, an easy way to calculate 9 ÷ (13x8) is to press 13 E 8 * 9 x/ . Arithmetic － Ho w the Stack Does It The contents of the stack move u p and down automatically as new numbers enter the X-register ( lifting the stack ), and as operators combine two numbers to produce one new nu mber in the X-register ( dropping the stack ). See how a full stack drops, lifts, and drops it s contents while calculating 3 ＋ 4 － 9 ： a (lost) T a a a a Z b a b a Y 3 b 7 b X 3 E 4 4 7 9 9 - － 2 Drop Lift Drop ( a and b represent values already on the stack.)  Notice that when the s tack dr ops, it r eplicate s the contents of the T-regi ste r a nd ov er writes th e X- regi ste r .  When the stac k lifts, it pushe s the top contents ou t of the T-r egister , and that number is lo st. T his show s that the stack ’s memory is limited to fo u r num b e rs fo r ca l cul a t io ns .  Becaus e of the automati c mo vement o f the s tack , y ou do not need to clear the dis play bef ore doing a ne w calcu lation .  Most f unctions (e xcept E and C ) prepar e the stack to lift its conte nts w hen the next n umber enters the X -r egister .
E: RPN: The Stack 271 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 How ENTER W o rks You know that E separates two numbers keyed in one after the other. In terms of the st ack, how does it do this ? Suppose the stac k is filled with a , b , c , and d . Now enter and add two new numbers: 5 ＋ 6 ： a (lost) b (lost) T a b c c c Z b c d d c Y c d 5 5 d X d 5 5 E 5 6 6 11 Lift Lift No lift Drop E replicates the contents of the X-re gister into the Y-regi ster. The next number you ke y in (or r ecall) writes over (instead of lifting) the copy of the first number left in the X- regist er. The effect is simply to separate two sequentially entered numbers. Using a Num ber Twice in a Row. You can use the replicating feature of E to other advantages. To add a numb er to itself, key in the number and press E . Filling the S tack w ith a Consta nt. The replicating effect of E , together with the replicating effect (fro m T into Z) of stack drop, allows you to fill the stack with a n umeric constant for calculations. Example: Consta nt, Cumulative Gro wth. The annual sales of a small hardware company are projected to double each year for the next 3 years. If the current sales ar e $84,000, what are the annual sales for each of the next 3 years ? 1. Fill the s tack w ith the gr owth r ate (2 EEE ). 2. K ey in the c urr ent sale s in thous ands (84).
272 E: RPN: The Stack File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 3. C al cula t e fut ure sa les by pressi n g * for ea ch of t he next 3 yea rs. 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 E E E 2 84 84 * 168 * 336 * 672 Sales for the next 3 years are pr oj ected to be $168, 000; $3 36,000; and $672,000. Cl earing Numbers Clearing One Number. Clearing the X-register puts a zero in it. The next number you key in (or r ecall) writes over this zero. There are two ways to clear the number in the X-register:  Press < .  Press C . For example, if you wanted to enter 1 and 3 but mista kenly entered 1 and 2, these keystrokes would co rrect it: 1 1 1 1 1 1 E 1 2 2 < 0 3 3 Clearing the Ent ire Stack. Pressing @c clears the X-register to zero and eliminates the Y- , Z-, and T- registers (reducing the size of the stack to one register). The stack expands again wh en you enter more numbers.
E: RPN: The Stack 273 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 T a Z b Y c X d @c 0.00 Because of the automatic movement of the stack, it is not necessary to clear the stack before starting a calculation. Note that if an application menu is currently displayed, pressing @c also clears the application’s variables. Th e L AST X Re g is t er Retrie ving Numbers fr om LAS T X The LAST X register is a companion to the stack: It stores the number that had been in the X-register ju st before the last numeric op eration (such as a * operation). Pressing @L returns this value to the X-register. This ability to recall the “las t x” value has two main us es:  Corr ecting er rors: retr iev ing a number that w as in the X- re gister ju st before an in correct calculat ion.  Reu sing a number in a calc ulation. Reusing Numbers You can use @L to reuse a number (such as a constant) in a calculation. Remember to enter the constant second, just before executing the arithmetic operation, so that the constant is the last number in the X-register, and therefor e can be saved a nd retrieved with @L . Example: Calculate 96.74 52.39 52.39
274 E: RPN: The Stack File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Keys: Display: Descript ion: 96.74 E  52.39  Intermediate result. @L  Retrieves the number before the operation, saved in LAST X. /  Final result. Chain Calculations The automatic lifting and dropping of the stack’s conte nts let you retain intermediate results without storin g or reentering them, and without using parentheses. This is an advantage the RPN stack has over algebraic calculator log ic. Othe r features of R PN include the following:  Y ou ne v er wor k w ith more th an t w o number s at a time.  E separ ates tw o numbers k ey ed in seq uentially .  Pre ssing an operator ke y ex ecu tes that operati on immediatel y .  Intermedi ate re sults appear as the y are c alculated , so y ou can check eac h step as y ou go .  Intermedi ate r esults ar e automati cally s tored . The y rea ppear automati cally as the y ar e needed for the calc ulation － the last r esult stor ed is the f irst to come ba ck out .  Y ou can calcu l ate in the same or der as y ou wou l d w ith pencil and paper － th at i s, fr om th e in nerm ost p aren theses out ward: 4 ÷ [14 ＋ (7x3) － 2] ＝ 0.12 can be sol ved as 7 E 3 * 14 2 - 4 x/
E: RPN: The Stack 275 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Ex er c ises Here are some extra problems that yo u can do to practice using RP N. Calculate: (14 12) x (18 – 12) ÷ (9 – 7) ＝ 78.00 A Solutio n: 14 E 12 18 E 12 -* 9 E 7 -/ Calculate: 23 2 – (13 x 9) 1 / 7 ＝ 412.14 A Solutio n: 23 @w 13 E 9 *- 7 @t Calculate: 3 (5.4 0.8) ( 12.5 - 0.7 ) = 0.60 ×÷ A Solutio n: 5.4 E .8 * .7 E 3 @u 12.5 x-/ @v or 5.4 E .8 * 12.5 E .7 E 3 @u -/@v Calculate: ×÷ × ×× 8.33 (4 - 5.2) [ (8.33 - 7.46) 0.32] =4 . 5 7 4.3 ( 3.15 - 2.75) - (1.71 2.01) A Solutio n: 4 E 5.2 - 8.33 * @L 7.46 - .32 */ 3.15 E 2.75 - 4.3 * 1.71 E 2.01 *-/ @v
276 F: RPN: Selected Exampl es File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 F RPN: Selected E xamples The following examples selected from chapter 14 (“Additional Examples”) have been converted to RPN keystrokes. These example s illustrate how to convert algebrai c to RPN keystroke s in less common situations: with % , with R , and in a CFLO list. Example : Simple I nterest at an Annua l Rate. Yo ur good friend needs a loan to start her latest enterprise and has requested that y ou lend her $450 for 60 days. Yo u lend her the mo ney at 7 % simple annual inter est, to be calculated on a 365-day basis. How much inter est will she owe you in 60 days, and what is the total amount owed ? Keys: Display: Descript ion: 450 E 7 %  Annual interest. 60 * 365 /  Actual interest for 60 days. 450  Adds principal to get total debt. Example: APR for a Lo an with Fees. A borrower is charged two points for the issuance of a mor tgage. (One point is equal to 1% of the mortgage amount.) If the mortgage amo unt is $60,000 fo r 30 years and the interest rate is 11½% annually with monthly payments, what APR is the borrower paying ? 1. Since the pa y ment amount is not giv en , calc ulate it ( PM T ) f i rs t. Us e the giv en mortgage amount ( PV = $60, 000) and inter est r ate ( I%YR = 11½%) . 2. T o f i nd the AP R (the ne w I%Y R ) , us e the PM T calculated in s tep 1 and
F: RPN: Selected Exampl es 277 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 adju st the mortgage amount to ref lect the points pai d ( PV = $60, 000 － 2%). All other v alues r em ain the same (ter m is 30 y e ars; no fu tur e va l u e ) . Keys: Display: Descript ion:    @c e        If necessary, sets 12 payments per year and End mode. 30 @   Fi g ures and stores number of payments. 11.5  60000    Stores interest rate and amount of loan. 0   No balloon payment, so future value is zero.   Borrower’s monthly payment. R  2 %-    Stores actual amou nt of money receiv ed by borrower into PV .   Calculates APR. Example: Loan from the Lender’s Po int of View. A $1,000, 000 10-year, 12% (ann ual interest) interest-only loan has a n origination fee of 3 points. What is the yield to the lender ? Assume that monthly payments of interest are made. (Before fig uring the yield, you must calculate the monthly PM T = ( loan x 12%) ÷ 12 mos.) When c alculati ng the I%YR , the FV (a balloon payment) is the entire l oan amount, or $1,000,0 00, while the PV is the loan amount minus the points.
278 F: RPN: Selected Exampl es File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Keys: Display: Descript ion:    @c e        If necessary, sets 12 payments per year and End mode. 10 @   Stores total number of payments. 1000000 E 12 %   Calculates annual interest on $1,000, 000. 12 /   Calc ulates, then stores, monthly payment. 1000000   Stores entire loan amount as balloon payment. 3 % - &    Calculates, then stores, amount borrowed (total - points).   Calculates APR—the yield to lender. Example: Savings for Coll ege. Your daughter will be going to college in 12 years and you are sta rting a fu nd for her education. She will need $15,000 at the beginni ng of each year for four years. The fund earn s 9% annually, compounded monthly. You plan to make monthly deposits, starting at the end of the current month. How much should you deposit each month to meet her educational expenses ? See figures 14-1 and 14-2 (chapter 14) for the cash-flow diagrams. Remember to press the = key for E while working in a list . (Pressing I will add data to the list, not perform an ENTER.)
F: RPN: Selected Exampl es 279 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Keys: Display: Descript ion:    Displays current cash-flow list and CFLO menu keys. @c  or       Clears current list or g ets a new one. Step 1: Set up a C FLO list. Keys: Display: Description: 0 I  Sets initial cash flow, FLOW(0) , to zero. 0 I  Stores zero in FLOW(1) and prompts for the number of times it occurs. 12 E 12 * 1 - I   For E , press = , not I . Stores 143 (fo r 11 years, 11 months) in #TIMES(1) for FLOW(1) . 15000 I  Stores amount of first withdrawal, at end of 12th year. I  0 I  Stores cash flows of zero ... 11 I  ... for the next 1 1 months. 15000 II  Stores second withdrawal, for sophomore year.
280 F: RPN: Selected Exampl es File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 0 I 11 I  Stores cash flows of zero for the next 11 months. 15000 II  Stores third withdrawal, for junior ye ar. 0 I 11 I  Stores cash flows of zero for the next 11 months. 15000 II  Stores fourth withdrawal, for senior year. e       Done enterin g cash flows; gets CALC menu. Step 2: Calculate NUS for the monthly deposit. Then calculate net present value. Keys: Display: Description: 9 E 12 /    Figures the periodic (monthly) interest rate and stores it in I% .   A mount of monthly deposit needed to meet planned withdrawals.   Calculates the net present value of the monthly deposits, which is the same as the NPV of the four futu re withdra wals. Example: Tax-Free Accoun t. Consider opening an IRA account with a dividend rate of 8. 175%. 1) If you invest $2,000 at the beginning of e ac h y e ar fo r 3 5 ye a rs , h o w mu ch w il l y o u h av e at r et i re me n t ? 2) How much will you hav e paid into the IRA ? 3 ) H o w m u c h i n t e r e s t w i l l y o u have earned ? 4) If your post-retirement tax rate is 15%, what is the
F: RPN: Selected Exampl es 281 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 after-tax future value of the account ? Assume only the interest will be taxed (the principal was taxed before deposit). 5) What is the purchasing power of that amount, in today’s dollars, assu ming an 8 % annual inflation rate ? Keys: Display: Description:    1   e       Sets 1 payment per year and Begin mode. 35   Stores number of payment periods until retirement (1 x 35). 8.175   Stores d ividend rate. 0   Present value of account (before first payment). 2000 &   Annual payment (deposit).   Calculates amount in account at retirement. R  R  *   Calculates total amount paid into IRA by retirement. R   Calculates interest you will earn. 15 %  Taxes at 15% of interest. &R     Subtracts taxes from total FV to calculate after-tax FV .    Stores after-tax future value i n FV .
282 F: RPN: Selected Exampl es File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 8  0     Calculates present-val ue purchasing power of the above after-tax FV at 8% inflation rate. Example: Taxable R etirement Ac count. If you i nvest $ 3,000 each year for 35 years, with dividends taxed as ordinary income, how much will you have in the account at r etirement ? Assume an annual dividend rate of 8.175% and a t ax rate of 28%, and that payme nts begin today. What will be the purchasing powe r of that amount in today’s dollars, assuming 8% annual inflation ? Keys: Display: Description:    Displays TVM me nu.  1   e      Sets 1 payment per year and Begin mode. 35   Stores years until retirement. 8.175 E 28 % -   Calculates interest rate diminished by tax rate.   Stores interest rate. 0   Stores no present value. 3000 &   Stores annual payment.   Calc ulates future val ue. 8  0     Calculates present-val ue purchasing power of the above FV at 8% inflation.
Error Messages 283 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Error Messages The calculator beeps and displays an error message under certain circumstance s － for example, when you attempt an operation that is not allowed. The calculator distinguishes between math errors th at occur on the calculator line and other types of messages by preceding math-error messages with the word   . Press C or < to erase the message and restore the previous display.       The Solver cannot begin a numerical search using the initial estimates. See pages 180 and 239.      To conserve battery power, the calc ulator will not tran smit data to the printer until fresh batteries have been installed.            Attempted to get another list without first clearing or naming the current list. Press @c to clea r it or  to name it.    Attempted a calculation using an empty CFLO or S UM list.             
284 Error Messages File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Attempted to take the base 10 or natural log of a negative number or zero. This can happen during curv e-fi tting calculations if you attempt to calculate:  A logarithmic f orec asting model w ith a negati ve or z er o x -v alu e .  An e xponential model w ith a negativ e or z er o y -v al ue.  A pow er model w ith a negativ e or z er o x - or y -v alue.        Attempted to raise a negative nu mber to a non-integer power.      An internal result in a calc ulation was too large for the calculator to handle.      Attempted to take the square root of a negative nu mber or calculate G.SD gi ven any negative freque ncies.      An internal result in a calcu lation was too small for the calculator to handle.    Attempted to raise zero to a negative power.    Attempted to divide zero by zero.    Attempted to raise zero to the zero power.    Attempted to divide by zero.     
Error Messages 285 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 The numbers stored into built-in va riables caused a div ision by zero in the c alcul atio n. You must ch ange on e or more stored values. (Refer to the equations in appendix B to see which variables appear in the divisor.)       Attempted to calc ulate standar d de viati o n w ith only one v alue in the list .  Attempted to d o c urve f itting using an x -v aria ble list in whi ch all the v al ues ar e equal.  Attempted to do c urve f it ting using the logarithmic or pow er models w ith a list for w hich the tr ansfor med value s of x (ln x ) ar e equal .     The calculator has insu fficient memory available to do the operation you’ve specified. Refer to “Managing Calculator M e mory” on page 227 for additional information.      One of the following values for interest is less than or equal to － 100:  TVM me n u: I%YR ÷ P/YR .  PER m e nu : NOM % ÷ P (calculating EFF% ); EFF% (calcu lating NOM% ).  CONT menu : EFF% .  CFL O men u: I% (calcu lating NPV , NUS , or NFV ) or es timate of IRR% .    Calculation of I%Y R , IRR% , amortization results, a Solver variable, or a SUM-list sort was interrupted.   
286 Error Messages File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9  T he number enter ed cannot be interpr eted as a proper d ate. Chec k its for mat (page 143).  Attempted to s et a date outside the range 1/1/2000 thr ou gh 12/31/209 9 , or attempted date ar ithmetic outsi de the r ange 1 0/ 15 / 1 58 2 t h ro ug h 1 2/ 3 1/ 9999 .       T he Solv er cannot inter pret the equation due to a sy ntax er ror . R efer to “What Can A ppear in an E quation , ” page 166.  A v ariab le ’s name is inv alid. R efer to “Names of V aria bles, ” page 16 6.      Attempted to s tore into a built-in v ariable a nu mber that i s outside the r ange of v alues permitted f or that v aria ble .  The n umber enter ed cannot be inte rpre ted as a pr oper time .  The a ppointment’s r epeat int erval is ou t of range .  Attempted to ente r a non -integer , negati v e number w hen spec ify ing the number o f displa y ed decimal places (in DS P) .    Attempted to calculate I%YR with N ≦ 0.99999 or N ≧ 10 10 .              Calculation of IRR% produced a negative answer, but the calcu lator has determined that there is also a uniq ue positive answer . (Refer to page 238.)     The calculator has been reset (page 224, 228).
Error Messages 287 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9     The ca lcula tor i s unable t o calcula te I%YR . Check the values stored in PV , PMT , and FV . Make sure the signs of the numbers ar e c orrect. If the values of PV , PMT, and FV a re correct, the calcu lation is too complex for the TVM menu. You may be able to perform the calculation using the CFLO menu to calcu late IRR% .               The calculation of IRR% is complex, and requires you t o store a guess. (Refer to page 238.)     Continuous Memor y has been erased (page 224, 229).            The list name you’ve attempted to enter is already in use; type in a new name and press I .    No solution is possible using the values stored in the cu rrent built-in menu or list. This most commonly results from an incorrect sign for a cash flow or other monetary value. (Re view page 64.)         Attempted to calculate the factorial of a negativ e or non-integer value.   A warning － not an error － that the magnitude of a resul t is too large for the calculator to handle, so it retu rns ± 9.9999 9999999E4 99 rounded to the current display format. See page 47 for limits.    
288 Error Messages File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 No solution was fou nd for a Solv er equation using the current valu es stored in its variables. Refer to page 246 in appendix B.   A warning － not an error － that the magnitude of a result is too small for the calculator to handle, so it returns the value zero. S ee page 47 for limits.       Attempted a two-list SUM calculat ion using lists of unequal lengths.
Index 289 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Index Special Characters - , 47 low-battery annunc iator , 17 , 184 , 224 shift annunc iator , 19 % , 40 %T O TL menu fo rmu l a, 24 7 usi n g, 51 & , 22 Σ , 139 , 171, 17 6 – 77 , 2 20  , 35  , 35  , 78  , 92 , 95 , 9 6–9 7  , 12 7  , 49 , 50  , 49 , 51  , 51  , 13 2 , 13 9  , 13 2 , 13 9  , 13 2 , 13 9  , 13 2 , 13 9  , 13 2 , 13 9  , 144  , 144  , 14 3  , 42  , 15 0  , 15 0 ( ) alarm ann unc iator , 14 7  menu fo rmu l a, 24 7 usi n g, 50  or  , 17 4  ,  , ,  , 32 @ , 19 ] or [ , 43 , 269 editing a list , 9 8 in a list , 9 6 , 16 2 w ith history stac k , 43 < , 20 , 3 2 , 2 7 2 = , 17 4 t , 41 v , 16 , 17 , 2 6 2 print ann unc iator , 184 #TIME S , 96 –97 A   ,  , 56  , 11 5  , 11 5
290 Index File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9  , 3 6 , 262  , 10 9  key , 34  thr ough  , 14 5  , a ppo int me nt-s etti ng menu , 14 5 ABS (absolute value) fu nction, 16 9 Acc rued inte r es t, on b ond, 10 9 , 111 Ac cura cy of th e cl ock, 23 0 Ac know ledging appointments , 14 7 Ac tual calendar actuar ial equati ons, 246 for ar ithmetic , 14 9 fo r bo n d s, 11 0 Additi on, 21 AD JST menu , 14 4 Ad vance pa yments , 74 – 77 , 19 9–200, 2 5 3. S ee also Lea si ng Algebr aic mode , 3 6, 26 2 rule s in equations, 16 4 – 66 AL OG , 16 9 Alpha betic k ey s, 30 – 32 ALP HAbeti c menu , 30 AM/P M format, 14 3 Amorti z ation calcu lations, 77 – 81 equations , 24 7 sche d ul e, 78 sc hedule , printing , 82 – 83 AMR T menu , 78 AND oper ator , 166 , 17 4 Ann ual percentage inte res t rate in TVM, 63 w ith fees, 19 3 w ith fees, RPN , 2 7 6 Ann unc iators, 18 def inition , 18 printer , 18 4 Antilogar ithms, 42 , 16 9 Appo intment menu s, 14 2 , 145 mes sag es, 14 7 r epeat interval , 14 7 , 148 -setting menu , 14 6 Appo intments ackno wledging , 14 7 cle a ri n g, 14 8 mes sag es, 14 5 past due , 14 6 pr inting , 18 8 set t in g, 14 6 – 47 unac know ledged , 146 , 14 8 APP T menu , 145 APR f or , with fe es , RPN, 2 7 6 calcu lations, 67 – 71 inter est-onl y , 19 4 inter est-onl y , RPN , 2 7 6 odd-per iod , 19 5 , 19 6–9 7 Ar ithmetic , 21–2 2 , 38 in regi ste rs a nd variabl es, 46 in RPN , 2 64–6 7 , 2 7 0 in RPN st ack , 2 7 0 RPN e xamples , 2 7 5
Index 291 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Arithm etic priority , 15 4 Arro w ke ys for c hanging cur rent equation , 15 6 for editing , 32 fo r fi n d i n g a n e qua t io n, 16 2 for r olling the his tor y st ack , 43 for v ie wing l o ng equati ons, 16 6 B  , 56  , 13 2  , 78  , 64  , 11 5  , 56 Backs pace ke y , 20 Balance of loan , 80 – 81 Balloon pa yment , 69 – 71 Batterie s, changing, 225 – 26 Batter y life , 224 annunc iator , 224 Beeper , 14 7 Beeper on and off , 36 Begin pa y ment mode, 64 , 6 6 Beginning of lis t in CFL O list, 98 in S UM list , 12 4 Bond calculati ons, 110–13 equations , 249 fr actional v alue s for , 111 pri ce, 111 ty pe , 1 09 , 11 0 yi e l d, 111 BOND menu , 10 8 – 9 Bonds, 21 5 – 16 Bottom of the c urr ent lis t, in CFL O , 95 of the S olv er list , 16 2 Br aces in equa tions , 16 7 Brac kets in eq uations, 16 7 Br ightne ss of the disp lay , 17 Built-in v aria bles . See V ar iables, built-in BU S menu , 4 9 , 254 Busi n ess variabl es, clea rin g, 50 Buy opti on, f or a lease , 75 – 77 B -v al ue , in cu rve f itting, 13 2 C %CHG me nu , 50  in CFL O menu , 92 in S OL VE menu , 157 in S UM menu , 12 2 in T IME menu , 14 2  , 10 9  , 10 9  , 13 2  , 55  , 55  , 56
292 Index File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9  , 56  key , 53  ,  , 56 @c , 20, 28 – 29 C , 17 , 20, 3 2 v , 16 , 17 , 2 6 2 CAL C menu in CFL O menu , 101 in S OL VE menu , 15 8 – 59 in S UM menu , 12 8 in T IME menu , 15 0 Calculat ions, RP N or der of , 2 7 4 parenthe sis in, 2 66 , 2 7 4 Calcula tor not func tioning , 23 0 – 31 reset ti n g, 2 25, 228 Support , 222 Calc ulator line ar ithmetic in , 38 –48 def inition , 18 displa ying alpha betic i nfo r m at io n, 31 – 32 editing , 20 Calendar . S ee also Date 36 0 - d ay , 15 0 365 - d ay , 15 0 actual , 15 0 ran g e of, 14 9 Calendar basis , 10 8 – 9 Call, 11 0 , 112 Canadian mortgage , 19 7 – 99 , 25 2 Cap italiz ed v alue , lease , 74 – 75 Cash flow calcu lations, 91 – 10 7 equations , 248 list . See CFL O list Cash fl ow diagr ams in cash flo w calculati ons, 92 – 94 in TVM calculati ons, 64 – 66 Cash flo ws equal . See Cas h flows, gr ouped gr ouped, 94 , 104 initial , 9 4 , 95 max imum nu mber of , 91 sum of , 101 ungr ouped, 93 z er o , 9 4, 95 CD A TE , 16 9 CFL O list CAL C menu , 101 cle a ri n g, 99 cop y ing fr om , 98 c o rre ct i n g, 97 cr eating , 94 def inition , 91 deleting number s, 98 editing , 92 , 97 enter ing numbers in , 95 –97 GETting a ne w li st , 99 inserting nu mbers, 98 name , clear ing, 99 naming , 98 –99 pr inting , 18 7 signs of nu mbers, 92
Index 293 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 starting a ne w list, 99 v iew ing name of c urr ent lis t, 99 viewi ng n um be r s, 97 Chain calc ulations , 21, 38 – 39 , 38 i n R P N, 266, 27 4 Chan gin g batterie s, 225 –26 the sig n of a n umber , 22 Char acters f or CFL O list , 98 –99 for eq uation names , 161 f or S UM list , 12 6 in equati ons, 16 6 – 67 inserting and deleting , 31 – 32 Chi- squared, 21 9 – 20 Clea ring, 20 %C HG variabl es, 50 %T vari abl es, 50 AMRT variabl es, 80 appointments , 146 , 148 BOND v a ria b les, 10 9 BUS variab les, 50 calcu lator memory , 28 – 29 CF L O li sts, 9 5 , 99 IC NV variabl es, 86 me nu variabl es, 28 menu s, 28 MU% C variab les, 50 MU% P variabl es, 50 number s in RPN, 2 7 2 Solver variables, 16 3 SUM li st s, 12 3 the history s tack , 44 t h e R P N s t a c k , 269, 272 TIME CA L C vari abl es, 15 0 T V M variabl es, 64 variabl es, 28 – 29 Clock. See Ti m e Commas , in number s, 35 Com pound in ter est calcu lations, 61 Comp ounding annual , 71 monthl y , 67 , 6 8 , 7 4 , 7 5 per iods, 61, 6 2 , 6 3, 64 per iods , v s. pa yment per iod s, 87 – 90 , 200 rates, 84 semimonthl y , 72 Conditi onal ex pres sions, 17 4 – 76 Consta nt numbers , RPN, 2 71, 272 Consta nts in equations , 16 6 CONT menu , 86 Contin uous com pounding, calcu lating intere st f or , 85 Contin uous M emory , 37 erasing , 225 , 2 2 9 usi n g, 17 Contr ast of displa y , changing , 17 Con vent ional inv es tments, def inition , 101 Con verting inte r es t rates , 85 – 87 Correl atio n c oef ficient, 13 2
294 Index File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Cost mark up on , 4 9 , 52 of c apit al, 101 Count er var iable ,in summation func tion, 17 6 Coupon basis, 10 8 – 9 pa y ments, 10 8 Cr eating a CFL O list, 94 –96 , 99 a ne w equation, in the S olv er , 157 – 58 a S UM list , 12 3 – 24 , 12 7 CT IME , 16 9 C ube r oot , 41 in RPN, 2 6 5 Cur ren cy cl ea ri n g va ria bl es, 60 con v er ting , 59 enter ing a rate , 57 exch a n g e, 57 , 58 sel ect i ng, 55 stor ing and re calling, 59 cur rency#1, 55 curre n cy #2 , 55 Cu rrent eq uation , 15 6 deleting , 16 2 – 64 pr inting , 18 7 CURRX menu , 55 , 255 Cur so r , 19 mov ement k ey s, 32 Curve f it ting, 121, 13 2 – 34 calcu lations, 13 4 – 37 equations , 25 1 Cu stomer Su ppor t, 222 D  in CFL O menu , 92 in Sol ve r menu , 15 7 , 16 4 in S UM menu , 12 2 , 12 7  , 11 5  , 32  , 15 0  , 15 0  , 15 0  in appo intment-s etting menu , 14 5 in SE T menu , 14 3  , 56  , 18 5  , 18 D , 34 – 35 Date in the past or futur e , 151 set t in g, 14 3 – 44 viewi n g, 141 , 16 9 Date ar ithmetic, 14 9 – 52 Date format , 143, 14 4 for a ppointments , 14 4 D A TE , S olv er , 16 9 Day of the w eek, deter mining , 14 9 Da y .month .year f ormat, 143, 14 4
Index 295 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 DD A Y S , 16 9 Dec imal places , 34 , 4 7 Dec i mal poin t, 35 Dec lining balance deprec iation. See Deprec iat ion Deleting all infor mation , 2 2 5, 228 –29 char acters, 32 equations , 16 2 – 64 fr om a CFL O list , 9 8, 10 0 fr om a S UM list , 12 5 , 12 7 v ariables in the S olv er , 16 2 – 64 Dependent v ariable , 13 4 DEP RC m enu , 11 4 Deprec iatio n A CR S method , 114 , 11 8 – 19 calcu lations, 11 4 – 17 declining balance method , 114 , 11 6 – 17 equations , 250 partial y ear , 11 8 – 19 str aight line , 114 , 11 6 sum of the y ears ’ digits , 11 4 , 11 6 Dia gno stic sel f- test, 232 Diag rams, cas h flo w , 64 – 66 , 92 – 9 4 Digit s eparator , 35 Di rect so lu tio ns i n Solver , 17 9 , 24 0 – 41 Dis count r ate, 101 Display cle a ri n g, 20 contr ast , 17 fo rm a t, 34 in RPN, 2 6 8–7 3 mes sag es, 36 or gani z ati on , 19 , 4 3 pr inting the contents of , 18 5 turning on and off , 17 Di spl ayed m essa g es, 283 Display i ng th e c ont ent s of r egi ste rs, 43 –46 v al ues as signed to var iables, 28 Div isio n, 38 – 40 Dou blespace pr inting, 36 , 18 5 DSP me nu, 34 –35 , 2 60 E \ key , 4 7  , 64  , 42  , 157 , 161  , 56  , 18  , 18  key , 88 e , 2 5, 28, 9 2 , 9 6 , 12 3, 14 7 , 161 E , 2 6 3, 264 – 65 , 271, 27 4 E, i n n u m b e r s , 47 E diting
296 Index File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 alphabeti c infor mation , 31 – 32 equations, 161 keys, 31 – 32 Effec tiv e inter est r ate , 84 – 87 , 100 End pa y ment mode, 64 , 6 5 Ending v alu e , in summation func tion, 17 6 English language , setting , 224 Enter i ng equations , 157 – 58 gu esses in th e So lver , 18 1 – 83 Enter i ng number s in a S UM list , 12 3 – 24 in RPN , 2 64 , 2 71 in to CF L O li sts, 95 –97 En vir onmental limits , 23 0 E quals s ign , us ed to comp lete calcu lations, 21 , 3 8 E quation lis t. See So lver li st E quati on Sol ver , 15 3 – 83 , 24 0 – 4 6 cle a ri n g, 16 3 intr oduction , 29 Eq u a t i o n s algebrai c rules , 16 4 char acters in , 16 6 – 67 cle a ri n g, 16 3 deleting , 16 2 – 64 displa y ing, 16 2 editing, 161 enter ing, 157 erasing , 16 3 for bu ilt -in menu s, 246 – 53 in v alid , 15 8 length of , 15 3 long , vi e wing , 16 6 naming , 161 ve ri f y i n g, 157 – 58 w riting , 16 4 Erasing . See als o Clear ing; Deleting Erasing calc ulator memory , 2 2 5, 229 Error messa g es, 36, 283 E stimates , enter i ng in the S olv er , 18 1 – 83 Examp l es, 19 0 in RPN, 2 7 6–8 2 Ex changing registers , RPN, 2 6 9 EXP , 16 9 EXPM, 16 9 Exponential model, 130, 13 2 , 13 3 Exponential numbers, 47 Exponentiatio n, 41 – 42 , 265 in equati ons, 16 5 F  , 11 5  , 12 8  , 18  key , 63  key , 34
Index 297 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 F ace v alue , bond , 11 0 FAC T, 16 9 F a c t o ri a l , 42, 16 9 FIN menu , 25 6 – 57 FL OW , S olv er , 16 9 Fo re c a st i ng calcu lations, 13 0 – 37 equations , 25 1 v a lues, 121, 13 2 – 34 F ore ign language , 224 F ormatting number , 34 FP , 16 9 F racti onal part, 16 9 FRC S T menu , 130, 13 2 F unctions in equ ations, 16 7 , 16 8 – 71 F utur e date, calc ulating , 151 Fut ure val ue of a se rie s o f pa y ments equation , 246 Sol ver f unction , 17 1 G  , 82  , 13 2  , in CFL O , 99  , in S UM, 12 7 G, 16 9 General bu siness calcu lations, 49 – 53 equations , 24 7 Gr ouped standar d dev iation , 13 8 – 39 Gu esses enter ing in the Sol v er , 18 1 – 83 IRR% , enter ing, 238 – 40 Sol ver , 245 H  in the appo intment-setting menu , 14 5 in the SE T menu , 14 3  , 56 Halting a nu merical s earc h , 18 0 Hiera rchy of m e nus, 24 Hi erar c hy o f operations , in equations , 16 5 Hist o r y st ack, 43 . See also Sta ck, RP N pr inting , 18 6 HM S , 17 0 HP Solve . See So lver HRS , 17 0 Humidity req uir ements, 23 0 I  , 78  in CFL O list , 9 2 , 98 in S UM list , 12 2 , 12 4  , 101  , 101
298 Index File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9  , 18  key , 63  ,  , 56 I , 98 for s toring equations , 30 in CFL O menu , 92 in RPN, 2 64 in the Sol ver lis t, 157 – 58 in S UM list , 12 3 I%, 101 ICNV equations , 248 menu , 84 –85 vari ab l es, cl e a ri ng, 86 IDIV , 17 0 IF , 17 0 , 17 4– 7 6 nest ed, 17 5 Independent v aria ble, 13 4 Indiv idual R etir ement Account , 72 – 73 Inserting char acters , 32 Installing batter ie s, 22 5 – 26 Ins ufficient m emor y , 3 7 , 22 7 Insurance policy , pr ice, 21 3 – 15 INT , 17 0 INT , r o unded in amorti z ati on calcu lations, 78 Inter est compou nd, 61 , 84 equation , 248 on loan , amount o f P MT appli ed to w ard , 80 – 81 simple , 61 Inter est r ate conv ersi ons, 84 –90 , 201, 2 48 effe cti ve and nominal , 84 Inter mediate re sults, RPN, 2 6 8, 27 4 Inter nal rate o f retu rn. See als o IRR% calcu lations, 9 1, 9 7 , 10 0 –10 1 Inter ru pting an IRR% calculati on, 239 Inter ru pting the Solv er , 18 0 INV , 17 0 In v alid equation , 15 8 In v erse , 265 In v estments calcu lating IRR% and NPV of , 101 – 3 w i th gr ouped cash flo ws , 10 4 – 5 IP , 17 0 IRA, 7 2–7 3, 206 IRR% , 100, 101, 209 IRR% calc ulations , 238 – 40 halting , 239 IRR% estimate making , 239 – 40 seei ng curren t, 239 IRR% sol utio n s, t ypes of, 238 – 39 ITEM , 17 0
Index 299 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Iterati on in Sol ver , 17 9 – 83 , 24 0 , 242 – 46 L  , 11 5  , 13 2  , 18 6  , 42  , 42 L , 44 in RPN, 2 7 3 L, 17 0 Lan gua g e, set t in g, 224 Lar ge number av ailable , 47 in a list , 12 8 Lar ge numbers , k ey ing in and displa y ing, 47 Las t re sult , copy ing , 44 LAS T X r egist er , RPN , 2 7 3 Lea si ng, 74 – 77 , 19 9–200 LEFT -RIGHT , inte rpr eting, 242 – 46 Le t ter k e ys , 30 L inear estimation , 121, 13 2 – 34 L i near model , 130, 13 3 Line ar reg ression, 12 1 Li st. S ee CFL O list; S UM list ; Sol ver l i st L ist , RPN, 2 64 r olling the stack , 2 6 9 LN, 17 0 LNP1, 17 0 Lo a n amortizing , 77 – 83 APR f or , with f ees, 19 3 LO G, 17 0 L ogarithmic model , 130, 13 2 , 13 3 L o gar ithms, 42 , 17 0 L ogical operators , 17 4 L ow memory , 227 Low p o wer , 224 and pr inting , 18 4 annunc iator , 18 4 M  , 13 2  , 10 9  , 49 , 53  , 52 , 12 8  , 12 8  , 12 8  , 12 8  , 13 2  in appo intment s et ting menu , 14 5 in pr inter men , 18 6  , 14 3  , 56  key , 25 @A , 22 – 26 @M , 37
300 Index File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 MAIN me nu , 19 Manual , organi z ation o f , 16 Markup on cos t, 4 9 , 52 on pr i ce , 4 9 , 52 Math in equ ations, 16 5 , 16 7 MA TH menu , 4 2 , 260 MAX, 17 0 Mean, 25 1 calcu lating, 12 8 – 30 w eighted , 13 8 – 39 Medi an, 25 1 calcu lating, 12 8 – 30 Memo ry . See also Contin uou s Memo ry freeing, 227 insuff ic ient , 227 losing , 2 2 9 using and r eusing , 37 Menu labels , 19 map s, 2 5, 254 –60 Menus calcu lations w ith, 27 – 28 cha n gi n g, 25 , 28 ex iting , 28 names o f , 161 pr inting v alues stor ed in, 18 6 – 88 sh arin g variabl es, 53 Mes sages for a ppointments, 14 7 Messa g es, e rror , 283 MIN , Sol ver , 17 0 MOD, 17 0 Mode of pa yments (Begin and End) , 64 Model s, curve -fit tin g, 13 2 , 133 Modes  , 3 6 , 2 61–6 2 , 265  , 3 6 , 2 61, 2 6 2 @> , 18 5 beeper , 3 6 double-space printing , 3 6 , 18 5 menu ma p, 2 60 printer ac adapter , 3 6 Modi fied IRR, 209 – 12 , 25 3 Month/da y/ye ar format , 14 3 – 44 Mor tgage , 6 8, 69 . See also Lo a n calcu lations, 6 7–71, 77 – 80 discounted or premiu m, 19 1 Mov i ng average, 21 7 – 19 MU%C, 50 equation , 24 7 MU%P , 50 equation , 24 7 Multiple equ ations , linking , 17 8 Multipli cation in ar ithmetic , 21, 38 – 40 in equati ons, 16 5 N  , 56  , 78
Index 301 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9  , 63  in CFL O list, 98 – 99 in S UM list , 12 6  , 101  , 101  , 101  , 157  , 56  , 56  , 56  , 42  , 85 – 86 @  , 6 3 N, n on -i nt eg er , 63 , 7 2 Names of equa tio ns, 161 of l ist s, cle ari ng, 99 of variabl es, 16 6 Negativ e numbers in ar ithmeti c calc ulations , 22 in cash-fl ow cal cu lations, 92 – 94 in TVM calculati ons, 64 Nei ghbors in Sol ver , 243 Nes ted IF func tion, in the Sol v er , 17 5 Net fu ture v alue , 91, 101 Net pr esent v alue , 91, 101 Net un ifo rm se ries, 91, 101 NFV calcu lating, 91, 101 equation , 249 Nois e D ec larati o n , 23 7 Nominal inter es t rate , 84 – 87 , 100 Non-integer peri od, 17 2 NO T , 17 4 No tes, di sco unt ed, 21 6 – 17 NPV calcu lating, 10 0 –10 1 equation , 100, 248 Number li sts. See CFL O list; S UM lis t; Sol ver l i st of da ys betw een dates, 14 9 – 51 of de cimal p oints, 47 of pa yme nts, in T VM , 62 ran g e, 48 Numbers. Se e a lso Va l u e enter ing, RPN , 2 64 , 2 71 w ith exponents , 47 Numer ical solu tions , 17 9 – 81 NUS , 10 0 , 2 4 9 O  , 50 @o , 17 O , 17 Odd-peri od calculati ons, 17 2 – 73 , 19 5, 2 5 3 Operat ors, in equati ons, 16 4 – 67 in RPN, 266 , 26 8 , 27 4
302 Index File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Option to bu y , f or a leas e , 74 – 75 OR , 17 4 Or der of calc ulati on, in the Sol ver , 16 5 OT H E R m e n u , 14 6 – 47 Ov erdue a ppointments . See P ast- due a ppointment Ov er v iew , 3 P  , 56 , 63  , 78  , 63  , 62  , 78 , 82 , 85  , 5 2 , 10 9  , 51  , 12 1 , 13 2  , 56  , 42  , 18 @p , 18 6 P , 18 6 P aren th eses in ar ithmeti c calc ulations , 39 – 40 in equati ons, 16 5 , 16 7 in RPN, 266 , 26 8 , 27 4 Pa r t i a l p e r i o d . S ee also Odd peri od pa y ments, 62 P ast da tes, ca l cula ti ng, 151 P as t due appo intments ackno wledging , 14 8 def inition , 14 6 P a yment mode , 62 cha n gi n g, 62 def inition , 65 – 66 reset ti n g, 62 P a yment per iods , 6 2 compou nding , 61 – 64 in cash flo w calculati ons, 93 v s. compou nding per iods, 87 – 90 , 200 P a yments amorti z ation , 77 – 81 lease , 74 – 77 number per y ear , in TVM, 63 TVM , 62 Pe r c e n t , 40 cha n ge, 49 – 51 k ey f or simple inter est , 40 , 61 of co st , 4 9 , 52 of t otal, 4 9 , 51 P ercentage cal culations , 49 – 53 in RPN, 2 6 5 P eri odic comp ounding , calcu lating intere st r ates f or , 85 – 86 P eri o d ic i nt e res t ra t e, 101 P eri o d ic rat e o f re t ur n, 10 0 Pe r i o d s , 35 . See also P ay m ent peri ods in numbers in number s, 35
Index 303 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 PI, 42 , 17 0 PM T . See al so P a yments in TVM, 63 r ounded amortiz ation calcu lations, 78 P ositiv e numbers in cash flo w calculati ons, 92 – 94 in TVM, 64 Po w e r. See als o Low p o wer; Batteries function , 41, 2 6 5 r aising a nu mber to , 41 P ow er curv e , 130, 13 2 , 13 3 P ow er on and o f, 17 Precisio n of numb ers, int ernal, 34 Pre sent v alue def inition , 63 of a lease , 74 – 77 of a ser ies of pa yments , 171, 24 6 of a single pay ment, 171, 24 6 Pr e vi ous menu , displa y in g , 28 PR ICE , as a shared v ari able , 53 Pr ice , mar ku p on, 4 9 , 52 Pr inc ipal of loan , amount of PM T a pplied to war d, 80 – 81 Pr inter pow er f o r , 18 5 usi n g, 18 4 PRI NT ER me n u, 18 6 , 2 6 0 Pr inter port , 18 4 Pr inting amortiz ati on table , 82 – 83 appointments , 18 8 displa y , 18 5 double s pace , 36 , 185 equations , 18 7 hi sto r y st ack, 18 6 inter rupting , 18 9 mes sag es, 18 8 numb er li sts, 18 7 slow , 18 4 So lv er list , 18 7 speed , 18 5 sta ti sti ca l val u es, 18 6 time and date , 18 6 variabl es, 18 7 w ith trac ings, 18 8 Pr ompting for #T IME S , 96 P ur chase date , bond, 10 9 Pu rch as e p ri c e, i n m o r t g a ge calcu lation, 68 – 69 PV , r ounded in amorti za tion calcu lations, 78 Q Ques tions, comm on, 222 – 24 R  , 12 8  , 14 5  , 55  , 56
304 Index File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9  , 56  , 3 6  , 18 6  , 56 @r , 35 ~ , 4 3, 263 R , 45 – 46 , 9 8 in RPN calc ulations , 2 6 6 w ith var iable s, 28 R ↑ , 263 R adix (dec imal point), 34 Ra n ge calcu lating, 12 8 of num bers, 48 R ate of r eturn , per iodic , 10 0 R ecalling numbers , 45 –46 from variables, 28 i n R P N , 26 4 , 26 6 w ith @L , 44 R ecipr ocal k ey , 41 Regi ste r st ora ge, 45 –46 R egisters ar ithmetic in , 46 in RPN, 2 6 8–7 3 pr inting the contents of , 18 6 R elational oper ators, 17 4 R emaining deprec ia ble v al ue , 11 5 , 116 R enaming lists. S ee CFL O list; S UM list; the S olv er list R epeating appointments past-due , 14 8 set t in g, 14 7 R eplac ing bat teri es, 225 – 26 Req u i re d ra t e o f re t ur n, 101 R esetting the calc ulator , 228 Re us i n g a numbe r , RPN , 2 71, 27 3 calcu lator memory , 37 , 2 2 9 R ev erse P olish Notation , 2 6 1 RND , 17 0 R o unding a PM T , 71 Ro un d i n g n um b e rs , 35 RPN. S ee appendi xes D , E , and F , or indiv idual entr ie s R unning total, 12 3 – 24 S  , 11 5  , 10 9  , 11 5  , 11 5  , 12 8  , 12 8  , 14 2  , 55  , 56  , 56  , 56  , 18 6  , 13 2 @S , 34 s , 45 – 46 calcu lations w ith, RPN , 2 66
Index 305 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 S (funct ion) , 17 0 Sample s tandard de vi ation , 12 8 Sa ving number s, 43 Sa ving s account, 71–7 2 college , 20 2 – 6 college , RPN , 2 7 8 reg u l ar , 200 –202 ret i re me nt, 2 08 ret i re me nt, R PN, 2 8 2 tax fr ee , 206 – 9 tax fr ee , RPN, 2 80 Sa vings calc ulations, 71 –73 Sc ientif ic notati on, 47 Sel f - te st, 232 Service, 235 –36 SET menu , 14 3 Setting a langua ge , 18 , 37 Setting an appo intments, 14 6 – 47 Se ttings, de fau lt start- u p , 229 Settlement date , 10 9 SG N, 17 0 Shar ed var iables in BU S, 53 in equati ons, 16 2 in ICNV , 86 Shif t, 19 Sign of number s in cash-fl ow cal cu lations, 92 in TVM calculati ons, 64 Simple inter es t, 40 w ith annual r ate , 19 0 w ith annual ra te , RPN, 2 7 6 Slope , in cu r v e -f itting, 13 2 , 13 4 Small nu mbers, k ey ing in and displa y ing, 47 Smallest n umber av ailable , 47 in a list , 12 8 SO L V E m e n u, 260 Sol ver , 15 3 – 83 . See als o Eq u a t i o n s Sol ver calc ulati ons, 15 5, 15 8 – 59 cr eating cu stom menu s, 15 3 – 54 how it work s , 17 9 – 83 multiple s olutions in , 17 9 tec hnical dis cus sion o f, 24 0 – 46 usi n g, 15 3 – 68 Solver esti ma t es, se ein g cu rren, 24 0 – 46 Sol ver f uncti ons, 16 8 – 71 Sol ver l i st cle a ri n g, 16 2 – 64 cu rr ent equation , 15 6 def inition , 15 3 deleting equati ons, 15 7 , 16 2 – 64 deleting v aria bles fr om, 16 2 – 64 editing an equ ation, 157 empty , 15 6 enter ing equations , 157 – 58 pr inting , 18 7
306 Index File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Sol ve r menu , 15 6 – 57 for m ultiple equati ons, 17 8 Sol v er solutions , type s of , 243 – 46 Solver variables. See V ariab l es, Sol ver Sor t i ng num b ers, 12 8 Space s in equations , 16 6 Spec ify ing the number of dec imal places, 34 SPFV , 17 1 , 2 46 SPPV , 17 1 , 2 46 SQ , 17 1 SQ R T , 17 1 Sq uar e r oot calcu lating, 41 , 2 6 5 Sol ver , 17 1 Squ a re, So lver , 17 1 Squ aring a n umber , 41 , 2 6 5 Sta ck. See Hist or y sta ck Sta ck, R P N, 2 68–7 3 automati c mov ement o f, 2 7 0, 27 4 c l e a r i n g , 269 , 273 dr opping , 2 7 0 lifting, 2 7 0 losing con tents o ff the top , 270 r eplicating c ontents in , 2 6 9 , 270 r ol ling contents , 2 7 0, 2 71 s ize, 2 69 Standar d dev iation , 12 8 – 30 calcu lating, 12 8 – 30 gr ouped, 13 8 – 39 Starting v alue , in summation func tion, 17 6 Statis tical calc ulations , 12 7 – 40 Statis tical equati ons, 250 – 52 Statis tical v aria bles, 12 8 , 130–3 4 Sta t is ti cs, x and y , 13 0 – 34 Step si z e , in summation f unction , 17 6 Stor age regis ters , 45 –46 ar ithmetic in , RPN, 46 pr inting the contents of , 18 6 Stor ing nu mbers , 44 , 45 – 46 in built-in v aria bles, 28 i n R P N , 26 4 , 26 6 Su btr acti on, 21 , 3 8– 40 SU M e q u a t i o n s , 25 1 S UM items, max imum number of , 12 1 SU M l i s t CAL C menu , 12 8 cle a ri n g, 12 7 clear ing numbers, 12 4 cop ying a number fr om , 12 6 c o rre ct i n g, 12 4 cr eating , 12 3 – 24 def inition , 12 1 – 22 deleting number s, 12 5 editing , 12 2 , 12 4 – 25 enter ing numbers in , 12 3 – 24 FR CS T menu , 13 2 GETting a ne w li st , 12 7
Index 307 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 inserting nu mbers, 12 4 lar ges t number in , 12 8 name , deleting, 12 7 naming , 12 6 pr inting , 18 7 smalles t number in, 12 8 sortin g , 121, 12 8 starting a ne w list, 12 7 viewi ng n um be r s, 12 4 v iew ing the name of the curre n t l ist, 12 6 SU M m e nu, 12 2 – 23 , 258 Sum o f cash flo w s, 101 Summati on, 13 2 , 13 9 , 171, 17 6– 77 func tion, in the So lv er , 17 6 – 78 , 2 20 of l ist s, 17 7 val ues, 13 2 , 13 9 S witc hing menu s, 25 – 26 T #T , 17 1 #T IMES , pr ompting , 96 –97 %T O TL, 4 9 , 51  in appo intment-s etting menu , 14 5 in PR INTER menu , 18 6 in SE T menu , 14 3  , 78  , 51 of a S UM lis t, 12 2 , 12 8  , 10 9  , 15 0  , 18 6  , sum of ca sh flows, 101 T e xt, pr inting (M S G), 18 6 Ti m e accu rac y , 23 0 and date , printing , 18 6 cha n gi n g, 14 3 – 44 fo rm a t, 14 4 , 14 5 – 46 of day , vie wing, 141 set t in g, 14 3 – 44 TI M E m e n us, 141 – 42 T i me v al ue of mone y calcu lations, 61 – 83 equations , 24 7 T op o f the equati on list, in the Sol ver , 16 2 T otal , percent o f , 51 T r ace -printing , 18 8 TRN, 17 1 T rou bl es hooting , 2 2 2–2 4 T r ue populati on standard de viati o n , 12 8 T runcating fu nction , in S olv er , 17 1 T ur ning calculator on and off , 17 TVM calcu lations, 61 – 83 equation , 24 7 inst ructio n s, 66 – 67 menu , 61 – 64 , 66 vari ab l es, cl e a ri ng, 64
308 Index File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 T yp ing aids, 16 7 T yp ing alphabetic char acter s, 30 U  , 56  , 56 Unackno wledged a ppointments, 14 8 Unit con ver sions , in the Sol v er , 17 8 Unknow n v aria bles in S olver , 24 0 , 2 41 Up-arr ow k ey , 43 USFV , 17 1 , 2 46 USPV , 17 1 , 2 46 V V alues cle a ri n g, 28 – 29 . See also @c r ecalling , 2 8, 45 –46 stor ing , 2 8, 45 –46 transf erring between menus, 28 Va r i a b l e, dependent, 13 4 independent, 13 4 Va r i a b l e s sta ti sti ca l, 13 0 – 34 V ariab les, built-in , 27 pr inting , 18 7 sta ti sti ca l, 12 8 V ariab les, So lver , 15 4 cle a ri n g, 16 3 deleting , 16 3 names o f , 16 6 shared , 16 2 V ar iables , shar ed, 53 V er if y ing equations , 157 – 58 View i n g l ist s. See CFL O lis t; S UM list; S olv er list W  , 13 2  , 56 Wa r r a n t y, 233 – 34 W e ighted mean , 13 2 , 13 8 – 39 X v , 41 x , 4 3 i n R P N , 269 XO R, 17 4 x -v alues, in f or ecasting , 13 3 – 34 Y  , 10 9  , 11 5  , 56 u , 41, 2 6 5 Yi e l d
Index 309 File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 of l ease, 74 – 75 to call , bonds, 10 8 to matur it y , bond , 10 8 y -inter cept, in curv e -f itting, 13 2 , 13 4 y -v alues, in f or ecasting , 13 3 – 34 Z Z er o -coupon bond , 11 3
File name : English-M02-1-040308(P rint).doc Print data : 2004/3/9 Th is regulation applies onl y to T h e Netherlands Batterie s are deli v ered w ith this pr oduct , w hen empty do not thro w them a w ay but collec t as small che mi c al wast e. Bij dit pr odukt zijn batterijen gele ver d. W anneer dez e lee g zijn , moet u z e niet w e gg ooi en maa r inle ver en als K CA.