USING
THE
HEWLETT
PACKARD
‐
HP10BII
FINANCIAL
CALCULATOR
Basic
financial
examples
with
financial
calculator
steps
Prepared
by
Colin
C
Smith
2010
Some
important
things
to
consider
1.
These
notes
cover
basic
financial
calculations
using
the
HP10bII
financial
calculator.
The
notes
do
not
deal
with
the
underlying
theory
and/or
formulae.
Students
should
ideally
have
a
working
knowledge
of
the
undelying
theory.
2.
At
best
these
notes
are
designed
to
get
you
started.
They
do
not
claim
to
be
a
comprehensive
guide
to
the
use
of
your
calculator.
Consult
your
user
manual
for
more
information
and
further
examples.
3.
The
logic
used
in
approaching
these
examples
will
be
similar
to
the
logic
used
when
performing
manual
calculations
–
the
interest
rate
is
converted
to
a
periodic
interest
rate
(
i
/
m
)
and
the
number
of
years
will
be
converted
to
compounding
periods
(n
x
m).
4.
Financial
calculators
have
functionality
not
available
to
the
human
brain
and
the
multi
‐
functionality
of
financial
calculators
is
not
demonstrated
in
these
notes.
If
you
use
different
functionality
and
get
the
same
answer
–
congratulations
‐
you
are
an
advanced
financial
calculator
user.
If
you
use
different
functionality
and
do
not
get
the
same
answer
follow
our
basic
steps
and
read
your
manual
to
learn
more.
INDEX
Page
Getting
Started
2
Lump
sums
–
Present
Values
and
Future
values
3
Lump
sums
–
Interest
Rates
and
Periods,
and
Nominal
and
Effective
Interest
Rates
4
Annuities
–
Ordinary
annuities
and
annuities
due
5
‐
6
Amortisation
–
Calculating
the
annual
amount
of
interest
paid
and
capital
repaid
7
‐
9
Bond
valuation
–
Calculating
the
value
of
annual,
semi
‐
annual
compounded
bonds
and
calculating
the
yield
to
maturity
10
Net
Present
Value
and
Internal
Rate
of
Return
11
