The tutor shows a present value example on the Hewlett Packard 10B business calculator.

Example: If $100 is received at month end for five years, at annual interest rate 3.2% compounded monthly, what is the total present value of the payments?

Solution:

1. Press the key that’s an orange rectangle, then INPUT to clear all the financial values.
2. Key the following: 100 PMT 3.2 I/YR 12 orange rectangle key PMT 0 FV 5 orange rectangle key N PV
3. Hopefully you receive the answer -5537.80
4. The negative sign just means the present value is “opposite” of the received payments: you’d have to pay 5537.80 now to receive the $100 payments, monthly for 5 years, at 3.2% compounded monthly.

HTH:)

Source: Hewlett-Packard Business Calculator Owner’s Manual, Edition 6. Corvallis: Hewlett-Packard, 1988.

Jack of Oracle Tutoring by Jack and Diane, Campbell River, BC.