Hewlett-Packard’s business calculator, the HP-10B, is designed to be easy to use. Let’s see how easy it is with an example:<\/p>\n
Example 1:<\/strong> Calculate the monthly payment on a $6500 loan at interest rate 9.1% compounded monthly with a term of 2 years.<\/p>\n Solution:<\/p>\n The HP-10B has an orange key at left, one key up from the bottom. I’ll just call it ORA<\/span>.<\/p>\n 1) First, you’ll want to press ORA<\/span> INPUT<\/span> to clear the registers.<\/p>\n 2) Key in 12<\/span> ORA<\/span> PMT<\/span> to indicate 12 payments per year.<\/p>\n 3) Key in 2×12 N<\/span> to tell the number of periods for the loan.<\/p>\n 4) Key in 9.1 I\/YR<\/span> to tell the nominal interest rate of the loan.<\/p>\n 5) Key in 6500 PV<\/span>: the amount of the loan.<\/p>\n 6) Key in 0 FV<\/span>, meaning that at the end of the two years, (24 months), the loan will be paid in full.<\/p>\n 7) To get the payment, just press PMT<\/span>.<\/p>\n Hopefully, you receive the answer -297.25<\/span>. The negative sign refers to outflow, whereas the orginal $6500 was positive because it was received.<\/p>\n I’ll be talking more about using the HP-10B in future posts.<\/p>\n HTH:)<\/p>\n Source:<\/p>\n Hewlett-Packard. HP-10B Business Calculator Owner’s Manual<\/em>.
\n Corvallis: Hewlett-Packard, 1988.<\/p>\n