HP 10BII Instruction Manual page 4

hp calculators
HP 10BII Simple and Compound Interest
7B
1000000PE
C
Answer: $61,306.77. The $1,000,000 amount is entered as a negative number since it will be a withdrawal from the
account in 40 years.
Example 5: What interest rate, compounded semiannually will cause an initial deposit of $400 to grow to become $600
in 5 years? Use the Vw function to clear the time value of money application registers.
Solution:
Vw
2Ud
10A
400C
600PE
B
Answer: 8.28%, compounded semiannually.
Example 6: How long would it take before an initial deposit of $2,345 would grow to become $3,456, if the account
earns interest at 5%, compounded monthly? Use the Vw function to clear the time value of money
application registers.
Solution:
Vw
12Ud
5B
2345C
3456PE
A
Answer: 93.27 months or approximately 7.8 years. In actuality, the balance in the account would not exceed $3,456
until month 94.
Example 7: If you earn $26.25 interest in two months on a deposit into an account paying 3.5% simple interest, what
was the size of the original deposit?
Solution: Rearrange I = PRT so that P is isolated: P = I / R / T. Note that since T will equal 2/12 in this example, it
should be enclosed in parentheses as shown below.
26.25/0.035/Us2/12Ut=
Answer: $4,500.
hp calculators - 4 - HP 10BII Simple and Compound Interest - Version 1.0