MFAC6212 – Using your financial calculator: HP10BII

1) Setting up your calculator to four decimal places

Steps: Inputs: Display should read:

Clear all registers: 2ndF 1P_YR
C ALL If not set on one period per
year, then input:
1
2ndF
P/YR
Set decimal places to four: 2ndF DISP 4
0.0000

2) Calculating FV
Example: Calculate the future value of an investment with an initial amount of 10 000 at 15% over
3 years.

Steps: Inputs: Display should read:

Clear all registers 2ndF C ALL
1 P/YR

Number of periods 3N 3.0000

PV 10 000 +/- PV -10 000.0000
Interest rate 15 I/YR 15.0000
Calculate FV FV 15 08.7500

3) Calculating PV
Example: Calculate the present value of an investment with a future value of 10 000 at 10% over 5
years.

Steps: Inputs: Display should read:

Clear all registers 2ndF C ALL
0.0000

Number of periods 5N 5.0000

FV 10 000 +/- FV -10 000.0000
Interest rate 10 I/YR 10.0000
Calculate PV PV 6 209.2132

4) Calculating PMT
 Example: Calculate the payments needed each year to achieve an amount of R60 000 in 5 years if
the applicable interest rate is 12%.

Steps: Inputs: Display should read:

Clear all registers 2ndF C ALL
0.0000

Number of periods 5N 5.0000

FV 60 000 +/- FV -60 000.0000
Interest rate 12 I/YR 12.0000
Calculate PMT PMT 9 444.5839

5) Calculating net present value of unequal Cashflows

Example: Calculate the NPV of the following cash flows received at the beginning of each of the
next 4 years. A 10% interest rate is applicable.
Year 1: 1 000
Year 2: 2 000
Year 3: 3 000
Year 4: 5 000

Steps: Inputs: Display should read:

Set to beginning mode 2ndF Beg/End
Beg/End

Clear all registers 2ndF C ALL 1 P/YR 0.0000

Enter data sets: 1000 CFj CFL0/CF 1000
2000 CFj CFL0/CF 2000
3000 CFj CFL0/CF 3000
5000 CFj CFL0/CF 5000
Interest rate 10 I/YR 10.0000
Calculate NPV 2ndF NPV 9 054.0947

NOTE: If cashflows are at the end of the year:

a) Leave out the first step

b) The first cashflow representing initial cashflows at the beginning, must be entered as zero.

6) Calculating the effective interest rate

Example: Calculate the effective interest rate if nominal rate is 8.5% and there are 12 periods.

Steps: Inputs: Display should read:

Clear all registers
2ndF C ALL 1 P/YR 0.0000

Calculate EFF 12 2ndF P/YR 12.0000

8.5 2ndF NOM% 8.5000
2ndF EFF% 8.8391

7) Calculating the nominal interest rate

Example: Calculate the nominal interest rate if the effective rate is 8.5% and there are 4 periods.

Steps: Inputs: Display should read:

Clear all registers 1 P/YR
2ndF C ALL
0.0000

Calculate EFF 4 2ndF P/YR

8.5 2ndF EFF% 8.2418
2ndF NOM%