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Solved!

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HP 10b11+

My calculator is giving incorrect answers. Example: What will a deposit of \$4,500 at 10% compounded semiannually be worth if left in the bank for six years?

Pv: 4,500

i/yr 10%

n: 6

pmt: 0

FV: solve.

It gives me -4,729.74. This is not the correct answer. What do I do when I have a test coming up in 5 days?

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Hi,

for semi-annual you need to set payments per year to 2.

2 Orange-shift P/YR (on PMT key)

Also remember that  then N becomes 12 (there are 12 semi-annual interest payments in 6 years)

You can do this with the xP/YR (on N key)

6 Orange-shift xP/YR  (the display will show 12 which is automatically stored in N )

You should now get a FV of -8,081.35, which I think is the answer you were expecting.

(edited to correct spelling)

-Bart
_________________________________________________________
calculator enthusiast
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Message 3 of 4
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Note that the source of 99% of errors in financial calculations stems from not having your interest match your compounding correctly as specified. Make sure you are doing that correct, and the rest is easy!

I always tell finance students - learn how to interpret interest and compounding correctly before anything else and REALLY understand it. That will make the course simple.

TW

Although I work for the HP calculator group as a head developer of the HP Prime, the views and opinions I post here are my own.
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Hi!, @Arich26 :

See, pages 55 to 60, from ... http://www.hp.com/ctg/Manual/c02989763.pdf

Kind Regards !.
Have a nice day !.