cancel
Showing results for 
Search instead for 
Did you mean: 
TWal
New member
1 0 0 0
Message 1 of 2
965
Flag Post

Solved!

10bii calculating wrong answer

HP Recommended
HP 10bii Financial Calculator

When calculating TMV, in order to get FV I enter:

 

N=12

I/YR=5

PV=+/-100

PMT=0

 

I should be getting a flat 105.

 

Instead I am getting 105.12. Why?

 

 

0 Kudos
1 REPLY 1
David_M
Level 6
140 139 29 60
Message 2 of 2
Flag Post
HP Recommended

The given values, along with an assumed 12 periods per year (P/YR), will give you a result of 105.12 (105.116189788 in full precision).  This is because you are specifying that the annual interest rate of 5% is actually compounded monthly with the combination of N=12 and P/YR=12.

 

Your expectation of 105 for the result implies a simple interest situation as opposed to compounded interest.  Although you don't really need to use the TVM functionality to obtain that result, you can still achieve this by changing both N and P/YR to 1 and solving for FV again.

0 Kudos
† The opinions expressed above are the personal opinions of the authors, not of HP. By using this site, you accept the Terms of Use and Rules of Participation