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# HP 10bii+ Time Value Calculation Issue

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HP 10bII+ Financial Calculator

I am having a problem trying to calculate the Future Value in an equation. I have seen other threads addressing the same issue, but the "solution" given does not make sense to me.

I am trying to calculate

N = 4

I/Y = 8

PV = 2500

PMT = 0

To get the future value. The answer that I come up with is 2,567.34

On the other threads, it is suggested to set the P/YR,  button to 1 instead of 0. There are two buttons that have P/YR on them the N button and the PMT button. If using the PMT button when doing this, my answer comes out to be 2,571.38, and reads

N = 4

I/Y = 8

PV = 2500

PMT = 1

The answer I should be getting is 3,401.22, as per the textboox. Am I setting the payment per year wrong? If so, what do I need to do differenly? Or how do I reset so that it reads as 1?

Thank you

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Hi!, @ReillyScott:

You needed see, the User Guide, for Solve your question, from ... http://www.hp.com/ctg/Manual/c02989763.pdf ... or, too ... https://www.educalc.net/1913481.page

For, the Learning examples, from ... https://support.hp.com/us-en/document/bpia5027#AbT7

Kind Regards !.
Have a nice day !.
Provost in HP Spanish Public Forum ... https://h30467.www3.hp.com/
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Message 3 of 5
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Notice how the "P/YR" on the PMT key is printed in orange. That indicates that you must press the orange shift key first, to access that function.  You should think of the two-key sequence [orange-shift] [PMT] as "the P/YR key". (The same is true of the blue functions and the blue shift key).  So, to set the payments per year to 1, press:

1, P/YR (orange-shift PMT).

This stores the 1 into P/YR.  You can check its value by pressing RCL P/YR.

When N=4, and I/YR=8, and PV=2500, and PMT=0, and P/YR=1, then FV solves as -3401.22 as you desired.

You mentioned the "×P/YR" on the N key. That's just a shortcut function for easily setting N to a multiple of P/YR.  If you type a number, then press ×P/YR (orange-shift N), the number you typed gets multiplied by your current P/YR and the product gets stored into N, all in one step. So pressing [orange-shift] [N] is the same as typing [×] [RCL] [orange-shift] [PMT] [STO] [N].

Disclaimer: I don't work for HP. I'm just another happy HP calculator user.

-Joe-
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Message 4 of 5
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Hi,

I short:

The P/YR om the PMT key sets the number of payments per year (at reset default =12).

The xP/YR on the N key multiplies the number in the display by P/YR previously set with orange-shift PMT key.

For example:

If payments per year is set to 6 ( using P/YR with orange-shift PMT key)

Then for 5 year payments, enter 5 and orange-shift N, then result = 30 the total number of payments.

(note 30 will automatically be stored in N ).

Also remember that the calculator will determine the interest per payment period based on the value of P/YR!

You provide:

N = 4

I/Y = 8

PV = 2500

PMT = 0

what is FV?

There are details missing:

Is "N = 4" in months or years?

Is interest compounded monthly or annually?

From the textbook answer, we can work back that N = 4 years and that interest is compounded annually.

That is why P/YR = 1.

Without this information it would have been impossible to guess what answer was required.

-Bart
_________________________________________________________
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Message 5 of 5
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Hi!, @ReillyScott:

You can see, this explained video with quick tutorial of, the theory of Time Value of Money, from ... https://www.youtube.com/watch?v=WezRlucQK3g

Kind Regards !.
Have a nice day !.