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# Incorrect Solve result for PV in Finance

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HP 50g

Hi All,

Hopefully, someone is reading this and will have an idea what's going on as I'm pretty frustrated at this point:

I own an HP 50g and have been trying to use the Finance function. Specifically, I want to solve for PV given N, i, FV.

I get into the Finance screen and enter the following values:

N=9

I%YR=8

PMT=0

P/YR=12

FV=60000.00

I then highlight PV and select Solve.

The calculator determines PV=-56517.12 which is incorrect (should be 30000.00 - Think Law of 72).

What am I missing here?

Bob

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It's the P/YR that is throwing you off so much.

Your values of N=9 and P/YR=12 implies that you are investing the PV amount for < 1 year (9/12 or 3/4 year to be exact).

So in that situation, of course the PV needs to be very close to the FV, since there won't be as much interest accumulating to increase the value.

Changing P/YR to 1 will give you what I think you were intending, meaning 9 periods of 1 year (=9 yrs).  Solving for PV in that scenario gives the expected exact answer of -30014.9380279, which is very close to the approximate value that the "Rule of 72" predicts.

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Yes indeed, that makes everything work as expected.

I was thinking that the P/YR was only related to the PMT input. I didn't realize it used as a denominator for N.

Thank you for the quick answer David!!!

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