HP Flashcards
What to do before each calc?
f clear FIN
to clear all 5 financial registers on the top
interest and x need to correspond
period
if interest is annually, the period is annual too.
how to calculate quarterly payments and interest
years x 4
interest / 4
The g key is a shortcut when there are monthly payments.
It multiplies by 12 when you are calculating n (number of periods) It divides by 12 when you are calculating i (periodic interest).
HOA needs $50,000 in 9 years to replace pool. How much do they need to set aside quarterly if they invest at 5.5% per year?
1,068.03
f CLEAR FIN
g BEG
9 ENTER 4 x n
5.5 ENTER 4 ÷ i
50000 CHS FV
PMT
1,068.03
Which columns of the functions of the Dollar make payments in the beginning?
Column 2 and 3
(college fund and roof replacement)
How much should an investor pay for a promissory note which is fully amortized with equal annual payments of $12,500 for 10 years, discounted at 12%?
f CLEAR FIN
10 n
12 i
12500 CHS PMT
PV
70,627.79
If we have a mortgage in the amount of $123,000 with annual payments for 20 years, at 6% interest, how much are the annual payments?
f CLEAR FIN
20 n
6i
123000 CHS PV PMT
10,723.70
Assume a $82,000 mortgage with monthly payments for 25 years, at 8.35% interest. First let’s calculate the monthly payments.
What would the payments be if we stretched out the period to 30 years?
f CLEAR FIN
25 g n
8.35 g i 82000 CHS PV PMT
652.02
30 g n PMT 621.81
Assume a $118,500 mortgage, at 6.5% with a monthly payment of $883.50. For how many years was the original mortgage written?
The answer is 20 years.
f CLEAR FIN
6.5 g i
118500 CHS PV
883.50 PMT
n
240
The answer is 240 - but that is the number of months. To find the number of years, we enter:
12 ÷
We have a $212,750 mortgage, for 30 years and the monthly payment is $1,487.58. What is the interest rate?
f CLEAR FIN
30 g n
212750 CHS PV 1487.58 PMT
i
0.63
So, the answer is .63. But wait a minute – that is only the interest per month! We have to multiply by 12 to get the annual interest rate.
12 x
7.50
The real answer is that the interest rate is 7.5% per year.
You can afford payments of $750 a month and you have a $25,000 down payment. The bank will give a mortgage for 30 years, at 6.8% with monthly payments. How expensive a house can you buy?
f CLEAR FIN
30 g n
6.8 g i
750 CHS PMT
PV
115,043.88
25000 +
140,043.88
You have a mortgage of $112,500 with a 25-year term and a 7.2% annual interest rate, with monthly payments. However, there will be a balloon payment due at the end of year 5. How much will that be (the amount of the remaining balance of the loan at that point)?
f CLEAR FIN
25 g n
7.2 g i
112500 CHS PV
PMT
809.54
Then we leave all the information in the rest of the registers but change the entry in the n register to 5 years and ask for the future value after 5 years.
5gn
FV
102,818.06
Therefore, the remaining balance at the end of 5 years of the 25-year scheduled payout, to be paid off as a lump sum balloon payment, would be $102,818.06.
How to calculate Standard Deviation with HP?
g S
Always enter PV (present value) as a
Negative Number
CHS
Gary DeWeese
