HP 20b HP 20b Business Consultant Financial Calculator Manual
HP 20b - Business Consultant Financial Calculator Manual
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- HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 1
HP 20b Business Consultant Financial Calculator Manual For free training, visit www.hp.com/go/calctraining HP part number: F2219-90201 First edition: August 2008 - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 2
"as is" and are subject to change without notice. Hewlett-Packard Company makes no warranty of any kind with regard to this manual, including, but not limited to, the implied warranties of merchantability, non-infringement and fitness for a particular purpose. Hewlett-Packard Company shall not - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 3
Contents Contents Legal Notices Revision History...2 HP 20b Business Consultant Keyboard Keyboard Map Legend ...6 1 Basic Features Welcome to the HP 20b Financial Calculator 7 Turning the Calculator On and Off 7 Selecting a Language ...7 Adjusting the Display Contrast 7 Cursor ...7 Two Line - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 4
35 Using the Interest Conversion Menu 35 Canadian Mortgages: TVM Canada 36 Canadian Mortgage Example 38 4 Cash Flows Cash Flow Business Problems The Percent Calculation Menu 53 Percent Calculation Examples 54 9 Depreciation The Depreciation Menu ...56 Depreciation Example 58 10 Statistical - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 5
Statistics Example...63 11 Errors Error Messages and Calculator Status 65 12 Warranty, Regulatory, and Contact Information Replacing the Batteries...67 HP Limited Hardware Warranty and Customer Care 67 Customer Care ...68 Product Regulatory & Environment Information 71 Index Contents 5 - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 6
HP 20b Business Consultant Keyboard HP 20b Business Consultant Keyboard Keyboard Map Legend No. Feature Chapter(s) 1 Time Value of Money keys 3 2 Cash Flows, IRR, and NPV 4 menus 3 Data and Statistics menus 14 % key and Percent 2,6 Calculation menu 13 Store and Recall 2 12 - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 7
1 Basic Features Basic Features Welcome to the HP 20b Financial Calculator This manual is designed to familiarize you with the many features of your new 20b Financial Calculator. It includes menu maps, example problems and solutions with key presses, screen shots, and examples of cash flow - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 8
bottom line displays numbers you have entered, or results. Throughout this manual, this line is referred to as the bottom line. When no calculator is referred to as the default calculator screen. The Mode Menu: Setting Preferences :u < > The Mode menu allows you to customize the calculator - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 9
toggles between these options. Note: the 1000.00 and 1,000.00 options are only available if the decimal separator is set for point (.); 1000,00 and 1.000,00 are available only if the decimal separator is set for comma (,). Chain, Algebraic, or RPN Calculation mode. For more information, refer to - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 10
per year (C/YR) option in time value of money (TVM) Canada calculations. This option is primarily used for Canadian mortgage calculations. For more information, refer to the section titled, Canadian Mortgages: TVM Canada in Chapter 3. I Pressing toggles between these options. Changing the - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 11
, press and release the desired key. Most of the 20b's keys have two functions: the primary function and the it is used throughout the manual to make the examples easier to follow. Key commands for example problems are provided throughout the calculator. Figure 3 illustrates the annunciator symbols in - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 12
(RPN) mode to enter a number on the stack or duplicate it. The = Key = 1+2= The key is used at the end of a mathematical operation to calculate the final result. For example, returns a final result of 3. = The key, when pressed outside of a mathematical operation, also allows you to request - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 13
item. To validate a choice and reset the selected items, press . Press to cancel. If you select the command to reset the cash flow (Cash Flow ), statistics (Stats ), or all values (All ) items, you will be prompted to confirm your I O choice. At the Del. All?, Del. Data?, and Del. CF? prompts - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 14
to the number of remaining memory slots. When the cash flow or statistics items are displayed, a number also appears on the bottom line. press to confirm, or to cancel. Accessing Menus and Menu Maps Many of the calculator's functions are located within menus. To access a menu, press the key, or - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 15
Basic Features In this manual, diagrams called Menu Maps are included at the Degree/Radian option in the Mode menu, the items of the Reset menu, and I the items of the Percent Calculation (%calc ) menu perform an action when is pressed. Depending on the menu, this action can be the selection - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 16
2 Mathematical Calculations Mathematical Calculations Mathematical Functions Mathematical functions are located: On keys, such as, +-*/, etc. :p On shifted, or secondary functions, such as, In the Math menu, :s Number Entry and - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 17
if you wish to override the left to right order of entry, use parentheses to prioritize operations. For example, to calculate 1 2 3 , you may enter the problem as written from left to right, with parentheses to prioritize the multiplication operation. See Table 2-1 below. Table 2-1 Simple - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 18
it is waiting for the input of a number or the result of an operation of higher priority. Reverse Polish Notation (RPN) Mode To set the calculator in RPN mode, refer to the section titled, The Mode Menu: Setting Preferences in Chapter 1. In RPN I = mode, numbers are entered first, separated by - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 19
(+) When an operation is performed on the stack, addition for instance, the calculator "pops" or moves the two numbers from the bottom levels (Levels 1 and 2) out of the stack, performs the operation, and "pushes" the results back into - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 20
operations and numbers in the innermost parentheses and work out. For example, calculate: 3 4 5 6 One way to calculate this problem is to key in the numbers and operations within the parentheses first, set of parentheses. Intermediate results are displayed. Note the (+) annunciator. 20 - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 21
Table 2-3 Simple Arithmetic Calculations in RPN Mode Keys Display Description * Finishes the operation and displays the results. RPN Stack I = Pressing or when you are not entering a number duplicates the - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 22
Mathematical Calculations Figure 6 The RPN Stack and the Roll Down Operation ) ) Pressing performs a swap. A swap operation exchanges the numbers on Levels 1 and 2 of the stack. The key - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 23
(Degrees) or radians (Radians). You will need to change the setting if the active mode is not what your problem requires. For more information on the Mode menu and calculator settings, refer to the section titled, The Mode Menu: Setting Preferences in Chapter 1. Table 2-4 lists one-number functions - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 24
Mathematical Calculations Figure 8 The Menu Map for the Math Menu < Press to scroll through the menu items, starting with Trigonometry. The Trigonometry, work. Press to return to the top of the Math menu. For an example using the math menu to calculate Sin -1 (0.5), see Table 2-5. 24 - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 25
inverse: I = 1. Enter the number of degree(s) of freedom by typing the number and pressing or . 2. Type the number for which you want to calculate the probability, or, for the inverse, the probability for which you want the number. 3. Navigate to the appropriate function in the Probability sub - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 26
Probability Example Keys 10I 8I :s Display Description Enters 10 degrees of freedom and the number for which probability is to be calculated. Opens the Math menu. - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 27
. For example, for the power function example above, in RPN press: 15I3:h. Storing and Recalling Numbers The calculator has ten memories available for use during calculations. These memories are numbered from 1-9 and 0. To :$ store a number in a memory, press , followed by the key representing - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 28
TVM key. L L To recall the stored value of a TVM variable, press followed by the key of the desired TVM variable. Note: pressing does not calculate the variable; it recalls the current value. Recalling a Menu Item Value in a Menu In a menu, you can recall the current value of a menu item - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 29
the first number, followed by or and the percentage followed by %. Finish your calculation with =. For example, to add 10% to 50, press 50+10%= to return a result of 55. % In RPN mode, the key calculates x % of the number on Level 2 of the stack, when x is the number - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 30
Value of Money The examples in the following sections are calculated with the Mode menu preferences in their default settings, flow diagrams are useful tools for analyzing financial situations, as they help you identify the TVM functions needed to resolve your problem. A cash flow diagram is a - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 31
TVM functions of the calculator can solve problems with at least one cash flow, and problems in which all the cash Canada, or Chapter 4, Cash Flows. Figure 1 illustrates a cash flow diagram and how the data in the diagram corresponds to the TVM keys. For a complete list of keys used for TVM problems - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 32
(Beg). Payments occur at the beginning of each compounding period. ] Sets End mode (End). Payments occur at the end of each compounding period. Calculating Payments on a Loan You borrow 140,000.00 for 30 years (360 months) at 6.5% annual interest, compounded monthly. What is your monthly payment - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 33
Item/Key Description A Opens the Amortization menu. Nb Period Start Balance Principal Interest Number of periods to group together in the amortization calculation. The default value is [ the number of payments per year defined by the key. Period on which to start amortization. Default is - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 34
00V 0F Inputs the value of the loan at the time of the first payment. Inputs 0 as the future value of the loan (zero balance). M Calculates the monthly payment. A < Displays the number of periods to group together in the amortization schedule. Default is the current value of P/YR. Displays the - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 35
Time Value of Money :x To reset the menu items to their default values, with any item of the Amortization menu displayed press . With TVM I I O displayed, press . At the TVM Reset prompt, press to reset, or to cancel. Interest Conversion Menu Figure 3 The Menu Map for the Interest Conversion - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 36
differs from the compounding period used to calculate the nominal rate. By default, the HP 20b performs calculations assuming that the number of compounding periods always equals the number of payments per year. You can, however, enable the TVM Canada option in the Mode menu, which enables - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 37
Time Value of Money With TVM Canada enabled in the Mode menu, the following TVM features change: :[ 1. no longer affects P/YR. 4. Note, however, if you now change the value of P/YR, the calculator automatically sets C/YR so it equals your new value assigned to P/YR. This means that if you modify - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 38
the current FIX value (number of digits to the right of the decimal point). >I Scrolls to TVM mode and sets mode to TVM Canada. O Returns to default calculator screen. :[12 I - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 39
Cash Flows Figure 1 Cash Flow Diagram In the calculator, a cash flow list is a set of numbered pairs, CF(n) and #CF(n), where n is the index of the cash flow list. Each pair represents one or more cash flows in a cash flow diagram. As with TVM problems, it helps to sketch a cash flow diagram - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 40
reset, or to cancel. Table 4-1 lists the keys used for cash flow problems. For a cash flow example, see Table 4-2. Table 4-1 Cash Flow Keys 5 1 Given this information, calculate the total of the cash flows and the internal rate of return (IRR) of the investment. Calculate net present value (NPV) - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 41
Table 4-2 Cash Flow Example Keys C Display 8000 0}I I 5000I I 4500I I I I 4000I I 5000I 5I 41 Cash Flows Description Opens the cash flow list. Inputs -80000 as the monetary value of the initial cash flow. Note: the sign of the cash outflow is negative. Accepts 1 as the number of - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 42
Table 4-2 Cash Flow Example Keys Display 115000 I I Cash Flows Description Inputs 115000 as the monetary value of CF(6). Displays the current value, 1, for the number of times CF(6) occurs. Accepts 1 as the number of occurrences for CF(6). Analyzing Cash Flows P R R P The various functions - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 43
Cash Flows Table 4-3 NPV and IRR Menu Items Item Description Inv. I% Investment or discount rate. Enter the investment rate or discount rate for the cash I flow followed by . Net PV Net present value. Shows the value of the cash flows at the time of the initial cash flow, discounting the - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 44
Table 4-4 NPV and IRR Example Keys Display < - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 45
Sample Cash Flow Diagrams Cash Flows Figure 3 Sample Cash Flow Diagrams 45 - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 46
Price DWN Accrued Actual/ DWN Cal.360 DWN Annual/ Semiannual Figure 1 The Menu Map for the Bond Menu The Bond Menu Before you enter the Bond menu, be sure to verify the date format is set appropriately for your problem to an unknown item, and press to calculate it. Table 5-1 lists the items in - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 47
/360-day year calendar). I Press to toggle between these options. I Bond coupon (payment) frequency. Press to toggle between these options. Bond Calculation Example What price should you pay on April 28, 2010 for a 6.75% U.S. Treasury bond maturing on June 4, 2020, if you want a yield of 4.75 - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 48
current call value. Default is 100. Note: if Call requires another value, key in the number followed by I. Inputs 4.75% for Yield%. Calculates the current value for Price. :$1 Stores 115.89 in memory 1. < Displays the current value for accrued interest. +L1= Returns the result for total - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 49
dates, verify the date is set in the format required for your problem. Date and calendar formats may be set in the Mode menu. data, press or repeatedly to scroll to the unknown item and press to calculate it. Date Calculation Example How many days remain in the 2010 fiscal year if today's date - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 50
Description Inputs the ending date in the selected format. Calculates the number of actual days between the starting and ending dates. :x To reset the menu items to their default values, with any item of the - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 51
item and press = to calculate it. The break-even function allows you to study problems involving a profit, when a quantity of items, with a cost to manufacture and a fixed price to develop and market, is sold at a given price. See Figure 1. Break-even Example The sale price of an item is 300 - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 52
Break-even Table 7-1 Break-even Example Keys - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 53
8 Business Problems Business Problems Figure 1 The Menu Map for the Percent Calculation (%calc) Menu The Percent Calculation Menu :# Press to open the menu. There are four items in this menu: markup as a percentage of cost (Mkup. %C ), markup as a percentage of price (Mkup. %P ), part as a - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 54
Business Problems Note: for business problems, margin is based on price; markup is based on cost. The examples below are shown with RPN as the active operating mode. Percent Calculation Examples See Tables 8-1 through 8-4 for examples of calculations in the %calc menu. 1. Find the markup on an - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 55
Business Problems Note: although the example in Table 8-2 calls for no compounding, you may specify the number of compounding periods used in calculations with the Nb Period item in the %Change sub-menu. Nb Period is the number of compounding periods used in calculations between the old value and - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 56
Menu :\ I Press to open the Depreciation menu. To select a depreciation method, press repeatedly. See Figure 1. Input the values required for the calculation: Asset life Starting date or month of the deprecation Cost and salvage values Declining balance factor (DecBal and DBXover only - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 57
consistent depreciation during the latter part of its life, which is then calculated using the straight line method. French SL Straight line French. This method to the date or month in which the asset is first placed into service. Depending on the type of depreciation, this can be the month (1-12 - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 58
declining balance crossover methods only. Year Year for which you want to calculate the depreciation. Depreciation Depreciation in the given year. R.Book Value the straight line method. - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 59
Depreciation Description Remaining book value after year one. Remaining depreciable value after year one. The next year for which to calculate the depreciation. To calculate for a year other than 2, type a number and I press . Depreciation of the asset in year two. Remaining book value after - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 60
10 Statistical Operations Statistical Operations Figure 1 The Menu Maps for the Data and Statistics Menus 60 - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 61
press or repeatedly to view the results. To return from the sub-menu to the Statistics menu, press :z. Note: in one-variable modes, there are no items for y = to cycle through the options. Note: if you press , the calculator automatically selects the curve that is the best fit for your data. < - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 62
Operations Table 10-1 The Statistics Menu Items Menu Item Nb Item Description Number of items. X Mean correlation coefficient is a number in the range -1 through 1 that measures how closely the calculated line fits the data. Covariance A measure of how much two variables change in relation - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 63
regression line? What is the sum of all the y values? See Tables 10-2 and 10-3. Table 10-2 Months and Sales Month 1 Sales Values 150 2 165 3 160 4 175 5 170 Table 10-3 Statistics Example Keys :y Display 1I1 50I 2I1 65I 3I1 60I 4I1 75I 63 Description Opens Data menu. Inputs values for - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 64
performs calculations based on a linear (a*X+b) regression line. Inputs 7 as the Prediction X value (month 7). - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 65
ER: ∞^0 Attempted calculation of +/-∞^0. ER: ∞^(Frac) Attempted calculation of +/-∞^ (non-integer y). ER: (x - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 66
Status Returned when there are many solutions to the problem. Returned by TVM/Amort if N is invalid. Returned by long functions if user stops the calculation prior to completion. Returned if the result is infinite. Returned by statistics functions if there is insufficient data for analysis. Returned - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 67
, please visit www.hp.com/support for latest information) General Terms HP warrants to you, the end-user customer, that HP hardware, accessories and be either new or like-new. HP warrants to you that HP software will not fail to execute its programming instructions after the date of purchase, for - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 68
.hp.com/support Argentina 0-800-555-5000 Australia 1300-551-664 Belgique (français) 02 620 00 85 Belgium (English) 02 620 00 86 Bolivia 800-100-193 Brasil 0-800-709-7751 Canada 800-HP-INVENT Caribbean 1-800-711-2884 Česká republikaik 296 335 612 Chile 800-360-999 China 中国 010 - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 69
6421 1-800-999-5105 800-711-2884 852 2833-1111 www.hp.com/support/india +65 6100 6682 01 605 0356 02 754 19 782 81-3-6666-9925 www.hp.com/support/korea www.hp.com/support +65 6100 6682 01-800-474-68368 www.hp.com/support 020 654 5301 0800-551-664 1-800-711-2884 23500027 - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 70
0589 495 228 3050 01 439 5358 6100 6682 0800980410 2-561-2700 022 827 8780 09 8171 0281 08 5199 2065 022 567 5308 www.hp.com/support +852 28052563 +65 6100 6682 0207 458 0161 800-HP INVENT 0004-054-177 0-800-474-68368 +65 6100 6682 70 - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 71
accordance with the instructions, may cause Consult the dealer or an experienced radio or television technician for help. Modifications The FCC requires the user 510101 Houston, TX 77269-2000 or call HP at 281-514-3333 To identify your le matériel brouilleur du Canada. European Union Regulatory Notice - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 72
- special handling may apply This calculator's Memory Backup battery may contain perchlorate disposed in California. Disposal of Waste Equipment by Users in Private Household in the European Union This waste disposal service or the shop where you purchased the product. Chemical Substances HP is - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 73
Warranty, Regulatory, and Contact Information 部件名称 铅 (Pb) 汞 (Hg) 镉 (Cd) Cr(VI PBB) PCA X O O O O O O O O O O SJ/T11363-2006 X SJ/T11363-2006 X RoHS 2003年1月27 2002/95/EC PBDE) O O 73 - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 74
business problems, 53; percent calculation examples, 54 C calculation mode: Chain, Algebraic, and RPN, 10 calendar: Actual, Cal.360, 10 call value, 47 Canada markup: as cost, 53; as price, 53 math: Math key, 23 , 36; Percent Calculation, 53; Reset, 13; Statistics, 60; TVM, 30; TVM Canada, 36 menu item - HP 20b | HP 20b Business Consultant Financial Calculator Manual - Page 75
: PMT key, 32 PI. See Math Menu population, 61 power functions, 23 Predictions: sub-menu. See Statistics present value: PV key, 32 price: break-even, 51; face value. See bonds; percent calculation, 54 principal, 33 probability, 25 product: x and y values, 63 profit, 51 Q quantity: break-even, 52
HP 20b Business Consultant
Financial Calculator Manual
For free training, visit www.hp.com/go/calctraining
HP part number: F2219-90201
First edition: August 2008