HP Financial Calculator Model 10BII User Guide
March 21, 2006 Version 1.0
Brian P. Sharkey Silver Caliper, LLC ENGU-303 Technical Writing Chapman University
Table of Contents A. Preface B. Introduction About Financial Calculators Development of the HP 10BII Intended use of the HP 10BII Operating Features Setup and Installation C. Basic Operations and Essential Calculations Time Value Money (TVM) Calculations IRR/YR Calculations Amortization Interest Rate Conversions Lease Calculations D. FAQ / How Do I? E. Product Maintenance Cleaning the 10BII Product Specifications Replacing Batteries F. Additional Help Additional Calculations Technical Support Contacting HP G. Audience Analysis H. References Annotated Bibliography I. Appendix A – Supporting Documentation Specifications Keyboard Map More Useful Links 2 3 4 5 6 6 7 8 8 9 9 10 10 11 11 12 see Appendix A see Setup and Installation 12 12 12 13 14 15 15 17 17 18 19
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Preface The Hewlett-Packard (HP) 10BII is designed as an inexpensive financial calculator solution targeted for the student, finance professional, and non-technical business person alike. Though the financial professional could easily get the most out of the 10BII, a typical business person who may only perform occasional or limited financial calculations will need to perform them in a quick and efficient non-cluttered, non-confusing, and easily recalled manner. Thus the 10BII is an ideal choice, as it specializes in ease of use, accuracy, and powerful operation with a budget in mind (HP Press, 2003). This model can also be used by scientists and engineers, technical professionals, and real estate professionals with a relatively small learning curve involved (HPP, 7). This guide is designed from a unique approach, to introduce new users to the hardware as well as guide them through common software and financial and mathematical functions. It is written with the non-technical user in mind, but with a straightforward approach that will appease the more technical user as well. The goal of this guide is to help the user take the first step to getting the most out of their new calculator and quickly master the HP 10BII and regardless of their background or intent. This guide covers the basics of financial calculations using the HP 10BII, though it does not attempt to cover scientific or specialized business calculations.
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Introduction About Financial Calculators Financial calculators (sometimes called business calculators) have been around since the late 1960’s, quickly replacing pen and paper methods for financial and accounting calculations. The earliest financial calculators came about after the start of the Hewlett-Packard Company and were developed in the 1970’s on the strength of reputation of HP’s scientific calculators, and behind the strong name of their founders, William Hewlett and David Packard (Wikipedia, 2006). HP gained a reputation of firsts, by introducing the world's first handheld scientific electronic calculator in 1972 (the HP-35), the first handheld programmable in 1974 (the HP-65), the first alphanumeric, programmable, expandable in 1979 (the HP-41C), and the first symbolic and graphing calculator (the HP-28C). Hewlett-Packard is also credited with creating the first personal computer in 1968, though they classified it as a “desktop calculator” to avoid controversy. HP next unveiled the HP-80 in 1972 as the first business calculator (hpmuseum.org, 2005). The company subsequently introduced the model 12C financial calculator in 1981 to meet the growing demands of financial professionals (Wikipedia, 2006). As a result, the 12C is HP’s longest and bestselling calculator. However, unlike the 12C, the 10BII does not perform memory operations beyond 14 cash flow groups or 99 cash flows per group, or use
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the more complex Reverse Polish Notation (RPN) entry. As a result, many students and business users are finding they prefer the ease of use and simple yet powerful operation. Therefore the HP 10BII takes the strong foundation of HP financial calculators and builds upon it with a modern, utilitarian touch and easy use. Development of the HP 10BII The HP 10BII follows in the footsteps laid down by the popular HP 12C, generally considered the gold standard for financial calculators. The 10BII is designed to perform over 90% of the operating power of the 12C but in a neater, simpler package (HPP, 10.) The Hewlett-Packard 10BII is designed as an inexpensive financial calculator solution targeted for the student, finance professional, and non-technical business person alike. Though the financial professional might easily get the most out of the 10BII, a typical business person may only perform occasional financial calculations, and they will need to perform them in a quick and efficient non-cluttered, non-confusing, and easily recalled manner. Thus the 10BII specializes in ease of use, accuracy, and powerful operation with your budget in mind. This model can also be used by scientists and engineers, technical professionals, and real estate professionals with a relatively small learning curve involved (HP Calculator Website, 2006.)Intended Use of the 10BII The 10BII is used by financial professionals and non-professionals alike. The highest use is by students in the financial, accounting and business fields. It is also permitted for use on the CFP® Certification Exam. Operating Features 519
Fig. 1
Special Design Features:
Large, softedged keys and generous keyspacing 2 shift functions Auto power off, after 10 minutes
Special Operating Features:
12-character, adjustable contrast display Read display results easily, even at an angle Parentheses for grouping expressions Automatic constant 3-Key memory 15 Storage registers Help available on the Web
Statistical/Math features include:
Statistical analysis Standard deviation, mean & weighted mean Linear regression and linear estimation Forecasting, correlation & co-efficient Total, ∑x, ∑x2, ∑y, ∑y2, ∑xy
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+, -, X, √, ÷, 1/x, LN, ex, yx, n!, x2
(Adapted from HP Quick Reference Guide, 2003)
Setup and Installation Setup and installation of the 10BII can be completed in a few easy steps:
1. Remove protective overwrap encasing the 10BII Financial Calculator. 2. Gently turn the calculator face down on a dry, non-abrasive surface and carefully
remove the battery cover (center) by inserting a fingernail or small coin into the slot and lifting upward. Set cover aside.
3. Insert two CR-2032 (3V) lithium calculator batteries (included), with the positive (+)
terminals face up.
4. Return the battery cover to its original position and push down gently until there is a
soft click.
5. Turn over calculator and the display reads ALL CLEAR. 6. Press C button to reset operation. Shift-On turns the 10BII off. 7. Register your product at http://www.register.hp.com. 8. After registering your product, discard or recycle protective packaging.
Fig. 2
Basic Operations and Essential Calculations Basic Operations The basic operations include turning the 10BII on and off, utilizing the shift key, erasing entered characters, clearing the display, and clearing other memory areas.
Keystrokes Display Description
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ON OS1 OS ON C OS C All 1 2 3 BKSP
0.00 0.00
Turns the calculator on Displays shift annunciator (SHIFT) Turns the calculator off
Varies 0.00 12_
Clears error messages and restores the display Clears all memory Erases last character
1
The OS symbol indicates depressing the orange shift key located just above the C key on the bottom left of the keypad.
Time Value Money (TVM) Calculations Time Value Money is the key type of calculations used in financial operations. It is based on the principle that entering any four of the five core values: Number of payments, interest per year, present value, payment, and future value will allow you to calculate the unknown value simply by depressing the unknown value’s key.
Keystrokes N I/YR PV PMT FV OS BEG/END OS P/YR Description Number of payments Interest per year Present value Payment Future Value Begin or End mode Number of payments per year mode
IRR/YR and NPV Calculations
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IRR/YR calculates the internal rate of return per year of an investment whereby NPV represents the net present value of a future amount.
Keystrokes OS P/YR CFj OS Nj OS IRR/YR OS NPV Description Number of periods per year (default is 12) Cash flows, up to 15 (j is cash flow variable) Number of consecutive times j occurs Internal rate of return per year Net present value
Amortization Amortization is defined as the paying off of debt in regular installments over a period of time. This can also be useful for depreciating the value of fixed assets over a specified period. After calculating a payment using the TVM method, enter the periods to amortize and press OS AMORT. Then press = to continually cycle through the interest, principal, and balance values (indicated by the PRINT, INT, and BAL annunciators respectively.)
Amortizing the 20th payment of the loan:
Keystrokes 2 0 INPUT OS AMORT = = = Display 20.00 20 – 20 -7.25 -115.61 13,865.83 Description Enters the period to amortize Displays period to amortize Displays principal Displays interest (negative) Displays balance
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Interest Rate Conversions Interest rates can be easily converted or calculated in a few keystrokes using the 10BII. To convert between nominal and effective interest rates, enter the known rate and number of periods per year, then solve for the unknown rate by pressing the unknown value’s key.
Keystrokes OS NOM% OS EFF% OS P/YR Description Nominal interest percent Effective interest percent Periods per year
Lease Calculations Lease calculations are useful for typical real estate transactions. There are two common lease calculations in use:
Finding the lease payment necessary to achieve a specified yield. Finding the present value (capitalized value) of a lease.
Note: Most lease calculations use Begin mode. This is because the first payment on a lease usually occurs at the beginning of the first period. All five TVM keys can be used. (HPP, 64)
Calculating a lease payment:
Keystrokes 1 2 OS P/YR 1 0 I/YR 1 3 5 0 0 +/- PV 7 5 0 0 FV Display 12.00 10.00 -13,500.00 7,500.00 Description Sets payments per year Stores desired annual yield Stores lease price Stores residual (buy out value)
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36N PMT
36.00 253.99
Stores length of lease in months Calculates monthly lease payment
FAQ / How Do I? Attempting to answer specific questions regarding the HP 10BII is outside the scope of this guide. The complete, thorough list of FAQ for all HP calculators is located on the World Wide Web at: http://h10025.www1.hp.com/ewfrf/wc/documentIndex?dlc=en&lc=en&prod uct=61751&lang=en&cc=us&. Product Maintenance The 10BII requires little maintenance for a long life of worry-free use. This calculator is designed as a lightweight, portable and durable solution that is designed with long battery life in mind. It has an auto power off feature that triggers after 10 minutes, to extend battery life further. Cleaning your HP 10BII Simply wipe down the outer surface of the calculator with a moist cloth, and allow to air dry or pat gently. Do not use any special cleaners or harsh chemicals. When dry, insert the 10BII back into its protective case. See Section B – Setup and Installation for instructions on replacing batteries. Additional Help / Resources
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Additional Calculations Additional calculations and examples can be found in the HP 10BII Financial Calculator Manual. These include statistical and business functions, as well as detailed memory operations. There are also examples and tutorials available at the HP website: http://www.hp.com/calculators/financial/10bII/. Technical Support The HP 10BII is a rugged device that should survive in regular use for years, with proper care. The company provides buyers with a one year warranty against any normal failures or defects in craftsmanship. Technical support for the HP 10BII is primarily available online. At the HP website, one will find troubleshooting help, as well as numerous sample problems to work through and additional tutorials for any type of desired calculations. The direct support link for the 10BII is: http://h10025.www1.hp.com/ewfrf/wc/product?product=61751&lc=en&c c=us&dlc=en&lang=en&cc=us. Contacting HP HP’s calculator division can be contacted via their website or via phone, for warranty support or any other issues. Visit http://welcome.hp.com/country/us/en/contact/phone_assist.html for up to date information on contacting HP.Audience Analysis This documentation was designed and written with the non-technical, first-time user in mind. It has been carefully written with the idea that
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anyone who has never performed any financial or accounting calculations before can easily follow the guide and do the basic calculations after only a short time reading and possessing the 10BII calculator. In addition, the breadth of the information is intended so that more experienced users will also find multiple areas of value to them. The likely user is a student or first time business user who will find this document freely available and published via the World Wide Web. The overwhelming information was compiled from a wide variety of different sources and put into easily understandable terms for the lay person. In addition, it is intended as a reference for users to find as much additional information about using the 10BII calculator as possible, so that they can save time rather than combing through potentially hundreds of pages of documentation. References Annotated Bibliography 1. HP 10BII Financial Calculator Manual. Edition 1. (2003). San Diego, CA: Hewlett-Packard Company Press. This is the definitive reference to the 10BII Financial Calculator, available in printed form or on CD-ROM as a PDF document. The 144-page guide is a bible for how to use this device, encompassing specifications and technical data, explanation of operations, tutorials, and support information. Since the manufacturer publishes this guide it is very thorough and accurate, but is too intimidating for simple reading or browsing by the average end user. This was essential to publishing this guide since it is the recognized definitive source of information on this calculator model. 2. HP 10BII Quick Reference Guide. Edition 1. (2003). San Diego, CA: Hewlett-Packard Company Press. This quick guide is an easy at-a-glance companion to the official 10BII manual, which is handy for giving a visual reference to the buttons available on the calculator and a brief description of their functions. It also serves to quickly inform and remind the user of the necessary keystrokes to perform
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common operations. This was helpful in checking and testing the operations described in this guide, from the same authority as the official manual. 3. Hewlett Packard. HP 10BII Product Details Website. Retrieved March 1, 2006 from the World Wide Web: http://www.hp.com/calculators/financial/10bII/ The official website for the HP 10BII is located at the Hewlett-Packard website within the calculators section and financial subsection. It allows users or interested individuals to educate themselves quickly on the features and specifications of this model. There are multiple links to support information and specific training modules, which are highly educational. It also allows consumers to purchase, and compare to the features and specifications of other HP scientific and financial calculators. This was helpful as the online companion to the official users’ manual, and for layout ideas. 4. Educalc. HP 10BII Business Calculator guide. Retrieved March 1, 2006 from the World Wide Web: http://www.educalc.net/135951.page Educalc, the exclusive distributor for HP calculators in Southeast Asia, published this website for users of the 10BII model. There is a quick description of the model, a tutorial section that primes on some basic operations, and sections for specifications, technical information, and troubleshooting. There is also a link to purchase the product and accessories from them, in Asian currencies or American dollars. This was an additional reference for the user guide, which allowed for addressing a global audience. 5. Pearson Education Web Publishing System. Hewlett Packard 10BII Introduction. Retrieved March 1, 2006 from the World Wide Web: http://wps.aw.com/wps/media/objects/524/536868/HP-10BII.pdf This PDF guide published by Pearson Education is a brief user tutorial from the perspective of mathematical operations on how to use this financial calculator. It also provides some basic information on the 10BII model in the introduction section. This was the one of the earliest references written for this particular calculator, and gave users foundation in finance for learning to use the 10BII. It is a solid educational reference from a publisher of many college textbooks.
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6. Wikipedia Online Encyclopedia. Hewlett-Packard Company. Retrieved March 20, 2006 from the World Wide Web:
http://en.wikipedia.org/wiki/Hewlett-Packard
7. Wired Magazine Online. Origins: The First PC. Dec 2000. Retrieved March 20, 2006 from the World Wide Web:
http://www.wired.com/wired/archive/8.12/mustread.html?pg=11
8. HP Museum website. Homepage. Retrieved March 20, 2006 from the World Wide Web: http://www.hpmuseum.org/ 9. Reference.com Dictionary. Definition: amortization. Retrieved March 20, 2006 from the World Wide Web: http://dictionary.reference.com/search?q=amortization Appendix A – Supporting Documentation Specifications
CPU CPU Display Display size Display Type LCD LCD viewing area Contrast System logic Entry-system logic Built-in functions Menus, prompts, etc. Pending operations Internal precision Memory Memory registers Memory Input Keyboard Power Power Power off Memory protection Battery life Physical characteristics 2 x CR2032 batteries Yes 2 years (when used 1 hr/day) Numbers 15 1KB RAM Algebraic 100+ No 10 15 digits 1 line x 12 characters LCD 12 x 7-segment, single line 0.63 x 2.5in (16mm x 63.5mm) Adjustable Hitachi H8
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Weight Size (L × W × D) Key Top Material Warranty What's in the Box Supporting material
Approx. 2.82oz (80gms), with batteries 5.67 × 3.07 × 0.53 in, or (144mm × 78mm × 13.5mm), without cover Plastic 1-year warranty Calculator, batteries, user manual, pouch
Subject Suitability
Finance Real estate Accounting Economics Business studies CFP® Certification Exam†
Permitted for use on
†
CFP® is a registered trademark of the Certified Financial Planner Board of Standards, Inc.
Keyboard Map
1. Time value of money
12. Statistical functions
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2. Separate two numbers 3. Percent 4. Constant 5. Store and recall 6. Change sign 7. Statistics key 8. Shift key 9. Clear display, cancel operation 10. Clear all memory 11. On / Off
13. n through S xy: statistical summation registers 14. 3-key memory (page 39) 15. Backspace (page 25) 16. Accumulate statistical data 17. Cash flows 18. Business functions: margin, markup, cost, price 19. Interest conversion 20. Amortization 21. Annunciator lines
More Useful Links Bankrate.com online calculators and tools: http://www.bankrate.com/brm/rate/calc_home.asp Financial Calculators, Inc. online financial tools: http://www.fincalc.com/ Yahoo! financial calculator reference and guides: http://dir.yahoo.com/Business_and_Economy/Finance_and_Investment/R eference_and_Guides/Calculators/
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