HP 20b Business Consultant Financial Calculator User Manual Page 1

iHP 20b Business ConsultantHP 30b Business ProfessionalFinancial Calculator User’s GuideHP Part Number: NW238-90001Edition 1, December 2009

Basic Features2CursorWhen you enter a number, the cursor (_) blinks in the display and indicates you are in number entry mode.Two Line DisplayThere ar

Warranty, Regulatory, and Contact Information92HP products may contain remanufactured parts equivalent to new in performance or may have been subject

Warranty, Regulatory, and Contact Information93does cause harmful interference to radio or television reception, which can be determined by turning th

Warranty, Regulatory, and Contact Information94• Low Voltage Directive 2006/95/EC• EMC Directive 2004/108/ECCompliance with these directives implies c

Warranty, Regulatory, and Contact Information95information about where you can drop off your waste equipment for recycling, please contact your local

Warranty, Regulatory, and Contact Information96China中国800-820-9669Colombia 01-8000-51-4746-8368 (01-8000-51- HP INVENT) Costa Rica 0-800-011-0524Croat

Warranty, Regulatory, and Contact Information97Jamaica 1-800-711-2884Japan日本 00531-86-0011Kazakhstan www.hp.com/supportLatvia www.hp.com/supportLebano

Warranty, Regulatory, and Contact Information98Serbia www.hp.com/supportSingapore 6272-5300Slovakia www.hp.com/supportSouth Africa 0800980410South Kor

Warranty, Regulatory, and Contact Information99VietnamViêt Nam+65-6272-5300Zambia www.hp.com/supportTable 15-1 Contact InformationCountry/Region Conta

Warranty, Regulatory, and Contact Information100

1SymbolsAAlgebraic mode 12Amortization 29Amortization menu 29creating a schedule 31menu and menu items 30resetting menu to defaults 32Angular modedegr

Basic Features3Table 1-1 Mode Menu SettingsSetting (top line) DescriptionFIX= 2 Display precision (number of digits displayed to the right of the deci

2Calendarsetting, Actual or Cal. 360 4cash 38Cash flowanalyzing with IRR and NPV 41diagram, description of 27editing 41erasing lists and resetting to

3EError messages 89FFMRR 41example 44IInsert and delete keys 38Interest ConversionInterest Conversion menu 33resetting the menu to defaults 34using P/

4MathMath menu 18MenuBlack-Scholes menu 51Bond menu 47Break-even menu 59Data menu 70Date Calculation menu 57Depreciation menu 65Math menu 19Mode menu,

5Programming 75, 76, 78, 79, 83, 84, 85, 86Decrement, skip 83display 83editing programs 80erasing 80example 77executing 80Program menu 75R/S pause and

6TThousands separator 3Time Value of Moneysee TVM 27TVMbegin mode 28Canadian Mortgage example 35end mode 28example 28future value 28keys 28nominal int

Basic Features4Changing the Calculation ModeAfter viewing the default settings, suppose you want to change the calculation mode from Chain to RPN. See

Basic Features5• The primary function is printed on the top of the key. • The secondary function is printed on the bevel of the key. To activate the s

Basic Features6AnnunciatorsAnnunciators are symbols that appear in the display as messages, or after certain keys or key combinations have been presse

Basic Features7interest rate is displayed on the bottom line. With this screen displayed, press 12I to input a new value for the nominal rate. Press &

Basic Features8Notes about Special MenusThe Mode, Memory, Math and Reset menus are unique menus; they allow you to work in another menu simultaneously

Basic Features9Once opened, you can scroll through the items in the menu by pressing < or > repeatedly. In most menus, when you arrive at the la

Basic Features10Figure 7 Menu Map of the Break-even menuThere are four types of menu items:1. Read/write. Read/write menu items, such as Fixed in the

Mathematical Calculations112 Mathematical CalculationsMathematical FunctionsMathematical functions are located:• On keys, such as, +-*/, etc.• On shif

iiLegal NoticeThis manual and any examples contained herein are provided "as is" and are subject to change without notice. Hewlett-Packard C

Mathematical Calculations12Chain ModeCalculations in Chain mode are interpreted in the order in which they are entered. For example, entering the foll

Mathematical Calculations13For example, key in 1 + 2 x 5 nPr 22 in Algebraic mode by pressing:1+2*5:b2:m=. The result is 241.NOTE: the calculator is l

Mathematical Calculations14In Figure 3, the stack contains four numbers, 23, 41, 12, and –15. Each level (1– 4) contains one number. When a number is

Mathematical Calculations15For more complex problems requiring two or more operations, you do not need to enter parentheses to set operational priorit

Mathematical Calculations16Pressing I or = when you are not entering a number duplicates the number on Level 1. That is, the number on Level 1 is push

Mathematical Calculations17Figure 5 Duplicating a Number on the StackIn RPN, the parentheses keys (D manipulate the stack. Pressing ( performs a roll

Mathematical Calculations18Pressing D performs a swap. A swap operation exchanges the numbers on Levels 1 and 2 of the stack. The D key has a small sy

Mathematical Calculations19Random numberPress :f to generate a randomly distributed number between 0 and 1.Type a number and press :$:f to store a new

Mathematical Calculations20Figure 8 The Menu Map for the Math MenuPress < to scroll through the menu items, starting with Trigonometry. The Trigono

Mathematical Calculations21Press O to cancel the Math menu and return to current work. Press :s to return to the top of the Math menu.For example, usi

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Mathematical Calculations221. Enter the two degrees of freedom by typing each number followed by I or =.2. Type the number for which you want to calcu

Mathematical Calculations23Binomial FunctionsThe binomial function calculates the probability of having up to k successes out of n throws, when the pr

Mathematical Calculations24Storing and Recalling NumbersThe calculator has ten memories available for use during calculations. These memories are numb

Mathematical Calculations25Recalling a Menu Item Value in a MenuIn a menu, you can recall the current value of a menu item. For example, open the Inte

Mathematical Calculations26In RPN mode, the % key calculates x % of the number on Level 2 of the stack, when x is the number on Level 1 of the stack.

Time Value of Money273 Time Value of MoneyThe examples in the following sections are calculated with the Mode menu preferences in their default settin

Time Value of Money28Figure 1 illustrates a cash flow diagram and how the data in the diagram corresponds to the TVM keys. For a complete list of keys

Time Value of Money29Table 3-2 TVM ExampleTo reset the TVM variables to their default values, press :x. Press < or > repeatedly until TVM displa

Time Value of Money30Figure 2 The Menu Map for the Amortization MenuEnter the values for the TVM keys for the example below. Press A followed by <

Time Value of Money31Creating an Amortization ScheduleYou borrow 140,000.00 for 360 months at 10% interest. Create an amortization schedule for the lo

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Time Value of Money32To reset the menu items to their default values, with any item of the Amortization menu displayed press :x. With TVM displayed, p

Time Value of Money33Interest Conversion MenuFigure 3 The Menu Map for the Interest Conversion MenuTo open the Interest Conversion menu (IConv) press

Time Value of Money34Using the Interest Conversion MenuFind the effective rate of a 36.5% nominal rate compounded daily. See Table 3-6. See Figure 3 f

Canadian Mortgages: TVM Canada354 Canadian Mortgages: TVM CanadaFigure 1 The Menu Map for the P/YR MenuIn Canada, interest rates for mortgages are, by

Canadian Mortgages: TVM Canada36Canadian Mortgage ExampleCalculate the monthly payment for a 25-year (N=300) Canadian mortgage valued at 350,000.00, i

Cash Flows375Cash FlowsFigure 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 ind

Cash Flows38To erase a cash flow list, with any cash flow displayed press :x. The number of cash flows in the list is displayed on the bottom line, al

Cash Flows39Table 5-2 Cash Flow ExampleKeys Display DescriptionCOpens the cash flow list.80000}IInputs -80000 as the monetary value of the initial cas

Cash Flows405000IInputs 5000 as the monetary value of CF(5). Displays the current value, 1, for the number of times CF(5) occurs.5IInputs 5 for the nu

Cash Flows41Analyzing Cash FlowsThe various functions used to analyze cash flows are located in the NPV P and IRR R menus. If you press R or P before

vKeyboard Map Legend* Only applies to HP 30b.**Does not apply to the HP 20b.Number Feature Number Feature1 2-line, alphanumeric scrolling display scre

Cash Flows42Figure 2 The Menu Maps for the NPV and IRR Menus *Does not apply to the HP 20b.PInv. I%Net PVNet FVDWNNet USPaybackDiscounted PaybackTotal

Cash Flows43Table 5-4Keys Display DescriptionPOpens the NPV menu.10.5IInputs 10.5 for investment rate.>1I(Optional) Verifies one cash flow list per

Cash Flows44Editing Cash FlowsIn the cash flow list, you can view and modify the current monetary value of a specific cash flow, or cash flows. Press

Cash Flows45Table 5-6Keys Display DescriptionROpens the IRR menu. Displays the IRR for the cash flow.>1I(Optional) Verifies one cash flow list per

Cash Flows46Sample Cash Flow DiagramsFigure 3 Sample Cash Flow Diagrams

Bonds476BondsFigure 1 The Menu Map for the Bond Menu*Does not apply to the HP 20b.BSet.DateMat.DateCPN%CallYield%PriceAccruedActual/Cal.360Annual/Semi

Bonds48The Bond MenuBefore you enter the Bond menu, be sure to verify the date format is set appropriately for your problem. The default setting is mm

Bonds49Bond Calculation ExampleWhat 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 yiel

Bonds50To reset the menu items to their default values, with any item of the Bond menu displayed press :x. With Bond displayed, press I to reset the m

Black-Scholes Calculation Menu*517 Black-Scholes Calculation Menu*Figure 1 The Menu Map the Black-Scholes menu*Does not apply to the HP 20b.:(HOLD)BSt

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Black-Scholes Calculation Menu*52The Black-Scholes MenuTo open the Black-Scholes menu (the Black-Sholes key is : (HOLD) B). To open the menu:1. Press

Black-Scholes Calculation Menu*53Table 7-1Note that if you enter a history of the underlying asset price and its yield in the data menu, pressing the

Black-Scholes Calculation Menu*54Black-Scholes ExampleThe historic prices for an asset and their dividends are listed in Table 7-2 below. Given this d

Black-Scholes Calculation Menu*55Table 7-4 Black-Scholes ExampleKeys Display Description:yOpens the Data menu.80I3IInputs 80 for x and 3 for y.85I5IIn

Black-Scholes Calculation Menu*56To reset the menu items to their default values, with any item of the Black-Scholes menu displayed press :x. With Bla

Date Calculation578 Date CalculationFigure 1 The Menu Map for the Date Calculation MenuThe Date Calculation MenuThe Date Calculation menu is used to c

Date Calculation58To reset the menu items to their default values, with any item of the Date menu displayed press :x. With Date displayed, press I to

Break-even599Break-evenFigure 1 The Menu Map for the Break-even MenuThe Break-even MenuTo open the Break-even menu, press :y. To change the value of t

Break-even60To reset the menu items to their default values, with any item of the Break-even menu displayed press :x. With BrkEven displayed, press I

Business Problems6110 Business ProblemsFigure 1 The Menu Map for the Percent Calculation (%calc) MenuThe Percent Calculation MenuPress :# to open the

iTable of ContentsLegal Notice...iiHP 20b Bu

Business Problems62To return to the percent calculation menu, from anywhere within the menu or sub-menus, press :#.To exit the menu, press O.NOTE: for

Business Problems632. Find the percent change between 20 and 35 with no compounding.NOTE: although the example in Table 10-2 calls for no compounding,

Business Problems643. 30 is what % of 80?To reset the menu items to their default values, with any item of the %calc menu displayed press :x. With %Ca

Depreciation6511 D e p r e c i a t i o nFigure 1 The Menu Map for the Depreciation Menu:\LifeStartCostSalvageFactorYear(auto-increment)Press I to scro

Depreciation66The Depreciation MenuPress :\ to open the Depreciation menu. To select a depreciation method, press I. See Figure 1. Input the values re

Depreciation67Depreciation ExampleA metalworking machine, purchased for 10,000.00, is to be depreciated over five years. Its salvage value is estimate

Depreciation68To reset the menu items to their default values, with any item of the Depreciation menu displayed press :x. With Depreciation displayed,

Statistical Operations6912 Statistical OperationsFigure 1 The Menu Map for the Statistics Menu*ax2+bx+c and Quartiles do not apply to the HP 20b.:zPre

Statistical Operations70The Data and Stats MenusStatistics analysis functions are located in the Data and Statistics menus accessible with the :y and

Statistical Operations71*Does not apply to the HP 20b.y Std. Dev Standard deviation for y: a measure of how dispersed the y data values are about the

iiAmortization... 29Interest Conversion Menu ..

Statistical Operations72Statistics ExampleSales for the last five months are represented by the pairs of values shown below, with the month number as

Statistical Operations73Table 12-3 Statistics ExampleKeys Display Description:yOpens Data menu.1I150IInputs values for x(1) and y(1).2I165IInputs valu

Statistical Operations74To reset the menu items to their default values, with any item of the Data or Statistics menus displayed press :x. At the prom

Programming7513 ProgrammingProgramming the HP 30bThis chapter applies only to the HP 30b, and explains how to program specifically on the HP 30b. If y

Programming76Table 13-1All programming key combinations listed in the above table require you to press the key and (HOLD) it while simultaneously pr

Programming77Programming ExampleThe following programming example, and all examples in this chapter, were written with Chain or Algebraic set as the o

Programming78Program Step 0Programs start at step 1, however, if you edit a program by pressing I with the program displayed and press the up key >

Programming79If you assign a program to a shift key and there is no :(HOLD) function on that key, the standard function will be executed by pressing t

Programming80The Program Menu and Program EditingNow that we have been through some short examples, let us look at some of the programming details.The

Programming81Tests and Jump FunctionsWhen creating a program, there is often a need for the conditional execution of an instruction based on a specifi

Basic Features11Basic FeaturesWelcome to your new HP Financial CalculatorThis manual is designed to familiarize you with the many features available o

Programming82Note:• Label numbers must be unique. Only one label with a given number can exist in the calculator.• You can jump from one program to an

Programming83Other Programming Functions (HOLD) DISP: takes a number that represents 1/5 of a second. DISP5 is thus one second. (HOLD) STOP: Stops

Programming84MessagesThe MSG function is used to display messages on screen; it is especially useful when used before halting the program with (HOLD

Programming853. Press > until the letter R appears, and then press I. Press . and the screen should display a ?. 4. Press Oto exit. 5. Press : (HOL

Programming86Saving, Restoring, and Modifying Mode SettingsOften, programs are designed to run in a specific mode (for example, FIX 4 or RPN). You can

Programming87SolveThe solve key is not programmable, but it is a powerful addition to the calculator functionality. The solve function utilizes HP Sol

Programming88

Error Messages8914 E rro r M e s s a g e sError Messages and Calculator StatusTable 14-1 Error MessagesError Message StatusER: Underflow The calculat

Error Messages90ER: Unique solution to IRR Not Found Returned if IRR tries to calculate a solution but cannot find it. User should supply a new guess…

Warranty, Regulatory, and Contact Information9115 Warranty, Regulatory, and Contact InformationReplacing the BatteriesUse only fresh batteries. Do not