The Finance programs are taken from
the "HP17BII+ Financial calculator Owner's manual" See that manuals for more
information and several examples.
Finance main menu.
Executes the following programs:
ICNV 
Interest rate conversions 
CFLO 
Cash flow 
DEPRC 
Depreciations 
%CALC 
Percentage calculations in
business 
CURRX 
Currency exchange calculations 
Interest Rate Conversions
The interest conversion (ICNV) menu converts between nominal and
effective interest rates. To compare investments with different compounding
periods, their nominal interest rates are converted to effective interest
rates. This allows you, for example, to compare a savings account that pays
interest quarterly with a bond that pays interest semiannually.
·
The nominal rate is the stated
annual interest rate compounded periodically, such as 18% per year compounded
monthly.
·
The effective rate is the rate that,
compounded only once (that is, annually), would produce the same final value as
the nominal rate. A nominal annual rate of 18% compounded monthly equals an
effective annual rate of 19.56%.
When the compounding period for a given nominal rate is one year, then
that nominal annual rate is the same as its effective annual rate.
Periodic compounding:
Continuous compounding:
Menu 
Description 
[NOM%] 
Convert to Nominal interest rate 
[EFF%] 
Convert to Effective interest rate 
[P] 
Number of compounding periods per
year 
Example:
Converting from a Nominal to an Effective Interest Rate.
You are considering opening a savings account in one of three banks.
Which bank has the most favorable interest rate?
·
Bank #l 6.7% annual interest, compounded quarterly.
·
Bank #2 6.65% annual interest, compounded monthly.
·
Bank #3 6.65% annual interest, compounded continuously.
Keys 
Display 
Description 
[PER] 

Selecting Periodic compounding 
4
[P] 
P=4 
Stores number of compounding periods
per year for bank #1 
6.7 [EFF%] 
6.8702 
Calculates effective interest rate
for bank #1 
12 [P] 
P=12 
Stores number of compounding
periods per year for bank #2 
6.65 [EFF%] 
6.8565 
Calculates effective interest rate
for bank #2 
[EXIT] [CONT] 

Selecting Continuous compounding 
6.65 [EFF%] 
6.8761 
Calculates effective interest rate
for bank #2 
See the "HP17BII+ Financial
calculator Owner's manual" for more information about Interest Rate
Conversions. There are also some examples in that manual.
Cash Flow calculations.
Menu 
Description 
[CALC] 
Accesses the CALC menu to
calculate TOTAL, IRR% and NPV 
[EDIT] 
Edit a existing set of data 
[NEW] 
Start a new set of data 


[TOTAL] 
Calculates the sum of the cash flows. 
[IRR%] 
Calculates
the internal rate of return  the interest (discount) rate at
which the net present value of the cash flows equals zero. 
[I%] 
Prompts for the periodic interest rate, expressed as a percentage 
[NPV] 
Given I%, calculates the net
present value
 the present value of a series of cash flows. 
Creating a Cashflow list
Press [NEW] for starting a new
Cashflow list. An existing list is overwritten with a new, empty list. The
Cashflow list is stored into variable "CF".
When STX containing a [N x 1]
matrix, this matrix is stored into variable "CF" and can be used for the
cashflow calculations.
Press [EDIT] for edit the Cashflow
list. This executes the HP42S internal Matrix editor. Now you can enter cash
flows into the Cashflow list.
Use [INSR] (insert Row), or [GROW]
on the second page of the Matrix editor menu for inserting new cash flows.
Exit the Matrix Editor by pressing
[R/S]
Cashflow calculations:
Once you have entered a list of cash flows, you can calculate the
following values in the CALC menu.
1.
Sum (TOTAL), Calculates the sum of
the cash flows.
2.
Internal rate of return (IRR%). This
is a periodic rate of return. To calculate an annual nominal rate when the
period is not a year, multiply the IRR% by the number of periods per year.
3.
Net present value (NPV) for a
specified, periodic interest rate, I%.
See the "HP17BII+ Financial calculator Owner's manual" for more
information about Cashflow calculations. There are also some examples in that
manual.
Depreciation
The DEPRC (depreciation) program calculates
depreciation values and remaining depreciable values one year a time.
[Arrow Up] / [Arrow Down]
Menu 
Description 
[BASIS] 
Stores the depreciable cost basis
of the asset at acquisition. 
[SALV] 
Stores the salvage value of the
asset at the end of its useful life. If there is no salvage value, set SALV=0. 
[LIFE] 
Stores the expected useful life
(in whole years) of the asset. 
ACRS% 
Stores the appropriate Accelerated
Cost Recovery System percentage from the published ACRS tables. 
ACRS 
Calculates the ACRS deduction based on BASIS and
ACRS%. (The values in SALV, LIFE, FACT%, and YR#
do not matter.) 


YR# 
Stores the number of the year for
which you want the depreciation (1, 2, etc.). 
FACT% 
Stores the decliningbalance
factor as a percentage of the straightline rate. This is for the DB
method only. For example, for a rate 1¼ times (125%) the straightline
rate, enter 125. 
DB 
Calculates the decliningbalance
depreciation for the year. 
SOYD 
Calculates
the sumoftheyears'digits depreciation for the year. 
SL 
Calculates the straightline depreciation for the
year. 
Calculate the depreciation for an
asset:
To calculate the amount of tax deduction under the U.S. Accelerated Cost
Recovery System:
1.
Enter the cost basis of the asset
and press [BASIS].
2.
The Internal Revenue Service
publishes tables that list the percentage of an asset's basis that can be
deducted each year of its prescribed life. Look up that value, enter it, and
press [ACRS%].
3.
Press [ACRS]
to calculate the value of the deduction.
See the "HP17BII+ Financial
calculator Owner's manual" for more information about depreciation. There are
also some examples in that manual.
Percentage calculations in business.
Menu 
Description 
Percent change [%CHG] 
The difference between two numbers
(OLD and NEW), expressed as a percentage (%CH) of OLD. 
Percent of total [%TOTL] 
The portion that one number (PART)
is of another (TOTAL), expressed as a percentage (%T). 
Markup on cost[MU%C] 
The difference between price (PRICE)
and cost (COST), expressed as a percentage of the cost (M%C). 
Markup on price [MU%P] 
The difference between price (PRICE)
and cost (COST), expressed as a percentage of the price (M%P). 
Using the %CALC menu:
Select in the %CALC menu one of the
programs ("%CHG", "%TOTL","MU%C", "MU%P"), enter the know values and solve for
the unknown value.
Press [RCL] "Variable" for recall a variable, Press
"Shift" "variable" for view a variable.
The %CALC program consist of five
programs:
The %CALC program itself and 4
independent (solver) programs:
"%CHG", "%TOTL","MU%C", "MU%P"
Each of the four programs can be
used using the solver
See the "HP17BII+ Financial
calculator Owner's manual" for more information about the percentage calculations
in business. There are also some examples in that manual.
Currency exchange calculations.
Press [SELCT] for display the
currencies menu.
Press a menu key to select currency
no 1, and currency no 2.
When pressing [OTHER] you can type
your own currency.
When pressing [RATE] you can give
for both currencies the value's.
Example:
1 Euro = 0.987 US$
Press [Rate] and enter 0.987 for US$
Press [R/S] and enter 1 for EURO
Press [R/S] and the Rate is
calculated
Converting form US$ to Euro, enter
the value in US$ and press [EURO] now the value in Euro is calculated.
Converting form Euro to US$, enter
the value in Euro and press [US$] now the value in US$ is calculated.
Example:
How much Euro is 45.67 US$?
Enter 45.67 and press [EURO]
Answer 46.2715 Euro.
Time Value of Money for the solver.
This is the same program as is printed in the HP42S owner's manual, with
2 adaptations:
1.
Variable for Periods per Year
[P/YR].
2.
Variable of payment at the beginning
or the End. [B1/E0]
[B1/E0] = 0: Payment at the end
[B1/E0] = 1: Payment at the beginning
Use the Solver to calculate the
unknown values.
See the "HP17BII+ Financial calculator Owner's manual" for more
information about Time Value of Money. There are also some examples in that manual.