Table
4·1.
TVM
Menu Keys
Menu
Key
..
Description
The
TVM
Menu
Stores or calculates the total number
of
payments (or com-
pounding periods). N can be expressed
in
any unit
of
time-
for example, years, months,
or
days:
Stores
or
calculates the annual percentage interest rate.
Stores or calculates the present value
of
the series
of
future
cash flows.
To
a lender or borrower,
PV
is the amount
of
the
loan; to
an
investor,
PV
is
the initial investment.
Stores or calculates the dollar amount
of
each periodic pay-
ment. The payments are the same amount, and no payments
are skipped. Payments can occur at the beginning or end
of
each period.
Stores or calculates the future
value-the
dollar amount
of
the final cash flow, or the compounded value
of
the series
of
previous cash flows.
FV
always occurs at the end
of
the last
period.
The
Secondary
TVM
Menu
Stores the number
of
payments per year. The value must be
an
integer
in
the range 1 through 999.
Sets
Begin mode; used when payments occur at the begin-
ning
of
each period.
Sets
End mode; used when payments occur at the end
of
each period.
Displays the AMRT (amortization) menu for calculating am-
ortization schedules .
• When the
HP
-18C calculates a non-integer
N,
the answer must be interpreted carefully. The
built-in formulas used by the HP-18C do not calculate partial period payments. Interpreting
a non-integer N is covered in the savings account example on pages 69 through
71
.
Calculations using a stored non-integer N produces a mathematically correct result, but this
result has no simple useful interpretation. The example on pages 145 through 147 use the
formula solver
to
do
an
"odd-period-at-the-beginning" calculation in which interest begins
to
accrue prior
to
the beginning
of
the first regular payment period.
4:
Time
Value
of
Money
57
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