60-Second Skills #6 and #7: Financial Calculators – Future Value and Present Value on HP 12C and HP 17bII+

by Bruce Kirsch on August 31, 2012

This is the first in a series of 60-Second Skills related to using financial calculators for real estate analysis.

In today’s post, we will look at the basics of Future Value and Present Value, using a $100 Time Zero amount and an assumed annual growth rate of 4.00%. Follow the input commands on your financial calculator to solve for the Future Value at the end of Year 1 and the Present Value of the Year 2 cash flow.

 

Here’s a basic Rosetta Stone on the hieroglyphics below:

FIN – Financial functions, TVM – Time Value of Money, PV – Present Value, FV – Future Value, n and N – # of periods, i and I – Annual Interest/Growth Rate, +/- and CHS – change sign

 

Year 1 Future Value

HP12C Users:

  1. f FIN (hold orange f key down and hit x<>y key simultaneously)
  2. 100
  3. CHS
  4. PV
  5. 4
  6. i
  7. 1
  8. n
  9. FV (answer is $104.00)

HP17bII+ Users:

  1. FIN
  2. TVM
  3. P/YR
  4. 1
  5. N
  6. 1
  7. N
  8. PV
  9. 100
  10. +/-
  11. PV
  12. I%YR
  13. 4
  14. FV (answer is $104.00)

 

Year 2 Present Value

HP12C Users:

  1. f FIN
  2. 108.16
  3. CHS
  4. FV
  5. 4
  6. i
  7. 2
  8. n
  9. PV (answer is $100.00)

HP17bII+ Users:

  1. FIN
  2. TVM
  3. P/YR
  4. 1
  5. N
  6. 2
  7. N
  8. FV
  9. 108.16
  10. +/-
  11. FV
  12. I%YR
  13. 4
  14. PV (answer is $100.00)

For more fun along these lines, see this post by Joe Stampone.

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