Time Value of Money Solution Grid

 Self-Paced Overview

Financial Calculator Fundamentals


An Important Note Before Beginning

There are many financial calculators available and they all have their strengths. The objective of this overview is not to discuss how to use a financial calculator to determine time value of money, but to adopt a procedure to help ensure consistent results when using a financial calculator to determine time value of money.

For this overview, a Hewlett Packard 10bII+ is used. Although the discussion is specific to the HP 10bII+, concepts will apply to most popular financial calculators. No matter which calculator is used, it is important to read the manual that came with it. If that manual has been misplaced, refer to the manufacturer's website for assistance.

Even though the primary purpose of this overview is the discussion of the Time Value of Money Solution Grid, before getting to that, it is important to discuss some basic features of the financial calculator.

SHIFT Key   

To begin, notice on your calculator keypad that many keys have a dual purpose, very similar to a standard computer keyboard. In the case to the HP 10bII+, the secondary key function is typically distinguished as being orange in color. Then notice that there is a key in the left column of the keypad indexed with the same color. This key in the left column is the SHIFT key  . To select a key's secondary function, first press the SHIFT key  , then press the desired secondary key.

For instance, notice on the bottom row of keys, between the 0 key and the = key, there is the decimal · key. If you first press  , then press ·, you will set the calculator to reflect the , setting, which toggles between US (1,000.00) and EUR (1.000,00) display.


Input:   1  0  0  0  ·  0  0

To toggle between United States and International display, press:     ,
The display will show 1.000,00 or 1,000.00.

For the TI BAII Plus:

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