Time value of money and financial calculator tutorials
Tutorials by Brand:
Time value of money and financial calculator tutorials
These are the main formulas that are needed to work with regular annuity cash flows (Definition/Tutorial). Please note that these formulas work only on a payment date, not between payment dates. This is the same restriction used (but not stated) in financial calculators and spreadsheet functions. I use MathJax to display these formulas. You can click the equations to show…
These are the main formulas that are needed to work with lump sum cash flows (Definition/Tutorial). I use MathJax to display these formulas. You can click the equations to show a zoomed version in a pop-up, or right-click on the formulas for additional options (e.g., to copy the equation as $\TeX$ or to choose the zoom settings). To Solve For:…
Strictly speaking, an annuity is a series of equal cash flows, equally spaced in time. However, a graduated annuity (also called a growing annuity) is one in which the cash flows are not all the same, instead they are growing at a constant rate (any other series of cash flows is an uneven cash flow stream). So, the two types…
The most basic type of cash flow is a lump sum. That is, a single cash flow that occurs at a single point in time. Despite its simplicity, the lump sum cash flow is the bedrock upon which all other types of cash flows are built. According to the principal of value additivity, every type of cash flow stream can…
This article explains how to calculate the present and future values of graduated annuities using the HP 10BII+ financial calculator. Graduated annuities, where cash flows grow at a constant rate, differ from regular annuities with constant cash flows. The article provides step-by-step instructions for adjusting the interest rate to account for growth and solving for present and future values. It covers both annuities due and regular annuities, with practical examples illustrating the calculations.
Uneven Cash Flows In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of lump sums and regular annuities. In this section we will take a look at how to use the HP 10BII+ to calculate the present and future values of uneven cash flow…
In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of lump sums. In this section we will take a look at how to use the HP 10BII to calculate the present and future values of regular annuities and annuities due. A regular annuity is…
If the picture at right doesn’t match your calculator, you may have an original HP 10B or HP10BII (not the + version). These calculators differ slightly, so you may prefer the HP 10B tutorial. The Hewlett Packard 10BII+ is a very easy to use financial calculator that will serve you well in all finance courses. This tutorial will demonstrate how…
In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of annuities. In this section we will take a look at how to use the HP 17BII to calculate the present and future values of uneven cash flow streams. We will also see how to…
In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of lump sums. In this section we will take a look at how to use the HP 17BII to calculate the present and future values of regular annuities and annuities due. A regular annuity is…
The HP 17B is a fairly easy to use financial calculator that will serve you well in all finance courses. The 17BII can operate in either RPN (reverse polish notation) or algebraic modes. RPN is better in most cases, so I suggest that you choose that mode if you understand RPN. This tutorial will demonstrate how to use the financial…
In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of lump sums and regular annuities. In this section we will take a look at how to use the HP 10B to calculate the present and future values of uneven cash flow streams. We will…
In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of lump sums. In this section we will take a look at how to use the HP 10B to calculate the present and future values of regular annuities and annuities due. A regular annuity is…
In the previous section we looked at using the basic time value of money functions to calculate present and future value of annuities (even cash flows). In this section we will take a look at how to use Excel to calculate the present and future values of uneven cash flow streams. We will also see how to calculate net present…
In the previous section we looked at the basic time value of money functions and how to use them to calculate present and future value of lump sums. In this section we will take a look at how to use Excel to calculate the present and future values of regular annuities and annuities due. A regular annuity is a series…