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HP Financial Calculator Functions:
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The Hewlett Packard Financial Calculator is a specialized calculator designed for financial professionals that performs complex financial calculations including time value of money, cash flow analysis, loan amortization, and more.
The calculator emulates the functionality of HP financial calculators using standard financial formulas:
Time Value of Money: \[ FV = PV \times (1 + r)^n + PMT \times \frac{(1 + r)^n - 1}{r} \]
Loan Payment: \[ PMT = \frac{PV \times r}{1 - (1 + r)^{-n}} \]
Where:
Details: Accurate financial calculations are essential for investment analysis, loan planning, retirement planning, and business decision making.
Tips: Select the calculation type and enter the known values. The calculator will solve for the unknown value based on the standard financial formulas.
Q1: What's the difference between nominal and effective interest rates?
A: Nominal rate doesn't account for compounding, while effective rate does. For monthly compounding: \[ (1 + \frac{r}{12})^{12} - 1 \]
Q2: How do I calculate loan amortization?
A: Use the PMT function to find the payment, then create a schedule showing principal and interest components of each payment.
Q3: What's the difference between NPV and IRR?
A: NPV calculates net present value in currency, while IRR finds the discount rate that makes NPV zero.
Q4: How accurate are these calculations?
A: They use standard financial formulas and match HP calculator results when using the same inputs.
Q5: Can I calculate bond yields with this?
A: Yes, bond calculations use similar time value of money principles with coupon payments as PMT.