HP (Hewlett-Packard) 20B manual

HP 20b Business Consultant Financial Calculator Manual For free training, visit w ww.hp.com/go/ca lctraining HP part number: F2219-90201 First edition: August 2008[...]

Legal Not ices 2 Legal Notices This manual and any examples con tained herein are provided “as is” and a re subject to change without notice. Hewlett-Packar d Company makes n o warr anty of any kind w ith regard t o this man ual, including, but not limited to, the implied wa rranties of merchantability, no n-infringement and fitness for a pa rt[...]

Contents 3 Contents Legal Notice s Revision History ............................................. ................................................... .................. 2 HP 20b Busi ness Consulta nt Keyboard Keyboard Map Legend ................................................... .................................................... 6 1 Basic Featur[...]

Contents 4 Two-Number Funct ions ........................................... ................................................ ......... 26 Storing and Recal ling Numbers ......... ................................................... ............................ 2 7 Recall Arithmetic ................................ ..................................[...]

Contents 5 Statistics Example ................................................ ................................................... .... 63 11 Errors Error Messages and Calculator Status ................................................... .......................... 65 12 Warranty, Regulatory, an d Contact Infor mation Replacing the Batteries ... ...[...]

HP 20b Business Consultant Keyboard 6 HP 20b Business Consultant Keyboard Keyboard Map Legend No. Feature Chapter(s) No. Feature Chapter(s) 1 Time Value of Money k eys 3 16 Annunciator disp lay area 1 2 Cash Flows, IRR, and NPV menus 4 15 Amortization and Depreciation menus 3,8 3 Data and Statistics menus 9 14 % key and Percent Calculation menu 2,6[...]

Basic Features 7 1 Basic Features Welcome to the HP 20b Financial Calcula tor This manual is designed to familiarize you with the ma ny features of your new 20 b Financial C alculator. It includes m enu maps, example problems and solution s with key presses, screen shots, and example s of cash flow diagrams. There are also sections whi ch list t he[...]

Basic Features 8 Two Line Displ ay There are two lines in the display screen as shown in Figure 1. Figure 1 Dis play Screen The top line of t he screen displays operation status, op erator symbols, annunciator s, and abbreviations of the registers, variables, and menu na mes. Throughout t his manual, this line is referred to as the top line . In Fi[...]

Basic Features 9 Table 1-1 Mode Menu Sett ings Setting (top line) Description FIX= 2 Display precision (number of digits displayed to the right of the decimal point). Default is 2 . Key in the number of digits you want and press I , or press = until the number of digits you want is displayed. The display precision can be any number from 0-11. If yo[...]

Basic Features 10 Table 1-1 Mode Menu Sett ings Setting (top line) Description English, Français, Deutch, o r Español Language s etting for the m essages displayed on the scr een. Default is English . Pressing I cycle s through these options. Actual or Cal.360 Calendar options for bonds and date calcul ations. Default is Actual . Pressing I t ogg[...]

Basic Features 11 Key Presses and the Se condary Function : Key To execute the function ass ociated with a key, pre ss and relea se the desire d key. M ost of the 20b's keys ha ve two f unctions: the primary func tion and t he second ary fun ction. The primary function i s printed on th e top of the key. T he secondary function is printed on t[...]

Basic Features 12 Figure 3 Annunciator Symbols in t he Screen Display The I Key The I key is used to input values for variables and execute menu items. The I key is also used in Reverse Polish Notation (RPN) mode to enter a number on the stack or duplicate it. The = Key The = key is used at the end of a mathemati cal operation t o calcu late the fi[...]

Basic Features 13 When an item f or wh ich the = key is valid d isplays, the small annunc iator (=) is d isplayed on t he to p line at the right of t he screen. Do not confuse this small annunciator ( =) with the larger annunciator (=) found to the right of a variab le. When an item f or wh ich the I key is valid displ ays, the I NPUT annunciator i[...]

Basic Features 14 For more information about storing and recalling numb ers, refer to the section titled, Storing and Recal ling Numbers in Chapter 2. The Cash Flow and Statistics menus share the same memory a nd are limited to a combined total of 50 memory slots. The number displaye d with Memory refers to t he num ber of rem aining memor y slots.[...]

Basic Features 15 In this manual, diagram s called Menu Maps are included at t he beg inning of each section to a ssist you wit h navigating through the m enus used for that sect ion. For an example of a menu map, see Figure 7. Figure 7 The Menu Map for the Break-even Menu There are four types of menu items: 1. Read/writ e. Read/write menu it ems, [...]

Mathematical Calculat ions 16 2 Mathematical Calculations Mathematical Fun ctions Mathematical functio ns are located:  On keys, such as, +- */ , etc.  On shifted, or s econdary functions, such a s, :p  In the Math menu, :s Number Entry and D isplay Numbers are entered by pressi ng:  Numbered keys, 0 - 9  The decimal p oint .  The[...]

Mathematical Calculat ions 17 Chain Mode Calculations in C hain mode ar e interpreted in the order in which the y are entered. For examp le, enterin g the f ollowing numbers and operati ons as written from le ft to right 1+ 2*3= r eturns 9 . See Figure 2. Figure 2 Calculation in Chain Mode Note: if you press an oper ator key, +- */ , after = , the [...]

Mathematical Calculat ions 18 For example, key in 1+ 2 x 5 nPr2 2 in Algebr aic mode by pressi ng: 1+2 *5:b2 :m= . The re sult is 241. Note: the cal culator is limi ted to 12 pending oper ations. An operation is pending when it is waiting for the inpu t of a number or the result of an operation o f higher pr iority. Reverse Polish Notation (RPN) Mo[...]

Mathematical Calculat ions 19 When an operation is performed on the stack, addition ( + ) for instance, the calculator "po ps" or move s the two numbers from the b ottom le vels (Lev els 1 and 2) ou t of t he stac k, perform s the oper ation, a nd "pu shes" th e results back into the stack. With the numb ers entere d into the st[...]

Mathematical Calculat ions 20 Table 2-2 Last Number Keys Display Des cription +:d/ Adds 1. 23 and 56.123, then d ivides the sum b y the last number, 56.123. Returns results in the selected display format. For more co mplex problem s req uiring two or more operations, you do not need to enter parentheses to set operat ional priorit y. Key in numbers[...]

Mathematical Calculat ions 21 Table 2-3 Simple Arithmetic Calc ulations in RPN M ode Keys Display Description RPN Stack * Finishes t he operation and displays the results. Pressing I or = when you are not entering a number duplicat es the number on Level 1. That is, t he number on Level 1 is pushed on the st ack, mak ing Levels 1 and 2 equal. In th[...]

Mathematical Calculat ions 22 Figure 6 The RPN Stack and the Roll Down Operation Pressing ) performs a swap . A swap operation ex changes the numbers o n Levels 1 a nd 2 of t he stack. The ) key ha s a small symbol on it as a reminder of the swap feature. With the numbers entered into the stack shown in the left column in Figure 7, pressing ) per f[...]

Mathematical Calculat ions 23 For example, to ca lculate 6 , press 6:n . The r esult of 2.45 is calculated immediately and d isplayed on the bottom line. The square roo t symbol ( ) appears on the top line. Note: before do ing any tr igonometric ca lculations in the Math m enu, check w hether the angle mode is set for degrees ( Degrees ) or radians[...]

Mathematical Calculat ions 24 Figure 8 The Menu Map for the Math Menu Press < to scroll through the menu items, starting with Trigonometry. The Trigonometry, H yperbolic, and Probability items have sub-menus. Pre ss I with the se items di splayed to ac cess the f unctions with in the sub m enus. Press O to cancel the Math menu and return to curr[...]

Mathematical Calculat ions 25 Table 2-5 Math M enu Example Keys Disp lay Description .5I :s Enters 0.5 a nd opens the Ma th menu sta rting with Trigonometry . I< Selects the Trigonometry sub-menu and scrolls to Sin -1 . Note the value for Sin -1 is calculated immediate ly and displayed. I or = Validates the result. In the Math menu, PI does not [...]

Mathematical Calculat ions 26 2. Type the number for which you want to cal culate the probability, or, for the inverse, the probability for which you want th e number. 3. Navigate t o the appropriate funct ion in the Probabi lity sub-menu of t he Math menu . Table 2-6 Probabilit y Example Keys Disp lay Description 10I 8I :s Enters 10 degrees of fre[...]

Mathematical Calculat ions 27  nCr  nPr Y x is the power f unction, nCr stands for the number of combinations of n items taken r at a tim e, and nPr stands for th e number of permutat ions of n items taken r at a time. Combination=   ! ! ! r n r n  Permutation=   ! ! r n n  Perform calculations with these fun ctions in the s[...]

Mathematical Calculat ions 28 press L2 to re call m emory 2. Note how the new current value stored in m emory 2 i s 17 , (5 +12). +-* a nd / are v alid mathema tical o perations f or me mories. To view the stored values in memories 1-9 and 0, press :t , followed by < or > repeate dly to s croll through each m emory s tarting with memory 1 ( M[...]

Mathematical Calculat ions 29 To find a percentage of a given number, enter the number and mult iply it by the desired percentage, followed by = . For example, to find 25% of 200, press 200 *25%= to return a resu lt of 50 . To add or subtract a perce ntage of a n umber, ent er the first n umber, fo llowed by + or - and the per centage f ollowed by [...]

Time Value of Money 30 3 T ime V alue of Money The examples in the following sections are calculated with the Mode menu preferences in their default settings, unless otherwise noted. For more i nformation a bout basic feat ures and se tting preference s, see Cha pter 1 , Basic Feature s . Time Value of Money (TVM) Keys Cash flow dia grams are usefu[...]

Time Value of Money 31 Figure 1 Cash Flow Diagram Example with C orresponding TVM Keys The TVM functions of the calculator can solve problems with at least one cash flow, and problems in whic h all the cash flows, except the first and last, are of the same value. To solve other types of cash flows, refer to the section below titled, Canadian Mortga[...]

Time Value of Money 32 To sav e values for t he TVM vari ables, enter t he desired number, f ollowed by the co rresponding TVM key. To calculate an unknown val ue, enter all known values and press the key of th e item yo u want solved. Table 3-1 TVM Keys Keys Description N Stores or calcu lates the number of paymen ts or compounding periods. ^ Mult[...]

Time Value of Money 33 Table 3-2 TVM Example Keys Display Desc ription M Returns the monthly payment. This r esult is negative (-); it is money you pa y out. To reset the TVM variables to their default values, with any TVM variabl e displaye d press :x . Press < or > repeatedly un til TVM displays. Pr ess I to reset the TVM value s, or press [...]

Time Value of Money 34 Enter the values for the TVM keys for the example below. Press A f ollowed by < or > to view the amortization schedule. Creating an Amortization Schedule You borrow 140,000.00 for 360 months at 10% interest. Create an amortization schedu le for the loan. How much interest did y ou pay for the first year? What is the bal[...]

Time Value of Money 35 To reset the menu items to their default values, with any item of the Amortization menu displayed press :x . W ith TVM displayed, press I . At t he TVM Reset prompt, press I to reset , or O to cancel . Interest Conversion Me nu Figure 3 The Menu Map for the Interest Conversion Menu To open the Interest Conve rsion menu (IC on[...]

Time Value of Money 36 Table 3-6 Inter est Rate Conversion Example Keys Display Desc ription 365 I Inputs 365 as the val ue for the number of compounding periods per year. >= Scrolls to the va riable for the ef fective rate and calculates it. A 36.5% nominal rate compounded daily equals an effective rate of 44.03 %. Note: C/YR is the same nu mbe[...]

Time Value of Money 37 With TVM Canada enabled in the Mode menu, the following TVM feature s change: 1. The P/ YR key, :[ , now opens a menu with two items, P/YR and C/YR, in w hich you can specify the number of payments an d c ompounding per iods per y ear. Pr ess < or > t o scroll through the menu. See Figure 4. 2. To ch ange the val ue of [...]

Time Value of Money 38 Canadian Mor tgage Example Calculate the m onthly payment for a 25-year (N=300) Canadian mortgage valued at 350,000. 00, if the nominal in terest rate is 6.0%, compounded t wice yearly (C/YR=2) with 12 payments per year (P/YR). Table 3-7 Canadian Mortgage Exam ple Keys Display Desc ription :u Opens the Mode menu, starting wit[...]

Cash Flows 39 4 Cash Flows Figure 1 Ca sh Flow D iagram In the calculator, a cash flow list is a set of nu mbered pair s, CF(n) and #CF(n) , where n is the inde x of the c ash flow l ist. Each pair represents one or more cash flows in a cash flow diagram. As with TVM problems, it helps to sketch a cash flow diagram as a first step in solving ca sh [...]

Cash Flows 40 To erase a cash flow list, with any cash flow displayed press :x . The number of cash flow s in the li st is displa yed on the bottom lin e, along w ith Cash Flow= . At this prompt, press I . You will b e asked to c onfirm your choice. Either pre ss I to confirm th e reset, or O t o cancel. Table 4-1 list s the ke ys used for cash flo[...]

Cash Flows 41 Table 4-2 Cash Flow Exam ple Keys Display D escription C Opens the cash f low list. 800 0 0}I Inputs -80000 as the m onetary value o f the initial cash flow. Note: the sign of the cash outflow is negative. I Accepts 1 as the numbe r of occurrences for CF(0). Displays the current monetary value of C F(1). 500 0I Inputs 5000 as the mone[...]

Cash Flows 42 Table 4-2 Cash Flow Exam ple Keys Display D escription 115 000 I Inputs 115000 as the monetary value of CF(6). Displays the c urrent value, 1 , for the number of times CF(6) occurs. I Accepts 1 as the numbe r of occurrences for CF(6). Analyzing Cash Flows The various fun ctions used to analyze ca sh flows ar e located in the NPV P and[...]

Cash Flows 43 Table 4-3 NPV and IRR Menu It ems Item Descripti on Inv. I% Investment or discount rate. Enter the investment rate or discount rate for t he cash flow followed by I . Net PV Net present value. Shows the value of the cash flows at the time of the initi al cash flow, discounting the future cash flows by the value set for Inv. I%. Net FV[...]

Cash Flows 44 Table 4-4 NPV and IRR Example Keys Display Des cription < Displays the number of periods required for the cash flow to repay the investment. << Scrolls to the total value of the cash flow. R Displays the IRR for the cash flow. Editing Cash Flow s In the cash flow list, yo u can view and modify the current mo netary va lue of [...]

Cash Flows 45 Sample Cash Flow Diagrams Figure 3 Sample Cash Flow Diagrams[...]

Bonds 46 5 Bonds B Set.Date Mat.Date CPN% Call Yield% Price Accrued Actual/ Cal.360 Annual/ Semi- annual DWN DWN DWN DWN DWN DWN DWN DWN DWN Figure 1 The Menu Map for the Bond Menu The Bond Menu Before you e nter the Bond menu, be sure t o verify t he date format is set appropriately for yo ur problem. The defau lt setting i s mm.ddyyyy , but it ca[...]

Bonds 47 Table 5-1 Bond Menu It ems Variable Descr iption Call Call value. Default is set for a call price per 100.00 face value. A bond at maturity has a call value of 100% of its face value. Note: input only. Yield% Yield% to maturity or y ield% to call d ate for g iven price. Note: input/ou tput. Price Price per 100.00 face value for a giv en yi[...]

Bonds 48 Table 5-2 Bond Calculation Example Key Display Des cription < Displays current call value. Default i s 100 . Note: if Call requires another v alue, key in t he n umber followed by I . <4.7 5 I Inputs 4.75% for Yield% . <= Calculates t he current value for Price . :$1 Stores 115.89 in memory 1. < Displays the current value for a[...]

Date Calculation 49 6 Date Calculation Figure 1 The Menu Map for the Date Calculation Menu The Date Calculation Menu The Date Cal culation menu is used to calculate the n umber o f days b etween two dates, or a second date gi ven a number of days from an initial, or final date. To open the Date Calculation menu, press : @ . Press < or > repea[...]

Date Calculation 50 Table 6-1 Dat e Calculation Example Key Display Des cription <10. 3 120 10 I Inputs the endi ng date i n the s elected format. <= Calculates t he number of actua l days between the starting and e nding dates. To reset the menu items to their default values, with any item of the Date menu displayed press :x . With Date disp[...]

Break-even 51 7 Break-even Figure 1 The Menu Map for the Break-even Menu The Break-even Menu To open the Break-even menu, press :! . To change the value of the displayed item, key in a number and press I . Once you have entered all known data, press < or > repeatedly to scroll to the u nknown it em and pre ss = to cal culate it. The break-eve[...]

Break-even 52 Table 7-1 Break-even Exampl e Keys Display Description <= Calculates t he current value for the unknown item. 3200 units would have to be sold to return a profit of 10,000.00. To reset the menu items to their default values, with any item of the Break-even menu displayed pres s : x . With BrkEven displayed, pre ss I to rese t the m[...]

Business Problems 53 8 Business Problems Figure 1 The Menu Map for the Percent Calculation (% calc) Menu The Percent Calculation M enu Press :# to open the menu. There are f our items in t his menu: markup a s a percentag e of cost ( Mkup. %C ), mark up as a percentag e of pri ce ( Mkup. %P ) , part as a percentage of total ( Part%Tot. ), and perce[...]

Business Problems 54 Note: for busin ess problem s, margi n is based on price; mark up is ba sed on c ost. The e xamples below are shown w ith RPN as the active o perating mode. Percent Calculation Examples See Tables 8-1 t hrough 8-4 for examples of calculation s in the % calc menu. 1. Find the mar kup on an i tem if the cost price is $15.00 and t[...]

Business Problems 55 Note: although t he ex ample in Table 8-2 calls for no compounding, y ou ma y specify th e number of compound ing p eriods us ed in calculations w ith the Nb Period item in the %Change sub-menu. Nb Period is the number of compounding periods used in calculations bet ween the o ld value and new value. The default i s 1 , but to [...]

Depreciat ion 56 9 Depreciation Figure 1 The Menu Map for the Depreciation Menu The Depreciation Menu Press : to open the Deprec iation menu . To select a depreciation m ethod, press I repeatedly. Se e Figure 1. Input the values required for the calculation:  Asset life  Start ing date or month of the deprecation  Cost and salvage values [...]

Depreciat ion 57 Note: pressing < on t he last item of a s ub-menu returns you to t he Year item, not t o the top of the sub-menu ( see Figure 1). By scrolling through all the items of a sub-menu, you incrementall y ad vance the Year item . This allow s you to see th e depreciation schedul e for t he next year w ithout addit ional entries . Brie[...]

Depreciat ion 58 Table 9-2 Depreciation Menu Items Item Description Salvage The salvage v alue of the asset a t the e nd of its u seful life. Factor The declining balance factor as a percentage. This is used for declining balance and declining balance crossover methods only. Year Year for which you want to calculate the depreciati on. Depreciation [...]

Depreciat ion 59 Table 9-3 Straight Line Depreciation Example Key Display Des cription < Remaining book v alue after year o ne. < Remaining deprec iable value after year one. < The next year for which to calculate the depreciation. To calculate for a year other than 2 , type a number and press I . < Depreciation of the asset in year two[...]

Statist ical Operations 60 10 Statistical Operati ons Figure 1 The Menu Maps for the Data and Statistics Menus[...]

Statist ical Operations 61 The Data and Stats Menus Statist ics analysis functions are located in the Data and Statistics menus accessible with the :y and :z keys. See Figure 1 for assistance with navigating through the menus. Press :y to open th e Data menu. In this m enu, enter a list of x values for one-variable statistics, a list of pairs, (x, [...]

Statist ical Operations 62 Table 10-1 The St atistics Menu Items Menu Item Description Nb Item Number of items. X Mean Average of X v alues. Y Mean Average o f Y values. X Std. Dev Standard deviation for X: a measure of how dispersed the x data values are about the mean. Y Std. Dev Standard deviation for Y: a measure of how dispersed the y data val[...]

Statist ical Operations 63 Table 10-1 The St atistics Menu Items Menu Item Description Sigma Y The sum of the y value s. Sigma X 2 The sum of the squares of the x values. Sigma Y 2 The sum of the squares for the y values. Sigma XY The sum of the products o f the x and y val ues. Statistics Exa mple Sales for the last five months are repres ented by[...]

Statist ical Operations 64 Table 10-3 Stat istics Example Keys Display Description 5I1 70I Inputs values for X(5) and Y(5). :z Opens Stats m enu. <I Opens Desc riptive sub-menu. << Displays average y . :z< < I Opens Predictions sub-menu. Note: this example performs calculations base d on a linear (a*X+b) reg ression line. <7I Inpu[...]

Errors 65 11 Errors Error Messages and Calculator Status Table 11-1 Error Mess ages Error Message Status ER: Underflow The calculation generated an underf low (result of 0). ER: x/ 0 Division b y zero. ER: 0/0 Zero divided by zero. ER: ∞ *0 Infinite multiplied b y zero. ER: ∞ / ∞ Infinite divided b y infinite. ER: √ / (x<0) Square root o[...]

Errors 66 Table 11-1 Error Mess ages Error Message Status ER: Many Solutions Returned when there ar e many solutions to the problem. ER: I nvalid N Returned by T VM/Amort if N is inv alid. ER: User Abort Returned by long funct ions if user stops the calculation prior t o completion. ER: ∞ Result Returned if the result is infini te. ER: I nsuffici[...]

W arranty, R egulatory, and C ontact Information 67 12 W arranty , Regulatory , and Cont act Information Replacing the Batteries Use only fres h batteries . Do not u se rechar geable batt eries. The cal culator take s two, 3- volt CR2032 lithium batteries. To install a new ba ttery: 1. With the calcu lator turned o ff, slide t he back co ver off. 2[...]

W arranty, R egulatory, and C ontact Information 68 Customer Care In addition to the one year h ardware warranty your HP cal culator also comes w ith one y ear of t echnical support. If y ou n eed assistanc e, HP customer care can be reached by either email or telephone. Bef ore calling please locate the call center nearest you from the list below.[...]

W arranty, R egulatory, and C ontact Information 69 Table 12-1 Contact I nformation Country/Region Contact Greece Ελλάδα 210 969 64 21 Guatemala 1-800-999-5105 Honduras 800-711-2 884 Hong Kong 香港特別行政區 852 283 3-1111 India www.h p.com/support/indi a Indonesia +65 6100 6682 Ireland 01 605 0356 Italia 02 7 54 19 782 Japan 日本 81[...]

W arranty, R egulatory, and C ontact Information 70 Table 12-1 Contact I nformation Country/Region Contact Puerto Rico 1-877 232 0589 Russia Росси я 495 228 30 50 Schweiz (Deutsch) 01 439 5358 Singapore 6100 6682 South Afric a 0800 980410 South Korea 한국 2-561-2700 Suisse (français) 022 827 8780 Suomi 09 8171 02 81 Sverige 08 5199 20 65 S[...]

W arranty, R egulatory, and C ontact Information 71 Product Regulatory & Environment Information Federal Communications Commis sion Notice This equipment has been tested and found to comply with the limits for a Class B digital device, pursuant to Part 15 of the F CC Rules. These limits are designed to provide reasonable protection against harm[...]

W arranty, R egulatory, and C ontact Information 72 This compliance is indicated by the following con formity marking placed on the product: This marking is valid for non-Telecom products and EU harmon ized Telecom products (e.g. Bluetooth). xxxx* This marking is valid for EU non-harmonized Telecom products . *Notified body number (us ed only if ap[...]

W arranty, R egulatory, and C ontact Information 73 产品中有毒有害物质或元素的名称及含量 根据中国《电子信息产品污染控制管理办法》 有毒有害物质或元素 部件名称 铅 (Pb) 汞 (Hg) 镉 (Cd) 六价铬 (Cr(VI)) 多 溴联 苯 (PBB) 多溴二苯醚 (PBDE) PCA X O O O O O 外觀殼子 / 字鍵 O O O O O O O[...]

Index 74 Index ! !: key, 23 % % change, 53 % yield, 47 = =: key, 12 A a: slope, 6 2 absolute va lue. See Math menu Algebraic mode, 17 amortization: Amort key, 33; e xample, 34; menu items, 33 annual: bond, 47 annunciators, 11 ANS. See last number B b: y-intercept, 62 backspace ke y, 16 balance: amortization, 33 begin mode : Beg key, 32 bond: annual[...]

Index 75 N N key, 32 natural exponent: e to the power of x key, 23 nCr, 27 negative nu mbers, 16 net future va lue, 43 net present value, 43 net uniform series, 43 nPr, 27 NPV: key, 42 NPV, IRR: menu items, 43 number entry, 16 number period : compoundi ng, 55 number p eriods: amortization, 33 numbers: rounding, 28; storing and recalling, 27 O off: [...]