Picturing Financial Problems; How To Approach A Financial Problem - HP 10BII Owner's Manual

Picturing Financial Problems
How to approach a Financial Problem
'The financial vocabulary of the HP 10BII is simplified to apply to all
financial fields. For example, your profession may use the term balance,
balloon payment, residual, maturity value, от remaining amount to designate a
value that the HP 10BII knows as (£V) (future value).
"The simplified terminology of the HP 10BII is based on cash flow
diagrams. Cash flow diagrams are pictures of financial problems that
show cash flows over time. Drawing a cash flow diagram is the first step
to solving a financial problem.
The following cash flow diagram represents investments in a mutual
fund. The original investment was $7,000.00, followed by investments of
$5,000.00 and $6,000.00 at the end of the third and sixth months. At the
end of the 11% month, $5,000.00 was withdrawn. At the end of the 16%
month, $16,567.20 was withdrawn.
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