Financial Calculator Basics

In this video, we will go over some basic things you should know about your calculator. Let’s get started. In this course, we will be using the white and the orange functions on your HP calculator. Some of the most important functions we will use are in the top row: N, I/YR, PV, PMT, FV. Don’t worry if you don’t know what they mean, we will cover this later in the course. We will also be using some of the orange functions, Such as Nom (which stands for Nominal), Eff (which stands for effective), P/YR, and AMORT To get to the orange functions, you will need to press the orange SHIFT key first. Let’s see how this works in practice. When we are solving math problems, we will be entering values into the calculator. For example, let’s enter these two values: Nominal interest rate of 5% and payment of negative 534 dollars. To do that, we will first type in the value, and then press the corresponding key. To enter the nominal interest rate of 5%, type 5, then press SHIFT Nom. This saves 5 in the Nom key. Note that when you enter percentages you don’t press the % key, the calculator assumes that the number you entered is already in %. To enter Payment, type 534, press the +/- key to make it negative (you will see the minus appear on your screen). Then press Payment to store the value in the Payment key. Now that we did that, your calculator “knows” the nominal interest rate and the payment. If you press RCL and then SHIFT Nom, you will see that stored value of 5 that we just entered in. If you press Recall payment, you will see the value that we entered for payment. This is the most basic thing we will be doing in all the math questions. We will be entering different values in the memory of our calculator. Let’s say now that you entered the Nominal Interest Rate and the Payment, and you also want to enter 225 for N. You start typing and accidentally you press 235 instead of 225. Don’t worry – you don’t have to start over from the very beginning! Just press (CLEAR) (the C key). This will clear your screen but it will not erase the values stored in your calculator. Now that you screen is clear you can type the correct value, 225 and press N to store it. If you want to test it you can press Recall Payment and you will see that the value we entered for payment is still there. So pressing C just clears the screen and doesn’t affect your previous entries. If you want to clear the memory of your calculator, press SHIFT CLEAR ALL. This will not just clear your screen but also clear all the values you entered in your calculator before. So all those values that we entered previously (Nominal Rate and Payment) will be erased. To summarize, if you just made a typo and want to clear your screen, don’t be afraid to use the C key. It will not erase your work. If you want to erase all the values you entered, press C ALL. I recommend pressing CLEAR ALL before starting every new question. This will make sure you don’t have any values from the previous question still stored in the memory. Thanks for watching and I’ll see you in the next video!