Please show how to enter this on a financial calculator, specifically the HP10BII+
rate positively ..
First we have to convert the Monthly compounding rate into effective annual rate and then semiannual compounding rate. | ||||||||||||
Annual effective rate = | (1+9.2%/12)^12-1 | |||||||||||
Annual effective rate = | 9.60% | |||||||||||
computation of semiannual compounding rate = | ((1+9.6%)^0.5-1)*2 | |||||||||||
Semiannual compounding rate = | 9.38% | |||||||||||
We have to use now financial calculator to solve for present value | ||||||||||||
put in calculator- | ||||||||||||
FV | 0 | |||||||||||
PMT | -105 | |||||||||||
I | 9.38%/2 | 4.69% | ||||||||||
N | 5*2 | 10 | ||||||||||
Compute PV | $823.17 | |||||||||||
Ans = | $823.17 |
Please show how to enter this on a financial calculator, specifically the HP10BII+ P 5-10 (similar...
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