Rate of return on investment
This will calculate: if you know the loan amount and the periodic payments, this will calculate your return on investment.
Example: you are willing to loan me $35,000 and I will pay you back in equal payments of $800 per month for 5 years. What is your rate of return — or put another way, what interest rate am I paying?
Because P/YR is set to 12, the HP-10B gives the annual rate directly. There is no need to multiply by 12.
Prefer to let the site do the arithmetic? Use the rate of return form.
- HP-10B keystrokes
-
1
12
P/YR
Sets twelve periods per year
- 2 5 N
- 3 35000 PV
- 4 800 +/- PMT
- 5 I/YR = 13.20
P/YR tells the calculator how many payments there are in a year. Set it first: 12 for monthly, 1 for annual. It stays set until you change it. +/- changes the number to a negative. On the HP-10B every cash outlay is entered as a negative, which is why the answer comes back positive — it is money you receive.