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# HP 17B: compute payment, interest and yields

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Can anybody tell me how to use an HP 17B to find yields?

And can anybody tell me how to figure out monthly payments on a 17B for loans.....say 36 months, finance amount \$35,000, rate 7.25%?

Can anybody tell me how to figure out an interest rate in general?

#### Solution Preview

HP 17B CALCULATOR

Can anybody tell me how to use an HP 17B to find yields?
And can anybody tell me how to figure out monthly payments on a 17B for loans.....say 36 months, finance amount \$35,000, rate 7.25%? Please note that I would not have answered this if you had insisted only on HP 17B! The calculator used by me is very easy to use and is found on:
http://www.moneychimp.com/calculator/annuity_calculator.htm

Annual Payout Amount \$12,492.09 So, monthly payout is \$1041
Please note that we have entered Starting Principal as \$35,000,
Rate as 7.25% and
Years to Pay Out 3.
If you press calculate you get \$12,492.

Can anybody tell me how to figure out an interest rate in general?

It doesn't have to be a 17B but any pointers on figuring out rates, interest rates, yields, and things for leases any help in this area would be greatly appreciate. Please note that I would not have answered this if you had insisted only on HP 17B!
This same calculator can help you calculate Compound Interest , Present Value, Return Rate / CAGR, Annuity, Bond Yield, Mortgage and Retirement. Just click on the right link.

For example we can enter your data into the compound interest box, we enter 35,000 in the current principal box, 0 into the annual addition box and 3 into the years to grow box, interest rate 7.25, compound interest 1 times annually and we calculate we get the future value of \$43,177.74. If we subtract from this \$35,000 we get \$8,177.74, which if divided by 3 gives us 2,725.91 which is the annual interest.

Using this calculator you can find out rates, interest rate, yields, and lease payments easily.

This is the theory for the calculations
Imagine you are interested in buying a bond, at a market price that's different from the bond's par value. There are three numbers commonly used to measure the annual rate of return you are getting on your investment:
Coupon Rate: Annual payout as a percentage of the bond's par value
Current Yield: Annual payout as a percentage of the current market price you'll actually pay
Yield-to-Maturity: Composite rate of return off all payouts, coupon and capital gain (or loss)
(The capital gain or loss is the difference between par value and the price you actually pay.)
The yield-to-maturity is the best measure of the return rate, since it includes all aspects of your investment. To calculate it, we need to satisfy the same condition as with all composite payouts:
Whatever r is, if you use it to calculate the present values of all payouts and then add up these present values, the sum will equal your initial investment.
In an equation,
1. c(1 + r)-1 + c(1 + r)-2 + . . . + c(1 + r)-n + B(1 + r)-n = P
where
c = annual coupon payment (in dollars, not a percent)
n = number of years to maturity
B = ...

#### Solution Summary

The solution provides explanations as well as links for using the HP 17B and for interest calculations in general.

\$2.19