******************************************************
Documentation file for Time Value of Money Application

                                   Kevin P. Jessup
                                   October 10, 1990
******************************************************


INTRODUCTION
------------

HP48SX owners that also have the equation library card
have available to them a time value of money equation
solver.  This software is a quick and dirty attempt to
make a similar package available to those who do not
have the card.

The program is based on the TVM equations that were used
in the PPC ROM for the HP41.  The equations used there
were adapted for use on the HP48.  The original authors
for the PPC ROM version were Graeme Dennes and Don
Dewey.

While not as fancy as the equation library version, this
program allows you to set different compounding and
payment frequencies.  This is typical of European and
Canadian Mortgages.

Transfer the TVM file to your 48.  A TVM subdirectory
will be created.  Verify the following...

   Checksum:   # 96A8 (hex)
   Byte count:    996


OPERATION
---------
To start, simply hit [LEFT SHIFT] [SOLVE] then
[SOLVR] to enter the equation solver application.

[Note: right-SOLVE is a shortcut!  -jkh-]

The proper equation is already named and stored
under EQ.  In case you accidentally wipe it out,
it is duplicated under the name TVM.

Do not store any other equations, programs or variables
in this directory so as to avoid conflicts with the
TVM operations.

KNOWLEDGE OF THE HP48SX SOLVER AND TIME VALUE OF MONEY
TRANSACTIONS IS ASSUMED!!

Money received by you is positive. Money payed out is
negative.

N     =    Number of periods
I     =    % nominal interest rate for the period implied
           by the compounding and payment frequencies
PV    =    Present Value
PMT   =    Periodic payment
FV    =    Future Value
CF    =    Compounding Frequency
PF    =    Payment Frequency
BEG   =    Sets begin mode (payments due at
           beginning of period)
END   =    Sets end mode (payments due at
           end of period)
RESET =    Sets end mode and sets N, PF and CF equal to 12.
           All other variables are cleared!


Example 1
---------
Find the anual simple interest rate (%) for a
$1000 loan to be repayed after one year with a
single payment of $1187.50.

ENTER THIS         HIT THIS KEY        SEE THIS
----------         ------------        --------
                   RESET               END mode
                                       N=PF=CF=12
1000               PV                  PV: 1000
-1187.5            PMT                 PMT: -1187.5
1                  N                   N: 1
                   NXT
1                  CF                  cf: 1
1                  PF                  pf: 1
                   NXT
                   [LEFT SHIFT] I      Solving for I
                                       I: 18.75

The interest rate is 18 and 3/4 percent.


Example 2
---------
$2000 is placed in a savings account that earns 5.25%
interest compounded monthly.  What is its value after
5 years (5 * 12 = 60 periods)?

ENTER THIS         HIT THIS KEY        SEE THIS
----------         ------------        --------
                   RESET               END mode
                                       N=PF=CF=12
-2000              PV                  PV: -2000
5.25               I                   I: 5.25 
60                 N                   N: 60
                   [LEFT SHIFT] FV     Solving for FV
                                       FV: 2598.8645319

The account made $598.86 in interest.


Example 3
---------
A mortgage of $150,000 is to be fully amortized at 12%
interest compounded monthly.  If end of period payments of
$1600.00 are to be made, how many payments will be required?

ENTER THIS         HIT THIS KEY        SEE THIS
----------         ------------        --------
                   RESET               END mode
                                       N=PF=CF=12
12                 I                   I: 12
150000             PV                  PV: 150000
0                  FV                  FV: 0
-1600              PMT                 PMT: -800
                   [LEFT SHIFT] N      Solving for N
                                       N: 278.64

The loan will be payed in 278.64 months or about 23 years.


Example 4 (Canadian Mortgage)
-----------------------------
Find the monthly end of period payments required
to fully amortize a 25 year (25 * 12 = 300 periods)
$85,000 loan at 11% compounded semiannually.

ENTER THIS         HIT THIS KEY        SEE THIS
----------         ------------        --------
2                  NXT CF              cf: 2
300                NXT N               N: 300
11                 I                   I: 11
85000              PV                  PV: 85000
                   [LEFT SHIFT] PMT    Solving for PMT
                                       PMT: -818.15

Example 5
---------
What is the future value of $100 biweekly savings
(26 periods/year) of $100 for 3 years at a nominal
annual rate of 5.5% compounded daily.  Payments
are to be made at the start of each period.

ENTER THIS         HIT THIS KEY        SEE THIS
----------         ------------        --------
                   RESET               END mode
                                       N=PF=CF=12
                   NXT BEG             BEGIN mode
365                CF                  cf: 365
26                 PF                  pf: 26
78                 NXT N               N: 78
5.5                I                   I: 5.5
-100               PMT                 PMT: -100
                   [LEFT SHIFT] FV     Solving for FV
                                       FV: 8489.32


Anyone wishing to enhance these programs may freely do so.
Any donations are greatly appreciated!

Kevin Jessup
9118 North 85th Street
Milwaukee, WI 53224