Sunday, March 24, 2019

HP 17BII and HP 17BII+: Finance Solver Equations

HP 17BII and HP 17BII+:  Sales Tax, Substantial Presence Test, Automobile Purchase, Principal Interest Property Tax & Insurance (PITI), Retirement Accounts

Note:  Some equations have the L (Let) and G (Get) functions, which are not available on the brown keyboard of the 17BII+ (around 2003). 

Sales Tax:  Determine the total amount of taxable items and non-taxable items.

AMT=NTAX+TXBL*(1+R%÷100)

AMT:  Total Amount
NTAX:  Items not subject to sales tax
TXBL:  Items subject to sales tax
R%:  sales tax rate

Example 1:  A company purchases equipment which costs $99.99, which was subject to 9.5% sales tax, which includes $139.99 of services.  The services are not subject to sales tax.  What is the total invoice? 

Input:
NTAX:  139.99
TXBL: 99.99
R%:  9.5(%)

Output:
AMT = 249.48

The total of the invoice is $249.48.

Example 2:  During an audit, a company finds an invoice with the total of $236.40 (amount), and the invoice listed non-taxable services of $146.50.  The company lives in a county where the sales tax is 8.75%.  What is the amount of taxable items? 

Input:
NTAX:  146.50
R%:  8.75(%)
AMT:  236.40

Output:
TXBL = 82.67

The amount of taxable items on the invoice is $82.67.

Substantial Presence Test

For more information about the substantial presence test, please click here:  http://edspi31415.blogspot.com/search?q=substantial+presence+

This equation uses Let and Get. 

SPT=IF(L(X:DDAYS(D:12.31+FP(100*D)÷100:1)>183:DATE(D:183):DATE(1.01+(FP(100*D)+.0001)÷100:IP(183-G(X)÷3)))

STP:  Number of days calculated for the Substantial Presence Test
D:  Date (in the format DD.MMYYYY)

Example 1:

D:  1.052019 (1/5/2019),  SPT = 7.072019 (7/7/2019)

Example 2:

D:  6.182008 (6/18/2008), SPT = 12.182008 (12/18/2008)

Example 3:

D:  9.262018 (9/26/2018), SPT = 6.012019 (6/1/2019)

Example 4:

D:  7.102017 (7/10/2017), SPT = 5.062018 (5/6/2018)

Financing the Purchase of an Automobile

This equation deals with the purchase of an automobile. 

AUTO:PRICE*(1-DISC%*.01)*(1+STAX%*.01)-DOWN=PMT*USPV(I%÷12:YRS*12)

PRICE: Sticker price of the automobile
DISC%:  Discount percent
STAX%: Sales tax rate
DOWN:  Down payment (amount)
PMT:  Payment of the loan
I%:  Interest rate of the loan
YRS: Number of years of the loan

Example 1:  The sticker price of a car is $28,000.00.  A discount of 15% is offered.  The car is subject to 10% sales tax.  The dealer offers a 6-year loan at 4.5%.  With $2,000, what is the monthly payment?

Input: 
PRICE: 28000.00
DISC%: 15
STAX%:  10
DOWN: 2000
I%:  4.5
YRS: 6

Output:
PMT = 383.83

The monthly payment is $383.83. 

Example 2:  Assuming the same facts from Example 1, expect the buyer wants to pay no more than $350.00 a month.  What is the required down payment?

Input: 
PRICE: 28000.00
DISC%: 15
STAX%:  10
I%:  4.5
YRS: 6
PMT: 350.00

Output:
DOWN = 4131.42

The down payment needs to be $4,131.42.

Real Estate:  Principal Interest Property Tax & Insurance (PITI)

Determine the total payment of mortgage when considering property tax and property insurance. 

PITI=MORT÷USPV(I%÷12:YRS*12)+(PROP$+INS$)÷12

PITI:  Payment including principal, interest, property tax, and insurance
MORT:  Mortgage amount, price of the property
I%:  Annual interest rate
YRS: Number of the years of the mortgage
PROP$:  Annual property tax
INS$:  Annual property insurance

Example:  A buyer purchases a home with a price of $200,000.00.  The amount is to be financed.  The loan lasts for 30 years and 5% interest rate.  There is annual property tax of $1,200.00 with insurance of $395.95.  What is the buyer's PITI?

Input:
MORT: 200000.00
I%:  5
YRS: 30
PROP$:  1200.00
INS$:  395.95

Output:
PITI = 1206.64

The buyer's PITI is $1,206.64. 

Retirement Accounts:  Future Value and Earned Untaxed Dividends

Determine the future value and untaxed dividends of tax-free retirement accounts (IRS/Keogh).

There are two versions, the second uses Let (L) and Get (G) functions.

Version 1:
IRA: VAL*0+DIV*0+IF(S(VAL):USFV(I%:YRS)*PMT*(1+I%÷100)-VAL:0)+IF(S(DIV):(USFV(I%:YRS)*(1+I%÷100)-YRS)*PMT-DIV:0)

Version 2:
IRA:(VAL+DIV+L(X:USFV(i%:YRS)*(1+I%÷100)))*0+IF(S(VAL):G(X)*PMT-VAL:(G(X)-YRS)*PMT-DIV)

Input Variables:
I%:  Annual Interest Rate
YRS:  Number of Years
PMT:  Annual Payment

Output Variables:
VAL:  Tax Free Value of the Retirement Account
DIV:  Total Untaxed Dividends Earned

Remember, these are untaxed amounts.

Example:
I%:  6.88
PMT:  1000.00
YRS: 40

Output (Results):
VAL = 206811.01
DIV = 166881.01

Source:
Tony Hutchins, Luiz Vieria, and Gene Wright "HP 12C Platinum Solutions Handbook"  Hewlett Packard.  Revised 03.04  2004

Eddie

All original content copyright, © 2011-2019.  Edward Shore.   Unauthorized use and/or unauthorized distribution for commercial purposes without express and written permission from the author is strictly prohibited.  This blog entry may be distributed for noncommercial purposes, provided that full credit is given to the author.

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