How to use financial calculator to calculate present value?

Question

Find the present value of $5,325 to be received in one period if the rate is 6.5%.

I put this in my calculator, its a hp 10bII

6.5(I, YR)

5,325 (FV)

1 (N)

(PV)

and i get -5,296.31, i know it is supposed to be 5,000. What am I doing wrong?

Answer 1

u are forgetting the period of time.and the percent should be put in as    .065.if you just bought it then $5325 but if its old you should star with the original price,multiply by the rate times time

Answer 2

Try this sequence, it works on mine:

1(n)

6.5(i)  enter in % format, not decimal.

5325(fv)

(pv)

ans = 5,000

Let me know, mule