Band of Investment Formula for the HP 19BII

The HP 19BII does all the 12C does, plus it lets you program re-usuable formulas. Here’s a formula for Band of Investment I wrote several years ago:

To Program the Band of Investment Formula:
1. Press the ON key.
2. Press the key under the “SOLVE” prompt.
3. Find a blank row using the down arrow key and type the following formula exactly as it appears here:
(Remember not to add any spaces, and all of the 0’s after “BAND.OF.INVESTMENT” and before “RO” are zero’s. The lower case “x” is a multiplication sign, not the letter “x”. Use the upper case letter “i”, not the number “1”, in the expression “I%YR”.)

BAND.OF.INVESTMENT:(M%
)x((-12)xPMT((TERMx12)
:I%YR:1:0:12:0))+(1-(M
%÷100))x(RE%)=RO

To Use the Band of Investment Program:
4. Press the key under the “CALC” prompt. If you have entered the program correctly, a new row of prompts will appear: “M%”, “TERM”, “I%YR”, “RE%”, and “RO”. (If not, you need to debug. Check your input for mistakes and make corrections. Then press the “CALC” key again to test the formula.)
5. Now (if you see the prompts listed above) just type each input then press the key under the appropriate prompt. Finish by pressing the key under the “RO” prompt. The calculator will return the correctly calculated Capitalization Rate (Ro).

Try this Example:
Type:70 (70% LTV). Press the key under:M
Type:15 (15 year term). Press the key under:TERM
Type:9 (9% interest). Press the key under:I%YR
Type:10 (10% equity rate). Press the key under:RE
Solve for Cap Rate. Press the key under:RO

Your answer for Ro should be 11.52%.

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