Sharp EL-738 operation manual Basic examples for the TVM solver, Calculating basic loan interest

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3.Enter values into TVM solver variables.

•Enter a value and press the appropriate TVM variable key (N, f, v, u, T).

•Press .wand then enter a value for P/Y. The same value is automatically assigned to C/Y as well. Val- ues entered into P/Y or C/Y must be positive. After enter- ing values, press sto quit the P/Y and C/Y settings.

•After setting P/Y (number of payments per year), you can use .<to enter N (total number of payments). Enter the number of years and press .<. The calculator automatically calculates the total number of payments.

•By pressing f/you can use the result of the pre- vious normal calculation stored in ANS memory as a TVM variable.

•Note that some variables are shared by other calculations and may have values assigned by those calculations.

4.Press @and the TVM variable key that you wish to solve.

•The calculation is performed and the obtained values are displayed.

Basic examples for the TVM solver

1 Calculating basic loan interest

A $56,000 mortgage loan (compounded monthly) requires monthly payments of $440 during its 20-year amortization pe- riod. Calculate the annual interest rate on the mortgage.

PV = $56,000

FV = 0

. . . . . .

I/Y = ?% PMT = –$440

N = 12 ⋅ 20 years = 240

Default values for the number of payments per year (P/Y) and the number of compounding periods per year (C/Y) are both set to 1. Set these values before entering TVM variable values.

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Contents EL-738 Page Contents Introduction Operational NotesUsing the .and Key Notations in This ManualKeys Resetting the Calculator In Case of Difficulty Resetting the calculatorPreparing to Use the Calculator Calculator and Display Layout Calculator layoutKey operation keys Display layout 2ndFSET UP Menu Selecting the display notation and number of decimal places3333333 0003000 Selecting the angular unit seeSelecting a mode Operations available in each modeOperating Modes Selecting the date format see14000 3439000 Basic Calculations⋅ ⋅ Delete keyEditing and Correcting an Entry Memory clear keyCursor keys Playback functionErrors Memory use in each mode for memory calculations500 192Temporary memories A-H, X-Z Independent memory MLast answer memory ANS TVM variablesStatistical variables Memory calculationsExample Key operation General Information Financial calculationsVariables used in financial calculations Variables shared among calculationsBasic variable operations TVM variables N, I/Y, PV, PMT, FVListed financial variables ENT and Comp symbols Category Display symbols DescriptionsCash flow diagrams Compound interestSetting the payment period payment due Variable Corresponding Description Default Variable keyTVM Time Value of Money Solver Variables used in the TVM solverBasic examples for the TVM solver Calculating basic loan interest1200 240005600000 44000400 8000125586 Calculating basic loan payments3600 20000FV= Calculating future value100 20001000000 376889Specifying payments due Ordinary annuity ENDAnnuity due BGN Ordinary annuity1800 30000000360 16245702400 2995014500 2995003400 150000627995 Calculating down payment and amount to borrow30000 90000550 14655892Variable Description Default value Amortization CalculationsVariables used in amortization 61656 8895148104852 203428600 1700384457 480048275524 1724476Discounted Cash Flow Analysis Entering cash flow dataSingle cash flows Repeated cash flows000*2 200300 Confirming and editing data2500000 Editing dataDeleting data Inserting data3000000 600000Variables used in discounted cash flow analysis NPV and IRRProcedure Key operation Display Bring up the initial dis Play in Normal modeTo obtain NPV To obtain IRR2314 Calculating the present value of variable cash flows662752 Setting the day-count method Bond CalculationsVariables used in bond calculations To obtain bond price Price PV To obtain yield to maturity Yield I/Y650 1000015-2023 7209250 728Entering dates Setting the depreciation method Depreciation CalculationsVariables used in depreciation calculations Key operation DescriptionPage 3000 5000000Calculating straight-line depreciation 1956 Conversion between APR and EFFTo change APR to EFF To change EFF to APRDay and Date Calculations Variables used in day and date calculations10-2009 22800Calculating number of days Answer 228 daysProcedure Key operation Display Move to the last date Percent Change/Compound Interest Cal- culationsCalculate 7500000 116000005467 800000980000 113Cost/Sell/Margin/Markup Calculations Variables used in cost/sell/margin/markup calcula- tions45560 950088842 Determining selling priceBreakeven Calculations Variables used in breakeven calculationsCalculating the breakeven point 1500000 758012000 33937Constant Calculations Chain Calculations087 0715000 4500Random Functions Random numbersRandom dice Random coin532 Modify FunctionRandom integer Entering statistical data For a single-variable data setFor a two-variable data set x value y value J Key operation Sub-mode DisplayEntering statistical data 1000 2000 Statistical Calculations and Variables Single-variable statistical calculationsLinear regression calculations Quadratic regression calculationVariables Content 53000 17857Single-variable statistical calculation Linear regression calculation Quadratic regression calculation Financial Calculation Formulas TVM solverAmortization calculations Discounted cash flow analysisBond calculations Depreciation calculations Conversion between APR and EFFDay and date calculations Statistical Calcula- tion Formulas Cost/Sell/Margin/Markup calculationsBreakeven calculations Errors and Calculation Ranges Error codes and error typesSyntax error Error Calculation error ErrorEquation too long Error No solution ErrorDisplay error Error Input value error ErrorCalculation ranges of functions Function Calculation rangeInteger Battery Replacement When to replace the batteryReplacement procedure Automatic power-off functionPriority Levels in Calculations Specifications For more information about business/ financial calculatorsKey operation and calculation priority Index Formulas, 72-75 FV, 18, 22, 72 GRAD, 8, 9, 61 Memo
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