Sharp EL-738 operation manual 400, 8000, 125586, Calculating basic loan payments

Page 26

2 Calculating basic loan payments

Calculate the quarterly payment for a $56,000 mortgage loan at 6.5% compounded quarterly during its 20-year amortization period.

PV = $56,000

I/Y = 6.5%

FV = 0

. . . . . .

PMT = ?

N = 4 ⋅ 20 years = 80

Procedure

Key operation

Display

 

 

 

Set all the variables to

.b

000

default values.

 

 

 

 

Make sure ordinary annuity is set (BGN is not displayed).

Set the number of pay-

.w4 Q

P/Y=

ments per year to 4.

 

400

 

 

 

Confirm the number of

i

C/Y=

compounding periods per

 

 

400

year.

 

 

 

 

Quit the P/Y and C/Y set-

s

000

tings.

 

 

 

 

Calculate the total

20 .<N

ANS~N

number of payments and

 

8000

store in N.

 

 

 

 

 

 

Enter the present value.

56000 v

56———~PV

 

 

5600000

Enter the future value.

0 T

—~FV

 

 

 

 

000

 

 

 

Enter the annual interest

6.5 f

6.5~I/Y 650

rate.

 

Calculate the quarterly

@u

PMT=

payment.

 

-125586

 

 

 

 

 

Answer: The quarterly payments are $1,255.86.

25

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Contents EL-738 Page Contents Introduction Operational NotesKeys Using the .andKey Notations in This Manual Preparing to Use the Calculator Resetting the Calculator In Case of DifficultyResetting the calculator Key operation keys Calculator and Display LayoutCalculator layout Display layout 2ndFSET UP Menu Selecting the display notation and number of decimal places000 33333330003 Selecting the angular unit seeOperating Modes Selecting a modeOperations available in each mode Selecting the date format see9000 14000343 Basic Calculations⋅ ⋅ Delete keyCursor keys Editing and Correcting an EntryMemory clear key Playback function500 ErrorsMemory use in each mode for memory calculations 192Last answer memory ANS Temporary memories A-H, X-ZIndependent memory M TVM variablesExample Key operation Statistical variablesMemory calculations General Information Financial calculationsVariables used in financial calculations Variables shared among calculationsListed financial variables Basic variable operationsTVM variables N, I/Y, PV, PMT, FV ENT and Comp symbols Category Display symbols DescriptionsCash flow diagrams Compound interestTVM Time Value of Money Solver Setting the payment period payment dueVariable Corresponding Description Default Variable key Variables used in the TVM solverBasic examples for the TVM solver Calculating basic loan interest5600000 120024000 44000125586 4008000 Calculating basic loan paymentsFV= 360020000 Calculating future value1000000 1002000 376889Annuity due BGN Specifying payments dueOrdinary annuity END Ordinary annuity360 180030000000 162457014500 240029950 299500627995 3400150000 Calculating down payment and amount to borrow550 3000090000 14655892Variables used in amortization Variable Description Default valueAmortization Calculations 61656 8895148600 104852203428 170048275524 3844574800 1724476Single cash flows Discounted Cash Flow AnalysisEntering cash flow data Repeated cash flows300 000*2200 Confirming and editing dataDeleting data 2500000Editing data Inserting dataVariables used in discounted cash flow analysis 3000000600000 NPV and IRRTo obtain NPV Procedure Key operation Display Bring up the initial disPlay in Normal mode To obtain IRR2314 Calculating the present value of variable cash flows662752 Variables used in bond calculations Setting the day-count methodBond Calculations To obtain bond price Price PV To obtain yield to maturity Yield I/Y15-2023 65010000 720Entering dates 9250728 Variables used in depreciation calculations Setting the depreciation methodDepreciation Calculations Key operation DescriptionPage Calculating straight-line depreciation 30005000000 To change APR to EFF 1956Conversion between APR and EFF To change EFF to APRDay and Date Calculations Variables used in day and date calculationsCalculating number of days 10-200922800 Answer 228 daysCalculate Procedure Key operation Display Move to the last datePercent Change/Compound Interest Cal- culations 5467 750000011600000 800000Cost/Sell/Margin/Markup Calculations 980000113 Variables used in cost/sell/margin/markup calcula- tions88842 455609500 Determining selling priceCalculating the breakeven point Breakeven CalculationsVariables used in breakeven calculations 12000 15000007580 33937Constant Calculations Chain Calculations5000 087071 4500Random dice Random FunctionsRandom numbers Random coinRandom integer 532Modify Function For a two-variable data set x value y value J Entering statistical dataFor a single-variable data set Key operation Sub-mode DisplayEntering statistical data 1000 2000 Linear regression calculations Statistical Calculations and VariablesSingle-variable statistical calculations Quadratic regression calculationVariables Content Single-variable statistical calculation 5300017857 Linear regression calculation Quadratic regression calculation Amortization calculations Financial Calculation FormulasTVM solver Discounted cash flow analysisBond calculations Day and date calculations Depreciation calculationsConversion between APR and EFF Breakeven calculations Statistical Calcula- tion FormulasCost/Sell/Margin/Markup calculations Syntax error Error Errors and Calculation RangesError codes and error types Calculation error ErrorDisplay error Error Equation too long ErrorNo solution Error Input value error ErrorCalculation ranges of functions Function Calculation rangeInteger Battery Replacement When to replace the batteryPriority Levels in Calculations Replacement procedureAutomatic power-off function Key operation and calculation priority SpecificationsFor more information about business/ financial calculators Index Formulas, 72-75 FV, 18, 22, 72 GRAD, 8, 9, 61 Memo
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