Sharp EL-738 operation manual Specifying payments due, Ordinary annuity END, Annuity due BGN

Page 29

Specifying payments due (.")

This calculator can select ordinary annuity or annuity due de- pending on the regular cash ﬂow (payment) conditions.

Ordinary annuity (END):

This is the default setting for ﬁnancial calculations. BGN is not displayed. A regular cash ﬂow (payment) is received at end of each payment period. Often applied to loan calculations, etc.

Annuity due (BGN):

BGN appears on the display. A regular cash ﬂow (payment) is received at the beginning of each payment period. Often applied to the ﬁnance lease of an asset.

To toggle between ordinary annuity and annuity due, press

.".

Note: The above selection only affects the TVM solver.

1 Ordinary annuity

Your company wishes to accumulate a fund of $300,000 over the next 18 months in order to open a second location. At the end of each month, a ﬁxed amount will be invested in a money market savings account with an investment dealer. What should the monthly investment be in order to reach the savings objective, as- suming the account will earn 3.6% interest compounded monthly?

						FV = $300,000

PV = 0				I/Y = 3.6%
PV = 0

						. . . . . .

PMT = ?
				N = 18
Procedure				Key operation				Display
Procedure				Key operation				Display

Set all the variables to			.b					000
default values.								000

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

Set the number of pay- ments per year to 12.

.w12 Q

P/Y=

1200

The number of compounding periods per year is automatically set to 12. Press sto exit the P/Y and C/Y settings.

28

Image 29

Contents EL-738 Page Contents Operational Notes IntroductionKeys 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 2ndF Display layoutSelecting the display notation and number of decimal places SET UP Menu0003 3333333000 Selecting the angular unit seeOperations available in each mode Selecting a modeOperating Modes Selecting the date format see343 140009000 Basic CalculationsDelete key ⋅ ⋅Memory clear key Editing and Correcting an EntryCursor keys Playback functionMemory use in each mode for memory calculations Errors500 192Independent memory M Temporary memories A-H, X-ZLast answer memory ANS TVM variablesExample Key operation Statistical variablesMemory calculations Financial calculations General InformationVariables shared among calculations Variables used in ﬁnancial calculationsListed ﬁnancial variables Basic variable operationsTVM variables N, I/Y, PV, PMT, FV Category Display symbols Descriptions ENT and Comp symbolsCompound interest Cash ﬂow diagramsVariable Corresponding Description Default Variable key Setting the payment period payment dueTVM Time Value of Money Solver Variables used in the TVM solverCalculating basic loan interest Basic examples for the TVM solver24000 12005600000 440008000 400125586 Calculating basic loan payments20000 3600FV= Calculating future value2000 1001000000 376889Ordinary annuity END Specifying payments dueAnnuity due BGN Ordinary annuity30000000 1800360 162457029950 240014500 299500150000 3400627995 Calculating down payment and amount to borrow90000 30000550 14655892Variables used in amortization Variable Description Default valueAmortization Calculations 8895148 61656203428 104852600 17004800 38445748275524 1724476Entering cash ﬂow data Discounted Cash Flow AnalysisSingle cash ﬂows Repeated cash ﬂows200 000*2300 Conﬁrming and editing dataEditing data 2500000Deleting data Inserting data600000 3000000Variables used in discounted cash ﬂow analysis NPV and IRRPlay in Normal mode Procedure Key operation Display Bring up the initial disTo obtain NPV To obtain IRRCalculating the present value of variable cash ﬂows 2314662752 Variables used in bond calculations Setting the day-count methodBond Calculations To obtain yield to maturity Yield I/Y To obtain bond price Price PV10000 65015-2023 720Entering dates 9250728 Depreciation Calculations Setting the depreciation methodVariables used in depreciation calculations Key operation DescriptionPage Calculating straight-line depreciation 30005000000 Conversion between APR and EFF 1956To change APR to EFF To change EFF to APRVariables used in day and date calculations Day and Date Calculations22800 10-2009Calculating number of days Answer 228 daysCalculate Procedure Key operation Display Move to the last datePercent Change/Compound Interest Cal- culations 11600000 75000005467 800000113 980000Cost/Sell/Margin/Markup Calculations Variables used in cost/sell/margin/markup calcula- tions9500 4556088842 Determining selling priceCalculating the breakeven point Breakeven CalculationsVariables used in breakeven calculations 7580 150000012000 33937Chain Calculations Constant Calculations071 0875000 4500Random numbers Random FunctionsRandom dice Random coinRandom integer 532Modify Function For a single-variable data set Entering statistical dataFor a two-variable data set x value y value J Key operation Sub-mode DisplayEntering statistical data 1000 2000 Single-variable statistical calculations Statistical Calculations and VariablesLinear regression calculations Quadratic regression calculationVariables Content Single-variable statistical calculation 5300017857 Linear regression calculation Quadratic regression calculation TVM solver Financial Calculation FormulasAmortization calculations 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 Error codes and error types Errors and Calculation RangesSyntax error Error Calculation error ErrorNo solution Error Equation too long ErrorDisplay error Error Input value error ErrorFunction Calculation range Calculation ranges of functionsInteger When to replace the battery Battery ReplacementPriority 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