Sharp EL-738 operation manual 2400, 14500, 299500, 708

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Procedure

Key operation

Display

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

Enter the total number	s	24		N			24~N
Enter the total number	s			N			24~N
of payments.							2400
							2400

Enter the future value.	2995		x		10	.	ANS~FV
Enter the future value.			x			.	ANS~FV
	%T						29950
							29950

Enter payment.	,145 u						(-145)~PMT
							-14500
Enter the present value.	2995 v						2995~PV
							299500
Calculate the annual	@f						I/Y=
interest rate.							708
							708

Answer: If you lease the computer system, the annual interest rate would be 7.08%, which is less than that of the interest rate on a two-year loan, so it would be more cost-effective to lease a computer system than to purchase one.

3 Calculating the present value of a lease with trade-in value

Your client wishes to buy a machine currently leased from your company. On a ﬁve-year lease with payments of $200 at the beginning of each month, the machine has a trade-in value of $1,500 with 34 monthly payments remaining. If your company sells the machine at the present value of the lease, discounted at an annual interest rate of 18%, compounded monthly, how much should your company charge for the machine?

PV = ?

I/Y = 18%

. . . . . .

PMT = –$200

N = 34

FV = –$1,500

30

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Contents EL-738 Page Contents Operational Notes IntroductionKey Notations in This Manual Using the .andKeys Resetting the calculator Resetting the Calculator In Case of DifﬁcultyPreparing to Use the Calculator Calculator layout Calculator and Display LayoutKey operation keys 2ndF Display layoutSelecting the display notation and number of decimal places SET UP MenuSelecting the angular unit see 33333330003 000Selecting the date format see Selecting a modeOperations available in each mode Operating ModesBasic Calculations 14000343 9000Delete key ⋅ ⋅Playback function Editing and Correcting an EntryMemory clear key Cursor keys192 ErrorsMemory use in each mode for memory calculations 500TVM variables Temporary memories A-H, X-ZIndependent memory M Last answer memory ANSMemory calculations Statistical variablesExample Key operation Financial calculations General InformationVariables shared among calculations Variables used in ﬁnancial calculationsTVM variables N, I/Y, PV, PMT, FV Basic variable operationsListed ﬁnancial variables Category Display symbols Descriptions ENT and Comp symbolsCompound interest Cash ﬂow diagramsVariables used in the TVM solver Setting the payment period payment dueVariable Corresponding Description Default Variable key TVM Time Value of Money SolverCalculating basic loan interest Basic examples for the TVM solver44000 120024000 5600000Calculating basic loan payments 4008000 125586Calculating future value 360020000 FV=376889 1002000 1000000Ordinary annuity Specifying payments dueOrdinary annuity END Annuity due BGN1624570 180030000000 360299500 240029950 14500Calculating down payment and amount to borrow 3400150000 62799514655892 3000090000 550Amortization Calculations Variable Description Default valueVariables used in amortization 8895148 616561700 104852203428 6001724476 3844574800 48275524Repeated cash ﬂows Discounted Cash Flow AnalysisEntering cash ﬂow data Single cash ﬂowsConﬁrming and editing data 000*2200 300Inserting data 2500000Editing data Deleting dataNPV and IRR 3000000600000 Variables used in discounted cash ﬂow analysisTo obtain IRR Procedure Key operation Display Bring up the initial disPlay in Normal mode To obtain NPVCalculating the present value of variable cash ﬂows 2314662752 Bond Calculations Setting the day-count methodVariables used in bond calculations To obtain yield to maturity Yield I/Y To obtain bond price Price PV720 65010000 15-2023728 9250Entering dates Key operation Description Setting the depreciation methodDepreciation Calculations Variables used in depreciation calculationsPage 5000000 3000Calculating straight-line depreciation To change EFF to APR 1956Conversion between APR and EFF To change APR to EFFVariables used in day and date calculations Day and Date CalculationsAnswer 228 days 10-200922800 Calculating number of daysPercent Change/Compound Interest Cal- culations Procedure Key operation Display Move to the last dateCalculate 800000 750000011600000 5467Variables used in cost/sell/margin/markup calcula- tions 980000113 Cost/Sell/Margin/Markup CalculationsDetermining selling price 455609500 88842Variables used in breakeven calculations Breakeven CalculationsCalculating the breakeven point 33937 15000007580 12000Chain Calculations Constant Calculations4500 087071 5000Random coin Random FunctionsRandom numbers Random diceModify Function 532Random integer Key operation Sub-mode Display Entering statistical dataFor a single-variable data set For a two-variable data set x value y value JEntering statistical data 1000 2000 Quadratic regression calculation Statistical Calculations and VariablesSingle-variable statistical calculations Linear regression calculationsVariables Content 17857 53000Single-variable statistical calculation Linear regression calculation Quadratic regression calculation Discounted cash ﬂow analysis Financial Calculation FormulasTVM solver Amortization calculationsBond calculations Conversion between APR and EFF Depreciation calculationsDay and date calculations Cost/Sell/Margin/Markup calculations Statistical Calcula- tion FormulasBreakeven calculations Calculation error Error Errors and Calculation RangesError codes and error types Syntax error ErrorInput value error Error Equation too long ErrorNo solution Error Display error ErrorFunction Calculation range Calculation ranges of functionsInteger When to replace the battery Battery ReplacementAutomatic power-off function Replacement procedurePriority Levels in Calculations For more information about business/ ﬁnancial calculators SpeciﬁcationsKey operation and calculation priority Index Formulas, 72-75 FV, 18, 22, 72 GRAD, 8, 9, 61 Memo