11-2 Performing Financial Calculations

The calculations in the table below can be performed with the Financial application. For actual calculation examples, refer to the sections of this manual or the separate “Examples” booklet shown in the “Example” column.

To perform this type of calculation:Select this menu item:

Example

Interest without compounding based on the number of days money is

Calc(1) - Simple

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invested

Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

Calc(1) - Compound

 

 

 

 

 

Interest based on compounding parameters specified by you

 

1101

 

Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Value of money paid out or received in varying amounts over time

Calc(1) - Cash Flow

1102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and principal portions of a payment or payments

Calc(1) - Amortization

1103

 

 

 

 

 

 

 

 

Effective or nominal interest rate for interest compounded multiple

Calc(1) - Interest

 

 

 

 

 

 

1104

 

times during a year

Conversion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost, selling price, or margin of profit on an item given the other two

Calc(1) - Cost/Sell/

 

 

 

 

 

 

1105

 

values

Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of days between two dates, or the date that is a specified

 

 

 

 

 

 

Calc(1) - Day Count

 

1106

 

number of days from another date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount that a business expense can be offset by income

 

 

 

 

 

 

Calc(1) - Depreciation

 

1107

 

(depreciated) over a given year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calc(1) - Bond

 

 

 

 

 

Purchase price or annual yield of a bond

 

1108

 

Calculation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount you must sell to break even or to obtain a specified profit, as

Calc(2) - Break-Even

 

 

 

 

 

 

1109

 

well as amount of profit or loss on particular sales

Point

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calc(2) - Margin of

 

 

 

 

 

How much sales can be reduced before incurring losses

 

 

1110

 

Safety

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Degree of change in net earnings arising from a change in sales

Calc(2) - Operating

 

 

 

 

 

 

 

 

1111

 

amount

Leverage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calc(2) - Financial

 

 

 

 

 

Degree of change in net earning arising from a change in interest paid

 

 

1112

 

Leverage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined effects of operating and financial leverages

Calc(2) - Combined

 

 

 

 

 

 

 

1113

 

 

Leverage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of items sold, selling price, or sales amount given other two

Calc(2) - Quantity

 

 

 

 

 

values; number of items manufactured, unit variable cost, or total

 

 

1114

 

Conversion

 

 

variable cost given other two values

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11-3 Calculation Formulas

For information about terms used in formulas that are not explained in detail below, refer to “11-5 Input and Output Field Names”.

Simple Interest

365-day Mode: SI' = DaysPV i

SI = SI'

 

 

 

365

 

360-day Mode:

SI' = DaysPV i

SFV = –(PV + SI')

 

 

 

360

 

i =

I%

 

 

 

 

 

 

100

 

 

Chapter 11: Financial Application

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