How much should you pay for the contract if you wish to yield a yearly rate of 15% on your investment?
Figure 6 Cash flow diagram (Calculate the amount)
The following example uses the Æand ¤keys to enter the cash flow amount and repeat value simultaneously. When the cash flow count is 1 for a given cash flow amount, the cash
flow amount may be entered simply by pressing the amount followed by ¤, as the default for the count is 1. However, when using the Ækey to enter the cash flow amount, you must
then follow Æwith the repeat value followed by ¤, even if the repeat value is 1. This
process is shown here to demonstrate this application and for consistency with entering the data for the example.
Table
KeysDisplay Description
]O: | CFLO CLR | Clear cash flow memory. |
| ||
| (message flashes, |
|
| then disappears) |
|
|
|
|
JG\Í | 12.00 | Set payments per year. |
| ||
|
|
|
| :ÆY¤ | 4.00 | Input initial cash flow of zero and |
| ||
| (CFn 0 flashes, then | the repeat value. |
| disappears) |
|
|
|
|
| V:::ÆJ¤ | (CFn 1 flashes, then | repeat value. Note the N |
| 1.00 | Input second cash flow amount and |
| disappears) | annunciator. |
|
|
|
:ÆY¤ | 4.00 | Input third cash flow amount and |
| ||
| (CFn 2 flashes, then | repeat value. |
| disappears) |
|
|
|
|
| V:::ÆG¤ | (CFn 3 flashes, then | repeat value. |
| 2.00 | Input fourth cash flow amount and |
| disappears) |
|
|
|
|
96 Cash Flow Calculations