Payments occur at either the beginning of each period or the end of each period. End mode is shown in the last two figures; Begin mode is shown in the next figure.

Capitalized value

of lease

 

 

 

 

 

1

2

3

4

5

 

 

 

 

 

 

 

 

 

 

Figure 5-5. Lease Payments Made at the Beginning of Each

Period (Begin Mode)

Using the TVM Menu

First draw a cash-flow diagram to match your problem. Then:

1.From the MAIN menu, press .

2.To clear previous TVM values, press @c. (Note:You don’t need to clear data if you enter new values for all five variables, or if you want to retain previous values.)

3.Read the message that describes the number of payments per year and the payment mode (Begin, End). If you need to change either of these settings, press .

„To change the number of payments per year, key in the new value and press . (If the number of payments is different from the number of compounding periods, see “Compounding Periods Different from Payment Periods,” page 87.)

„To change the Begin/End mode, press or

„Press eto return to the primary TVM menu.

66 5: Time Value of Money

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