Sharp EL-738 operation manual Basic examples for the TVM solver, Calculating basic loan interest

3.Enter values into TVM solver variables.

•Enter a value and press the appropriate TVM variable key (N, f, v, u, T).

•Press .wand then enter a value for P/Y. The same value is automatically assigned to C/Y as well. Val- ues entered into P/Y or C/Y must be positive. After enter- ing values, press sto quit the P/Y and C/Y settings.

•After setting P/Y (number of payments per year), you can use .<to enter N (total number of payments). Enter the number of years and press .<. The calculator automatically calculates the total number of payments.

•By pressing f/you can use the result of the pre- vious normal calculation stored in ANS memory as a TVM variable.

•Note that some variables are shared by other calculations and may have values assigned by those calculations.

4.Press @and the TVM variable key that you wish to solve.

•The calculation is performed and the obtained values are displayed.

Basic examples for the TVM solver

1 Calculating basic loan interest

A $56,000 mortgage loan (compounded monthly) requires monthly payments of $440 during its 20-year amortization pe- riod. Calculate the annual interest rate on the mortgage.

PV = $56,000

FV = 0

. . . . . .

I/Y = ?% PMT = –$440

N = 12 ⋅ 20 years = 240

Default values for the number of payments per year (P/Y) and the number of compounding periods per year (C/Y) are both set to 1. Set these values before entering TVM variable values.

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