2000, 1000000, 376889 | Sharp EL-738 specs

4	Calculating present value

You open an account that earns 5% compounded annually. If you wish to have $10,000 twenty years from now, what amount of money should you deposit now?

FV = $10,000


			N = 20 years
PV = ?		I/Y = 5%
	Procedure	Key operation	Display
	Procedure	Key operation	Display

Set all the variables to		.b	000
default values.			000

Make sure ordinary annuity is set (BGN is not displayed).

Set the number of pay- ments per year to 1.

.w1 Q

P/Y=

100

The number of compounding periods per year is automatically set to 1. Press sto exit the P/Y and C/Y settings.

Enter the total number	s20 N	2—~N
of payments.		2—~N
of payments.		2000
		2000

Enter the future value.	10000 T	1————~FV
		1000000
Set payment to zero.	0 u	—~PMT
		—~PMT
		000

Enter the annual inter-	5 f	5~I/Y
		5~I/Y
est rate.		500
est rate.

Calculate the present	@v	PV=
value.		-376889
		-376889

Answer: You should deposit $3,768.89 now.

Page 28

Image 28

Sharp EL-738 operation manual 2000, 1000000, 376889

Contents

EL-738 Page Contents Introduction Operational Notes Key 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 Display layout 2ndF SET UP Menu Selecting the display notation and number of decimal places 3333333 0003000 Selecting the angular unit see Selecting a mode Operations available in each modeOperating Modes Selecting the date format see 14000 3439000 Basic Calculations ⋅ ⋅ Delete key Editing and Correcting an Entry Memory clear keyCursor keys Playback function Errors Memory use in each mode for memory calculations500 192 Temporary memories A-H, X-Z Independent memory MLast answer memory ANS TVM variables Memory calculations Statistical variablesExample Key operation General Information Financial calculations Variables used in ﬁnancial calculations Variables shared among calculations TVM variables N, I/Y, PV, PMT, FV Basic variable operationsListed ﬁnancial variables ENT and Comp symbols Category Display symbols Descriptions Cash ﬂow diagrams Compound interest Setting the payment period payment due Variable Corresponding Description Default Variable keyTVM Time Value of Money Solver Variables used in the TVM solver Basic examples for the TVM solver Calculating basic loan interest 1200 240005600000 44000 400 8000125586 Calculating basic loan payments 3600 20000FV= Calculating future value 100 20001000000 376889 Specifying payments due Ordinary annuity ENDAnnuity due BGN Ordinary annuity 1800 30000000360 1624570 2400 2995014500 299500 3400 150000627995 Calculating down payment and amount to borrow 30000 90000550 14655892 Amortization Calculations Variable Description Default valueVariables used in amortization 61656 8895148 104852 203428600 1700 384457 480048275524 1724476 Discounted Cash Flow Analysis Entering cash ﬂow dataSingle cash ﬂows Repeated cash ﬂows 000*2 200300 Conﬁrming and editing data 2500000 Editing dataDeleting data Inserting data 3000000 600000Variables used in discounted cash ﬂow analysis NPV and IRR Procedure Key operation Display Bring up the initial dis Play in Normal modeTo obtain NPV To obtain IRR 2314 Calculating the present value of variable cash ﬂows 662752 Bond Calculations Setting the day-count methodVariables used in bond calculations To obtain bond price Price PV To obtain yield to maturity Yield I/Y 650 1000015-2023 720 728 9250Entering dates Setting the depreciation method Depreciation CalculationsVariables used in depreciation calculations Key operation DescriptionPage 5000000 3000Calculating straight-line depreciation 1956 Conversion between APR and EFFTo change APR to EFF To change EFF to APR Day and Date Calculations Variables used in day and date calculations 10-2009 22800Calculating number of days Answer 228 days Percent Change/Compound Interest Cal- culations Procedure Key operation Display Move to the last dateCalculate 7500000 116000005467 800000 980000 113Cost/Sell/Margin/Markup Calculations Variables used in cost/sell/margin/markup calcula- tions 45560 950088842 Determining selling price Variables used in breakeven calculations Breakeven CalculationsCalculating the breakeven point 1500000 758012000 33937 Constant Calculations Chain Calculations 087 0715000 4500 Random Functions Random numbersRandom dice Random coin Modify Function 532Random integer Entering statistical data For a single-variable data setFor a two-variable data set x value y value J Key operation Sub-mode Display Entering statistical data 1000 2000 Statistical Calculations and Variables Single-variable statistical calculationsLinear regression calculations Quadratic regression calculation Variables Content 17857 53000Single-variable statistical calculation Linear regression calculation Quadratic regression calculation Financial Calculation Formulas TVM solverAmortization calculations Discounted cash ﬂow analysis Bond calculations Conversion between APR and EFF Depreciation calculationsDay and date calculations Cost/Sell/Margin/Markup calculations Statistical Calcula- tion FormulasBreakeven calculations Errors and Calculation Ranges Error codes and error typesSyntax error Error Calculation error Error Equation too long Error No solution ErrorDisplay error Error Input value error Error Calculation ranges of functions Function Calculation range Integer Battery Replacement When to replace the battery Automatic 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

000

default values.

100

2000

1000000

000

500

-376889