Sharp EL-738 operation manual Specifying payments due, Ordinary annuity END, Annuity due BGN

Specifying payments due (.")

This calculator can select ordinary annuity or annuity due de- pending on the regular cash flow (payment) conditions.

Ordinary annuity (END):

This is the default setting for financial calculations. BGN is not displayed. A regular cash flow (payment) is received at end of each payment period. Often applied to loan calculations, etc.

Annuity due (BGN):

BGN appears on the display. A regular cash flow (payment) is received at the beginning of each payment period. Often applied to the finance lease of an asset.

To toggle between ordinary annuity and annuity due, press

.".

Note: The above selection only affects the TVM solver.

1 Ordinary annuity

Your company wishes to accumulate a fund of $300,000 over the next 18 months in order to open a second location. At the end of each month, a fixed amount will be invested in a money market savings account with an investment dealer. What should the monthly investment be in order to reach the savings objective, as- suming the account will earn 3.6% interest compounded monthly?

			FV = $300,000
PV = 0		I/Y = 3.6%
			. . . . . .
PMT = ?
		N = 18
Procedure		Key operation		Display
Set all the variables to	.b			000
default values.

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

Set the number of pay- ments per year to 12.

.w12 Q

P/Y=

1200

The number of compounding periods per year is automatically set to 12. Press sto exit the P/Y and C/Y settings.

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