Sharp EL-738 operation manual 1800, 30000000, 360, 1624570, Annuity due

Procedure			Key operation			Display
Enter the total number	s			18	N	18~N
of payments.						1800
Enter the future value.	300000 T					3—————~FV
						30000000
Set the present value to	0	v				—~PV
zero.						000
Enter the annual inter-	3.6		f			3.6~I/Y
est rate.						360
Calculate payment.	@u					PMT=

-1624570

Answer: The monthly investment should be $16,245.70.

2 Annuity due

Your company wishes to obtain a computer system with a value of $2,995. The same system may be leased for 24 months at $145 per month, paid at the beginning of each month. At the end of the lease, the system may be purchased for 10% of the retail price. Should you lease or purchase the computer if you can obtain a two-year loan at 7.2%, compounded monthly, to purchase the computer?

PV = $2,995

FV = $2,995 ⋅ 10% = $299.5

. . . . . .

PMT = –$145

	N = 24		I/Y = ?%
Procedure	Key operation			Display
Set all the variables to	.b
default values.				000
Set to annuity due	."
(BGN is displayed).				000
Set the number of pay-	.w	12	Q	P/Y=
ments per year to 12.				1200

29