2400, 14500, 299500, 708 | Sharp EL-738 instruction

Procedure

Key operation

Display

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

Enter the total number	s	24		N			24~N
Enter the total number	s			N			24~N
of payments.							2400
							2400

Enter the future value.	2995		x		10	.	ANS~FV
Enter the future value.			x			.	ANS~FV
	%T						29950
							29950

Enter payment.	,145 u						(-145)~PMT
							-14500
Enter the present value.	2995 v						2995~PV
							299500
Calculate the annual	@f						I/Y=
interest rate.							708
							708

Answer: If you lease the computer system, the annual interest rate would be 7.08%, which is less than that of the interest rate on a two-year loan, so it would be more cost-effective to lease a computer system than to purchase one.

3 Calculating the present value of a lease with trade-in value

Your client wishes to buy a machine currently leased from your company. On a ﬁve-year lease with payments of $200 at the beginning of each month, the machine has a trade-in value of $1,500 with 34 monthly payments remaining. If your company sells the machine at the present value of the lease, discounted at an annual interest rate of 18%, compounded monthly, how much should your company charge for the machine?

PV = ?

I/Y = 18%

. . . . . .

PMT = –$200

N = 34

FV = –$1,500

30

Image 31

Sharp EL-738 operation manual 2400, 14500, 299500, 708

Contents

EL-738 Page Contents Operational Notes Introduction 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 2ndF Display layout Selecting the display notation and number of decimal places SET UP Menu Selecting the angular unit see 33333330003 000 Selecting the date format see Selecting a modeOperations available in each mode Operating Modes Basic Calculations 14000343 9000 Delete key ⋅ ⋅ Playback function Editing and Correcting an EntryMemory clear key Cursor keys 192 ErrorsMemory use in each mode for memory calculations 500 TVM variables Temporary memories A-H, X-ZIndependent memory M Last answer memory ANS Memory calculations Statistical variablesExample Key operation Financial calculations General Information Variables shared among calculations Variables used in ﬁnancial calculations TVM variables N, I/Y, PV, PMT, FV Basic variable operationsListed ﬁnancial variables Category Display symbols Descriptions ENT and Comp symbols Compound interest Cash ﬂow diagrams Variables used in the TVM solver Setting the payment period payment dueVariable Corresponding Description Default Variable key TVM Time Value of Money Solver Calculating basic loan interest Basic examples for the TVM solver 44000 120024000 5600000 Calculating basic loan payments 4008000 125586 Calculating future value 360020000 FV= 376889 1002000 1000000 Ordinary annuity Specifying payments dueOrdinary annuity END Annuity due BGN 1624570 180030000000 360 299500 240029950 14500 Calculating down payment and amount to borrow 3400150000 627995 14655892 3000090000 550 Amortization Calculations Variable Description Default valueVariables used in amortization 8895148 61656 1700 104852203428 600 1724476 3844574800 48275524 Repeated cash ﬂows Discounted Cash Flow AnalysisEntering cash ﬂow data Single cash ﬂows Conﬁrming and editing data 000*2200 300 Inserting data 2500000Editing data Deleting data NPV and IRR 3000000600000 Variables used in discounted cash ﬂow analysis To obtain IRR Procedure Key operation Display Bring up the initial disPlay in Normal mode To obtain NPV Calculating the present value of variable cash ﬂows 2314 662752 Bond Calculations Setting the day-count methodVariables used in bond calculations To obtain yield to maturity Yield I/Y To obtain bond price Price PV 720 65010000 15-2023 728 9250Entering dates Key operation Description Setting the depreciation methodDepreciation Calculations Variables used in depreciation calculationsPage 5000000 3000Calculating straight-line depreciation To change EFF to APR 1956Conversion between APR and EFF To change APR to EFF Variables used in day and date calculations Day and Date Calculations Answer 228 days 10-200922800 Calculating number of days Percent Change/Compound Interest Cal- culations Procedure Key operation Display Move to the last dateCalculate 800000 750000011600000 5467 Variables used in cost/sell/margin/markup calcula- tions 980000113 Cost/Sell/Margin/Markup Calculations Determining selling price 455609500 88842 Variables used in breakeven calculations Breakeven CalculationsCalculating the breakeven point 33937 15000007580 12000 Chain Calculations Constant Calculations 4500 087071 5000 Random coin Random FunctionsRandom numbers Random dice Modify Function 532Random integer Key operation Sub-mode Display Entering statistical dataFor a single-variable data set For a two-variable data set x value y value J Entering statistical data 1000 2000 Quadratic regression calculation Statistical Calculations and VariablesSingle-variable statistical calculations Linear regression calculations Variables Content 17857 53000Single-variable statistical calculation Linear regression calculation Quadratic regression calculation Discounted cash ﬂow analysis Financial Calculation FormulasTVM solver Amortization calculations Bond calculations Conversion between APR and EFF Depreciation calculationsDay and date calculations Cost/Sell/Margin/Markup calculations Statistical Calcula- tion FormulasBreakeven calculations Calculation error Error Errors and Calculation RangesError codes and error types Syntax error Error Input value error Error Equation too long ErrorNo solution Error Display error Error Function Calculation range Calculation ranges of functions Integer When to replace the battery Battery Replacement 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