Sharp EL-738 Financial Calculation Formulas, TVM solver, Amortization calculations

Appendix

Financial Calculation Formulas

TVM solver

PMT, PV, FV, N

Error

I/Y

If PMT = 0 then

If N = 1 then

If PMT nd i using the fol- lowing equations:

+

Error i

Amortization calculations

Calculations

(for PV, PMT, and i, see the TVM solver)

END INT(1) = ROUND(–PV ⋅ i)

BGN INT(1) = 0

PRN(1) = –INT(1) + ROUND(PMT)

BAL(1) = PRN(1) + PV

INT(m) = ROUND(–BAL(m – 1) ⋅ i)

PRN(m) = –INT(m) + ROUND(PMT)

BAL(m) = PRN(m) + BAL(m – 1)

ROUND(NUM): If a display notation tab setting has been chosen, NUM is rounded and truncated to the specied number of places after the decimal point.

Results

Error

AMRT P1 > AMRT P2

Discounted cash flow analysis

m

m

CF

where i = RATE(I/Y) , CFimax = the maxi- 100

mum data set number

IRR is obtained as i, which satises NPV = 0 in the above equations.

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