Sharp EL-738FB Installation Manual
MODEL
EL-738F
FINANCIAL CALCULATOR
OPERATION MANUAL
Contents
Introduction ..................... 3
Getting Started ................ 5
General Information ........ 11
Financial Functions ......... 17
Scientific Functions ........ 60
Statistical Functions ....... 64
Appendix .......................... 72
Index ................................. 83
Page
NOTICE
• SHARP makes no guarantee that this product or this
manual is suitable or accurate for any purpose, commercial or otherwise.
• Rules and practices in fi nancial calculation vary ac-
cording to country, locality, or fi nancial institution. It
is the consumer’s responsibility to determine whether
or not the results produced by this product conform
to applicable rules and regulations.
• SHARP will not be liable nor responsible for any incidental
or consequential economic or property damage caused
by misuse and/or malfunctions of this product and its
peripherals, unless such liability is acknowledged by law.
• The material in this manual is supplied without representation or warranty of any kind. SHARP assumes no
responsibility and shall have no liability of any kind, consequential or otherwise, from the use of this material.
• SHARP assumes no responsibility, directly or indirectly,
for fi nancial losses or claims from third persons resulting
from the use of this product and any of its functions, the
loss of or alteration of stored data, etc.
• SHARP strongly recommends that separate permanent
written records be kept of all important data. Data may be
lost or altered in virtually any electronic memory product
under certain circumstances. Therefore, SHARP assumes
no responsibility for data lost or otherwise rendered unusable whether as a result of improper use, repairs, defects,
battery replacement, use after the specifi ed battery life
has expired, or any other cause.
1
Contents
Introduction .................................................................. 3
Operational Notes ...............................................................3
Key Notations in This Manual ..............................................4
Chapter 1: Getting Started ..........................................5
Preparing to Use the Calculator ..........................................5
Resetting the Calculator In Case of Diffi culty ......................5
Calculator and Display Layout .............................................6
The SET UP Menu ..............................................................8
Operating Modes...............................................................10
Chapter 2: General Information ................................ 11
Basic Calculations .............................................................11
Clearing the Entry and Memories .....................................11
Editing and Correcting an Entry ........................................13
Memory Calculations ........................................................14
Chapter 3: Financial Functions ................................ 17
General Information ..........................................................17
TVM (Time Value of Money) Solver ..................................22
Amortization Calculations .................................................33
Discounted Cash Flow Analysis ........................................37
Bond Calculations .............................................................44
Depreciation Calculations .................................................48
Conversion between APR and EFF ..................................51
Day and Date Calculations ................................................52
Percent Change/Compound Interest Calculations ............54
Cost/Sell/Margin/Markup Calculations ..............................56
Breakeven Calculations .....................................................58
Chapter 4: Scientifi c Functions ................................ 60
Constant Calculations .......................................................60
Chain Calculations ............................................................60
Scientifi c Calculations .......................................................61
Random Functions ............................................................62
Modify Function .................................................................63
Chapter 5: Statistical Functions ............................... 64
Statistical Calculations and Variables ................................67
Appendix .................................................................... 72
Financial Calculation Formulas .........................................72
Statistical Calculation Formulas ........................................75
Errors and Calculation Ranges .........................................76
Battery Replacement ........................................................80
Priority Levels in Calculations ...........................................81
Specifi cations ....................................................................82
Index ...........................................................................83
2
Introduction
Thank you for purchasing a SHARP Financial Calculator.
After reading this manual, store it in a convenient location for
future reference.
• Display of examples shown in this manual may not look exactly the same as what is seen on the product. For instance,
screen examples will show only the symbols necessary for
explanation of each particular calculation.
• All company and/or product names are trademarks and/or
registered trademarks of their respective holders.
• Some of the models described in this manual may not be
available in some countries.
Operational Notes
• Do not carry the calculator around in your back pocket, as it
may break when you sit down. The display is made of glass
and is particularly fragile.
• Keep the calculator away from extreme heat such as on a car
dashboard or near a heater, and avoid exposing it to excessively humid or dusty environments.
Since this product is not waterproof, do not use it or store it where
•
fl uids, for example water, can splash onto it. Raindrops, water spray,
juice, coffee, steam, perspiration, etc. will also cause malfunction.
•
Clean with a soft, dry cloth. Do not use solvents or a wet cloth. Avoid
using a rough cloth or anything else that may cause scratches.
• Do not drop the calculator or apply excessive force.
• Never dispose of batteries in a fi re.
• Keep batteries out of the reach of children.
• This product, including accessories, may change due to upgrading without prior notice.
Hard Case
3
Key Notations in This Manual
Key operations are described in this manual as follows:
To specify log : . h .....................
To specify 1 : 1 or 1 .......................
To specify Σxy : i V .....................
1
2
3
To specify CLR-D : . ? .....................
To specify ENT :
To specify Z : i Z .....................
To specify DATA : J ..............................
1
Functions that are printed in orange above the key require
to be pressed fi rst before the key.
.
2
Number entry examples are shown with ordinary numbers
(i.e., “100” will be indicated instead of “1 0 0”).
3
To specify a memory function (printed in green), press
fi rst.
i
4
Functions that are printed in black adjacent to the keys are
effective in specifi c modes.
Using the . and i keys
Press s .
A x ,
• .
mean you have to press .
followed by ) key and i
followed by * key.
Notes:
• The multiplication instruction “×” and alphabetic letter “X” are
distinguished as follows:
Key Display
Multiplication instruction → x
Alphabetic letter → X X
• Examples in this manual are performed using default settings
(e.g., SET UP menu items) unless values are otherwise assigned.
and i A
10.
Q
i
πA˚_
1
3
4
10
-
×
4
Chapter 1
Getting Started
Preparing to Use the Calculator
Before using your calculator for the fi rst time, you must reset
(initialize) it.
Resetting the calculator
Press the RESET switch located on
the back of the calculator with the tip
of a ball-point pen or similar object. Do
not use an object with a breakable or
sharp tip.
• After resetting the calculator,
the initial display of the NORMAL mode appears.
Resetting the Calculator In Case of Diffi culty
Caution:
The RESET operation will erase all data stored in
memory and restore the calculator’s default setting.
In rare cases, all the keys may cease to function if the calculator
is subjected to strong electrical noise or heavy shock during use.
If pressing any of the keys (including s) has no effect, reset
the calculator.
Resetting the calculator
See the above procedure.
Note: Pressing . k and 1 = will also erase all
data stored in memory and restore the calculator’s default
setting.
000
5
Calculator and Display Layout
Calculator layout
1
Display
screen
2
Power
3 Key
operation
keys
4
SET UP
key
Display screen: The calculator display consists of a 12-char-
1
acter dot matrix character line and a 12-digit 7-segment
character line (10-digit mantissa and 2-digit exponent).
Power ON/OFF and Clear key: Turns the calculator ON.
2
This key also clears the display. To turn off the calculator,
press ., then c.
Key operation keys:
3
: Activates the second function (printed in orange) as-
.
signed to the following key.
: Activates the memory (printed in green) assigned to
i
the following key.
SET UP key: Displays the SET UP menu to select the
4
display notation, angular unit, depreciation method and date
format.
Cursor keys: Move the cursor.
5
MODE key: Switches between NORMAL and STAT modes.
6
6
ON/OFF and
Clear key
5
Cursor keys
6
MODE key
Display layout
Equation/
variable
name
display
Symbol
Mantissa
Exponent
• During actual use, not all symbols are displayed at the same
time.
• Only the symbols required for the operation being explained
are shown in the screen examples of this manual.
:
Appears when the entire equation cannot be displayed.
Press g / y to see the remaining (hidden) part.
:
Indicates that variables or data are present above/be-
c /d
low the screen. Press z / i to scroll up/down.
2ndF : Appears when . is pressed, indicating that the
functions shown in orange are enabled.
HYP : Indicates that . ] has been pressed and the
hyperbolic functions are enabled.
ALPHA : Indicates that i, g or f has been pressed,
and storing or recalling memory values or TVM solvers/statistics variables can be performed.
BGN : Indicates that calculations are annuity due (payment
at the beginning of each interval) calculations. When
BGN is not displayed, calculations are ordinary annu-
ity (payment at the end of each interval) calculations.
:
360
Indicates that date calculations are based on a
360-day year (12 months with 30 days). When 360 is
not displayed, date calculations use the actual calendar.
:
ENT
Indicates that a value can be assigned to the displayed
variable using Q.
COMP : Indicates that the displayed variable can be solved for
by using @.
FLOAT A / FLOAT B / TAB / SCI: Indicates the notation used to
display values. It can be changed in the SET UP menu.
7
DEG / RAD / GRAD : Indicates which angular units are in use.
It can be changed in the SET UP menu.
: Appears when statistics mode is selected.
M : Indicates that a numerical value is stored in the inde-
pendent memory (M).
: Indicates that the value of the displayed variable has
not been calculated yet (for variables that can be calculated).
The SET UP Menu
Press ~ to display the SET UP menu.
DSP DRG DEPR
02
1
• A menu item can be selected by:
• Using g / y to select a number (the selected number
will blink), then pressing =, or
• pressing the number key corresponding to the menu item
number.
• If c or d is displayed on the screen, press z or i to
view the previous/next part of the menu.
• Press s to exit the SET UP menu.
Selecting the display notation and number of decimal
places
The calculator has three display notation systems (fi xed decimal
point, scientifi c notation and fl oating point) for displaying calculation results.
• If ~ 0 0 (TAB) is pressed, “DIG(0-9)?” will be
displayed and the number of decimal places can be set to any
value between 0 and 9.
• If ~ 0 1 (SCI) is pressed, “SIG(0-9)?” will be displayed and the number of signifi cant digit can be set to any
value between 0 and 9. Entering 0 will set a 10-digit display.
• If a fl oating point number does not fi t in the specifi ed range,
the calculator will display the result in scientifi c notation (exponential notation). See the next section for details.
• The default setting is a fi xed decimal point with two decimal
places.
→
i
8
DAtE
3
Selecting the fl oating point number system in scientifi c notation
The calculator has two settings for displaying a fl oating point
number:
FLO_A (FLOAT A) and FLO_B (FLOAT B). In each display setting, a number is automatically displayed in scientifi c notation
outside the following preset ranges:
• FLO_A ~ 0 2: 0.000000001
• FLO_B ~ 0 3: 0.01
| X | ≤ 9,999,999,999
≤
| X | ≤ 9,999,999,999
≤
Switching the notation setting
Procedure Key operation Display
100000
3 8
(see page 61)
1
2
8 3
2
1000
2
1
—————©3=
3333333
1
—————©3=
1
—————©3=
3333333333
3©1
———=
0003
3©1
———=
3©1
———=
000
(see page 48)
1
2
33
3
-03
100000 ÷ 3 =
Fixed decimal point
with two decimal
places
Scientifi c notation
→
(SCI) with two
signifi cant digits
Floating point
→
(FLO_A)
3 ÷ 1000 =
Floating point
(FLO_A)
Floating point
→
(FLO_B)
Fixed decimal point
→
with two decimal
places
s
=
~ 0 1
~ 0 2
s
=
~ 0 3
~ 0 0
Selecting the angular unit
• DEG (°) : ~ 1 0 (default setting)
• RAD (rad) : ~ 1
• GRAD (g) : ~ 1
Selecting the depreciation method
• SL (Straight-line method): ~ 2 0 (default setting)
• SYD (Sum-of-the-years’ digits method): ~ 2
• DB (Declining balance method): ~ 2
9
04
Selecting the date format
• US (Month-Day-Year): ~ 3 0 (default setting)
• EU (Day-Month-Year): ~ 3
(see page 44)
1
Operating Modes
This calculator has two operating modes, which can be selected
using the MODE key.
Selecting a mode
1. Press m.
The menu display appears.
NORMAL StAt
01
2. Press 0 or = to se-
lect NORMAL mode.
000
• Press 1 or y =
to select STAT mode.
Operations available in each mode
NORMAL mode:
Allows you to perform fi nancial, arithmetic, or scientifi c
calculations.
STAT (statistics) mode:
Allows you to perform statistical, arithmetic, or scientifi c
calculations. The
symbol appears in the display.
SD LINE QUAD
1
02
10
Chapter 2
General Information
Basic Calculations
Entering numbers and arithmetic operations
• Use the number keys 0 to 9, decimal point key .,
and sign change key , to enter numbers into the calculator. To clear the display or entry, press s.
• Use the S key to enter a value in scientifi c notation.
• Use the arithmetic keys + - x 8 to perform the
standard arithmetic calculations of addition, subtraction, multiplication, and division. Press = to perform each calculation.
• Use the ( and ) keys to place parentheses around
inner parts of expressions. The closing parenthesis ) just
before = or h may be omitted.
• When you enter a series of operations in one sequence, the
calculator performs the calculation according to the priority
levels in calculation on page 81.
Example Key operation Result
45 + 285 ÷ 3 =
18 + 6
=
15 – 8
42 × (–5) + 120 =
(5 × 103) ÷ (4 × 10–3) =
s
(
(
42
1
(5 ,)
*
5
S 3 8 4 S
,
Clearing the Entry and Memories
The following methods of clearing the calculator (restoring default settings) are available:
285
45 +
18 + 6 )
15 - 8
x , 5 +
3
=
8 3
=
1
*
8
120
=
=
125000000
14000
343
-9000
11
Listed
Cash
A-H,
(MEM)
(RESET)
Entry
(display)
M, X-Z
×
×
×
Operation
s
. b
(Mode selection)
m
. k 0
. k 1
RESET switch
: Cleared or restored to the default setting : Retained
1
N, I/Y, PV, PMT, and FV (P/Y and C/Y are not included.)
*
2
Note that listed fi nancial variables sharing common memory
*
with TVM variables, such as “COUPON (PMT)” used in bond
calculations, are also cleared or restored to default settings.
3
Listed variables used in fi nancial calculations (such as “RATE
*
(I/Y),” etc.) including P/Y and C/Y
4
When you press * to enter a fi nancial calculation, AMRT
*
P1 and AMRT P2 both revert to their default values. The
same holds true for YEAR when you press O.
5
With one of the variables of a listed group (such as those
*
used in bond calculations) displayed, when . b is
pressed, all the variables in the listed group are cleared or
restored to their default settings. Note that TVM variables
sharing common memory with listed fi nancial variables are
also cleared or restored to default settings.
6
Press . b when a cash fl ow value is displayed.
*
7
Statistical data (entered data) and variables (n, x, etc.)
*
8
Are cleared when changing between sub-modes in STAT mode.
*
Notes:
• To clear any of the “A-H, M, X-Z” or “ANS” memories, press
g and then specify the memory.
s
• To clear or restore to the default setting one variable or value
of TVM variables, listed fi nancial variables, cash fl ow data, or
STAT, refer t o the relevant section.
• If you turn off the calculator (by pressing . c or by letting it turn itself off automatically), it will resume wherever you
left off when you turn it on again.
TVM
variables
ANS
× ×××
×
*2*
×
×
financial
1
variables
*
3
flow
*
4
data
STAT
*
6
5
*
×
Delete key
To delete a number/function, move the cursor to the number/
function you wish to delete, then press L. If the cursor is
located at the right end of an equation or if you are entering a
value, the L key will function as a back space key.
12
7
*
×
8
×
*
Memory clear key
Press . k to display the
menu.
• To clear all (A-H, M, X-Z, ANS,
TVM variables, listed fi nancial
variables, cash fl ow data, and STAT), press 0 0 or
0 =
• To RESET the calculator, press 1 0 or 1 =.
The RESET operation erases all data stored in memory, and
restore the calculator’s default settings.
.
MEM RESEt
0
1
Editing and Correcting an Entry
Cursor keys
• In a menu, such as the SET UP menu, use g or y to
select a number (the selected number will blink), then press =.
If you need to scroll up or down the screen, use z or i.
• In fi nancial calculations, such as bond calculations, press
or z to move through the variables (items).
i
Playback function
After obtaining an answer, pressing g brings you to the end
of the equation and pressing y brings you to the beginning.
Press g or y to move the cursor. Press . g or
. y
equation.
Insert and overwrite modes in the equation display
• This calculator has two editing modes: insert mode (default),
• To insert a number in the insert mode, move the cursor to the
• This mode setting will be retained until you press . d
to jump the cursor to the beginning or end of the
and overwrite mode. Pressing . d switches between
the two modes. A triangular cursor indicates an entry will be
inserted at the cursor, while the rectangular cursor indicates
existing data will be overwritten as you make entries.
place immediately after where you wish to insert, then make
the desired entry. In the overwrite mode, data under the cursor
will be overwritten by the number you enter.
or RESET the calculator.
13
Changing “15 ÷ 3 =” into “25 ÷ 13 =”
Procedure Key operation Display
15 ÷ 3 =
s
15 8 3
=
15©3=
500
Enter the playback
function.
Switch to overwrite
mode.
Change “15” to “25”
and move the cursor to “3”.
Change to insert
mode.
Change “3” to “13”
and calculate.
Errors
An error will occur if an operation exceeds the calculation
ranges, or if a mathematically illegal operation is attempted.
When an error occurs, pressing g or y automatically
moves the cursor to the place in the equation/number where the
error occurred. Edit the equation/number or press s to clear
the equation. For details, see page 76.
y
.
2
y
.
1
=
d
d
y
15©3
15©3
25©3
25©3
25©13=
192
Memory Calculations
This calculator has 11 temporary memories (A-H and X-Z), one
independent memory (M) and one last answer memory (ANS).
It also has various variables for use in fi nancial calculations and
statistical calculations.
Memory use in each mode for memory calculations
TVM
Mode
NORMAL
STAT
A-H,
X-Z
M
: Available : Unavailable
×
ANS
variables
×
14
Listed financial
1
*
variables
Statistical
2
*
×
×
variables
×
*
3
1
N, I/Y, PV, PMT, FV
*
2
All fi nancial variables, except for TVM variables
*
3
x, sx,
*
σ
Temporary memories (A-H, X-Z)
Press g and the variable key to store a value in memory.
Press f and the variable key to recall a value from the
memory.
x, n
2
x
x
,
,
, y, sy,
Σ
Σ
2
y
y
y
xy, r, a, b, c
,
,
,
σ
Σ
Σ
Σ
To place a variable in an equation, press i and the variable key.
Independent memory (M)
In addition to all the other features of temporary memories, a
value can be added to or subtracted from an existing memory
value.
Press s g M to clear the independent memory (M).
Last answer memory (ANS)
• The calculation result obtained by pressing = or any other
calculation ending instruction (including storing and recalling
operations) is automatically stored in the last answer memory.
• Listed fi nancial variables are automatically stored in the last
answer memory by displaying the variable and the value.
TVM variables
TVM variables can be recalled using f in the same way as
temporary memories. It is not necessary to press g to store
a value.
Listed fi nancial variables
Financial variables are specifi c to the type of calculation they
are used in. For example, the variable N is available to the TVM
solver but not to discounted cash fl ow analysis calculations. If
you want to carry a value from a variable over into a different
type of calculation, use one of the following methods:
Last answer memory (ANS): Within the original calculation, dis-
•
play the variable and value that you wish to carry over. The value
is automatically entered into last answer memory. Press s to
exit the calculation (the listed fi nancial variables will disappear
from the screen), and press i / to bring up the value
from the previous calculation. M-D-Y (D-M-Y) 1 and M-D-Y (DM-Y) 2 are not stored in last answer memory.
•
Variables common to both calculations: If the value that you
wish to carry over is held in a variable that exists in both types
15
of calculation (for example, both bond calculations and the TVM
solver use the variable I/Y), you can retrieve the value simply by
switching calculation types and bringing up the variable.
Statistical variables
Statistical data is not entered into variables. Statistical variables
are the results of the calculation of statistical data. Therefore,
you cannot enter values directly into statistical variables. After
calculation, however, you can use the values held in statistical
variables in subsequent calculations.
Note: Use of f or i will recall the value stored in
memory using up to 14 digits.
Memory calculations
Example Key operation Result
8 x 2 g
24 ÷ (8 × 2) =
(8 × 2) × 5 =
$150×3:M
1
+)$250:M2=M1+250
5%
–)M
×
2
M
$1 = ¥110
¥26,510 = $?
$2,750 = ¥?
r = 3 cm (r→Y)
2
= ?
r
π
24
= 2.4...(A)
4 + 6
3 × (A) + 60 ÷ (A) =
s
24
8 i M
M x 5
i
g
s
150
x 3
250
h
M x 5 .
f
. j
110
g
26510
8 f Y
2750
x f Y
3
g
Y
.
;
.
24
8 ( 4 + 6 ) =
3
x i / + 60 8
/
i
=
M
h
f
M
Y
i Y*
=
=
M
=
%
=
=
1600
150
8000
000
45000
25000
3500
66500
11000
24100
30250000
300
2827
240
3220
* Entry of the multiplication procedure is omitted between “π”
and a variable.
16
Chapter 3
Financial Functions
General Information
Financial calculations
The following fi nancial functions are available. Use NORMAL
mode to perform fi nancial calculations.
TVM (Time Value of Money) solver: Analyze equal and regular
cash fl ows. These include calculations for mortgages, loans,
leases, savings, annuities and contracts or investments with
regular payments.
Amortization calculations: Calculate and create amortization
schedules using values stored in the TVM solver.
Discounted cash fl ow analysis: Analyze unequal cash fl ows
and calculate NPV (net present value) and IRR (internal rate of
return).
Bond calculations: Solve bond prices or yields to maturity with
accrued interest.
Depreciation calculations: Obtain depreciation base values
using three types of calculation methods.
Conversion between APR and EFF: Interest rates can be converted between APR (annual, or nominal percentage rate) and
EFF (effective interest rate).
Day and date calculations: Calculate dates and the number of
days between dates.
Percent change/Compound interest calculations: Calculate
percent change (increase or decrease) and compound interest
rates.
Cost/Sell/Margin/Markup calculations: Calculate cost, selling
price and margin/markup.
Breakeven calculations: Calculate breakeven points (quantity)
using fi xed costs, variable costs per unit, unit prices, and profi t.
17
Variables used in fi nancial calculations
Financial calculations use multiple variables. By entering known
values into variables, you can obtain unknown values. Variables
used in fi nancial calculations are categorized into the following
two types, depending on the entry method.
TVM variables:
Variables that are used in the TVM solver. These include N,
I/Y, PV, PMT and FV. You can store, recall or calculate values
directly using the corresponding keys.
Listed fi nancial variables:
Variables that are organized into lists in different categories. These
variables can be accessed using the z/i cursor keys in
each calculation. P/Y and C/Y in the TVM solver are of this type of
variable.
Variables shared among calculations
Financial variables are specifi c to the type of calculation they
are used in. Values are stored in these variables and recalled
as required. Some variables are shared (in the memory area)
among calculations. If you change the value of a variable in one
calculation, the value will change in all the other calculations
as well. The following list shows the variables shared between
calculations. While calculating, be aware of the values stored in
these variables.
Discounted
TVM
cash fl ow
solver
analysis
N — CPN/Y (N) LIFE (N) PERIODS (N) —
I/Y RATE (I/Y) YIELD (I/Y) DB (I/Y) % (I/Y) —
PV — PRICE (PV) COST (PV) OLD PRC (PV) —
PMT —
FV —
——
——
*The variable names vary according to the data format settings.
Bond
calculations
COUPON
(PMT)
REDEMPT
(FV)
M-D-Y 1
D-M-Y 1
M-D-Y 2
D-M-Y 2
Depreciation
calculations
SALVAGE (FV) NEW PRC (FV) —
*
*
Percent change/
Compound inter-
est calculations
———
——
——
18
Day and date
calculations
M-D-Y 1
D-M-Y 1
M-D-Y 2
D-M-Y 2
*
*
Basic variable operations
TVM variables (N, I/Y, PV, PMT, FV)
A. Entering a value
Enter a value and then press the corresponding TVM vari-
able key.
Note: You can also enter values into variables using arithmetic
operations.
Ex. 100 x 12
B. Displaying a value
Press f and the corresponding TVM variable key.
C. Executing calculation
Press @ and the corresponding TVM variable key.
Listed fi nancial variables
A. Entering a value
1. Select the desired fi nancial calculation method by pressing the corresponding fi nancial calculation key.
2. Use z/i to select the variable you wish to enter.
3. Enter the value and press Q when the “ENT” symbol
appears.
Note: In step 3, you can also enter values into variables using
arithmetic operations.
Ex. 100 x 12
B. Displaying a value
Use z/i to show the variable and value.
C. Executing calculation
1. Use z/i to select the variable you wish to calculate.
2. Press @ when the “COMP” symbol appears.
Note: Pressing . b resets all the variables in the dis-
played listed fi nancial group to the default values. For
details, see the relevant sections for each fi nancial calculation.
u
Q
19
The ENT and COMP symbols
Listed fi nancial variables are categorized by whether they are
known or unknown. When the variable is selected (displayed),
the “ENT” and/or “COMP” symbols will appear to indicate that
the current variable may be entered (known variable) and/or
calculated (unknown variable), respectively. For details, refer to
the explanations or examples for each fi nancial function.
Note: TVM variables (N, I/Y, PV, PMT and FV) can be entered
(known variables) and calculated (unknown variables),
however, neither “ENT” nor “COMP” will appear on the
display.
Category Display symbols Descriptions
For entry only ENT
For calculation only COMP
For entry or calculation
Calculated automatically
ENT COMP
—
Notes:
• During fi nancial calculation, the word “calculating!” will be
displayed on the screen. You can press s at this time to
cancel the calculation.
• Calculation-only and automatically calculated variables have
no default values.
• The
symbol will be displayed if the value of the displayed
variable has not been calculated yet (for variables that can be
calculated).
Variable can be used as
a known, but not as an
unknown.
Variable can be used as
an unknown, but not as
a known.
Variable can be used
as either a known or an
unknown.
Unknown variable, but
the calculator calculates
the value automatically.
20
Compound interest
This calculator assumes interest is compounded periodically in
fi nancial calculations (compound interest). Compound interest accumulates at a predefi ned rate on a periodic basis. For
example, money deposited in a passbook saving account at
a bank accumulates a certain amount of interest each month,
increasing the account balance. The amount of interest received
each month depends on the balance of the account during that
month, including interest added in previous months. Interest
earns interest, which is why it is called compound interest.
It is important to know the compounding period of a loan or
investment before starting, because the whole calculation is
based on it. The compounding period is specifi ed or assumed
(usually monthly).
Cash fl ow diagrams
The direction of arrows indicates the direction of cash movement
(infl ow and outfl ow) with time. This manual uses the following
cash fl ow diagrams to describe cash infl ows and outfl ows.
Present
Inflow (+)
Cash
flow
Outflow (–)
value (PV)
Payment (PMT)
Time
......
Future
value (FV)
21
TVM (Time Value of Money) Solver
Analyze equal and regular cash fl ows. These include calculations for mortgages, loans, leases, savings, annuities, and
contracts or investments with regular payments.
Note: Discounted cash fl ow analysis can be done using un-
equal cash fl ows (see page 37).
An amortization schedule can be calculated using the
information stored in the TVM solver (see page 33).
Variables used in the TVM solver
Corresponding
Variable
N
I/Y
PV
PMT
FV
P/Y
C/Y
variable key
N
f
u
t
. w
. w i
Description
Total number of payments 1
Interest rate per year 0
Present value 0
Payment 0
Future value 0
Number of payments per year 1
Number of compounding
periods per year
Setting the payment period (payment due)
You can toggle between ordinary annuity (payment at the end
of the period) and annuity due (payment at the beginning of the
period) using . ". The default setting is ordinary annuity
(BGN is not displayed).
Refer to page 28 for details.
Basic operations
Refer to page 19 for basic variable operations.
1. Press s to clear the display.
• Make sure the calculator is in NORMAL mode.
• All the TVM solver variables retain their previously entered
values. If you wish to clear all the data, press . b.
2. Select ordinary annuity or annuity due using . ".
22
Default
value
1
3. Enter values into TVM solver variables.
• Enter a value and press the appropriate TVM variable key
(N, f,
, u, t).
• Press . w and then enter a value for P/Y. The
same value is automatically assigned to C/Y as well. Values entered into P/Y or C/Y must be positive. After entering values, press s to quit the P/Y and C/Y settings.
• After setting P/Y (number of payments per year), you can
use . < to enter N (total number of payments).
Enter the number of years and press . <. The
calculator automatically calculates the total number of
payments.
• By pressing
f
you can use the result of the pre-
/
vious normal calculation stored in ANS memory as a TVM
variable.
• Note that some variables are shared by other calculations
and may have values assigned by those calculations.
4. Press @ and the TVM variable key that you wish to solve.
• The calculation is performed and the obtained values are
displayed.
Basic examples for the TVM solver
1
Calculating basic loan interest
A $56,000 mortgage loan (compounded monthly) requires
monthly payments of $440 during its 20-year amortization period. Calculate the annual interest rate on the mortgage.
PV = $56,000
FV = 0
......
PMT = –$440
N = 12 × 20 years = 240
Default values for the number of payments per year (P/Y) and
the number of compounding periods per year (C/Y) are both set
to 1. Set these values before entering TVM variable values.
I/Y = ?%
23
Procedure Key operation Display
Set all the variables to
default values.
Make sure ordinary annuity is set (BGN is not displayed).
Set the number of payments per year to 12.
The number of compounding periods per year is automatically set to the
same value as P/Y.
Confi rm the number of
compounding periods
per year.
Quit the P/Y and C/Y
settings.
Calculate the total number of payments and
store in N.
Enter the present value.
b
.
. w
i
s
. <
20
56000
000
12
Q
P/Y=
1200
C/Y=
1200
000
N
ANS~N
24000
56———~PV
5600000
Enter payment.
,
440
u
(-44—)~PMT
-44000
Enter the future value.
0
t
—~FV
000
Calculate the annual
interest rate.
Answer: The annual interest rate is 7.17%.
Note: If you make a mistake, press L to erase the number
and enter the correct number to continue.
After pressing the TVM variable key, you must re-enter
values from the beginning.
@ f
I/Y=
717
24
2
Calculating basic loan payments
Calculate the quarterly payment for a $56,000 mortgage loan
at 6.5% compounded quarterly during its 20-year amortization
period.
PV = $56,000
I/Y = 6.5%
PMT = ?
N = 4 × 20 years = 80
Procedure Key operation Display
Set all the variables to
default values.
Make sure ordinary annuity is set (BGN is not displayed).
Set the number of payments per year to 4.
Confi rm the number of
compounding periods per
year.
Quit the P/Y and C/Y settings.
Calculate the total
number of payments and
store in N.
Enter the present value.
b
.
. w
i
s
. <
20
56000
4
Q
N
FV = 0
......
000
P/Y=
400
C/Y=
400
000
ANS~N
8000
56———~PV
5600000
Enter the future value.
0
t
—~FV
000
Enter the annual interest
rate.
Calculate the quarterly
payment.
Answer: The quarterly payments are $1,255.86.
6.5
f
@ u
25
6.5~I/Y
650
PMT=
-125586
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