Sharp El738 User Guide

30
Procedure Key operation Display
The number of compounding periods per year is automatically set to 
12. Press 
s to exit the P/Y and C/Y settings.
Enter the total number 
of payments.s 24
 
N
24~N
2400
Enter the future value.2995
 
x 10
 
. 
% 
TANS~FV
29950
Enter payment.
, 145
 
u(-145)~PMT
-14500
Enter the present value. 2995
 
v2995~PV
299500
Calculate the annual 
interest rate.@ 
fI/Y=
708
Answer:  If you lease the computer system, the annual interest 
rate would be 7.08%, which is less than that...

31
4
Procedure Key operation Display
Set all the variables to 
default values.. 
b
000
Set to annuity due 
(BGN is displayed).. 
"
000
Set the number of pay-
ments per year to 12.. 
w 12
 
QP/Y=
1200
The number of compounding periods per year is automatically set to 
12. Press 
s to exit the P/Y and C/Y settings.
Enter the total number 
of payments.s 34
 
N
34~N
3400
Enter payment.
, 200
 
u(-2——)~PMT
-20000
Enter the annual inter-
est rate.18
 
f18~I/Y
1800
Enter the future value. 
, 1500...

32
Procedure Key operation Display
Set all the variables to 
default values.. 
b
000
Make sure ordinary annuity is set (BGN is not displayed).
Set the number of pay-
ments per year to 12.. 
w 12
 
Q
P/Y=
1200
The number of compounding periods per year is automatically set to 12. 
Press 
s to exit the P/Y and C/Y settings.
Enter the total number 
of payments.s 25
 
. 
< 
N
ANS~N
30000
Enter payment.
, 900
 
u(-9——)~PMT
-90000
Enter the annual inter-
est rate.5.5
 
f5.5~I/Y
550
Set the future value to...

33
AMRT P1=
100
Amortization Calculations 
Calculate and create amortization schedules using values 
stored in the TVM solver.
Note:  Prior to using amortization, you need to enter values into 
TVM variables.
Variables used in amortization
Variable Description Default value
AMRT P1 Start of payment (nth time) 1
AMRT P2 End of payment (nth time) 1
BALANCE Remaining balance after payment —
ΣPRINCIPAL Principal paid —
ΣINTEREST Interest paid over the specifi ed periods —
• BALANCE, 
ΣPRINCIPAL and 
ΣINTEREST...

34
8. Press 
i to calculate the next period of the amortization 
schedule.
9. Repeat steps 5 to 7 above.
•  If you press 
@ during “AMRT P1” and “AMRT P2” entry, 
the values for the next period of payment will be automatically 
calculated and displayed.
•  To end amortization calculations, press 
s. Pressing 
s 
during entry will clear the value entered.
   Calculating mortgage payments and generat-
ing an amortization schedule
1. Calculate the monthly payment of a 20-year loan with a loan 
amount of...

35
Procedure Key operation Display
Display the principal 
paid.i
ÍPRINCIPAL=
-104852
Display the interest 
paid.iÍINTEREST=
-203428
3. Calculate the amortization schedule for the second year.
Procedure Key operation Display
Change amortization 
schedule to the second 
year and enter 6 (Janu-
ary) for the starting 
payment.i 6
 
Q
AMRT P1=
600
Enter 17 (December) 
for the ending payment.i 17
 
QAMRT P2=
1700
Display the remaining 
balance.iBALANCE=
8633592
Display the principal 
paid.iÍPRINCIPAL=
-261556...

36
  Calculating payments, interest, and loan bal-
ance after a specifi ed payment
You have taken out a 30-year loan for $500,000, with an annual 
interest rate of 8.5%. If, after the 48th period, you want a balloon 
payment due, what amount of monthly payment must you make 
with monthly compounding and how much will the balloon pay-
ment be?
Procedure Key operation Display
Set all the variables to 
default values.s 
. 
b
000
Make sure ordinary annuity is set (BGN is not displayed).
Set TVM solver vari-...

37
Discounted Cash Flow Analysis
Analyze unequal cash fl ows and calculate the net present value 
(NPV) and the internal rate of return (IRR).
Note: Use the TVM solver for equal and regular cash fl ow 
analysis (see page 22).
Entering cash fl ow data
To fi nd NPV and IRR using discounted cash fl ow analysis, enter 
cash fl ow data, one data item at a time, in the following format: 
Single cash fl ows
Cash fl ow value 
J
Repeated cash fl ows
Cash fl ow value 
> frequency value 
J
Notes:
• Before entering data,...

38
Procedure Key operation Display
Bring up the initial dis-
play in NORMAL mode.s
000
Enter cash fl ow data.
, 25000
 
JDATA SET:CF
000
7000
 
JDATA SET:CF
100
9000
 
JDATA SET:CF
200
5000
 
> 2
 
JDATA SET:CF
300
8000
 
JDATA SET:CF
400
  If there is cash fl ow data stored, press 
> 
. 
b to 
clear it.
  The format of the data set (cash fl ow and frequency values) 
number, which is initially set to “0.00,” is dependent on calcu-
lator display notation settings.
Confi rming and editing data
Confi rming data...

39
• Press 
. 
z or 
. 
i to jump to the fi rst or the last 
data item, respectively.
•  Each data item is displayed in the form CF Dn= (cash fl ow 
value) or CF Nn= (frequency), where n indicates the data set 
number.
Editing data 
•  Display the data item you wish to modify by using 
z/
i, 
enter a new value and press 
J.
•  If a frequency value is set to zero, then the associated data 
set is deleted.
Deleting data
•  Display the data item to be deleted by using 
z/
i, and 
press 
. 
?. 
•  If a cash fl...