el-738 english manual...rules and practices in ﬁ nancial calculation vary ac-cording to country,...

BUSINESS/FINANCIAL CALCULATOR

OPERATION MANUAL

MODEL

EL-738

1

NO

TIC

E• S

HA

RP

makes n

o g

uaran

tee that th

is pro

du

ct or th

is m

anu

al is suitab

le or accu

rate for any p

urp

ose, co

m-

mercial o

r oth

erwise.

• Ru

les and

practices in

fi nan

cial calculatio

n vary ac-

cord

ing

to co

un

try, locality, o

r fi nan

cial institu

tion

. It is th

e con

sum

er’s respo

nsib

ility to d

etermin

e wh

ether

or n

ot th

e results p

rod

uced

by this p

rod

uct co

nfo

rm

to ap

plicab

le rules an

d reg

ulatio

ns.

• SH

AR

P w

ill not be liable nor responsible for any incidental or consequential econom

ic or property damage caused

by misuse and/or m

alfunctions of this product and its peripherals, unless such liability is acknow

ledged by law.

• The m

aterial in this manual is supplied w

ithout repre-sentation or w

arranty of any kind. SH

AR

P assum

es no responsibility and shall have no liability of any kind, con-sequential or otherw

ise, from the use of this m

aterial.

• SH

AR

P assum

es no responsibility, directly or indirectly, for fi nancial losses or claim

s from third persons resulting

from the use of this product and any of its functions, the

loss of or alteration of stored data, etc.

• SH

AR

P strongly recom

mends that separate perm

anent w

ritten records be kept of all important data. D

ata may be

lost or altered in virtually any electronic mem

ory product under certain circum

stances. Therefore, S

HA

RP

assumes

no responsibility for data lost or otherwise rendered unus-

able whether as a result of im

proper use, repairs, defects, battery replacem

ent, use after the specifi ed battery life has expired, or any other cause.

For A

ustralia/New

Zealand only:

For w

arranty information please see w

ww

.sharp.net.au

Introduction.indd 106.7.10 8:54:53 P

M

2

Co

nte

nts

Intro

du

ction

..................................................................3

Operational N

otes ...............................................................3

Key N

otations in This M

anual ..............................................4C

hap

ter 1: Gettin

g S

tarted ..........................................5

P

reparing to Use the C

alculator ..........................................5

Resetting the C

alculator In Case of D

iffi culty ......................5

Calculator and D

isplay Layout .............................................6

The S

ET

UP

Menu ..............................................................8

O

perating Modes ..............................................................10

Ch

apter 2: G

eneral In

form

ation

................................11

Basic C

alculations .............................................................11

Clearing the E

ntry and Mem

ories .....................................11

Editing and C

orrecting an Entry ........................................13

M

emory C

alculations ........................................................14C

hap

ter 3: Fin

ancial F

un

ction

s ................................17

General Inform

ation ..........................................................17

TV

M (T

ime V

alue of Money) S

olver ..................................22

Am

ortization Calculations .................................................33

D

iscounted Cash F

low A

nalysis ........................................37

Bond C

alculations .............................................................44

Depreciation C

alculations .................................................48

Conversion betw

een AP

R and E

FF

..................................51

Day and D

ate Calculations ................................................52

P

ercent Change/C

ompound Interest C

alculations ............54

Cost/S

ell/Margin/M

arkup Calculations ..............................56

B

reakeven Calculations .....................................................58

Ch

apter 4: S

cientifi c F

un

ction

s ................................60

Constant C

alculations .......................................................60

Chain C

alculations ............................................................60

Scientifi c C

alculations .......................................................61

Random

Functions ............................................................62

M

odify Function .................................................................63

Ch

apter 5: S

tatistical Fu

nctio

ns ...............................64

S

tatistical Calculations and V

ariables ................................67A

pp

end

ix ....................................................................72

Financial C

alculation Form

ulas .........................................72

Statistical C

alculation Form

ulas ........................................75

Errors and C

alculation Ranges .........................................76

B

attery Replacem

ent ........................................................80

Priority Levels in C

alculations ...........................................81

Specifi cations ....................................................................82

Ind

ex ...........................................................................83


M

3 Intro

du

ctio

nT

hank you for purchasing a SH

AR

P B

usiness/Financial C

alcula-tor.

After reading this m

anual, store it in a convenient location for future reference.

• Display of exam

ples shown in this m

anual may not look ex-

actly the same as w

hat is seen on the product. For instance,

screen examples w

ill show only the sym

bols necessary for explanation of each particular calculation.

• All com

pany and/or product names are tradem

arks and/or registered tradem

arks of their respective holders.

Op

eration

al No

tes• D

o not carry the calculator around in your back pocket, as it m

ay break when you sit dow

n. The display is m

ade of glass and is particularly fragile.

• Keep the calculator aw

ay from extrem

e heat such as on a car dashboard or near a heater, and avoid exposing it to exces-sively hum

id or dusty environments.

• Since this product is not w

aterproof, do not use it or store it w

here fl uids, for example w

ater, can splash onto it. Raindrops,

water spray, juice, coffee, steam

, perspiration, etc. will also

cause malfunction.

• Clean w

ith a soft, dry cloth. Do not use solvents or a w

et cloth.

• 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, m

ay change due to up-grading w

ithout prior notice.


M

4

Key N

otatio

ns in

Th

is Man

ual

Key operations are described in this m

anual as follows:

To specify log

: . h

..................... �

To specify 1 : 1

or 1 ....................... �

To specify �xy

: i V

..................... �

To specify C

LR-D

: . ?

..................... �

To specify EN

T

: Q

To specify Z

: i Z

..................... �

To specify DATA

: J

.............................. �

� F

unctions that are printed in orange above the key require .

to be pressed fi rst before the key. �

Num

ber entry examples are show

n with ordinary num

bers (i.e., “100” w

ill be indicated instead of “1 0

0”).

� To specify a m

emory function (printed in green on/above the

key), press i fi rst.

� F

unctions that are printed in black adjacent to the keys are effective in specifi c m

odes.

U

sing

the

. an

d i

keys

Press s

. t

i

A x

, 10.

• . t

and i A

m

ean you have to press .

followed by )

key and i

followed by *

key.

No

tes:• T

he multiplication instruction “× ” and alphabetic letter “X

” are distinguished as follow

s:

K

ey D

isplay

Multiplication instruction �

x

×

A

lphabetic letter �

X

X

• Exam

ples in this manual are perform

ed using default settings (e.g., S

ET

UP

menu item

s) unless values are otherwise as-

signed.

πA˚_

-10


M

5 Ch

ap

ter 1

Ge

tting

Sta

rted

Prep

aring

to U

se the C

alculato

rB

efore using your calculator for the fi rst time, you m

ust reset (initialize) it.

Resettin

g th

e calculato

r

Press the R

ES

ET

switch located on

the back of the calculator with the tip

of a ball-point pen or similar object. D

o not use an object w

ith a breakable or sharp tip.

• After resetting the calculator,

the initial display of the NO

R-

MA

L mode appears.

Resetting the C

alculator In Case of D

iffi culty

Cau

tion

:

Th

e RE

SE

T o

peratio

n w

ill erase all data sto

red in

m

emo

ry and

restore th

e calculato

r’s defau

lt 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.

Resettin

g th

e calculato

r

See the above procedure.

No

te: Pressing .

k and 1

= w

ill also erase all data stored in m

emory and restore the calculator’s default

setting.

000

1 Getting S

tarted.indd 506.7.10 8:50:19 P

M

6

Calcu

lator an

d D

isplay L

ayou

t

Calcu

lator layo

ut

� C

ursor keys

� M

OD

E key

� K

ey operation keys

� S

ET

UP

key

� D

isplay screen

� P

ower

ON

/OF

F and

Clear key

� D

isplay screen

: The calculator display consists of a 12-char-

acter dot matrix character line and a 12-digit 7-segm

ent character line (10-digit m

antissa and 2-digit exponent).�

Po

wer O

N/O

FF

and

Clear key: Turns the calculator O

N.

This key also clears the display. To turn off the calculator,

press ., then c

.�

Key o

peratio

n keys:

.

: Activates the second function (printed in orange) as-

signed to the following key.

i

: Activates the m

emory (printed in green) assigned to

the following key.

� S

ET

UP

key: Displays the S

ET

UP

menu to select the

display notation, angular unit, depreciation method and date

format.

� C

urso

r keys: Move the cursor.

� M

OD

E key: S

witches betw

een NO

RM

AL and S

TAT m

odes.

1 Getting S

tarted.indd 606.7.10 8:50:21 P

M

7 Disp

lay layou

t

Exponent

Equation/

variable nam

e display

Sym

bol

Mantissa

• During actual use, not all sym

bols are displayed at the same

time.

• Only the sym

bols required for the operation being explained are show

n in the screen examples of this m

anual.

: A

ppears when the entire equation cannot be displayed.

Press g

/ y to see the rem

aining (hidden) part.

� / �

: Indicates that variables or data are present above/be-

low the screen. P

ress z / i

to scroll up/down.

2nd

F

: Appears w

hen . is pressed, indicating that the

functions shown in orange are enabled.

HY

P

: Indicates that . ]

has been pressed and the hyperbolic functions are enabled.

AL

PH

A : Indicates that i

, g or f

has been pressed, and storing or recalling m

emory values or T

VM

solv-ers/statistics variables can be perform

ed.

BG

N

: Indicates that calculations are annuity due (payment

at the beginning of each interval) calculations. When

BG

N 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 w

ith 30 days). When 360 is

not displayed, date calculations use the actual calen-dar.

EN

T

: Indicates that a value can be assigned to the displayed variable using Q

.

CO

MP

: Indicates that the displayed variable can be solved for by using @

.

FLOA

T A / FLO

AT B

/ TAB

/ SC

I: Indicates the notation used to display values. It can be changed in the S

ET

UP

menu.

1 Getting S

tarted.indd 706.7.10 8:50:22 P

M

8

DE

G / R

AD

/ GR

AD

: Indicates which angular units are in use.

It can be changed in the SE

T U

P m

enu.

: A

ppears when statistics m

ode is selected.

M

: Indicates that a numerical value is stored in the inde-

pendent mem

ory (M).

: Indicates that the value of the displayed variable has

not been calculated yet (for variables that can be cal-culated).

Th

e SE

T U

P M

enu

Press ~

to display the SE

T U

P m

enu.

DSPDRGDEPR

02

1DATE

3�i

• A m

enu item can be selected by:

• Using g

/ y to select a num

ber (the selected number

will blink), then pressing =

, or• pressing the num

ber key corresponding to the menu item

num

ber.• If �

or � is displayed on the screen, press z

or i to

view the previous/next part of the m

enu.• P

ress s to exit the S

ET

UP

menu.

Selectin

g th

e disp

lay no

tation

and

nu

mb

er of d

ecimal

places

The calculator has three display notation system

s (fi xed decimal

point, scientifi c notation and fl oating point) for displaying calcu-lation results.

• If ~ 0

0 (TA

B) is pressed, “D

IG(0-9)?” w

ill be displayed and the num

ber of decimal places can be set to any

value between 0 and 9.

• If ~ 0

1 (S

CI) is pressed, “S

IG(0-9)?” w

ill be displayed and the num

ber of signifi cant digit can be set to any value betw

een 0 and 9. Entering 0 w

ill set a 10-digit display.• If a fl oating point num

ber does not fi t in the specifi ed range, the calculator w

ill display the result in scientifi c notation (expo-nential notation). S

ee the next section for details.• T

he default setting is a fi xed decimal point w

ith two decim

al places.

1 Getting S

tarted.indd 806.7.10 8:50:23 P

M

9 Selectin

g th

e fl oatin

g p

oin

t nu

mb

er system in

scien-

tifi c no

tation

The calculator has tw

o settings for displaying a fl oating point num

ber:

FLO

_A (F

LOAT

A) and F

LO_B

(FLO

AT B

). In each display set-ting, a num

ber is automatically displayed in scientifi c notation

outside the following preset ranges:

• FLO

_A ~

0 2

: 0.000000001 � | X | � 9,999,999,999

• FLO

_B ~

0 3

: 0.01 � | X | � 9,999,999,999

S

witch

ing

the n

otatio

n settin

g

Pro

cedu

reK

ey op

eration

Disp

lay

100000 ÷ 3 = F

ixed decimal point

with tw

o decimal

places

s 100000

8 3

=

1—————©3=

3333333�

Scientifi c notation

(SC

I) with tw

o signifi cant digits

~ 0

1 2

1—————©3=

0433

� F

loating point (F

LO_A

)~

0 2

1—————©3=

33333333333 ÷ 1000 = F

loating point (F

LO_A

)

s 3

8 1000

=

3©1———=0003

� F

loating point (F

LO_B

)~

0 3

3©1———=

-033

� F

ixed decimal point

with tw

o decimal

places

~ 0

0 2

3©1———=000

Selectin

g th

e ang

ular u

nit (see page 61)

• DE

G (°)

: ~ 1

0 (default setting)

• RA

D (rad) : ~

1 1

• GR

AD

(g) : ~ 1

2

Selectin

g th

e dep

reciation

meth

od

(see page 48)

• SL (S

traight-line method): ~

2 0

(default setting)• S

YD

(Sum

-of-the-years’ digits method): ~

2 1

• DB

(Declining balance m

ethod): ~ 2

2

1 Getting S

tarted.indd 906.7.10 8:50:24 P

M

10

Selectin

g th

e date fo

rmat (see page 44)

• US

(Month-D

ay-Year): ~ 3

0 (default setting)

• EU

(Day-M

onth-Year): ~ 3

1

Op

erating

Mo

des

This calculator has tw

o operating modes, w

hich can be selected using the M

OD

E key.

Selectin

g a m

od

e

1. P

ress m.

T

he menu display appears.

2. P

ress 0 or =

to se-lect N

OR

MA

L mode.

• Press 1

or y =

to select S

TAT m

ode.

Op

eration

s available in

each m

od

e

NO

RM

AL

mo

de:

Allow

s you to perform fi nancial, arithm

etic, or scientifi c calculations.

STA

T (statistics) m

od

e:A

llows you to perform

statistical, arithmetic, or scientifi c

calculations. The

symbol appears in the display.

NORMAL

STAT

01000

SD

LINEQUAD

02

1

1 Getting S

tarted.indd 1006.7.10 8:50:25 P

M

11 Ch

ap

ter 2

Ge

ne

ral In

form

atio

nB

asic Calcu

lation

s

En

tering

nu

mb

ers and

arithm

etic op

eration

s

• Use the num

ber keys 0 to 9

, decimal point key .

, and sign change key ,

to enter numbers into the calcula-

tor. To clear the display or entry, press s.

• Use the S

key to enter a value in scientifi c notation.• U

se the arithmetic keys +

- x

8 to perform

the standard arithm

etic calculations of addition, subtraction, multi-

plication, 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 m

ay 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.

Exam

ple

Key o

peratio

nR

esult

45 + 285 ÷

3 =s

45

+ 285

8 3

=14000

18 + 6 =

15 – 8(

18

+ 6

) 8

( 15

- 8

=343

42 × (–5) + 120 =

42

x ,

5 +

120

=

* 1 ( 5 ,

)-9000

(5 × 103) ÷ (4 × 10

–3) =5

S 3

8 4

S

, 3

=125000000

Clearin

g th

e En

try and

Mem

ories

The follow

ing methods of clearing the calculator (restoring de-

fault settings) are available:

* 1

2 General Inform

ation.indd 1106.7.10 8:51:00 P

M

12

* 1 N, I/Y, P

V, PM

T, and FV

(P/Y

and C/Y

are not included.)* 2 N

ote that listed fi nancial variables sharing comm

on mem

ory w

ith TV

M variables, such as “C

OU

PO

N (P

MT

)” used in bond calculations, are also cleared or restored to default settings.

* 3 Listed variables used in fi nancial calculations (such as “RAT

E

(I/Y),” etc.) including P

/Y and C

/Y* 4 W

hen you press * to enter a fi nancial calculation, A

MR

T

P1 and A

MR

T P

2 both revert to their default values. The

same holds true for Y

EA

R w

hen 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. N

ote that TV

M variables

sharing comm

on mem

ory with listed fi nancial variables are

also cleared or restored to default settings.* 6 P

ress . b

when a cash fl ow

value is displayed. * 7 S

tatistical data (entered data) and variables (n, x, etc.)* 8 A

re cleared when changing betw

een sub-modes in S

TAT m

ode.N

otes:

• To clear any of the “A-H

, M, X

-Z” or “A

NS

” mem

ories, press s

g and then specify the m

emory.

• To clear or restore to the default setting one variable or value of T

VM

variables, listed fi nancial variables, cash fl ow data, or

STAT, refer to the relevant section.

• If you turn off the calculator (by pressing . c

or by let-ting it turn itself off autom

atically), it will resum

e wherever you

left off when you turn it on again.

Delete key

To delete a number/function, m

ove 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.

s. b

m (M

ode selection)

. k

0 (M

EM)

RE

SE

T switch

×××

. k

1 (R

ESET)

Operation

: Cleared or restored to the default setting

: Retained

×

A-H

,M

, X-Z

En

try(d

isplay)

AN

STV

Mvariables

Listedfinancialvariables

Cash

flowdata

×××

××

××

ST

AT

××

* 1* 3

* 7

* 6* 2

* 5

* 8

* 4

2 General Inform

ation.indd 1206.7.10 8:51:02 P

M

13 Mem

ory clear key

Press .

k to display the

menu.

• To clear all (A-H

, M, X

-Z, A

NS

, T

VM

variables, listed fi nancial variables, cash fl ow

data, and STAT

), press 0 0

or 0

=.

• To RE

SE

T the calculator, press 1

0 or 1

=.

The R

ES

ET

operation erases all data stored in mem

ory, and restore the calculator’s default settings.

Ed

iting

and

Co

rrecting

an E

ntry

Cu

rsor keys

• In a menu, such as the S

ET

UP

menu, use g

or y to

select a number (the selected num

ber will blink), then press =

.If you need to scroll up or dow

n the screen, use z or i

.

• In fi nancial calculations, such as bond calculations, press i

or z to m

ove through the variables (items).

Playb

ack fun

ction

After obtaining an answ

er, pressing g brings you to the end

of the equation and pressing y brings you to the beginning.

Press g

or y to m

ove the cursor. Press .

g or

. y

to jump the cursor to the beginning or end of the

equation.

Insert an

d overw

rite mo

des in

the eq

uatio

n d

isplay

• This calculator has tw

o editing modes: insert m

ode (default), and overw

rite mode. P

ressing . d

switches betw

een the tw

o modes. A

triangular cursor indicates an entry will be

inserted at the cursor, while the rectangular cursor indicates

existing data will be overw

ritten as you make entries.

• To insert a number in the insert m

ode, move the cursor to the

place imm

ediately after where you w

ish to insert, then make

the desired entry. In the overwrite m

ode, data under the cursor w

ill be overwritten by the num

ber you enter.

• This m

ode setting will be retained until you press .

d

or RE

SE

T the calculator.

MEM

RESET

01

2 General Inform

ation.indd 1306.7.14 4:47:40 P

M

14

C

han

gin

g “15 ÷ 3 =” in

to “25 ÷ 13 =”

Pro

cedu

reK

ey op

eration

Disp

lay

15 ÷ 3 =

s 15

8 3

=15©3=

500E

nter the playback function.

y15©3

Sw

itch to overwrite

mode.

. d

15©3

Change “15” to “25”

and move the cur-

sor to “3”.

2 y

y25©3

Change to insert

mode.

. d

25©3

Change “3” to “13”

and calculate.1

=25©13=

192

Erro

rs

An error w

ill occur if an operation exceeds the calculation ranges, or if a m

athematically illegal operation is attem

pted. W

hen an error occurs, pressing g or y

automatically

moves the cursor to the place in the equation/num

ber where the

error occurred. Edit the equation/num

ber or press s to clear

the equation. For details, see page 76.

Mem

ory C

alculatio

ns

This calculator has 11 tem

porary mem

ories (A-H

and X-Z

), one independent m

emory (M

) and one last answer m

emory (A

NS

). It also has various variables for use in fi nancial calculations and statistical calculations.

Mem

ory u

se in each

mo

de fo

r mem

ory calcu

lation

s

NO

RM

AL

STAT

Mo

de

: Available

: Unavailable

×

MA

-H,

X-Z

AN

ST

VM

variables

Listed financialvariables

Statistical

variables

×××

×

* 1* 2

* 3

2 General Inform

ation.indd 1406.7.10 8:51:04 P

M

15 * 1 N, I/Y, P

V, PM

T, FV

* 2 All fi nancial variables, except for T

VM

variables* 3 x, sx, �

x, n, �x, �

x2, y, sy, �

y, �y, �

y2, �

xy, r, a, b, c

Temp

orary m

emo

ries (A-H

, X-Z

)P

ress g and the variable key to store a value in m

emory.

Press f

and the variable key to recall a value from the

mem

ory.

To place a variable in an equation, press i and the variable key.

Ind

epen

den

t mem

ory (M

)In addition to all the other features of tem

porary mem

ories, a value can be added to or subtracted from

an existing mem

ory value.

Press s

g M

to clear the independent mem

ory (M).

Last an

swer m

emo

ry (AN

S)

• The calculation result obtained by pressing =

or any other calculation ending instruction (including storing and recalling operations) is autom

atically stored in the last answer m

emory.

• Listed fi nancial variables are automatically stored in the last

answer m

emory by displaying the variable and the value.

TV

M variab

lesT

VM

variables can be recalled using f in the sam

e way as

temporary m

emories. It is not necessary to press g

to store a value.

Listed

fi nan

cial variables

Financial variables are specifi c to the type of calculation they

are used in. For exam

ple, the variable N is available to the T

VM

solver but not to discounted cash fl ow

analysis calculations. If you w

ant to carry a value from a variable over into a different

type of calculation, use one of the following m

ethods:

• Last answer m

emory (A

NS

): Within the original calculation, dis-

play the variable and value that you wish to carry over. T

he value is autom

atically entered into last answer m

emory. P

ress 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

(D-

M-Y

) 2 are not stored in last answer m

emory.

• Variables com

mon to both calculations: If the value that you

wish to carry over is held in a variable that exists in both types

2 General Inform

ation.indd 1506.7.10 8:51:05 P

M

16

of calculation (for example, both bond calculations and the T

VM

solver use the variable I/Y

), you can retrieve the value simply by

switching calculation types and bringing up the variable.

Statistical variab

lesS

tatistical 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.

No

te: Use of f

or i w

ill recall the value stored in m

emory using up to 14 digits.

M

emo

ry calculatio

ns

Exam

ple

Key o

peratio

nR

esult

24 ÷ (8 × 2) =

(8 × 2) × 5 =

s 8

x 2

g M

24

8 i

M =

i M

x 5

=

16001508000

$150× 3:M1

+)$250:M

2 =M

1 +250

–)M2 × 5%

M

s g

M150

x 3

h250

hf

M x

5 .

%.

j f

M

0004500025000350066500

$1 = ¥110

¥26,510 = $?

$2,750 = ¥?

110

g Y

26510

8 f

Y =

2750

x f

Y =

1100024100

30250000r =

3 cm (r�

Y)

� r 2 = ?

3 g

Y.

t i

Y*

. ;

=

300

2827 24 4 +

6 = 2.4...(A

)

3 × (A) +

60 ÷ (A

) =

24

8 (

4 +

6 )

=

3 x

i /

+ 60

8

i /

=

240

3220

* Entry of the m

ultiplication procedure is omitted betw

een “� ” and a variable.

2 General Inform

ation.indd 1606.7.10 8:51:06 P

M

17 Ch

ap

ter 3

Fin

an

cia

l Fu

nc

tion

sG

eneral In

form

ation

Fin

ancial calcu

lation

s

The follow

ing fi nancial functions are available. Use N

OR

MA

L m

ode to perform fi nancial calculations.

TV

M (T

ime V

alue o

f Mo

ney) so

lver: Analyze equal and regular

cash fl ows. T

hese include calculations for mortgages, loans,

leases, savings, annuities and contracts or investments w

ith regular paym

ents.

Am

ortizatio

n calcu

lation

s: Calculate and create am

ortization schedules using values stored in the T

VM

solver.

Disco

un

ted cash

fl ow

analysis: A

nalyze unequal cash fl ows

and calculate NP

V (net present value) and IR

R (internal rate of

return).

Bo

nd

calculatio

ns: S

olve bond prices or yields to maturity w

ith accrued interest.

Dep

reciation

calculatio

ns: O

btain depreciation base values using three types of calculation m

ethods.

Co

nversion

betw

een A

PR

and

EF

F: Interest rates can be

converted between A

PR

(annual, or nominal percentage rate)

and EF

F (effective interest rate).

Day an

d d

ate calculatio

ns: C

alculate dates and the number of

days between dates.

Percen

t chan

ge/C

om

po

un

d in

terest calculatio

ns: C

alculate percent change (increase or decrease) and com

pound interest rates.

Co

st/Sell/M

argin

/Marku

p calcu

lation

s: Calculate cost, selling

price and margin/m

arkup.

Breakeven

calculatio

ns: C

alculate breakeven points (quantity) using fi xed costs, variable costs per unit, unit prices, and profi t.

3 Financial F

unctionsCurrent.indd 17

06.7.10 8:38:07 PM

18

Variab

les used

in fi n

ancial calcu

lation

s

Financial calculations use m

ultiple variables. By entering know

n values into variables, you can obtain unknow

n values. Variables

used in fi nancial calculations are categorized into the following

two types, depending on the entry m

ethod.

TV

M variab

les:V

ariables that are used in the TV

M solver. T

hese include N,

I/Y, PV, P

MT

and FV. You can store, recall or calculate values

directly using the corresponding keys.

Listed

fi nan

cial 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 T

VM

solver are of this type of variable.

Variab

les shared

amo

ng

calculatio

ns

Financial variables are specifi c to the type of calculation they

are used in. Values are stored in these variables and recalled

as required. Som

e variables are shared (in the mem

ory area) am

ong calculations. If you change the value of a variable in one calculation, the value w

ill change in all the other calculations as w

ell. The follow

ing list shows the variables shared betw

een calculations. W

hile calculating, be aware of the values stored in

these variables.

TV

Mso

lver

Disco

un

ted

cash fl o

w

analysis

Bo

nd

calculatio

ns

Dep

reciation

calcu

lation

s

Percen

t chan

ge/

Co

mp

ou

nd

inter-

est calculatio

ns

Day an

d d

ate calcu

lation

s

N—

CP

N/Y

(N)

LIFE

(N)

PE

RIO

DS

(N)

—

I/YR

ATE

(I/Y)

YIE

LD (I/Y

)D

B (I/Y

)%

(I/Y)

—

PV

—P

RIC

E (P

V)

CO

ST

(PV

)O

LD P

RC

(PV

)—

PM

T—

CO

UP

ON

(P

MT

)—

——

FV

—R

ED

EM

PT

(F

V)

SA

LVA

GE

(FV

)N

EW

PR

C (F

V)

—

——

M-D

-Y 1

D-M

-Y 1

——

M-D

-Y 1

D-M

-Y 1

——

M-D

-Y 2

D-M

-Y 2

——

M-D

-Y 2

D-M

-Y 2

*The variable nam

es vary according to the data format settings.

**

**

3 Financial F


06.7.10 8:38:09 PM

19 Basic variab

le op

eration

s

TV

M variab

les (N, I/Y, P

V, PM

T, FV

)

A.

En

tering

a value

E

nter a value and then press the corresponding TV

M vari-

able key.

No

te: You can also enter values into variables using arithmetic

operations.E

x. 100 x 12 u

B.

Disp

laying

a value

P

ress f and the corresponding T

VM

variable key.

C.

Execu

ting

calculatio

n

Press @

and the corresponding TV

M variable key.

Listed

fi nan

cial variables

A. E

nterin

g a valu

e1.

Select the desired fi nancial calculation m

ethod by press-ing the corresponding fi nancial calculation key.

2. U

se z/i

to select the variable you wish to enter.

3. E

nter the value and press Q w

hen the “EN

T” sym

bol appears.

No

te: In step 3, you can also enter values into variables using arithm

etic operations.E

x. 100 x 12 Q

B. D

isplayin

g a valu

e 1.

Use z

/i to show

the variable and value.

C.

Execu

ting

calculatio

n1.

Use z

/i to select the variable you w

ish to calculate.

2. P

ress @ w

hen the “CO

MP

” symbol appears.

No

te: 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 calcu-lation.

3 Financial F


06.7.10 8:38:10 PM

20

Th

e EN

T an

d C

OM

P sym

bo

ls

Listed fi nancial variables are categorized by whether they are

known or unknow

n. When the variable is selected (displayed),

the “EN

T” and/or “C

OM

P” sym

bols will appear to indicate that

the current variable may be entered (know

n variable) and/or calculated (unknow

n variable), respectively. For details, refer to

the explanations or examples for each fi nancial function.

No

te: TV

M variables (N

, I/Y, PV, P

MT

and FV

) can be entered (know

n variables) and calculated (unknown variables),

however, neither “E

NT

” nor “CO

MP

” will appear on the

display.

Categ

ory

Disp

lay symb

ols

Descrip

tion

s

For entry only

EN

TV

ariable can be used as a know

n, but not as an unknow

n.

For calculation only

CO

MP

Variable can be used as

an unknown, but not as

a known.

For entry or calcula-

tionE

NT

CO

MP

Variable can be used

as either a known or an

unknown.

Calculated autom

ati-cally

—U

nknown variable, but

the calculator calculates the value autom

atically.

No

tes:• D

uring fi nancial calculation, the word “calculating!” w

ill be displayed on the screen. You can press s

at this time to

cancel the calculation.• C

alculation-only and automatically calculated variables have

no default values.• T

he sym

bol will be displayed if the value of the displayed

variable has not been calculated yet (for variables that can be calculated).

3 Financial F


06.7.10 8:38:10 PM

21 Co

mp

ou

nd

interest

This calculator assum

es interest is compounded periodically in

fi nancial calculations (compound interest). C

ompound inter-

est accumulates at a predefi ned rate on a periodic basis. F

or exam

ple, money deposited in a passbook saving account at

a bank accumulates a certain am

ount of interest each month,

increasing the account balance. The am

ount of interest received each m

onth depends on the balance of the account during that m

onth, including interest added in previous months. Interest

earns interest, which is w

hy it is called compound interest.

It is important to know

the compounding period of a loan or

investment before starting, because the w

hole calculation is based on it. T

he compounding period is specifi ed or assum

ed (usually m

onthly).

Cash

fl ow

diag

rams

The direction of arrow

s indicates the direction of cash movem

ent (infl ow

and outfl ow) w

ith time. T

his manual uses the follow

ing cash fl ow

diagrams to describe cash infl ow

s and outfl ows.

Paym

ent (PM

T)

......

Inflow (+

)

Cash

flow

Present

value (PV

)

Future

value (FV

)

Tim

e

Outflow

(–)

3 Financial F


06.7.10 8:38:12 PM

22

TV

M (T

ime V

alue o

f Mo

ney) S

olver

Analyze equal and regular cash fl ow

s. These include calcula-

tions for mortgages, loans, leases, savings, annuities, and

contracts or investments w

ith regular payments.

No

te: Discounted cash fl ow

analysis can be done using un-equal cash fl ow

s (see page 37).A

n amortization schedule can be calculated using the

information stored in the T

VM

solver (see page 33).

Variab

les used

in th

e TV

M so

lver

Variab

leC

orresp

on

din

gvariab

le keyD

escriptio

nD

efault

value

NN

Total number of paym

ents1

I/Yf

Interest rate per year0

PV

vP

resent value0

PM

Tu

Paym

ent0

FV

TF

uture value0

P/Y

.

wN

umber of paym

ents per year1

C/Y

.

w i

Num

ber of compounding

periods per year1

Settin

g th

e paym

ent p

eriod

(paym

ent d

ue)

You can toggle between ordinary annuity (paym

ent at the end of the period) and annuity due (paym

ent at the beginning of the period) using .

". T

he default setting is ordinary annuity (B

GN

is not displayed).

Refer to page 28 for details.

Basic o

peratio

ns

Refer to page 19 for basic variable operations.

1. P

ress s to clear the display.

• Make sure the calculator is in N

OR

MA

L mode.

• All the T

VM

solver variables retain their previously entered values. If you w

ish to clear all the data, press . b

.

2. S

elect ordinary annuity or annuity due using . "

.

3 Financial F


06.7.10 8:38:12 PM

23 3. E

nter values into TV

M solver variables.

• Enter a value and press the appropriate T

VM

variable key (N

, f, v

, u, T

).• P

ress . w

and then enter a value for P/Y. T

he sam

e value is automatically assigned to C

/Y as w

ell. Val-

ues entered into P/Y

or C/Y

must be positive. A

fter enter-ing values, press s

to quit the P/Y

and C/Y

settings.• A

fter setting P/Y

(number of paym

ents per year), you can use .

< to enter N

(total number of paym

ents). E

nter the number of years and press .

<. T

he calculator autom

atically calculates the total number of

payments.

• By pressing f

/ you can use the result of the pre-

vious normal calculation stored in A

NS

mem

ory as a TV

M

variable.• N

ote that some variables are shared by other calculations

and may have values assigned by those calculations.

4. P

ress @ and the T

VM

variable key that you wish to solve.

• The calculation is perform

ed and the obtained values are displayed.

Basic exam

ples fo

r the T

VM

solver

C

alculatin

g b

asic loan

interest

A $56,000 m

ortgage loan (compounded m

onthly) requires m

onthly payments of $440 during its 20-year am

ortization pe-riod. C

alculate the annual interest rate on the mortgage.

N =

12 × 20 years = 240

......

PV

= $56,000

I/Y =

?%

FV

= 0

PM

T =

–$440

Default values for the num

ber of payments per year (P

/Y) and

the number of com

pounding periods per year (C/Y

) are both set to 1. S

et these values before entering TV

M variable values.

1

3 Financial F


06.7.10 8:38:13 PM

24

Pro

cedu

reK

ey op

eration

Disp

lay

Set all the variables to

default values..

b

000M

ake sure ordinary annuity is set (BG

N is not displayed).

Set the num

ber of pay-m

ents per year to 12..

w 12

QP/Y=

1200T

he number of com

pounding periods per year is automatically set to the

same value as P

/Y.

Confi rm

the number of

compounding periods

per year.

iC/Y=

1200Q

uit the P/Y

and C/Y

settings.

s

000C

alculate the total num-

ber of payments and

store in N.

20

. <

NANS~N24000

Enter the present value.

56000

v56———~PV

5600000E

nter payment.

, 440

u(-44—)~PMT

-44000E

nter the future value.0

T—~FV

000C

alculate the annual interest rate.

@ f

I/Y=

717A

nsw

er: The annual interest rate is 7.17%

.

No

te: If you make a m

istake, press L to erase the num

ber and enter the correct num

ber to continue.A

fter pressing the TV

M variable key, you m

ust re-enter values from

the beginning.

3 Financial F


06.7.10 8:38:14 PM

25 C

alculatin

g b

asic loan

paym

ents

Calculate the quarterly paym

ent for a $56,000 mortgage loan

at 6.5% com

pounded quarterly during its 20-year amortization

period.

I/Y =

6.5%

N =

4 × 20 years = 80 ......

PV

= $56,000

FV

= 0

PM

T =

?

Pro

cedu

reK

ey op

eration

Disp

lay


default values..

b

000M



Set the num

ber of pay-m


w 4

QP/Y=

400C

onfi rm the num

ber of com

pounding periods per year.

iC/Y=

400Q

uit the P/Y

and C/Y

set-tings.

s

000C

alculate the total num

ber of payments and

store in N.

20

. <

NANS~N

8000E

nter the present value.56000

v56———~PV

5600000E


T—~FV

000E

nter the annual interest rate.

6.5

f6.5~I/Y650

Calculate the quarterly

payment.

@ u

PMT=-125586

An

swer: T

he quarterly payments are $1,255.86.

2

3 Financial F


06.7.10 8:38:15 PM

26

C

alculatin

g fu

ture valu

e

You will pay $200 at the end of each m

onth for the next three years into a savings plan that earns 6.5%

compounded quar-

terly. What am

ount will you have at the end of period if you

continue with the plan?

N =

12 × 3 years = 36

......

PV

= 0

PM

T =

–$200

I/Y =

6.5% (quarterly) F

V =

?

PM

T =

–$200

Pro

cedu

reK

ey op

eration

Disp

lay


default values..

b

000M



Set the num

ber of pay-m


w 12

QP/Y=

1200S

et the number of com

-pounding periods per year to 4.

i 4

QC/Y=

400Q

uit the P/Y

and C/Y

settings.

s

000C

alculate the total num-

ber of payments and

store in N.

3 .

< N

ANS~N

3600E

nter the present value.0

v—~PV

000E

nter payment.

, 200

u(-2——)~PMT

-20000E

nter the annual inter-est rate.

6.5

f6.5~I/Y650

Calculate the future

value.@

TFV=

792219A

nsw

er: You will have $7,922.19 at the end of the three-year

period.

3

3 Financial F


06.7.10 8:38:17 PM

27 Calcu

lating

presen

t value

You open an account that earns 5% com

pounded annually. If you w

ish to have $10,000 twenty years from

now, w

hat amount

of money should you deposit now

?

FV

= $10,000

N =

20 years

PV

= ?

I/Y =

5%

Pro

cedu

reK

ey op

eration

Disp

lay


default values..

b

000M



Set the num

ber of pay-m


w 1

QP/Y=

100T

he number of com

pounding periods per year is automatically set to 1.

Press s

to exit the P/Y

and C/Y

settings.

Enter the total num

ber of paym

ents.s

20

N2—~N

2000E


T1————~FV

1000000S

et payment to zero.

0 u

—~PMT

000E


5 f

5~I/Y

500C

alculate the present value.

@ v

PV=-376889

An

swer: You should deposit $3,768.89 now

.

4

3 Financial F


06.7.12 3:53:22 PM

28

Sp

ecifying

paym

ents d

ue ( .

")

This calculator can select ordinary annuity or annuity due de-

pending on the regular cash fl ow (paym

ent) conditions.

Ord

inary an

nu

ity (EN

D):

This is the default setting for fi nancial calculations. B

GN

is not displayed. A

regular cash fl ow (paym

ent) is received at end of each paym

ent period. Often applied to loan calculations, etc.

An

nu

ity du

e (BG

N):

BG

N appears on the display. A

regular cash fl ow (paym

ent) is received at the beginning of each paym

ent period. Often applied

to the fi nance lease of an asset.

To toggle between ordinary annuity and annuity due, press

. "

.

No

te: The above selection only affects the T

VM

solver.

O

rdin

ary ann

uity

Your company w

ishes to accumulate a fund of $300,000 over the

next 18 months in order to open a second location. A

t the end of each m

onth, a fi xed amount w

ill be invested in a money m

arket savings account w

ith an investment dealer. W

hat should the m

onthly investment be in order to reach the savings objective, as-

suming the account w

ill earn 3.6% interest com

pounded monthly?

N =

18

PV

= 0

FV

= $300,000

PM

T =

?

......

I/Y =

3.6%

Pro

cedu

reK

ey op

eration

Disp

lay


default values..

b

000M



Set the num

ber of pay-m


w 12

QP/Y=

1200T

he number of com

pounding periods per year is automatically set to

12. Press s

to exit the P/Y

and C/Y

settings.

1

3 Financial F


06.7.12 3:53:24 PM

29

Pro

cedu

reK

ey op

eration

Disp

lay

Enter the total num

ber of paym

ents.s

18

N18~N

1800E


T3—————~FV

30000000S

et the present value to zero.

0 v

—~PV

000E


3.6

f3.6~I/Y360

Calculate paym

ent.@

uPMT=-1624570

An

swer: T

he monthly investm

ent should be $16,245.70.

A

nn

uity d

ue

Your company w

ishes to obtain a computer system

with a value of

$2,995. The sam

e system m

ay be leased for 24 months at $145 per

month, paid at the beginning of each m

onth. At the end of the lease,

the system m

ay be purchased for 10% of the retail price. S

hould you lease or purchase the com

puter if you can obtain a two-year

loan at 7.2%, com

pounded monthly, to purchase the com

puter?

N =

24

......

PV

= $2,995

I/Y =

?%

FV

= $2,995 × 10%

= $299.5

PM

T =

–$145

Pro

cedu

reK

ey op

eration

Disp

lay


default values..

b

000S

et to annuity due (B

GN

is displayed)..

"

000S

et the number of pay-

ments per year to 12.

. w

12

QP/Y=

1200

2

3 Financial F


06.7.10 8:38:20 PM

30

Pro

cedu

reK

ey op

eration

Disp

lay

The num

ber of compounding periods per year is autom

atically set to 12. P

ress s to exit the P

/Y and C

/Y settings.

Enter the total num

ber of paym

ents.s

24

N24~N

2400E


x 10

.

% T

ANS~FV29950

Enter paym

ent.,

145

u(-145)~PMT

-14500E

nter the present value. 2995

v2995~PV

299500C

alculate the annual interest rate.

@ f

I/Y=

708A

nsw

er: If you lease the computer system

, the annual interest rate w

ould be 7.08%, w

hich is less than that of the interest rate on a tw

o-year loan, so it would be m

ore cost-effective to lease a com

puter system than to

purchase one.

C

alculatin

g th

e presen

t value o

f a lease with

trad

e-in valu

eYour client w

ishes to buy a machine currently leased from

your com

pany. On a fi ve-year lease w

ith payments of $200 at the

beginning of each month, the m

achine has a trade-in value of $1,500 w

ith 34 monthly paym

ents remaining. If your com

pany sells the m

achine at the present value of the lease, discounted at an annual interest rate of 18%

, compounded m

onthly, how

much should your com

pany charge for the machine?

N =

34

......

PV

= ?

FV

= –$1,500

I/Y =

18%

PM

T =

–$200

3

3 Financial F


06.7.10 8:38:22 PM

31

4

Pro

cedu

reK

ey op

eration

Disp

lay


default values..

b

000S

et to annuity due (B

GN

is displayed)..

"

000S

et the number of pay-

ments per year to 12.

. w

12

QP/Y=

1200T

he number of com

pounding periods per year is automatically set to

12. Press s

to exit the P/Y

and C/Y

settings.

Enter the total num

ber of paym

ents.s

34

N34~N

3400E

nter payment.

, 200

u(-2——)~PMT

-20000E


18

f18~I/Y1800

Enter the future value.

, 1500

T(-15——)~FV

-150000C


@ v

PV=

627995A

nsw

er: $6,279.95 should be charged for the machine.

C

alculatin

g d

ow

n p

aymen

t and

amo

un

t to

bo

rrow

You wish to buy a house for $180,000. T

he fi nance company

charges a 5.5% A

PR

, compounded m

onthly, on a 25-year loan. If you can afford a m

onthly payment of $900, how

much can you

borrow? H

ow m

uch do you need for a down paym

ent?

N =

12 × 25 years = 300

......

I/Y =

5.5%

PV

= ?

FV

= 0

PM

T =

–$900

3 Financial F


06.7.10 8:38:24 PM

32

Pro

cedu

reK

ey op

eration

Disp

lay


default values..

b

000M



Set the num

ber of pay-m


w 12

QP/Y=

1200T

he number of com

pounding periods per year is automatically set to 12.

Press s

to exit the P/Y

and C/Y

settings.

Enter the total num

ber of paym

ents.s

25

. <

N

ANS~N30000

Enter paym

ent.,

900

u(-9——)~PMT

-90000E


5.5

f5.5~I/Y550

Set the future value to

zero. 0

T—~FV

000C


@ v

PV=14655892

Calculate the dow

n paym

ent.s

180000

-

f v

=18————-PV=

3344108A

nsw

er: You can borrow $146,558.92 in total. T

he price of the house is $180,000, so:D

own paym

ent = $180,000 – present value

=

$180,000 – $146,558.92You need $33,441.08 for a dow

n payment.

3 Financial F


06.7.10 8:38:25 PM

33

AMRTP1=100

Am

ortizatio

n C

alculatio

ns

Calculate and create am

ortization schedules using values stored in the T

VM

solver.

No

te: Prior to using am

ortization, you need to enter values into T

VM

variables.

Variab

les used

in am

ortizatio

n

Variab

leD

escriptio

nD

efault valu

e

AM

RT

P1

Start of paym

ent (nth time)

1

AM

RT

P2

End of paym

ent (nth time)

1

BA

LAN

CE

Rem

aining balance after payment

—

�P

RIN

CIPA

LP

rincipal paid—

�IN

TE

RE

ST

Interest paid over the specifi ed periods—

• BA

LAN

CE

, �P

RIN

CIPA

L and �IN

TE

RE

ST

are calculated autom

atically, so no default values are set.• A

MR

T P

1 and AM

RT

P2 m

ust be between 1 and 9,999.

Basic o

peratio

ns


1. P



OR

MA

L mode.

• All the T

VM

solver variables retain their previously entered values. If you w

ish to clear all the data, press . b

.

2. S

elect ordinary annuity or annuity due using . "

.

3. E

nter the appropriate numeric values for the variables used

in the TV

M solver.

• Confi rm

the values of N, I/Y, P

V, PM

T, FV, P

/Y and C

/Y.

4. P

ress * to use am

ortiza-tion calculation.

5. E

nter a value for “AM

RT

P1”

and press Q.

6. P

ress i, enter a value for “A

MR

T P

2” and press Q.

7. D

isplay values for BA

LAN

CE

, �P

RIN

CIPA

L and �IN

TE

RE

ST

by pressing i

once for each. Each value is calculated

automatically.

3 Financial F


06.7.10 8:38:27 PM

34

8. P

ress i to calculate the next period of the am

ortization schedule.

9. R

epeat steps 5 to 7 above.

• If you press @ during “A

MR

T P

1” and “AM

RT

P2” entry,

the values for the next period of payment w

ill be automatically

calculated and displayed.

• To end amortization calculations, press s

. Pressing s

during entry w

ill clear the value entered.

C

alculatin

g m

ortg

age p

aymen

ts and

gen

erat-in

g an

amo

rtization

sched

ule

1. Calculate the m

onthly payment of a 20-year loan w

ith a loan am

ount of $90,000 and a 5.45% A

PR

.

Pro

cedu

reK

ey op

eration

Disp

lay


default values..

b

000M



Set T

VM

solver vari-ables and calculate paym

ent.

. w

12

Q

s 20

. <

N

90000

v 0

T

5.45

f @

u

PMT=-61656

An

swer: T

he monthly paym

ent is $616.56.

Now

generate an amortization schedule for the fi rst 5 years of the

loan. If the fi rst payment is in A

ugust, the fi rst year has 5 payment

periods and the following years have 12 paym

ent periods each.

2. Calculate the am

ortization schedule for the fi rst year.

Pro

cedu

reK

ey op

eration

Disp

lay

Change to am

ortization calculation and enter 1 (A

ugust) for the starting paym

ent.

* 1

Q

AMRTP1=100

Enter 5 (D

ecember) for

the ending payment.

i 5

QAMRTP2=500

Display the rem

aining balance.

iBALANCE=

8895148

1

3 Financial F


06.7.10 8:38:27 PM

35

Pro

cedu

reK

ey op

eration

Disp

lay

Display the principal

paid.i

ÍPRINCIPAL=

-104852D

isplay the interest paid.

iÍINTEREST=

-203428

3. Calculate the am

ortization schedule for the second year.

Pro

cedu

reK

ey op

eration

Disp

lay

Change am

ortization schedule to the second year and enter 6 (Janu-ary) for the starting paym

ent.

i 6

Q

AMRTP1=600

Enter 17 (D

ecember)

for the ending payment.

i 17

QAMRTP2=1700

Display the rem

aining balance.

iBALANCE=

8633592D

isplay the principal paid.

iÍPRINCIPAL=

-261556D


iÍINTEREST=

-478316

4. Calculate the am

ortization schedule for the third year.

Pro

cedu

reK

ey op

eration

Disp

lay

Change am

ortization schedule to the third year and enter the next 12 m

onths automati-

cally.

i @

i

AMRTP2=2900

Display the rem

aining balance.

iBALANCE=

8357421D

isplay the principal paid.

iÍPRINCIPAL=

-276171D


iÍINTEREST=

-463701

5. R

epeat the above operation for the fourth and fi fth years.

3 Financial F


06.7.10 8:38:29 PM

36

C

alculatin

g p

aymen

ts, interest, an

d lo

an b

al-an

ce after a specifi ed

paym

ent

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 w

ant a balloon paym

ent due, what am

ount of monthly paym

ent must you m

ake w

ith monthly com

pounding and how m

uch will the balloon pay-

ment be?

Pro

cedu

reK

ey op

eration

Disp

lay


default values.s

. b

000M



Set T

VM

solver vari-ables and calculate paym

ent.

. w

12

Q

s 30

. <

N

500000

v 0

T

8.5

f @

u

PMT=-384457

An

swer: T

he monthly paym

ent is $3,844.57.

Now

generate an amortization schedule from

the fi rst to the 48th paym

ents.

Pro

cedu

reK

ey op

eration

Disp

lay

Change to am

ortization calculation and enter 1 for the starting paym

ent.

* 1

QAMRTP1=100

Enter 48 (D

ecember)

for the ending payment.

i 48

QAMRTP2=4800

Display the balance af-

ter 48 months. (balloon

payment)

iBALANCE=

48275524D

isplay the principal paid over 48 m

onths.i

ÍPRINCIPAL=

-1724476D

isplay the interest paid over 48 m

onths.i

ÍINTEREST=

-16729460A

nsw

er: The balloon paym

ent after the 48th period would be

$482,755.24.

2

3 Financial F


06.7.10 8:38:31 PM

37 Disco

un

ted C

ash F

low

An

alysisA

nalyze unequal cash fl ows and calculate the net present value

(NP

V) and the internal rate of return (IR

R).

No

te: Use the T

VM

solver for equal and regular cash fl ow

analysis (see page 22).

En

tering

cash fl o

w d

ata

To fi nd NP

V and IR

R using discounted cash fl ow

analysis, enter cash fl ow

data, one data item at a tim

e, in the following form

at:

Sin

gle cash

fl ow

sC

ash fl ow value J

Rep

eated cash

fl ow

sC

ash fl ow value >

frequency value J

No

tes:• B

efore entering data, press > .

b to clear any

previously entered cash fl ow data.

• Press ,

to enter a negative cash fl ow (outfl ow

).• M

ake sure the calculator is in NO

RM

AL m

ode. It is not pos-sible to enter cash fl ow

data when listed fi nancial variables are

shown on the display. P

ress s to exit.

• You can enter a total of up to 100 cash fl ow and/or statistical

data items. A

single cash fl ow value is counted as one data

item, w

hile a cash fl ow value w

ith an associated frequency value is counted as tw

o.• Frequency values m

ust be integers between 1 and 999.

• If you wish to correct a value before pressing J

, press s

to delete the entry and enter the correct value.

E

nterin

g cash

fl ow

data

Enter cash fl ow

data according to the following cash fl ow

dia-gram

.

–$25,000 $7,000$9,000

$5,000$5,000

$8,000

3 Financial F


06.7.10 8:38:33 PM

38

Pro

cedu

reK

ey op

eration

Disp

lay

Bring up the initial dis-

play in NO

RM

AL m

ode.s

000E

nter cash fl ow data.

, 25000

JDATASET:CF

0007000

JDATASET:CF

1009000

JDATASET:CF

2005000

> 2

JDATASET:CF

3008000

JDATASET:CF

400

If there is cash fl ow data stored, press >

. b

to clear it.

T

he format of the data set (cash fl ow

and frequency values) num

ber, which is initially set to “0.00,” is dependent on calcu-

lator display notation settings.

Co

nfi rm

ing

and

editin

g d

ata

Co

nfi rm

ing

data

Press >

to display any previously entered cash fl ow data.

The data is displayed in order by data item

(identifi er, number,

and value).U

se z/i

to display a data item from

a previously entered data set.

CF

D—=

-2500000

Cash flowidentifier

Data set

number

Cash flow

value

CF

N—=

100

Frequency identifier

Data set

number

Frequency value

* 1

* 1* 2

* 2

3 Financial F


06.7.10 8:38:33 PM

39 • Press .

z or .

i to jum

p to the fi rst or the last data item

, respectively.• E

ach data item is displayed in the form

CF

Dn=

(cash fl ow

value) or CF

Nn=

(frequency), where n indicates the data set

number.

Ed

iting

data

• Display the data item

you wish to m

odify 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.

Deletin

g d

ata• D

isplay the data item to be deleted by using z

/i, and

press . ?

. • If a cash fl ow

value/frequency is deleted, the corresponding frequency/cash fl ow

value is also deleted.• If you w

ish to delete all data, press . b

.

Insertin

g d

ataU

sing the z and i

keys, specify the correct place to insert your new

data by displaying the value that is to come

directly after, and then press . e

. A new

data set with

a cash fl ow value of zero and a frequency value of one w

ill be inserted. M

odify the new data set to include your data.

C

orrectin

g cash

fl ow

data

Currently the cash fl ow

data is that shown in chart A

. Change it

according to chart B.

–$25,000

$7,000$9,000

$5,000$5,000

$8,000

Chart A

–$30,000

$7,000$9,000

$6,000$5,000

$8,000

Chart B

Pro

cedu

reK

ey op

eration

Disp

lay

Display previously

entered cash fl ow data.

(Exam

ple on page 37)

s >

CFD—=

-2500000

3 Financial F


06.7.10 8:38:34 PM

40

Pro

cedu

reK

ey op

eration

Disp

lay

Change the fi rst cash

fl ow value from

–25,000 to –30,000.

, 30000

JCFD—=

-3000000C

hange the frequency of 5000 from

2 to 1.i

i i

i

i i

i 1

JCFN3=

100A

dd a new data set

(6000) imm

ediately before 5000.

. e

6000

JCFD3=600000

To confi rm the corrections, press .

z to jum

p to the fi rst data item

and press i to brow

se through each data item.

Variab

les used

in d

iscou

nted

cash fl o

w an

alysis

Variab

leD

escriptio

nD

efault valu

e

RAT

E (I/Y

)Internal rate of return (IR

R)

0

NE

T_P

VN

et present value (NP

V)

—

• The variable R

ATE

(I/Y) is shared by the variable I/Y. N

ET

_PV

is for calculation only and has no default value.

• The B

GN

/EN

D setting is not available for discounted cash fl ow

analysis.

NP

V an

d IR

R

The calculator solves the follow

ing cash fl ow values:

Net p

resent valu

e (NP

V):

The total present value of all cash fl ow

s, including cash paid out (outfl ow

s) and cash received (infl ows). A

profi table investment is

indicated by a positive NP

V value.

Intern

al rate of retu

rn (IR

R):

The interest rate that gives a net present value of zero.

Basic o

peratio

ns


1. P



OR

MA

L mode.

3 Financial F


06.7.10 8:38:35 PM

41 2. E


• Refer to page 37 for instructions on entering cash fl ow

data.

3. P

ress . <

to begin discounted cash fl ow analysis.

• If a previously entered cash fl ow value is displayed, press

s to exit and then press .

<.

4. To fi nd N

PV

or IRR

, do the following:

To o

btain

NP

V:

Enter the interest rate (discounted rate) into R

ATE

(I/Y) and

press Q. M

ove to NE

T_P

V and calculate by pressing i

and @

.

To o

btain

IRR

: P

ress @ to calculate IR

R (R

ATE

(I/Y)).

No

te: If “Error 5” is displayed in step 4, or if you w

ant to fi nd another IR

R, enter an estim

ated value into RAT

E(I/Y

) and calculate again in step 4.

S

olvin

g fo

r un

equ

al cash fl o

ws

Your company pays $12,000 for a new

network system

, and expects the follow

ing annual cash fl ows: $3,000 for the fi rst year,

$5,000 for the second to fourth years, and $4,000 for the fi fth year. A

t what IR

R does the net present value of the cash fl ow

s equal zero?–$12,000

$3,000$5,000

$5,000$5,000

$4,000

1. E


Pro

cedu

reK

ey op

eration

Disp

lay


play in NO

RM

AL m

ode.s

000

1

* 1

3 Financial F


06.7.10 8:38:36 PM

42

Pro

cedu

reK

ey op

eration

Disp

lay

Enter cash fl ow

data. ,

12000

JDATASET:CF

0003000

JDATASET:CF

1005000

> 3

JDATASET:CF

2004000

JDATASET:CF

300R

eturn to the initial dis-play in N

OR

MA

L mode.

s

000


. b

to clear it.

2. C

alculate IRR

.

Pro

cedu

reK

ey op

eration

Disp

lay

Select discounted cash

fl ow analysis, and set all

the variables to default values.

. <

. b

RATE(I/Y)=000

Calculate IR

R (R

ATE

(I/Y

)). @

RATE(I/Y)=

2314A

nsw

er: The net present value of the cash fl ow

s equals zero at an IR

R of 23.14%

.

C

alculatin

g th

e presen

t value o

f variable cash

fl o

ws

Your company has prepared forecasts for the developm

ent costs and operating profi ts of the next generation of your product. D

evelopment costs for each of the next three years (Years 1 to

3) will be $50,000. M

anufacturing equipment costing $100,000

will be purchased at the end of Year 3. A

nnual profi ts for the fi ve-year product life (from

Year 4 to Year 8) are projected to be $80,000. T

he salvage value of the manufacturing equipm

ent at the end of Year 8 is $20,000. G

iven a 12% discount rate, should

your company proceed w

ith the product development?

* 1

2

3 Financial F


06.7.10 8:38:37 PM

43

$80,000$80,000

$80,000$80,000

$80,000

–$20,000–$50,000

–$50,000–$100,000

–$50,000

1. E

nter the cash fl ow data.

Pro

cedu

reK

ey op

eration

Disp

lay


play in NO

RM

AL m

ode.s

000E


, 50000

> 2

J

DATASET:CF

000,

150000

JDATASET:CF

10080000

> 4

JDATASET:CF

20060000

JDATASET:CF

300R

eturn to the initial dis-play in N

OR

MA

L mode.

s

000


. b

to clear it.

2. C

alculate NP

V.P

roced

ure

Key o

peratio

nD

isplay

Select discounted cash

fl ow analysis, and set all

the variables to default values.

. <

. b

RATE(I/Y)=000

Enter the discount rate.

12

QRATE(I/Y)=

1200C

alculate NP

V

(NE

T_P

V).

i @

NET_PV=

662752A

nsw

er: As N

PV

= 6,627.52 >

0, the product can be developed.

* 1

* 1

3 Financial F


06.7.10 8:38:38 PM

44

Bo

nd

Calcu

lation

s U

sing bond calculations, you can obtain bond prices, yields to m

aturity, and accrued interest.

Variab

les used

in b

on

d calcu

lation

s

Variab

leD

escriptio

nD

efault valu

e

CO

UP

ON

(PM

T)

Annual coupon rate (%

)0

RE

DE

MP

T (F

V)

Redem

ption value0

M-D

-Y 1

Settlem

ent date (date of bond pur-chase)

1-1-2001

M-D

-Y 2

Redem

ption date1-1-2001

CP

N/Y

(N)

Num

ber of coupons per year1

YIE

LD (I/Y

)Y

ield to maturity (%

)0

PR

ICE

(PV

)B

ond price0

AC

CU

INT

Accrued interest

—

R

edemption value of the security per $100 par value.

You can change the date form

at to D-M

-Y (see page 10).

You can only enter “1” or “2” —

“1” for annual coupons and “2” for sem

i-annual coupons.

Per $100 par value.

No

te: Bonds are associated w

ith payment m

ethods known as

coupons. A coupon is like an “interest-only paym

ent,” and it is based on the future value of the bond. C

OU

PO

N is

a percentage of the bond par value, usually annually, by the ow

ner of the bond. F

or bonds that have annual coupons, the owner receives

one payment of the coupon am

ount each year. Som

e bonds have sem

i-annual coupons. For these, each year’s

coupon amount is paid in tw

o equal payments six m

onths apart. T

he date on which a coupon paym

ent is made is

called the “coupon date.” The bond m

aturity date is usu-ally the last coupon date.

Settin

g th

e day-co

un

t meth

od

You can toggle between the actual calendar (365 days plus leap

years) and a 360-day calendar (12 months of 30 days each)

using . &

. The actual calendar is set by default (360 is

not displayed). The calendar range is from

January 1, 1901 to D

ecember 31, 2099.

* 2* 2

* 1* 2

* 1

* 3

* 4

* 3* 4

3 Financial F


06.7.10 8:38:40 PM

45 Basic o

peratio

ns


1. P



OR

MA

L mode.

2. S

elect bond calculations by pressing #

.• To end bond calculations,

press s.

• If you press s during entry, any entered values w

ill be cleared.

3. C

hange the day-count setting, if necessary, by pressing .

&.

4. E

nter the coupon rate (%) into C

OU

PO

N (P

MT

) by entering the value and pressing Q

.

5. E

nter the redemption value into R

ED

EM

PT

(FV

) by pressing i

, entering the value, and pressing Q.

6. E

nter the date of bond purchase into M-D

-Y 1 (or D

-M-Y

1) by pressing i

, entering the date, and pressing Q.

• For date entry, refer to page 47, ”E

ntering dates”.

7. E

nter the redemption date into M

-D-Y

2 (or D-M

-Y 2) by

pressing i, entering the date, and pressing Q

.• F

or date entry, refer to page 47, ”Entering dates”.

8. E

nter the number of coupon paym

ents per year into CP

N/Y

(N

) by pressing i, entering the value, and pressing Q

.

9. To fi nd bond price or yield to m

aturity, do the following:

To o

btain

bo

nd

price (P

RIC

E (P

V)):

Enter annual yield (%

) into YIE

LD(I/Y

) by pressing i, enter-

ing the value, and pressing Q. M

ove to PR

ICE

(PV

) and calculate by pressing i

and @. D

isplay the accrued interest (A

CC

U IN

T) by pressing i

. The accrued interest is

calculated automatically.

To o

btain

yield to

matu

rity (YIE

LD

(I/Y)):

Move to P

RIC

E (P

V) and enter the bond price by pressing i

i

, entering the value, and pressing Q. M

ove to annual yield, Y

IELD

(I/Y) and calculate by pressing z

@. D

isplay the accrued interest (A

CC

U IN

T) by pressing i

i. T

he accrued interest is calculated autom

atically.

COUPON(PMT)=

000

3 Financial F


06.7.10 8:38:41 PM

46

C

alculatin

g b

on

d p

rice and

accrued

interest

A $100, 20-year, 6.5%

coupon bond is issued to mature on

August 15, 2023. It w

as sold on Novem

ber 3, 2006 to yield the purchaser 7.2%

compounded sem

iannually until maturity. A

t w

hat price did the bond sell? Also calculate the accrued coupon

interest.Pro

cedu

reK

ey op

eration

Disp

lay


play in NO

RM

AL m

ode.s

000S

elect bond calcula-tions.

#COUPON(PMT)=

000M

ake sure the actual calendar is set (360 is not displayed).

Enter the coupon rate

(%).

6.5

QCOUPON(PMT)=

650E

nter the redemption

value.i

100

QREDEMPT(FV)=

10000E

nter the settlement

date.i

11032006

QM-D-Y1=[FR]

11-3-2006

Enter the redem

ption date.

i 08152023

QM-D-Y2=[TU]

8-15-2023E

nter the number of

coupon payments per

year.

i 2

QCPN/Y(N)=200

Enter the annual yield

(%).

i 7.2

QYIELD(I/Y)=

720C

alculate bond price.i

@PRICE(PV)=

9323C

alculate the accrued interest.

iACCUINT=141

Calculate bond price

including accrued interest.

s i

v +

i

/ =

PV+ANS=9464

An

swer: T

he bond sold at $93.23 and the accrued coupon interest w

as $1.41 (the bond price including accrued interest w

ould be $94.64).

The asking price on the above bond is $92.50. W

hat will your

yield be?

3 Financial F


06.7.10 8:38:42 PM

47

Pro

cedu

reK

ey op

eration

Disp

lay

Change the bond price

to $92.50.#

i i

i

i i

i 92.5

Q

PRICE(PV)=

9250C

alculate the yield.z

@YIELD(I/Y)=

728A

nsw

er: The yield w

ill be 7.28%.

En

tering

dates

Refer to the follow

ing notes for date entry.

• Enter using U

S date form

at (MM

-DD

-YY

YY

) or EU

date for-m

at (DD

-MM

-YY

YY

). Refer to the previous exam

ple and the follow

ing explanation.

Mo

nth

entry

Enter tw

o digits. From 2 to 9, the preceding zero m

ay be omitted.

Day en

tryE

nter two digits. From

4 to 9, the preceding zero may be om

itted.

Year entry

Enter four digits. From

2010 to 2099, the zero following the

fi rst “2” may be om

itted. From 1901 to 1989, the “9” follow

ing the fi rst “1” m

ay be omitted.

• After entry, the date w

ill be stored and the abbreviated day of the w

eek will be displayed.

• [SU

]: Sunday, [M

O]: M

onday, [TU

]: Tuesday, [WE

]: Wednes-

day, [TH

]: Thursday, [F

R]: Friday, [S

A]: S

aturday.

• The default value for dates is: January 1, 2001 (1-1-2001).

• The effective range of dates is: January 1, 1901 to D

ecember

31, 2099.• If an inappropriate date is entered (e.g., F

ebruary 31), an error m

essage (Error 7) w

ill appear imm

ediately after pressing Q.

In this case, follow either of the follow

ing procedures: • P

ress s to return to the display before the entry, enter

the appropriate date, and press Q.

• Press g

/y to go back to the display that w

as shown

before you pressed Q. P

ress s or L

, enter the appropriate date, and press Q

again.• If you w

ish to correct numbers during entry, use L

as a backspace key.

3 Financial F


06.7.10 8:38:44 PM

48

Dep

reciation

Calcu

lation

s U

sing depreciation calculations, you can obtain depreciation base values using three types of calculation m

ethods: the straight-line m

ethod, the sum-of-the-years’ digits m

ethod, and the declining balance m

ethod.

Variab

les used

in d

epreciatio

n calcu

lation

s

Variab

leD

escriptio

nD

efault valu

e

DB

(I/Y)

Interest per year0

LIFE

(N)

Years of depreciation1

STA

RT

MO

NT

HS

tarting month

1

CO

ST

(PV

)C

ost of asset0

SA

LVA

GE

(FV

)S

alvage value0

YE

AR

Year for calculating depreciation value1

DE

PR

EC

IATE

Depreciation value of above year

—

RB

VR

emaining book value

—

RD

VR

emaining depreciation value

—

D

B (I/Y

) appears only when you select D

B (declining balance

m

ethod) for the depreciation method.

Settin

g th

e dep

reciation

meth

od

• Select the depreciation m

ethod in the SE

T U

P m

enu. It is initially set to S

L.

Key o

peratio

nD

escriptio

n

~ 2

0S

L (Straight-line m

ethod)

~ 2

1S

YD

(Sum

-of-the-years’ digits method)

~ 2

2D

B (D

eclining balance method)

Basic o

peratio

ns


1. P



OR

MA

L mode.

* 1

* 1

3 Financial F


06.7.10 8:38:45 PM

49 2. S

elect the depreciation method (see page 48).

3. S

elect depreciation calculations by pressing O

.• W

hen using the declining balance m

ethod, DB

(I/Y) ap-

pears. Enter the num

ber and press Q.

• To end depreciation calculations, press s. If you press

s during entry, any entered values w

ill be cleared.

4. E

nter the number of years of depreciation into LIF

E (N

) by pressing i


• When using the straight-line m

ethod, the value should be a positive real num

ber, while for the S

YD

or DB

methods, it

should be a positive integer.

5. E

nter the starting month into S

TAR

T M

ON

TH

by pressing i


• You can enter values between 1 and 13.

• Generally, it is not necessary to enter a decim

al value. H

owever, if you w

ish to enter, for example, the m

iddle of July, enter 7.5; w

here the decimal is equal to the num

ber value of the given date divided by the total num

ber of days in the m

onth.

6. E

nter the cost of asset into CO

ST

(PV

) by pressing i,

entering the value, and pressing Q.

7. E

nter the salvage value into SA

LVAG

E (F

V) by pressing i

, entering the value, and pressing Q

.

8. E

nter the year for calculating depreciation value into YE

AR

by pressing i


• The year for calculating depreciation value is initially 1.

Pressing @

increments this num

ber by 1.• T

his value must be a positive integer.

9. C

alculate depreciation for the year by pressing i.

10. Calculate the rem

aining book value by pressing i.

11. Calculate the rem

aining depreciation by pressing i.

12. To calculate depreciation value for another year, press z

three times to go back to Y

EA

R, enter a value for the new

year, and recalculate.

SL----------

3 Financial F


06.7.10 8:38:46 PM

50

C

alculatin

g straig

ht-lin

e dep

reciation

In April, your com

pany begins depreciation of a comm

ercial building w

ith a 30-year life and no salvage value. The building

costs $1,500,000. Calculate the depreciation am

ount, remaining

book value and remaining depreciable value for the third year

using the straight-line depreciation method.

Pro

cedu

reK

ey op

eration

Disp

lay

Bring up the initial

display in NO

RM

AL

mode, and select the

straight-line deprecia-tion m

ethod.

s ~

2 0

000S

elect depreciation calculations.

OSL----------

Enter the num

ber of years of depreciation.

i 30

QLIFE(N)=3000

Enter the starting

month.

i 4

QSTARTMONTH=

400E

nter the cost of asset. i

1500000

QCOST(PV)=

150000000E

nter the salvage value.i

0 Q

SALVAGE(FV)=

000E

nter the year for calcu-lating depreciation value.

i 3

QYEAR=

300C

alculate depreciation for the year.

iDEPRECIATE=

5000000C

alculate the remaining

book value.i

RBV=

136250000C

alculate the remaining

depreciation value.i

RDV=

136250000A

nsw

er: At the third year, the depreciation am

ount is $50,000, the rem

aining book value is $1,362,500, and the re-m

aining depreciable value is $1,362,500.

3 Financial F


06.7.10 8:38:47 PM

51 Co

nversion

betw

een A

PR

and

EF

FInterest rates can be converted betw

een AP

R (annual, or nom

i-nal percentage rate) and E

FF

(effective interest rate).

• The A

PR

is an investment’s annual rate of interest w

hen com-

pounding happens only once a year. The interest rate printed

on a bond is an example of an A

PR

.

• The E

FF

is an investment’s annual rate of interest w

hen com-

pounding happens more often than once a year. It refl ects the

actual amount of return for a given nom

inal rate. For exam

ple, if your investm

ent compounds m

onthly, then the stated nomi-

nal percentage rate becomes a m

onthly rate, and the EF

F

refl ects your actual annual rate of return.

Basic o

peratio

ns

1. P

ress s to clear the display. M

ake sure the calculator is in N

OR

MA

L mode.

2. E

nter the calculation data in the following form

at:

• To ch

ang

e AP

R to

EF

F:

N

umber of com

pounding periods per year > N

ominal

percentage rate . P

• To ch

ang

e EF

F to

AP

R:

N

umber of com

pounding periods per year > E

ffective interest rate .

!

C

onvertin

g b

etween

AP

R an

d E

FF

Pro

cedu

reK

ey op

eration

Disp

lay

Calculate the

effective interest rate for tw

elve com

pounding periods w

ith an 18%

AP

R.

s 12

> 18

. P

12,18¬EFF

1956C

onvert this rate back to the origi-nal A

PR

.

12

> 19.56

. !

12,19.56¬APR

1800

3 Financial F


06.7.10 8:38:49 PM

52

Day an

d D

ate Calcu

lation

sU

sing day and date calculations, you can fi nd dates and the num

bers of days between dates.

Variab

les used

in d

ay and

date calcu

lation

s

Variab

leD

escriptio

nD

efault valu

e

M-D

-Y 1

The fi rst date

1-1-2001

M-D

-Y 2

The last date

1-1-2001

DAY

SN

umber of days

0

You can change the date form

at to D-M

-Y (see page 10).

Settin

g th

e day-co

un

t meth

od

You can toggle between the actual calendar (365 days plus leap

years) and a 360-day calendar (12 months of 30 days each)

using . &

. The actual calendar is set by default (360 is

not displayed). The calendar range is from

January 1, 1901 to D

ecember 31, 2099.

Basic o

peratio

ns


1. P



OR

MA

L mode.

2. S

elect day and date calcula-tions by pressing K

.• To end day and date calcula-

tions, press s. If you press

s during entry, any entered values w

ill be cleared.

3. C

hange the day-count method, using .

&, if neces-

sary.

4. E

nter the values of any two know

n variables: the fi rst date, the last date, or the num

ber of days.• F

or date entry, refer to page 47, ”Entering dates”.

5. M

ove to the variable you wish to calculate, using the z

and i

keys, and press @ to calculate.

• If the calculator is set to 360-day calendar mode (360 is

displayed), it is not possible to obtain either the fi rst or last dates, only the num

ber of days.

* 1* 1

* 1

M-D-Y1=[MO]

1-1-2001

3 Financial F


06.7.10 8:38:50 PM

53

C

alculatin

g n

um

ber o

f days

Calculate the num

ber of days between D

ecember 25, 2008 and

August 10, 2009 (using U

S date form

at and the actual calen-dar).

Pro

cedu

reK

ey op

eration

Disp

lay


play in NO

RM

AL m

ode.s

000S

elect day and date calculations, and set all the variables to default values.

K .

b

M-D-Y1=[MO]

1-1-2001

Make sure the actual calendar is set (360 is not displayed).

Enter the fi rst date.

12252008

QM-D-Y1=[TH]

12-25-2008E

nter the last date.i

8102009

QM-D-Y2=[MO]

8-10-2009M

ove to DAY

S and

calculate.i

@DAYS=22800

An

swer: 228 days

• If the 360-day calendar is selected, the answer w

ill be 225 days.

F

ind

ing

a date

Find the date 100 days after N

ovember 13, 2010 (using U

S date

format and the actual calendar).

Pro

cedu

reK

ey op

eration

Disp

lay


play in NO

RM

AL m

ode.s

000S

elect day and date calculations, and set all the variables to default values.

K .

b

M-D-Y1=[MO]

1-1-2001

Make sure the actual calendar is set (360 is not displayed).

Enter the fi rst date.

1113210

QM-D-Y1=[SA]

11-13-2010M

ove to DAY

S and en-

ter the number of days.

i i

100

QDAYS=10000

12

3 Financial F


06.7.10 8:38:51 PM

54

Pro

cedu

reK

ey op

eration

Disp

lay

Move to the last date

and calculate.z

@M-D-Y2=[MO]

2-21-2011A

nsw

er: The last date is F

ebruary 21, 2011.

Percen

t Ch

ang

e/Co

mp

ou

nd

Interest C

al-cu

lation

s U

sing percent change/compound interest calculations, you can

determine the values of percentage rates of change (increase or

decrease) or interest rates compounding periodically.

Variab

les used

in p

ercent ch

ang

e/com

po

un

d in

terest calcu

lation

s

Variab

leD

escriptio

nD

efault valu

e

OLD

PR

C (P

V)

Old price (old value)

0

NE

W P

RC

(FV

)N

ew price (new

value)0

% (I/Y

)P

ercent change0

PE

RIO

DS

(N)

Num

ber of compounding periods

1

Basic o

peratio

ns


1. P



OR

MA

L mode.

2. S

elect percent change/ com-

pound interest calculations by pressing .

B.

• To end percent change/com-

pound interest calculations, press s.


ill be cleared.

3. E

nter the values of any three known variables: old price, new

price, percent change, or num

ber of compounding periods.

4. M


and i


OLDPRC(PV)=

000

3 Financial F


06.7.10 8:38:52 PM

55

C

alculatin

g p

ercent ch

ang

e

Sales in a com

pany were $75,000 during the fi rst year of opera-

tion. The second year’s sales w

ere $116,000. What percentage

greater were the second year’s sales than fi rst year’s sales?

In this calculation, the number of com

pound periods is set to 1 (default).

Pro

cedu

reK

ey op

eration

Disp

lay


play in NO

RM

AL m

ode.s

000S

elect percent change/com

pound interest calculations, and set all the variables to default values.

. B

. b

OLDPRC(PV)=

000E

nter the old value.75000

QOLDPRC(PV)=

7500000E

nter the new value.

i 116000

QNEWPRC(FV)=

11600000C

alculate the percent change.

i @

%(I/Y)=5467

An

swer: T

he second year’s sales increased by 54.67% over

the fi rst year’s sales.

C

alculatin

g co

mp

ou

nd

interest rate

You opened an account compounding annually and deposited

$8,000 eighteen years ago. You currently have $9,800. What is

the compound interest rate?

Pro

cedu

reK

ey op

eration

Disp

lay


play in NO

RM

AL m

ode.s

000S

elect percent change/com

pound interest calculations, and set all the variables to default values.

. B

. b

OLDPRC(PV)=

000E

nter the old value.8000

QOLDPRC(PV)=

800000

12

3 Financial F


06.7.10 8:38:53 PM

56

Pro

cedu

reK

ey op

eration

Disp

lay

Enter the new

value.i

9800

QNEWPRC(FV)=

980000S

et the number of com

-pound periods to 18.

i i

18

QPERIODS(N)=

1800C

alculate the com-

pound interest rate.z

@%(I/Y)=113

An

swer: T

he compound interest rate is 1.13%

.

Co

st/Sell/M

argin

/Marku

p C

alculatio

ns

Using cost/sell/m

argin/markup calculations, you can determ

ine costs, selling prices, m

argins and markup.

Variab

les used

in co

st/sell/marg

in/m

arkup

calcula-

tion

sVariab

leD

escriptio

nD

efault valu

e

CO

ST

Cost

0

SE

LLS

elling price0

MA

RG

INP

rofi t margin (%

)0

MA

RK

UP

Markup (%

)0

P

rofi t margin (%

) is calculated based on selling price.

Markup (%

) is calculated based on cost.

Basic o

peratio

ns


1. P



OR

MA

L mode.

2. S

elect cost/sell/margin/ m

arkup calculations by pressing I

.• To end cost/sell/m

argin/mark-

up calculations, press s.


ill be cleared.

* 1

* 1* 2

* 2

COST=

000

3 Financial F


06.7.10 8:38:55 PM

57 3. E

nter the values of any two know

n variables as follows:

Un

kno

wn

variable

Kn

ow

n variab

les

CO

ST

SE

LL, and MA

RG

IN or M

AR

K U

P

SE

LLC

OS

T, and MA

RG

IN or M

AR

K U

P

MA

RG

INC

OS

T and S

ELL

MA

RK

UP

CO

ST

and SE

LL

B

ecause only either MA

RG

IN or M

AR

K U

P is used in any

cost/sell/margin/m

arkup calculation, the unused variable is given a value of “----------”. Initially, M

AR

K U

P is set to

“----------”. If you enter a value for MA

RK

UP, M

AR

GIN

is set to “----------”, and vice versa.

4. M


and i


D

etermin

ing

selling

price

In a furniture business, it is desirable to realize a 95% m

arkup from

cost to retail price for each item. A

certain sofa costs $455.60. W

hat should its selling price be?P

roced

ure

Key o

peratio

ns

Disp

lay


play in NO

RM

AL m

ode.s

000S

elect cost/sell/margin

markup calculations,

and set all the variables to default values.

I .

b

COST=

000E

nter cost.455.6

QCOST=45560

Enter m

arkup rate.i

i i

95

Q

MARKUP=9500

Calculate selling price.

z z

@SELL=88842

An

swer: T

he selling price should be $888.42.

* 1* 1

* 1

3 Financial F


06.7.10 8:38:56 PM

58

Breakeven

Calcu

lation

sU

sing breakeven calculations, you can calculate fi xed cost, vari-able cost per unit, unit price, profi t and quantity.

Variab

les used

in b

reakeven calcu

lation

s

Variab

leD

escriptio

nD

efault valu

e

FIX

ED

Fixed cost

0

VA

RIA

BLE

Variable cost per unit

0

PR

ICE

Unit price

0

PR

OF

ITP

rofi t0

QU

AN

TIT

YQ

uantity0

Basic o

peratio

ns


1. P



OR

MA

L mode.

2. S

elect breakeven calculations by pressing $

.• To end breakeven calcula-

tions, press s.


ill be cleared.

3. E

nter the values of any four known variables.

4. M


and i


C

alculatin

g th

e breakeven

po

int

Your company has developed a new

product and plans to sell it at a price of $120 per unit. T

he variable cost per unit is $75.80 and the fi xed costs total $15,000. W

hat is the breakeven point for this product?

Pro

cedu

reK

ey op

eration

Disp

lay


play in NO

RM

AL m

ode.s

000

FIXED=

000

3 Financial F


06.7.10 8:38:57 PM

59

Pro

cedu

reK

ey op

eration

Disp

lay

Select breakeven

calculations, and set all the variables to default values.

$ .

b

FIXED=

000E

nter fi xed cost.15000

QFIXED=

1500000E

nter variable cost per unit.

i 75.80

QVARIABLE=

7580E

nter unit price.i

120

QPRICE=12000

Leave profi t as is.i

PROFIT=000

Calculate quantity.

i @

QUANTITY=

33937A

nsw

er: The breakeven point of this product is 339.37 units.

3 Financial F


06.7.10 8:38:58 PM

60

Ch

ap

ter 4

Sc

ien

ti� c F

un

ctio

ns

This calculator has a variety of functions. P

ress m 0

to select N

OR

MA

L mode and perform

scientifi c calculations.

• For basic calculations, see page 11.

• When a listed fi nancial variable is displayed, you can enter

the result of a scientifi c calculation into it by pressing Q

imm

ediately after completing the calculation.

• Scientifi c calculations can also be perform

ed in STAT

mode.

• The exam

ples in this chapter are all performed under the S

ET

U

P m

enu’s default settings. Before starting calculation, press

s to clear the display.

Co

nstan

t Calcu

lation

sE

xamp

leK

ey op

eration

Resu

lt

34 + 57 =

s 34

+ 57

=9100

45 + 57 =

45

=10200

68 × 25 =

68

x 25

=170000

68 × 40 =

40

=272000

• In constant calculations, the addend becomes a constant.

Subtraction and division behave the sam

e way. F

or multiplica-

tion, the multiplicand becom

es a constant.• In constant calculations, constants w

ill be displayed as .

Ch

ain C

alculatio

ns

A calculation result (A

NS

mem

ory) can be used in a subse-quent calculation. H

owever, it cannot be recalled after entering

multiple instructions.

Exam

ple

Key o

peratio

nR

esult

6 + 4 =

AN

SA

NS

+ 5 =

s6

+4

=

+5

=10001500

8 × 2 =

AN

SA

NS

2 =8

x 2

=.

; =

160025600

44 + 37 =

AN

S A

NS

=44

+ 37

=.

} =

8100900

4 Scientific C

alculations.indd 6006.7.10 8:02:12 P

M

61 Scien

tifi c Calcu

lation

sE

xamp

leK

ey op

eration

Disp

lay

sin 60 [°] =s

. {

60

=

sin60=

087cos —

[rad] =~

1 1

.

c (

. t

8

4 )

=cos(π©4)=071

tan–1 1 [g] =

~ 1

2 .

7

1 =

tan

- |1=5000

tan–1 1 [°] =

~ 1

0 .

7

1 =

tan

- |1=4500

• The range of the results of inverse trigonom

etric functions

� = sin

–1x, � = tan

–1x� =

cos–1x

DE

G–90 � � � 90

0 � � � 180

RA

D– —

� � � —0 � � � �

GR

AD

–100 � � � 1000 � � � 200

Exam

ple

Key o

peratio

nR

esult

(cosh 1.5 +

sinh 1.5) 2 =s

( .

] c

1.5

+

. ]

{1.5

)

. ;

=2009

tanh–1 —

=.

] 7

(5

8 7

)

=090

log 50 =.

h 50

=170

In 20 =.

d 20

=300

101.7 =

. :

1.7

=5012

e3 =

. R

3 =

2009

— +

— =

6 .

; +

7 .

;

=031

8–2 – 3

4 × 52 =

8 .

@ ,

2 -

3

. @

4 x

5 .

;

=-202498

(123) – =

12

. @

3 .

@ 4

.

; =

645 49 – 4 81 =

. }

49

- 4

. :

81

=400

�4

�2�2

14

1617

57

4 Scientific C


M

62

Exam

ple

Key o

peratio

nR

esult

4! =4

. o

=2400

10 P3 =

10

. q

3 =

72000

5 C2 =

5 .

p 2

=1000

What is 25%

of 500?

500

x 25

. %

12500

What

percentage of 400 is 120?

120

8 400

. %

3000

500 + (500 ×

25%

) =500

+ 25

. %

62500

400 – (400 ×

30%) =

400

- 30

. %

28000

Ran

do

m F

un

ction

sT

his calculator has four kinds of random functions (the 2nd func-

tion of the - key).

Ran

do

m n

um

bers

A pseudo-random

number, consisting of three signifi cant digits

from zero up to 0.999, can be generated by pressing .

|

0 =

. To generate further random num

bers in succession, press =

for each number. P

ress s to exit.

• To display numbers w

ith three signifi cant digits, set the display notation settings to “fl oating point”.

Ran

do

m d

ice

To simulate a die roll, a random

integer between 1 and 6 can

be generated by pressing . |

1 =

. To generate further random

numbers in succession, press =

for each num

ber. Press s

to exit.

Ran

do

m co

in

To simulate a coin fl ip, 0 (heads) or 1 (tails) can be random

ly generated by pressing .

| 2

=. To generate

further random num

bers in succession, press = for each

number. P

ress s to exit.

4 Scientific C


M

63 Ran

do

m in

teger

An integer betw

een 0 and 99 can be generated randomly by

pressing . |

3 =

. To generate further random

numbers in succession, press =

for each number. P

ress s

to exit.

Exam

ple

Key o

peratio

nD

isplay

Pick a random

number

between zero and 9.99.

s .

| 0

x

10

=RANDOMx1—=532

• The result w

ill not be the same each tim

e this operation is perform

ed.

Mo

dify F

un

ction

Calculation results are internally obtained in scientifi c notation

with a m

antissa of up to 14 digits. How

ever, because calculation results are displayed in the form

designated by the display nota-tion and the num

ber of decimal places indicated, a displayed

calculation result may differ from

that held internally. By using

the modify function (the 2nd function of the +

key), the internal value is converted to m

atch that of the display, so that the displayed value can be used w

ithout change in subsequent operations.

Exam

ple

Key o

peratio

nR

esult

5 ÷ 9 =

AN

SA

NS

× 9 =

[FIX

, TAB

= 2]

s 5

8 9

=

x 9

=056500

5 8

9 =

.

l x

9 =

056504

5.5555555555555 ×

10–1 ×

9

0.56 × 9

* 1

* 2

* 1* 2

4 Scientific C


M

64

Ch

ap

ter 5

Sta

tistica

l Fu

nc

tion

sS

tatistical calculations can be performed in S

TAT m

ode. The

symbol w

ill be visible if you are in STAT

mode.

There are seven sub-m

odes within S

TAT m

ode, corresponding to each of the functions below

:

Key o

peratio

nS

ub

-mo

de

Disp

lay

m 1

0

m 1

1

m 1

2

m 1

3

m 1

4

m 1

5

m 1

6

SD

: Single-variable statistics

LINE

: Linear regression

QU

AD

: Quadratic regression

EX

P: E

xponential regression

LOG

: Logarithmic regression

PW

R: P

ower regression

INV

: Inverse regression

Stat—

Stat1

Stat2

Stat3

Stat4

Stat5

Stat6

En

tering

statistical data

Before you can perform

statistical calculations, you will need to

enter your data. In STAT

mode, use >

and J (the Q

key) to enter the follow

ing:

Fo

r a sing

le-variable d

ata set:V

alue JV

alue > frequency J

(To enter multiples of the sam

e value)

Fo

r a two

-variable d

ata set:x value >

y value Jx value >

y value > frequency J

(To enter multiples

of the same x and y values)

No

te:B

efore entering data, clear any previously entered data from

mem

ory by doing either of the following:

• P

ress . b

in STAT

mode.

• S

witch sub-m

odes within S

TAT m

ode.

5 Statistical C


M

65 • You can enter a total of up to 100 statistical and/or cash fl ow

data items. F

or single-variable data, a data set without a

frequency is counted as one data item, and a data set w

ith an assigned frequency is counted as tw

o data items. F

or two-

variable data, a data set without a frequency is counted as

two data item

s, while a data set w

ith an assigned frequency is counted as three data item

s.• If you w

ish to correct a value before pressing J, press

L or s

to delete the entry, then enter the correct value.

E

nterin

g statistical d

ata

Enter the data in the table to the right using

the “Stat 0” sub-m

ode.

Pro

cedu

reK

ey op

eration

Disp

lay

Enter the “S

tat 0” sub-m

ode.s

m 1

0Stat—

000E

nter statistical data.30

JDATASET=100

40

> 2

JDATASET=200

50

JDATASET=300

Return to the “S

tat 0” display.

sStat—

000

If there is data stored in mem

ory, press . b

(within

STAT

mode) to clear it.

T

he format of the data set (the sam

ple and frequency values) num

ber, which is initially set to “1.00”, is dependent on calcu-

lator notation settings.

DA

TA

30404050

* 1* 2

* 1* 2

5 Statistical C


M

66

Co

nfi rm

ing

and

editin

g d

ata

• Use z

/ i to display a data item

from a previously

entered data set.

• Press .

z or .

i to jum

p to the fi rst or last data item

, respectively.

• Each data item

is displayed in the form: “X

n = ( x value)”, “Y

n =

( y value)”, or “FR

Qn =

(frequency)”, where “n” is the data set

number.

Ed

iting

data

• Display the data item

you wish to m

odify by using z / i

, enter a new

value and press J.

Deletin

g d

ata• D

isplay the data item to be deleted by using z

/i, and

press . ?

. • If a value/frequency is deleted, the corresponding frequency/

value is also deleted.• If you w

ish to delete all data, press . b

.

Insertin

g d

ataU

sing the z and i

keys, specify the correct place to insert your new

data by displaying the value that is to come

directly after, and then press . e

. A new

data set with a

value of zero and a frequency of one will be inserted. M

odify the new

data set to include your data.

X1=

1000

Data set num

ber

x value

Y1=

2000

Data set num

ber

y value

FRQ1=

1100

Data set num

ber

Frequency

5 Statistical C


M

67 E

ditin

g statistical d

ata

Change the previously entered data from

page 65 as follows:

Pro

cedu

reK

ey op

eration

Disp

lay

Display the statistical

data.i

X1=

3000C

hange the “40, 2” data set to “45, 3”.

i i

45

J

i 3

JFRQ2=

300D

elete “50”.i

. ?

Stat—

000A

dd “60”.60

JDATASET=300

Statistical C

alculatio

ns an

d V

ariables

The follow

ing results can be obtained for each statistical calcula-tion (refer to the table below

):

Sin

gle-variab

le statistical calculatio

ns

Section �

results only.

Lin

ear regressio

n calcu

lation

s

Section �

and � results, except for coeffi cients c.

The estim

ate of y for a given x (estimate y´) and the estim

ate of x for a given y (estim

ate x´) can also be found.

Qu

adratic reg

ression

calculatio

n

Section �

and � results, and coeffi cients a, b, and c in the qua-

dratic regression formula ( y =

a + bx +

cx2). In quadratic regres-

sion calculations, no correlation coeffi cient r can be obtained.

DA

TA

30404050

DA

TA

3045454560

5 Statistical C


M

68

The estim



ate x´) can also be found. When there

are two x values, the C

OM

P sym

bol will appear. P

ress @ to

switch betw

een x values.

Exp

on

ential reg

ression

, log

arithm

ic regressio

n, p

ow

-er reg

ression

, and

inverse regressio

n calcu

lation

s

Section �

and � results, except for coeffi cients c.

The estim



ate x´) can also be found. Because the

calculator converts each formula into a linear regression before

actual calculation takes place, it obtains all statistics — except

coeffi cients a and b — from

converted data rather than from

entered data.

Variab

lesC

on

tent

①

nN

umber of sam

ples

xM

ean of samples ( x values)

sxS

ample standard deviation ( x values)

�x

Population standard deviation ( x values)

�x

Sum

of samples ( x values)

�x

2S

um of squares of sam

ples ( x values)

②

yM

ean of samples ( y values)

syS

ample standard deviation ( y values)

�y

Population standard deviation ( y values)

�y

Sum

of samples ( y values)

�y

2S

um of squares of sam

ples ( y values)

�xy

Sum

of products of samples ( x, y)

aC

oeffi cient of regression equation

bC

oeffi cient of regression equation

cC

oeffi cient of quadratic regression equation

rC

orrelation coeffi cient

• Use i

or f to perform

a variable calculation in STAT

m

ode.

5 Statistical C


M

69

S

ing

le-variable statistical calcu

lation

Exam

ple

Key o

peratio

nR

esult

m 1

0 .

b

Stat—

000

9595

JDATASET=100

8080

JDATASET=200

80J

DATASET=300

75757575

> 3

JDATASET=400

5050

JDATASET=500

x =f

=–x

7571 =

�x =

f 2

1237σ≈=

n =f

n700

n=

�x =

f U

53000Í≈=

�x

2 =f

[4120000

Í≈Œ=

sx =f

41336

Sx=

sx2 =

. ;

=17857

SxŒ=

— × 10 +

50 =

( 95

- i

=

) 8

i

4 x

10

+ 50

=

6443

DA

TA

1

(95 – x)

sx

5 Statistical C


M

70

L

inear reg

ression

calculatio

n

Exam

ple

Key o

peratio

nR

esult

xy

m 1

1

Stat1

000

25

2 >

5 J

DATASET=100

25

JDATASET=200

1224

12

> 24

JDATASET=300

212121

40404021

> 40

> 3

JDATASET=400

1525

15

> 25

JDATASET=500

a =f

a105

a=

b =f

b183

b=

r =f

r100

r=

sx =f

4854

Sx=

sy =f

51567

Sy=

x = 3

y´ = ?

3 .

?653

3y

y = 4

6 x´ =

?46

. 9

246246x´

DA

TA 2

5 Statistical C


M

71

Q

uad

ratic regressio

n calcu

lation

Exam

ple

Key o

peratio

nR

esult

xy

m 1

2

Stat2

00012

4112

> 41

JDATASET=100

813

8 >

13

JDATASET=200

52

5 >

2 J

DATASET=300

23200

23

> 200

JDATASET=400

1571

15

> 71

JDATASET=500

a =f

a536

a=

b =f

b-312

b=

c =f

a050

c=

x = 1

0 y´ =

?10

. ?

244910

y

y = 2

2 x´ =

?22

. 9

@@

963≈¡=

-343≈™=

963≈¡=

3

DA

TA

5 Statistical C


M

72

Ap

pe

nd

ixF

inan

cial Calcu

lation

Fo

rmu

lasT

VM

solver

PM

T, P

V, F

V, N

Error

I/Y

If PM

T = 0 then

If N =

1 then

If PM

T � 0 or N � 1 then � nd i using the fol-

lowing equations:

+

Errori� –1

Am

ortization calculationsC

alculations (for P

V, PM

T, and i, see the TV

M solver)

EN

D

INT

(1) = R

OU

ND

(–PV

× i)

BG

N

INT

(1) = 0

PR

N(1) =

–INT

(1) + R

OU

ND

(PM

T)

BA

L(1) =

PR

N(1) +

PV

INT

(m) =

RO

UN

D(–B

AL

(m – 1) × i)

PR

N(m

) = –IN

T(m

) + R

OU

ND

(PM

T)

BA

L(m

) = P

RN

(m) +

BA

L(m

– 1)

RO

UN

D(N

UM

): If a display notation tab setting has been chosen, N

UM

is rounded and truncated to the speci� ed num

ber of places after the decim

al point.

Results

ErrorA

MR

T P1 >

AM

RT P

2

Disco

un

ted cash

fl ow

an

alysismm

CF

where i =

RA

TE

(I/Y)

100, C

Fim

ax = the m

axi-

mum

data set number

IRR

is obtained as i, which satis� es N

PV

= 0

in the above equations.

Appendix.indd 72

06.7.10 8:41:48 PM

73 Bo

nd

calculatio

ns

In its bond calculations, this calculator conforms to rules set up by

the book titled Standard S

ecurities Calculation M

ethods, by Jan M

ayle, Securities Industry A

ssociation, 1993.B

ond calculation is based on the following rules:

1. W

henever the redemption date happens to be the last day of a

month, coupons are also paid on the last days of m

onths. For

example, if coupon paym

ents are semi-annual and the redem

p-tion date is S

eptember 30, coupon paym

ents occur on March 31

and Septem

ber 30.

2. If coupons are to be paid tw

ice a year and the redemption date

is set to August 29, 30, or 31, coupon paym

ents for February

occur on the 28th (29th for leap years).

3. T

he “Odd C

oupon” is not supported.

4. A

ll data stored or calculated for bonds are assumed to be posi-

tive values. Negative values in any of the variables used by bond

calculations will cause errors.

The form

ulas used for bond calculations are shown using the follow

-ing variable defi nitions:T

D: Total num

ber of days in the coupon period that begins with the

coupon date previous to the settlement date and ends w

ith the fi rst coupon date after the settlem

ent date. (On the 360-day

calendar, TD

is 180 for semi-annual coupon and 360 for annual

coupon.)P

D: T

he number of days preceding the settlem

ent date in the cou-pon period described above. (see “D

ay and date calculations”)F

D: T

he number of days follow

ing the settlement date in the coupon

period described above (in TD

).

FD

= T

D – P

DN

P: T

he number of w

hole coupon periods between the settlem

ent date and the redem

ption date (rounded up to the next highest w

hole number, if necessary).

For one coupon period or less until redem

ption of bond:

For m

ore than one coupon period until redemption:

where C

PN

= C

OU

PO

N(P

MT

), RD

V =

RE

DE

MP

T(F

V), N

= C

PN

/Y(N

), YIE

LD

= Y

IEL

D(I/Y

), P

RIC

E =

PR

ICE

(PV

). Yield is obtained as Y

IEL

D, w

hich satis� es the above equations.

Error

CP

N <

0 or RD

V <

0 or PR

ICE

< 0 or M

-D-Y

1 � M-D

-Y 2 or Y

IEL

D � –100

Appendix.indd 73

06.7.10 8:41:58 PM

74

Dep

reciation

calculatio

ns

RO

UN

D(N

UM

): If a display notation tab setting has been chosen, N

UM

is rounded and truncated to the speci� ed num

ber of places after the decim

al point.

In the following equations, M

01 = STA

RT

MO

NT

H, L

IF =

LIF

E(N

), CST =

CO

ST(P

V),

SAL =

SALVA

GE

(FV

), and DB

= D

B(I/Y

).

Straight-line method (SL

)C

alculations

If 1 < n <

end_year then

Results

Sum-of-the-years� digits m

ethod (SYD

)C

alculations

Results

Declining balance m

ethod (DB

)C

alculations

Results

Error

CST <

0

SAL <

0

CST <

SAL

LIF

: when SL

, LIF

� 0w

hen SYD

or DB

, LIF

is not a positive integer

I/Y <

0 (DB

only)

Co

nversion

betw

een

AP

R an

d E

FF

N, E

FF

¬ A

PR

(( + 1) –1) N

100E

FF

100

1N

Error

EF

F � –100

N, A

PR

¬ E

FF

(( + 1) –1) 100

AP

RN

100N

Error

≤ –100A

PR

N

Day and date calculations

In day and date calculations, this calculator conform

s to rules set up in the book titled Stan-dard Securities C

alculation Methods, by Jan

Mayle, Securities Industry A

ssociation, 1993.

Appendix.indd 74

06.7.10 8:42:00 PM

75 30/360

1. Adjust D

1 and D2 according to the fol-

lowing rules:

(1) If D2 and D

1 are both the last day of F

ebruary, change D2 to 30.

(2) If D1 is the last day of F

ebruary, change D

1 to 30.

(3) If D2 is 31 and D

1 is 30 or 31, change D

2 to 30.

(4) If D1 is 31, change D

1 to 30.

2. Calculate using the follow

ing formula:

DA

YS =

(Y2 – Y

1) × 360 + (M

2 – M1) ×

30 + (D

2 – D1)

Actual

Percent change/Com

pound interest calculations

where N

EW

= N

EW

PR

C(F

V), O

LD

= O

LD

P

RC

(PV

), %C

H =

%(I/Y

), PD

= P

ER

IOD

S(N)

Error

%C

H � –100

NE

W × O

LD

� 0

Co

st/Sell/M

argin

/Marku

p

calculatio

ns

where M

AR

= M

AR

GIN

, MU

= M

AR

K U

P

Breakeven

calculatio

ns

Statistical C

alcula-

tion

Fo

rmu

lasTyp

eR

egressio

n fo

rmu

la

Lineary =

a + bx

Quadratic

y = a +

bx + cx

2

Exponential

y = a • e

bx

Logarithmic

y = a +

b • Inx

Pow

ery =

a • xb

Inverse 1 y =

a + b x

x = xn Σ

sx = x

2 – nx2

n – 1Σ

x = x

2 – nx2

nσ

Σ

x = x

1 + x

2 + ··· +

xn

Σ

x2 =

x12 +

x22 +

··· + xn

2Σy =

yn Σ

sy = y

2 – ny2

n – 1Σ

y = y

2 – ny2

nΣ

σ

y = y1 +

y2 + ··· +

ynΣ

y2 =

y12 +

y22 +

··· + y

n2

Σ

xy = x1 y1 +

x2 y2 + ··· +

xn ynΣA

n error will occur in a statisti-

cal calculation if:

• The absolute value of an

intermediate or calculation

result is equal to or greater than 1 × 10

100.• T

he denominator is zero.

• An attem

pt is made to fi nd

the square root of a negative num

ber.• N

o solution exists for a qua-dratic regression calculation.

Appendix.indd 75

06.7.10 8:42:06 PM

76

Erro

rs and

Calcu

lation

Ran

ges

Erro

rs

An error w

ill occur if an operation exceeds the calculation rang-es, or if a m

athematically illegal operation is attem

pted. When

an error occurs, pressing g or y

automatically m

oves the cursor back to the place in the equation w

here the error oc-curred. E

dit the equation or press s to clear the equation.

No

te: If an error occurs during the automatic calculation of a

listed fi nancial variable, pressing s, g

, or y

displays the fi rst variable in the function.

Erro

r cod

es and

error typ

es

Syn

tax error (E

rror 1):

• An attem

pt was m

ade to perform an invalid operation.

Ex. 2 +

- 5 =

• During the editing or insertion of cash fl ow

or statistical data, a value w

as entered but . ?

was pressed before J

.

Calcu

lation

error (E

rror 2):

• The absolute value of an interm

ediate or fi nal calculation result equals or exceeds 10

100.• A

n attempt w

as made to divide by zero.

• The calculation ranges w

ere exceeded while perform

ing cal-culations.

• There w

as a fi nancial calculation error, such as:• an error listed in “F

inancial Calculation F

ormulas” (see

pages 72 – 75) occurred• an attem

pt was m

ade to fi nd I/Y w

hen PV, P

MT

× N, and

FV

contain all negative or all positive values• an attem

pt was m

ade to fi nd IRR

when the cash fl ow

data contains all negative or all positive values

• an attempt w

as made to fi nd Y

IELD

in a bond calculation w

hen any of CO

UP

ON

, RE

DE

MP

T, or PR

ICE

contain negative values

Dep

th erro

r (Erro

r 3):• T

he available number of buffers w

as exceeded. (There are

10 buffers for numeric values and 24 buffers for calculation

instructions).• T

he number of entered cash fl ow

and statistics data items

combined exceeded 100.

Appendix.indd 76

06.7.10 8:42:13 PM

77 Eq

uatio

n to

o lo

ng

(Erro

r 4):• T

he equation exceeded its maxim

um input buffer (160 charac-

ters).A

n equation must be shorter than 160 characters.

No

solu

tion

(Erro

r 5):• T

he iteration limit w

as exceeded while calculating one of the

following values in an overly com

plex problem:

• I/Y (T

VM

solver)• IR

R (D

iscounted cash fl ow analysis)

• YIE

LD (B

ond calculations)

If you get an error w

hile calculating IRR

, enter an estimated

value into RAT

E(I/Y

) and calculate again.

Disp

lay error (E

rror 6):

• An attem

pt was m

ade to display “9.999 × 1099” w

hen the dis-play notation tab num

ber was set to “2”.

If this happens, press s

and ~ 0

2 to set the

display notation settings to “fl oating point”. Then try again.

Inp

ut valu

e error (E

rror 7):

• An attem

pt was m

ade to enter a nonexistent date.E

x. February 30th

• An attem

pt was m

ade to enter an invalid numeric value into a

fi nancial calculation.• a negative value or 0 into P

/Y or C

/Y• anything except an integer betw

een 1 and 9,999 into AM

RT

P

1 or AM

RT

P2

• a non-integer into DAY

S• anything except 1 or 2 into C

PN

/Y• anything except an integer betw

een 1 and 999 as a cash fl ow

frequency• anything except a positive integer into Y

EA

R• anything except a value betw

een 1 and 13 into STA

RT

M

ON

TH

* 1

* 1

Appendix.indd 77

06.7.10 8:42:13 PM

78

Calcu

lation

rang

es of fu

nctio

ns

• Within the ranges specifi ed, this calculator is accurate to w

ithin ±1 of the least signifi cant digit of the m

antissa. How

ever, a calculation error increases in continuous calculations due to accum

ulation of each calculation error. (T

his is the same for fi nancial calculations,

scientifi c calculations [ yx, x

, ex, ln, n!, etc.], w

here continuous calculations are perform

ed internally.)A

dditionally, a calculation error will accum

ulate and become larger

in the vicinity of infl ection points and singular points of functions.

In fi nancial calculations, a calculation error increases if the interest is low

or the number of paym

ents is high. Press s

if you’d like to cancel the calculation w

hile the “calculating!” screen is displayed.

• Calculation ranges

±

10–99 to ±

9.999999999 × 1099 and 0.

If the absolute value of an entry or a fi nal or intermediate result

of a calculation is less than 10–99, the value is considered to be

0 in calculations and in the display.

Fu

nctio

nC

alculatio

n ran

ge

sin x, cos x, tan x

DE

G: | x | <

1010

(tan x : | x | � 90 (2n – 1))*�

RA

D: | x | <

— × 10

10

180�

(tan x : | x | � — (2n – 1))*

210

GR

AD

: | x | < —

× 1010

9(tan x : | x | � 100 (2n – 1))*

sin–1 x, cos

–1 x| x | � 1

tan–1 x

| x | < 10

100

In x, log x10

–99 � x < 10

100

y x

• y > 0: –10

100 < x log y <

100• y =

0: 0 < x <

10100

• y < 0: x =

n

(0 < | x | <

1: 1—x = 2n – 1, x � 0),*

–10100 <

x log | y | < 100

Appendix.indd 78

06.7.10 8:42:14 PM

79

Fu

nctio

nC

alculatio

n ran

ge

xy

• y > 0: –10

100 < 1—x log y <

100 ( x � 0)

• y = 0: 0 <

x < 10

100

• y < 0: x =

2n – 1

(0 < | x | <

1: 1—x = n, x � 0),*

–10100 <

1—x log | y | < 100

ex

–10100 <

x � 230.2585092

10x

–10100 <

x < 100

sinh x, cosh x, tanh x

| x | � 230.2585092

sinh–1 x

| x | < 10

50

cosh–1 x

1 � x < 10

50

tanh–1 x

| x | < 1

x2

| x | < 10

50

x0 � x <

10100

1/ x| x | <

10100 ( x � 0)

n!0 � n � 69*

nPr

0 � r � n � 9,999,999,999*n!

— <

10100

(n – r)!

nCr

0 � r � n � 9,999,999,999*0 � r � 69

n!—

< 10

100

(n – r)!

* n, r: integer

Appendix.indd 79

06.7.10 8:42:16 PM

80

Battery R

eplacem

ent

No

tes on

battery rep

lacemen

t

Improper handling of battery can cause electrolyte leakage or

explosion. Be sure to observe the follow

ing handling rules:• M

ake sure the new battery is the correct type.

• When installing, orient the battery correctly, as indicated in the

calculator.• T

he factory-installed battery may be exhausted before it

reaches the service life stated in the specifi cations.

No

te on

the erasu

re of m

emo

ry con

tents

When the battery is replaced, the m

emory contents are

erased. Erasure can also occur if the calculator is defective

or when it is repaired. M

ake a note of all important m

emory

contents in case accidental erasure occurs.

Wh

en to

replace th

e battery

If the display has poor contrast, or if nothing appears on the screen, even w

hen s is pressed, it is tim

e to replace the bat-tery.

Cau

tion

• Fluid from

a leaking battery accidentally entering an eye could result in serious injury. S

hould this occur, wash w

ith clean w

ater and imm

ediately consult a doctor.• S

hould fl uid from a leaking battery com

e into contact with your

skin or clothes, wash them

imm

ediately with clean w

ater.• If the product is not to be used for som

e time, to avoid dam

-age to the unit from

leaking battery, remove it and store in a

safe place.• K

eep battery out of the reach of children.• E

xhausted battery that is left in the calculator may leak and

damage the unit.

• Explosion risk m

ay be caused by incorrect handling.• D

o not throw battery into a fi re, as it m

ay explode.

Appendix.indd 80

06.7.10 8:42:17 PM

81 Rep

lacemen

t pro

cedu

re

1. Turn the pow

er off by pressing . c

.

2. Loosen the screw

and remove the battery cover.

(see fi g. 1)

3. R

emove the used battery using a ball-point

pen or similar object. D

o not use a mechani-

cal pencil or any sharp or pointed object to rem

ove the battery. (see fi g. 2)

4. Install a new

battery into the battery housing w

ith the positive side (+) facing up. (see fi g. 3)

5. R

eplace the battery cover and the screw.

6. P

ress the RE

SE

T sw

itch located on the back of the calculator w

ith the tip of a ball-point pen or sim

ilar object. Do not use an object w

ith a breakable or sharp tip. (see fi g. 4)

• Make sure that the display appears as show

n. If not, rem

ove the battery, reinstall, and check the display again.

Au

tom

atic po

wer-o

ff fun

ction

This calculator w

ill turn its power off autom

atically if no key is pressed for about 10 m

inutes.

Prio

rity Levels in

Calcu

lation

s

This calculator perform

s operations according to the following

priority:1.

Functions preceded by their argum

ent ( x2, n!, etc.)

2. y

x, x

3. Im

plied multiplication of a m

emory value (2Y, etc.)

4. F

unctions followed by their argum

ent (sin, cos, etc.)5.

Implied m

ultiplication of a function (2sin 30, etc.)6.

nCr, nP

r7.

× , ÷8. +

, –9.

=, M+, M

–, �M

, and any other calculation ending instructions

000

fi g. 3

fi g. 4

fi g. 1

fi g. 2

Appendix.indd 81

06.7.10 8:42:18 PM

82

K

ey op

eration

and

calculatio

n p

riority

5 +

2 x

. {

30

+ 25

x 5

. @

3 =

• Parenthesized operations take precedence over other operations.

Sp

ecifi cation

sC

alculations: F

inancial calculations

General arithm

etic calculations

Scientifi c calculations

S

tatistical calculations

Calculation m

ethod: D

.A.L. (D

irect Algebraic Logic)

Internal calculations: M

antissas of up to 14 digits

Pending operations:

24 calculations, 10 numeric values

Pow

er source: 3.0 V

… (D

C)

Lithium

battery (CR

2032) × 1

Pow

er consumption:

0.0004 W

Operating life:

Approx. 5 years (w

ith 1 hour of daily use)

• M

ay vary depending on the operating

environment and operation m

ethod.

Operating tem

perature: 0°C – 40°C

(32°F – 104°F

)

External dim

ensions: 83 m

m (W

) × 150 mm

(D) × 11 m

m (H

)3-9/32” (W

) × 5-29/32” (D) × 7/16” (H

)

Weight:

Approx. 98 g (0.22 lb.)

(including battery but not wallet-type

case)

Accessories:

Battery × 1 (installed), operation

manual, and w

allet-type case.

Fo

r mo

re info

rmatio

n ab

ou

t busin

ess/fi n

ancial calcu

lators

Visit us on the Internet at:

http://sharp-world.com

/calculator/

Appendix.indd 82

06.7.10 10:13:34 PM

83 Ind

ex>

, 37, 51, 64+

- x

8, 4, 11

=, 11, 15

,, 11, 37, 61

( )

, 11, 16, 61<

, 23}

:, 60, 61

%, 16, 62

B, 54

z i

g y

, 6, 13!

P, 51

., 11

t, 16, 61

;, 61

:, 61

., 4, 6, 7

&, 44, 45, 52

i, 4, 6, 7, 15

*, 33

/, 15, 16, 23

", 22, 28, 33

#, 45

$, 58

b, 12, 19

<, 41

>, 37, 38

?, 39, 66

@, 7, 19

I, 56

J, 37, 64

K, 52

L, 12

O, 49

Q, 7, 19

R, 61

S, 11

T, 22, 23

], 7, 61

f, 22, 23

d, 13

e, 39, 66

d, 61

h, 61

M, 15

h, 11, 16

j, 16

k, 5, 12, 13

l, 63

m, 6, 10, 12

N, 22, 23

o, 62

p q

, 62c

, 6s

, 6, 12w

, 22, 23u

, 22, 23

v, 22, 23

|, 62, 63

f, 7, 15

~, 6, 8–10

g, 7, 15

;, 16, 60, 61, 69

@, 61

% (I/Y

), 18, 54, 75�

INT

ER

ES

T, 33, 72�

PR

INC

IPAL, 33, 72

AC

CU

INT, 44

Am

ortization calculations,17, 33–36, 72

AM

RT

P1, A

MR

T P

2, 12, 33, 77A

ngular unit, 8, 9, 61A

nnuity due, 7, 22, 28A

NS

(last answer m

emory), 14, 15

AP

R, 17, 51, 74

Arithm

etic calculations, 11A

rithmetic operations (+

, –, × , ÷), 11

Autom

atic power-off function, 81

BA

LAN

CE

, 33, 72B

attery replacement, 80, 81

Bond calculations, 17, 18, 44–47, 73

Breakeven calculations, 17, 58, 59, 75 (sym

bol), 8, 20C

alculation ranges, 78, 79C

alculator layout, 6C

alendar range, 44, 47, 52C

ash flow data, 12, 37–40, 76

Cash flow

diagrams, 21

Chain calculations, 60

CO

MP

(symbol), 7, 20

Com

pound interest, 21, 54–56, 75C

onstant calculations, 60C

onversion between A

PR

and EFF, 17, 51

CO

ST, 56, 75

CO

ST

(PV

), 18, 48, 74C

ost/sell/margin/m

arkup calculations,17, 56, 57, 75

CO

UP

ON

(PM

T), 18, 44, 73, 76

CP

N/Y

(N), 18, 44, 77

Cursor key, 6, 13

C/Y, 18, 22, 72, 77

Date form

at, 10, 44, 47, 52D

ay and date calculations,17, 18, 52–54, 74

Day-count m

ethod (AC

T/360), 44, 52

DAY

S, 52, 53, 75

DB

, 9, 48, 74D

B (I/Y

), 18, 48, 74D

ecimal place, 8, 9, 63

DE

G, 8, 9, 61, 78

Delete key, 12

DE

PR

EC

IATE

, 48D

epreciation calculations,17, 18, 48–50, 74

Depreciation m

ethod, 9, 48

Appendix.indd 83

06.7.10 8:42:20 PM

84

Discounted cash flow

analysis,17, 18, 37–43, 72

Display layout, 7

Display notation, 8

EF

F, 17, 51, 74E

NT

(symbol), 7, 20

Entering dates, 47

Entering num

bers, 11E

rror, 14, 76–78E

XP, 64

Financial calculations, 17, 18, 72

FIX

ED

, 58, 75FLO

_A (FLO

AT A), FLO

_B (FLO

AT B), 7, 9

Floating point, 8, 9

Form

ulas, 72–75F

V, 18, 22, 72G

RA

D, 8, 9, 61, 78

Independent mem

ory (M), 8, 12, 14, 15

Insert mode, 13

INV, 64

IRR

, 40, 41, 72, 77I/Y, 18, 22, 72, 77LIF

E (N

), 18, 48, 74LIN

E, 64

Listed financial variables, 12, 14, 15, 18, 19LO

G, 64

M (sym

bol), 8M

AR

GIN

, 56, 75M

AR

K U

P, 56, 75M

-D-Y

1, M-D

-Y 2, 18, 44, 52, 73, 75

Mem

ory clear key, 5, 12, 13M

odify function, 63N

, 18, 22, 72N

OR

MA

L mode, 10, 17, 60

NE

T_P

V, 40N

EW

PR

C (F

V), 18, 54, 75

NP

V, 40, 41, 72O

LD P

RC

(PV

), 18, 54, 75O

rdinary annuity, 7, 22, 28O

verwrite m

ode, 13P

ayment period (paym

ent due), 22, 28P

ercent change/compound interest

calculations, 17, 18, 54–56, 75P

ER

IOD

S (N

), 18, 54, 75P

layback function, 13P

MT, 18, 22, 72

PR

ICE

, 58, 75P

RIC

E (P

V), 18, 44, 45, 73, 76

Priority levels in calculations, 81, 82

PR

OF

IT, 58P

V, 18, 22, 72P

WR

, 64P

/Y, 18, 22, 72, 77Q

UA

D, 64

QU

AN

TIT

Y, 58R

AD

, 8, 9, 61, 78R

andom coin, 62

Random

dice, 62R

andom functions, 62–63

Random

integer, 63R

andom num

bers, 62R

ATE

(I/Y), 18, 40, 72

RB

V, 48, 74R

DV, 48, 74

RE

DE

MP

T (F

V), 18, 44, 73, 76

RE

SE

T sw

itch, 5, 12, 81R

esetting the calculator, 5S

ALV

AG

E (F

V), 18, 48, 74

SC

I, 7, 8S

cientific calculations, 60–63S

cientific notation, 8, 9, 11, 63S

D, 64

SE

LL, 56, 75S

ET

UP

menu, 8–10

SL, 9, 48, 74

Specifications, 82

STA

RT

MO

NT

H, 48, 74, 77

(symbol), 8, 10, 64

STAT

(statistics) mode, 10, 64

Statistical calculations, 10, 64–71

Statistical data, 12, 64–67, 76

Statistical variables, 12, 14, 16, 68

Sym

bol, 7S

YD

, 9, 48, 74TA

B, 7, 8

Temporary m

emory (A

-H, X

-Z), 12, 14, 15

TV

M (tim

e value of money) solver,

17, 22–32, 72T

VM

variable, 12, 14, 15, 18, 19, 22V

AR

IAB

LE, 58, 75

YE

AR

, 12, 48, 77Y

IELD

(I/Y), 18, 44, 45, 73, 76, 77

Appendix.indd 84

06.7.10 8:42:22 PM

85 ME

MO

Appendix.indd 85

06.7.10 8:42:24 PM

86

For US

A only:

This product contains a C

R C

oin Lithium B

attery which

contains Perchlorate M

aterial – special handling may apply,

California residents,

See w

ww

.dtsc.ca.gov/hazardouswaste/perchlorate/

Appendix.indd 86

06.8.2 1:48:35 PM

PR

INT

ED

IN C

HIN

A / IM

PR

IMÉ

EN

CH

INE

/ IMP

RE

SO

EN

CH

INA

06GG

K (T

INS

E1258E

HZ

Z)

el-738 english manual...rules and practices in ﬁ nancial calculation vary ac-cording to country,...

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