User Manual

7-4
u I %
i
(effective interest rate)
i (effective interest rate) is calculated using Newton’s Method.
PV + α × PMT +
β
× FV = 0
To
I % from i (effective interest rate)
n ............ number of compound periods FV ......... future value
I % ......... annual interest rate P/Y ........ installment periods per year
P V ......... present value C/Y ........ compounding periods per year
PMT ...... payment
• A deposit is indicated by a plus sign (+), while a withdrawal is indicated by a minus sign (–).
Press 2(CMPD) from the Financial 1 screen to display the following input screen for
compound interest.
2(CMPD)
n ........... number of compound periods
I % ........ annual interest rate
P V ........ present value (loan amount in case of loan; principal in case of savings)
PMT ..... payment for each installment (payment in case of loan; deposit in case of savings)
F V ........ future value (unpaid balance in case of loan; principal plus interest in case of
savings)
P / Y ....... installment periods per year
C / Y ....... compounding periods per year
Important!
Inputting Values
A period (
n ) is expressed as a positive value. Either the present value ( PV ) or future value
( FV ) is positive, while the other ( PV or FV ) is negative.
Precision
This calculator performs interest calculations using Newton’s Method, which produces
approximate values whose precision can be affected by various calculation conditions.
Because of this, interest calculation results produced by this calculator should be used
keeping the above limitation in mind or the results should be verified.
{ }
× C/Y × 100...
I% =
(1+ i )–1
P/Y
C/Y
(Other than those above)
i × 100 ................................. (P/Y = C/Y = 1)
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