User Manual
Table Of Contents
- Important Information
- Overview of Calculator Operations
- Turning On the Calculator
- Turning Off the Calculator
- Selecting 2nd Functions
- Reading the Display
- Setting Calculator Formats
- Resetting the Calculator
- Clearing Calculator Entries and Memories
- Correcting Entry Errors
- Math Operations
- Memory Operations
- Calculations Using Constants
- Last Answer Feature
- Using Worksheets: Tools for Financial Solutions
- Time-Value-of-Money and Amortization Worksheets
- TVM and Amortization Worksheet Variables
- Using the TVM and Amortization Variables
- Resetting the TVM and Amortization Worksheet Variables
- Clearing the Unused Variable
- Entering Positive and Negative Values for Outflows and Inflows
- Entering Values for I/Y, P/Y, and C/Y
- Specifying Payments Due With Annuities
- Updating P1 and P2
- Different Values for BAL and FV
- Entering, Recalling, and Computing TVM Values
- Using [xP/Y] to Calculate a Value for N
- Entering Cash Inflows and Outflows
- Generating an Amortization Schedule
- Example: Computing Basic Loan Interest
- Examples: Computing Basic Loan Payments
- Examples: Computing Value in Savings
- Example: Computing Present Value in Annuities
- Example: Computing Perpetual Annuities
- Example: Computing Present Value of Variable Cash Flows
- Example: Computing Present Value of a Lease With Residual Value
- Example: Computing Other Monthly Payments
- Example: Saving With Monthly Deposits
- Example: Computing Amount to Borrow and Down Payment
- Example: Computing Regular Deposits for a Specified Future Amount
- Example: Computing Payments and Generating an Amortization Schedule
- Example: Computing Payment, Interest, and Loan Balance After a Specified Payment
- TVM and Amortization Worksheet Variables
- Cash Flow Worksheet
- Bond Worksheet
- Depreciation Worksheet
- Statistics Worksheet
- Other Worksheets
- APPENDIX - Reference Information
Time-Value-of-Money and Amortization Worksheets 33
Note: Although variable cash flow payments are not equal (unlike
annuity payments), you can solve for the present value by treating the
cash flows as a series of compound interest payments.
The present value of variable cash flows is the value of cash flows
occurring at the end of each payment period discounted back to the
beginning of the first cash flow period (time zero).
Example: Computing Present Value of a Lease
With Residual Value
The Peach Bright Company wants to purchase a machine currently leased
from your company. You offer to sell it for the present value of the lease
discounted at an annual interest rate of 22% compounded monthly. The
machine has a residual value of $6500 with 46 monthly payments of
$1200 remaining on the lease. If the payments are due at the beginning
of each month, how much should you charge for the machine?
The total value of the machine is the present value of the residual value
plus the present value of the lease payments.
To Press Display
Set all variables to defaults. &}!
RST 0.00
Set beginning-of-period
payments.
&] &V
BGN
Return to standard-calculator
mode.
&U 0.00
Enter number of payments.
46 ,
N=
46.00
1
Calculate and enter periodic
interest rate.
22 6 12 N-
I/Y=
1.83
1
Enter residual value of asset. 6500 S0
FV=
-6,500.00
1
Compute residual present value.
C.
PV=
2,818.22
7