Sharp EL-733 EL-733A Operation Manual

Sharp EL-733 Manual

Sharp EL-733 manual content summary:

  • Sharp EL-733 | EL-733A Operation Manual - Page 1
    EL-733A FINANCIAL CALCULATOR OWNER'S MANUAL AND SOLUTIONS HANDBOOK LARGE DISPLAY and KEYS SHARP sti cq, Cliudator EL-733A M EGN i'D tIC C reonn 1_11.1 iL1 195 :5551. R nF [Li)w a Nl NPV Fwai OFF STO COMP C C TAB MN BGN X12 12 +
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    Neither the sales personnel of Sharp Authorized Servicer. Be sure to have proof of purchase available. If you ship or mail the Product, be sure it is packaged carefully. TO OBTAIN SUPPLY, ACCESSORY OR PRODUCT INFORMATION, CALL 1-80013E-SHAlip. The Sharp EL-733A Financial Calculator Owner's Manual
  • Sharp EL-733 | EL-733A Operation Manual - Page 3
    your EL-733A a long-time friend and business partner. How To Use This Manual The SHARP EL-733A Owner's Manual And Solutions Handbook has been designed for two purposes. It is both a reference book and a fairly complete course on financial calculation. The complete table of contents that begins on
  • Sharp EL-733 | EL-733A Operation Manual - Page 4
    The EL-733A Financial Functions And Terms 41 RECOGNIZING A TVM PROBLEM 42 A DISCOUNTED CASH-FLOW PROBLEM 44 TVM Applications 46 A TYPICAL MORTGAGE 46 THE lxil KEY, MONTHLY PERIODS 47 THE 1-12 THEY AND APR 47 PAYMENTS AT THE BEGINNING 48 PV CALCULATIONS 50 PV AND PMT CALCULATIONS 51
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    Battery replacement is covered in the back of this manual. Other indicators can also appear in the display. For example, the letter M will appear in the left side of the display if some number other than zero is stored in the calculator is used frequently in financial calculations. 2nd E: Adjusting
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    people in the U. S. prefer 1,000,000.00. So, to avoid confusion, SHARP chose a format that is easy for everyone to understand. Very Large Numbers (Scientific to zero. Each time you press the jGc key, you clear one number from your calculation. For example, if you key in 5 + 6 then press M , the 6 is
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    Three Calculation Modes Your SHARP EL-733A has three calculation modes: NORMAL mode, FIN mode (financial mode), and STAT mode (statistics mode). The mode that your calculator is in dictates which functions are immediately available. When you are working a financial problem, you most likely will want
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    are active. The following diagram shows you the active functions: SHARP nal Business /Financial Calculator EL-733A MI - IP 31-15 'IBSII MEMORY SAFE GLYAOD , , and H. Arithmetic problems are simply keyed in as you would say them. And, you can chain several calculations together as shown in the
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    01, 1- 1 , and 1- 1 keys. The M register can be used to help get through certain arithmetic problems in NORMAL mode, to temporarily store results, or, because the number in the M register is preserved when the calculator is turned off, you can store an important number there for an extended period
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    to tell you that 75.2989 is still stored in the M register. USING A STORED NUMBER IN A CALCULATION To use the number stored in M in one of your calculations, simply press E) at the point in the calculation when you would otherwise have to key in that number. The following example demonstrates using
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    banks include with the statement. Whichever procedure you use, you will find that your SHARP EL-733A can be a big help. We are about to describe a six of your checks in order by check number (most statements One calculation procedure that most people face monthly is the challenge of reconciling
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    any interest earned on the account and subtract any service charge. Record interest earned and/or service charge in your register (after the last entry). is $977.39 and the last check number on the statement is 1612. The calculated balance up to check number 1612 in your register is 907.93. And, one
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    with 0 100 E, and you will get the same result. As a business person, you may rarely use El with El . The WAI key is sales of the first year. The percentage difference is calculated with the sales of the first year as the base for the percentage calculation. Pressing the 4% key, tells the calculator
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    later use, but in the fact that the numbers in these registers have a special meaning to the calculator. The main function of these keys is to allow you to do some powerful business percentage calculations. The meanings of these keys are as follows: El Cost Selling Price ,gAll Margin [Mu) Mark-Up
  • Sharp EL-733 | EL-733A Operation Manual - Page 15
    the following examples. Your calculator must be in NORMAL mode, and the display should be set to IFKM El in order to get the exact results that we show: Example: Solution: In your furniture business, you like to see about a 95% mark up from your cost to the retail price of each item
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    in the M register (explained starting on page 14) in your calculations, except no register arithmetic key like the ri key is available. MATH What is the cube root of 755? Solution: The key to solving this type of problem (a root other than the square root) is to know that the nth root of a
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    in your manual, you have learned the basics of using your EL-733A Financial Calculator. The next chapter explores FIN mode and financial problem solving. All the financial and arithmetic functions are active, but the business and statistics functions are inactive. • B Business/Financciiaall CaLubtor
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    that have special uses in financial calculations. You can use these registers just to store numbers, but similarly to the business calculation registers (CST, SEL, is to aid you in financial calculations. However, before we get into the discussion of financial problem solving, let's take a look
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    you change them by storing or modern times, and it is the type of interest that the EL-733A calculating a new number in that register or if you clear financial functions are designed around. Simple interest is those registers by pressing I2ndFl . rare, and it is not complicated mathematically
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    interest is periodic. It is very committed to a 1.5% 1= month 119.56 certain period of time. To borrow from a well worn phrase: time, in financial calculations, is of the essence. In fact, you must know the compounding period of a loan or investment before you start. This is one variable about an
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    -flow schedules that you draw will be quick sketches that help you visualize an entire problem before you key it in. This manual uses cash-flow schedules throughout its explanations and examples in financial calculations. A few simple rules are listed below that you should keep in mind when you are
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    and examples that follow, you will get a little keyed into the calculator. This means that, with the i practice at deciphering the jargon. in between. (The amount of any is uy The solution to every financial problem consists of three cash-flow can be zero.) general steps: (1) deciphering
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    between. Typically, mortgages and loans, leases, savings, annuities, and contracts with regular payments can be analyzed using the TVM group of functions. Financial problems that work with the TVM group of I functions usually have cash-flow schedules that look like this: PV +nit i = interest rate
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    situation can be described to your calculator and analyzed. As long as the periods are regular and you understand that interest compounds once per period, you will find these functions to be extremely flexible. Up to this point, the description of financial problem solving has been heavy on the
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    TVM Applications In working a TVM problem, you have to translate the financial language that you are used to dealing with to the simple language of the five TVM keys. When it comes to TVM problems, the calculator understands only the terms n, i, PV, FV, and PMT. All of the language that you may be
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    balance is reduced, the less interest is going to accumulate and the smaller the payment. So in this problem, be aware that your calculator should not be in BGN mode when you are solving for this mortgage Naroetisceeptahraattethfeun2cndt9io[n-Os2Iaabnodve2ntdhe[XLVUI fuanncdtioFnis keys provided
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    calculator set to FIN mode and the display at (--) El), the buyer tells you that an affordable payment on the mortgage loan (which doesn't include taxes and insurance) would be right around $800.00. What does the price away. EXAMPLES OF PV AND PMT CALCULATIONS Example: You are in the market for
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    are on the way to buy a car or to make some purchase that will involve financing. But we haven't yet covered all the aspects of TVM problems. We have only covered PMT and PV calculations to this point, and this is just a scratch on the surface of financial calculations. ALLOON PAYME TS AND ALCUL
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    your house payment (not including taxes and insurance) and what is the amount of the balloon? Solution: The first part of this solution is a payment calculation. Your sketch of the cash-flow schedule of the 15 year mortgage should look something like this: PV = 97'000.00 1=11.5+12 i t 141516n
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    calculator is set to BGN mode. BGN is short for BEGIN. When set to BGN mode, the calculator assumes that payments ( FM ) in TVM problems you can lease equipment for your business, or you can lease a buy at the end of the lease. After weeks of negotiation, you and the owner settle on a buyout price
  • Sharp EL-733 | EL-733A Operation Manual - Page 31
    on page 115) is generally required for a solution. Interest calculations are typically used to answer questions that begin "what return am periods, etc). Example: You are selling one of your rental properties for a price of $75'000. A propective buyer approaches you with $5,000 for a down payment
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    of the borrowed money you are willing to pay at the onset of the loan, the lower the rate will be that is used to calculate your payment. Prepaid finance charges or "points up front" have the effect of increasing the actual interest rate that is paid on the borrowed money
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    Example: As a real estate sales person, you try to keep up on the FHA 0.88 The computation of M takes a few moments. Interest is not something that can be solved for directly, so the calculator has to use a numerical guessing game to arrive at an answer. The result here, 0.88 is a periodic rate.
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    payment be based on 9.0% APR will have to come up with a $41050 prepaid finance charge above and beyond the down payment! The payment calculation should be no problem. The keystrokes below assume that you have been following this solution from the beginning, so the TVM registers are all set up for
  • Sharp EL-733 | EL-733A Operation Manual - Page 35
    company is charging finance charges up front on loans of up to $25'000 with quarterly payments in arrears. The interest rate they use to calculate the payment is 14% APR compounded quarterly and the term is negotiable. The finance charge is 3/4% per year of the contract. You are interested in
  • Sharp EL-733 | EL-733A Operation Manual - Page 36
    schedule. Keep in mind that the most important rate to know for financial calculations is the periodic rate. This is the rate that regulates how money grows one period to the next. The other rates that are quoted are always calculated starting with the periodic rates. One common way to quote an APR
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    se, because a calendar year varies from 365 to 366 days a year. In this problem, assume that a year is considered to have 365 days. The keystrokes are as the digits. If you write down an answer to be used in a later calculation, copy down every digit available. If you have your display set to [
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    , the only thing you need to understand to handle problems where the payment and interest periods don't match is that two different interest rates compounded on two different periodic schedules are not considered different in a financial calculation as long as they yield the same EFFECTIVE rate over
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    are good, if they know they have a safety valve written into the contract to use in case the market rates increase. Variable rates complicate a TVM problem, because the TVM functions depend on an even payment calculated at a single interest rate. However, all is not lost. By breaking variable rate
  • Sharp EL-733 | EL-733A Operation Manual - Page 40
    lender. To the lender, the money loaned out is a negative cash-flow and the payments are positive cash-flows. The problem states that the payments are in advance, which means the calculator must be set to BGN mode. Press 1 to turn the BGN indicator on in the display. Then, the keystrokes to
  • Sharp EL-733 | EL-733A Operation Manual - Page 41
    121 PIE Result: 389.11 This last calculation was the payment for the fifth year . The index on page 166 will guide you to a specific category of example to this point in the manual, you should have a broad to draw a cash-flow schedule for any financial situation that has a regular, even payment
  • Sharp EL-733 | EL-733A Operation Manual - Page 42
    years? Assume a rate of return of 11% APR. Solution: Work this problem backwards in two parts. The cash-flow schedule for the first part looks like 1 tttt PV =? 1354t35:3513515:35 94136: i=11+12 n=30 X 12 You need to calculate the amount that needs to be in an 11% account up front (the PV) if you
  • Sharp EL-733 | EL-733A Operation Manual - Page 43
    income of $1200.00 per month for four years, starting 15 years from today? Solution: This is the same type of problem as the one above. The difference in calculation comes only in the second part: Rather than making monthly payments, you are depositing one amount (a PV) and letting that grow
  • Sharp EL-733 | EL-733A Operation Manual - Page 44
    Solution: First compute the quarterly interest rate from the information given. (See page 72 if this gives you problems) 12 [2ndF) [:, 1 9.5 E 4 MI FAM RM E 4 1111 Result: 2.39 Once you have calculated the correct quarterly rate, store it as the interest rate. Press: no Then draw the cash-flow
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    they have to reduce the price? (2) What would the overall interest rate be if you hand modifications before you can do a straight PV calculation. Since the interest rate is specified, you can slide on the cash-flow line so that the problem conforms to a TVM problem. Turn to page 100 if you wish
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    in the description that precedes this example. Interest rates are right at 10%. What is the price range of the houses that you can show this couple? Solution: The first calculation is a percentage calculation. What mortgage payment can this couple qualify to make? 4'200 0 28 la Result: 1'176 The
  • Sharp EL-733 | EL-733A Operation Manual - Page 47
    QuotingAn Actual Effective Interest Rate Truth-in-lending laws require banks and financial institutions to quote actual, effective annual rates (including prepaid finance charges step in this solution is to calculate the payment based on the periodic rate (14 +12). The cash-flow schedule of
  • Sharp EL-733 | EL-733A Operation Manual - Page 48
    Then, once you have calculated the payment, consider how the finance charges reduce the net amount of money loaned. This cash-flow schedule shows exactly what happens in this contract: 1.5% x
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    compounded monthly? Also, what is breakdown of interest-vs-principal at the end of each of the first three years? Solution: This type of payment calculation should be getting easy for you by this point in your reading. Here are the keystrokes: (Mode: FIN) 69'000 EJ 15 Fin V121E) 9.65
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    Analysis" where it refers to a process of solving financial problems by sliding or "discounting" cash-flows on a cash-flow schedule. If you are ever considering buying a discounted contract and you wish to calculate what you will yield or the price you should pay for the contract to yield a certain
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    most real life situations (and test problems often have redundant information thrown in you need to know in order to do the calculation! The information about the house and the original monthly by purchasing the contract, buy it for $87'559.08. Question: If the asking price is $95'000, what will
  • Sharp EL-733 | EL-733A Operation Manual - Page 52
    time you reach this section in the manual, you should recognize that both the EL-733A and the cash-flow schedule are dynamic tools for use in financial calculations. This section demonstrates sliding cash-flows on the cash-flow schedule to simplify certain problems and to make certain complicated
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    the three payments that occur at the front of the lease so that you remember them when you are interpreting the result of this PV calculation. Both M and E have already been stored: 191951.34 1+1-I M 29 E (make sure that BGN is not on in the display) WW1 0 Result: 445'182.80 That
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    a more drastic increase in rates (the calculation of this rate is shown on page 115). So, unless they lower the price by over $5,000.00, this deal level cash-flows from the PV to the FV), allowing you to describe many financial situations to your EL-733A. But a regular, level stream of payments can
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    flow schedule in terms of groups of cash-flows, you will have no problem using the two functions EJ and Ni to describe any realistic cash-flow EL-733A is in FIN mode, then press 2ndn IA to "clear all" of the financial registers. To input the cash-flow group zero, press: 1 FidnNi 50'000 (+/-I To
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    of information about the majority of financial problems with irregular cash-flows. The remainder of sell a contract. Though not anxious to discuss business during the festivities, you are intrigued by the 733A from your pocket to do some quick calculations. The payment schedule on the contract this
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    group 11 Once you have the cash-flow schedule stored in your EL-733A, to calculate the NPV given an interest rate of 18%, simply press: 18 2nd H4 El NPVJ 16 So, if you want to make an 18% APR return on your investment by buying that contract at the New Year's Eve party, you should pay $78'505.16
  • Sharp EL-733 | EL-733A Operation Manual - Page 58
    (For more details on sliding cash-flows with the TVM functions, you may want to review page 100.) You can think of INN as though it treats each cash-flow as a separate loan. In the previous example, if you slide just the first $6'000 cash-flow to the front of the time line, adjusting it for the
  • Sharp EL-733 | EL-733A Operation Manual - Page 59
    the i register. You can then use this result in a TVM problem, or you can recall it by pressing frEF) ipaj I . In the lease problem on page 85, the second part of the question at the end of the solution asked you to calculate the interest rate on this cash-flow schedule (the lease
  • Sharp EL-733 | EL-733A Operation Manual - Page 60
    a complete investment (in other words, every cash-flow that applies to this investment is shown). So once you key in this cash-flow schedule, the calculation of the IRR is a one key operation. Keying in cash-flow schedules like this is described in the previous section starting on page 105. Here
  • Sharp EL-733 | EL-733A Operation Manual - Page 61
    Discounted Cash-Flow analysis. The examples in the section that follow give you plenty of practice solving Discounted Cash-Flow Analysis problems. DISCOUNTED CASH-FLOW EXAMPLES Financial calculations that require Discounted Cash-Flow Analysis cover quite a range of investment situations. Often, the
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    are interested in the overall, combined yield. This becomes just one problem with all of the investments and current values appearing on one , each investment can fall at the end of a period. Once you have calculated the periodic return for 1/2 month periods, you can convert it to reflect monthly
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    the funds are represented with arrows. The periods that passed with no investment made are shown as 'zeros, " because you will key them into your calculator as zeros. Here are the keystrokes to describe that cash-flow schedule to your EL-733A. 2ndFI (a 5'000 1+/-1 fill 12 [2ndF) Ni [GCE{ IT) Group
  • Sharp EL-733 | EL-733A Operation Manual - Page 64
    . 3. What is the yield to the lender on the whole scenario? (This is an ERR calculation) So every wrap-around mortgage problem is at least three problems, involving three cash-flow schedules, the last of which is generally an uneven cash-flow schedule that needs to be solved using IRR. What
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    knowns, so this step is very much like the problem on page 50. This is the cash-flow schedule: FV = 32'000 1tttt PMT = 1'678.40 173 t4 t75 t76 t77 t78 t79 • 1=-10.5 4- 12 n =79 PV =? The keystrokes for this PV calculation are: (Mode: PIN) PM 1'678.4 INT) 79 EJ 10
  • Sharp EL-733 | EL-733A Operation Manual - Page 66
    OIf. Now you are equipped with all the information that you need to calculate the return that you will be getting by wrapping this mortgage. Here is what this wrap-around mortgage looks like from your perspective: 15,000
  • Sharp EL-733 | EL-733A Operation Manual - Page 67
    case scenario." Once the payment schedule for the worst case scenario is calculated, then you can look at that schedule to see what the blended page 76 and the resulting cash-flow schedule follows. Key in this schedule and calculate the blended rate by using [FIFO 8000.00 316.86 371.69 353.80
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    paid off at the lower rates. CALCULATIONS, PARTIAL PERIODS Calculating E) has not yet been mentioned in this manual. The reason for not mentioning bank. The balance is currently at $31500. After working through some of the problems in this book and realizing that it is generally much better to be on
  • Sharp EL-733 | EL-733A Operation Manual - Page 69
    , you cannot use a value for n that is not an integer. In this problem, since it is unclear as to how interest accumulates during a period, you have to on page 35. The previous example points out that in order to calculate correctly using partial periods (where n is not an integer), you have to
  • Sharp EL-733 | EL-733A Operation Manual - Page 70
    section on Partial Periods. Bond calculations take on a slightly different angle than the financial calculations that we have discussed up to , these calculations are easy. The previous owner keeps the coupon payment that has accumulated over the past period, and you pay a certain "price" for the
  • Sharp EL-733 | EL-733A Operation Manual - Page 71
    coupon payment that has accumulated in the current period. The yield is still calculated using the ED function. The calculation requires BGN mode on the EL-733A. The trick to correctly calculating yield given price or price given yield is in evaluating the length of the partial period at the front
  • Sharp EL-733 | EL-733A Operation Manual - Page 72
    -annual yield lies in between these two rates. You can make guesses at the true yield and then calculate the price as you did in the above example. When the keystrokes result in the correct price, you've arrived at the correct yield. Multiply by 2 to annualize the yield. Remember, if the purchase
  • Sharp EL-733 | EL-733A Operation Manual - Page 73
    CALCULATION) As a conclusion to this financial calculations chapter, let's look at a subject that you likely will find extraneous, but that is worth mentioning. Whenever a payment, or any number for that matter, is calculated : - 874.86 And that is the final payment calculation in this manual. 143
  • Sharp EL-733 | EL-733A Operation Manual - Page 74
    until the STAT indicator comes on in the display. Active Functions In STAT Mode In STAT mode, the calculator keyboard is as follows: SHARP preT Business/Financial Calculator EL-733A i'313Utr.C3nuDlO uan u. IXEMag G"PPbI Win C =too OF opottiel cricapip Erin Si' a CD 7 1 9 SX ax Ix
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    have at least brushed shoulders with the term "correlation" or "correlation coefficient." The function IMF TL calculates the correlation coefficient for a set of data pairs in a linear regression problem. The correlation coefficient is a measure of how close the data points in the set fall to the
  • Sharp EL-733 | EL-733A Operation Manual - Page 76
    key in STAT mode after entering a single datum accumulates that datum for the statistical functions. When you press this key, you will notice that the calculator keeps track of how many data you have keyed in by counting them in the display. This displayed number is called "n." Pressing FM M brings
  • Sharp EL-733 | EL-733A Operation Manual - Page 77
    you that he had made an error in his calculation (he didn't have a SHARP calculator). After checking his numbers he found that his mileage calculations, the number of potential applications increases considerably. Again, the most timeconsuming part of solving a two-variable statistics problem
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    your stock be worth in the year 2000? You have six data pairs to key in for this problem. They are (1982, 45'000), (1983, 46'976), (1984, 49'254), (1985, 51 As you key in the above six data pairs, you will notice that the calculator keeps track of the pair that you are on by counting them in the
  • Sharp EL-733 | EL-733A Operation Manual - Page 79
    El is close to zero, the linear correlation is poor, which means that a straight line is a poor choice for modeling that set of data. To calculate , , and (?) for the previous example, use the following keystrokes: (Mode: STAT) 50'000 45'000 P2 ini TAB 0 El Pod H nd FI (to see all
  • Sharp EL-733 | EL-733A Operation Manual - Page 80
    pairs to the curve y = abx, you simply enter your pairs as usual except, after you enter y, press the [2nd9 (- 1 keys. Also, whenever you calculate Li , , or El , press the 12nd9 E) keys (because el"k') = y). Example: Fit the following data to a curve described by the equation y = abx. Determine the
  • Sharp EL-733 | EL-733A Operation Manual - Page 81
    for an extended period of time, remove the batteries to avoid possible damage caused by battery leakage. 4. If service of your calculator is required, use only an authorized SHARP SERVICE CENTER listed on the last page of this manual. 5. Keep this manual for reference. How To Proceed If Abnormal
  • Sharp EL-733 | EL-733A Operation Manual - Page 82
    two new batteries (alkaline-manganese on the back of the calculator. (Figure) LR44 Make calculations, and financial calculations. Liquid Crystal Display (F.NiM type) LSI etc. 3.0V DC Alkaline manganese battery vary depending on the type of battery and the way the calculator is used. 0°C to 40°C
  • Sharp EL-733 | EL-733A Operation Manual - Page 83
    When solving for interest rate (i) in a growth problem, ?E" the calculator may display the error symbol if the value for error, the symbol "E" will be displayed. An error will be caused by calculations or instructions beyond the capacity of the machine, as listed below. An error can be cleared by
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DATA