Sharp EL-733 EL-733A Operation Manual - Page 68

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Solution: The keystrokes used to describe this schedule to your EL-733A are as follows: (Mode: FIN) 2ndn 28'000 It/ 12 2nd Ni 316.86 12 [2ndF) Ni 335.51 12 VW) Ni 353.8 lb 12 2ndF Ni 371.69 31 2nd Ni 389.11 99 2rdF) Ni 389.11 El 8'389.11 Now, to solve for the blended rate, press: Result: 1.19 Again, because this problem spans 180 periods, many iterations are involved in coming to a solution. This calculation takes a little time. When the result is in the display, annualize this rate by pressing: 0 12 Result: 14.27 732 This 14.27% rate makes sense because the loan starts out at 12%, and goes rapidly to 16%. The majority of the time the loan is at 16%, but the low interest rates at the front of the loan pull the overall rate down, because a significant amount of the balance is paid off at the lower rates. CALCULATIONS, PARTIAL PERIODS Calculating E) has not yet been mentioned in this manual. The reason for not mentioning E) is that, though on the surface it seems fairly straightforward, when you solve for n chances are you will not get an integer for an answer. If you solve for 0 and the answer does not come out to be an integer, how are you supposed to interpret that partial period? Look at this example: Example: You have a credit-line at a local 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 the positive end of the "interest stick" then on the negative end, you decide it's time to quit drawing on that credit-line and to start making regular payments to get you out of debt for good. The interest rate is 1.3% per month, and you budget $185 per month to pay it off. How long will it take? Solution: The keystrokes to solve this problem are as follows (make sure that BGN is not in the display): (Mode: FIN) 0 El 1.3 El .733

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Solution:
The
keystrokes
used
to
describe
this
schedule
to
your
EL
-733A
are
as
follows:
(Mode:
FIN)
2ndn
28'000
It/
12
2nd
Ni
316.86
12
[2ndF)
Ni
335.51
12
VW)
Ni
353.8
12
2ndF
Ni
371.69
31
2nd
Ni
389.11
99
2rdF)
Ni
389.11
El
8'389.11
lb
Now,
to
solve
for
the
blended
rate,
press:
Result:
1.19
Again,
because
this
problem
spans
180
periods,
many
iterations
are
involved
in
coming
to
a
solution.
This
calculation
takes
a
li
ttle
time.
When
the
result
is
in
the
display,
annualize
this
rate
by
pressing:
0
12
Result:
14.27
732
This
14.27%
rate
makes
sense
because
the
loan
starts
out
at
12%,
and
goes
rapidly
to
16%.
The
majority
of
the
time
the
loan
is
at
16%,
but
the
low
interest
rates
at
the
front
of
the
loan
pull
the
overall
rate
down,
because
a
significant
amount
of
the
balance
is
paid
off
at
the
lower
rates.
CALCULATIONS,
PARTIAL
PERIODS
Calculating
E)
has
not
yet
been
mentioned
in
this
manual.
The
reason
for
not
mentioning
E)
is
that,
though
on
the
surface
it
seems
fairly
straightforward,
when
you
solve
for
n
chances
are
you
will
not
get
an
integer
for
an
answer.
If
you
solve
for
0
and
the
answer
does
not
come
out
to
be
an
integer,
how
are
you
supposed
to
interpret
that
partial
period?
Look
at
this
example:
Example:
You
have
a
credit
-line
at
a
local
bank.
The
balance
is
currently
at
$3
1
500.
After
working
through
some
of
the
problems
in
this
book
and
realizing
that
it
is
generally
much
better
to
be
on
the
positive
end
of
the
"interest
stick"
then
on
the
negative
end,
you
decide
it's
time
to
quit
drawing
on
that
credit
-line
and
to
start
making
regular
payments
to
get
you
out
of
debt
for
good.
The
interest
rate
is
1.3%
per
month,
and
you
budget
$185
per
month
to
pay
it
off.
How
long
will
it
take?
Solution:
The
keystrokes
to
solve
this
problem
are
as
follows
(make
sure
that
BGN
is
not
in
the
display):
(Mode:
FIN)
0
El
1.3
El
.733