Sharp EL733A EL-733A Operation Manual - Page 41

conceptual

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14 (?ncin1 (I] 13 12nnn1+121 1130W1 Result: 335.51 So the worst case payment for the second year of the contract is $335.51, up about $19.00 from the first year's payment. This process needs to be repeated until you reach the maximum interest rate of 16%. The keystrokes and resulting payments are shown below: 12 0 WI E 1+1-1 ID 8'000 IN 13 2nd Ix12 ED 14 1?ndn 1.÷121 ED lc 120n MR 14-1 8'000 0 12 (20F1 (TO 15 12ndFj (-04 WTI Result: 353.80 Result: 371.69 12 8'000 EJ 11 (2nd Fl EX121On 16 I2ndF1 1, 121 PIE Result: 389.11 This last calculation was the payment for the fifth year of the contract. The interest rate has hit the 16% ceiling, so the payment, in the worse case, would never exceed $389.11. MORE TVM EXAMPLES This section contains a broad assortment of Time Value of Money examples. The index on page 166 will guide you to a specific category of example. Amortization ( including AM , IP,IPJ, and ACC ) is covered in the following section, starting on page 93. After reading and working the examples up to this point in the manual, you should have a broad understanding of TVM solutions. The examples in this section contain less explanation. The solutions consist primarily of a cash-flow schedule, a set of keystrokes, and some conceptual reminders where necessary. Before plunging headlong into this set of examples, you may want to take a few moments to go through the following knowledge checklist to make sure you haven't missed an important part of the discussion to this point. Knowledge Checklist u 1. You know all the basics: how to do arithmetic, how to use the M register for storing numbers, and how to store numbers to and recall numbers from the TVM registers. Plus, you know how to use MO to adjust the number of displayed decimal places and how to use H-/-1 to change the sign of the number in the display (page 6). O 2. You know how to draw a cash-flow schedule for any financial situation that has a regular, even payment stream between the beginning and end of the contract. You know that you must maintain one perspective (that of a borrower or a lender) when you draw a cash-flow schedule (page 37). 78 29

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14-1
14
(?ncin1
(I]
13
12nnn1+1
2
1
1
13
0W1
Result:
335.51
So
the
worst
case
payment
for
the
second
year
of
the
contract
is
$335.51,
up
about
$19.00
from
the
fi
rst
year's
payment.
This
process
needs
to
be
repeated
until
you
reach
the
maximum
interest
rate
of
16%.
The
keystrokes
and
resulting
payments
are
shown
below:
12
0
WI
E
1+1-1
ID
8'000
IN
13
2nd
Ix12
ED
14
1?ndn
1.รท
12
1
ED
lc
120n
MR
8'000
0
12
(20F1
(TO
15
12ndFj
(-04
WTI
12
8'000
EJ
11
(2nd
Fl
EX121
On
16
I2ndF1
1
,
121
PIE
Result:
353.80
Result:
371.69
Result:
389.11
This
last
calculation
was
the
payment
for
the
fi
fth
year
of
the
contract.
The
interest
rate
has
hit
the
16%
ceiling,
so
the
payment,
in
the
worse
case,
would
never
exceed
$389.11.
MORE
TVM
EXAMPLES
This
section
contains
a
broad
assortment
of
Time
Value
of
Money
examples.
The
index
on
page
166
will
guide
you
to
a
specific
category
of
example.
Amortization
(
including
AM
,
IP,IPJ,
and
)
is
covered
in
the
following
section,
starting
on
page
93.
After
reading
and
working
the
examples
up
to
this
point
in
the
manual,
you
should
have
a
broad
understanding
of
TVM
solutions.
The
examples
in
this
section
contain
less
explanation.
The
solutions
consist
primarily
of
a
cash
-flow
schedule,
a
set
of
keystrokes,
and
some
conceptual
reminders
where
necessary.
Before
plunging
headlong
into
this
set
of
examples,
you
may
want
to
take
a
few
moments
to
go
through
the
following
knowledge
checklist
to
make
sure
you
haven't
missed
an
important
part
of
the
discussion
to
this
point.
Knowledge
Checklist
1.
You
know
all
the
basics:
how
to
do
arithmetic,
how
to
use
the
M
register
for
storing
numbers,
and
how
to
store
numbers
to
and
recall
numbers
from
the
TVM
registers.
Plus,
you
know
how
to
use
MO
to
adjust
the
number
of
displayed
decimal
places
and
how
to
use
H-/-1
to
change
the
sign
of
the
number
in
the
display
(page
6).
O
2.
You
know
how
to
draw
a
cash
-flow
schedule
for
any
fi
nancial
situation
that
has
a
regular,
even
payment
stream
between
the
beginning
and
end
of
the
contract.
You
know
that
you
must
maintain
one
perspective
(that
of
a
borrower
or
a
lender)
when
you
draw
a
cash
-flow
schedule
(page
37).
ACC
78
29