Sharp EL733A EL-733A Operation Manual - Page 43

P-IFI

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arrive at the above amount ($367522.21). This is the cash-flow schedule: FV = 367'522.21 i=11÷12 1 I r2, 13 ,1?4, n= 20 x 12 175t6t3t3Bt3t0 PV =0 PMT = ? You don't have to change El , but you have to change FV, PV, and n. With -36T522.21 sitting in your display, the keystrokes are as follows: E (or I2nd 0® 20 12ndF) IX1 Qn Icn 'Raj Pv P-IFI) Result: -424.57 It's always surprizing to compute how little it takes each month to build up a fairly sizeable annuity like this one. Example: How much money do you need to deposit today in a college fund for your three-year-old child at 10.5% APR compounded monthly to ensure that child a college 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 without any additions. The keystrokes start out basically the same. Again, this is not in BON mode: (Mode: FIN) 1'200 M 4 I2ndFJ POI El 10.5 2ndF 1-121 0F~ [WI El Result: -46868.81 So by the time your child starts drawing on the college account 15 years from now, it must have accumulated a balance of $46'868.81. The second part is real simple. Only two arrows appear on the cash-flow schedule: FV = 46'868.81 1=10.5+12 1 2 3 I I I 178 , 179 180 n =15 X 12 PV=?

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arrive
at
the
above
amount
($367522.21).
This
is
the
cash
-flow
schedule:
i=11÷12
FV
=
367'522.21
n=
20
x
12
1
I
r
2
,
13
,
1
?,
4
175t6t3t3Bt3t0
PV
=0
PMT
=
?
You
don't
have
to
change
El
,
but
you
have
to
change
FV,
PV,
and
n.
With
—36T522.21
sitting
in
your
display,
the
keystrokes
are
as
follows:
E
(or
I2nd
0®
20
12ndF)
IX1
Qn
Icn
'Raj
Pv
P-IFI)
Result:
—424.57
It's
always
surprizing
to
compute
how
li
ttle
it
takes
each
month
to
build
up
a
fairly
sizeable
annuity
like
this
one.
Example:
How
much
money
do
you
need
to
deposit
today
in
a
college
fund
for
your
three
-year
-old
child
at
10.5%
APR
compounded
monthly
to
ensure
that
child
a
college
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
without
any
additions.
The
keystrokes
start
out
basically
the
same.
Again,
this
is
not
in
BON
mode:
(Mode:
FIN)
1'200
M
4
I2ndFJ
POI
El
10.5
2ndF
1-121
0F~
[WI
El
Result:
—46868.81
So
by
the
time
your
child
starts
drawing
on
the
college
account
15
years
from
now,
it
must
have
accumulated
a
balance
of
$46'868.81.
The
second
part
is
real
simple.
Only
two
arrows
appear
on
the
cash
-flow
schedule:
1=10.5+12
1
2
3
I
I
I
PV=?
FV
=
46'868.81
178
,
179
180
n
=15
X
12