Chapter 11 Financial Features; Try It! 1 - Sharp EL-9900 Operation Manual

Chapter 11
Financial Features
The financial calculation features include capabilities for compound interest calcula-
tions.

1. Try it! 1

You plan to purchase a house for a price of
$300,000. The down payment is $100,000.
Calculate the monthly payments for a 30-
year loan at an annual interest rate of 5%
for the remaining $200,000.
Draw a cash
flow diagram on
paper
Press @ g.
The financial menu screen will appear.
• Specifies the TVM-SOLVER mode.
• Selects a financial calculation function
• Specifies payment due (to pay at the beginning or end of
period)
• Determines individual settings (in TVM-SOLVER mode)
1. Draw the following cash flow diagram to simplify the problem.
+
( ) Present Value (PV) = 300,000
Cash flow
1
–
( )
• A horizontal line indicates a time flow (left to right) divided into
even sections — months in this case. Each section indicates a
compound period and the total number of sections indicates the
total number of periods for payment.
–
100,000
= 200,000
I = 5%
Time flow
2 3
PMT = ?
Future Value (FV) = 0
×
358 359 N = 12 30
= 360
183