Annuity Due - Sharp EL-738 Operation Manual

Procedure
Enter the total number
of payments.
Enter the future value.
Set the present value to
zero.
Enter the annual inter-
est rate.
Calculate payment.
Answer: The monthly investment should be $16,245.70.
2
Your company wishes to obtain a computer system with a value of
$2,995. The same system may be leased for 24 months at $145 per
month, paid at the beginning of each month. At the end of the lease,
the system may be purchased for 10% of the retail price. Should
you lease or purchase the computer if you can obtain a two-year
loan at 7.2%, compounded monthly, to purchase the computer?
PV = $2,995
PMT = –$145
Procedure
Set all the variables to
default values.
Set to annuity due
(BGN is displayed).
Set the number of pay-
ments per year to 12.
29
Key operation
s 18 N
300000 T
0 v
3.6 f
@ u

Annuity due

. . . . . .
N = 24
Key operation
. b
. "
. w 12 Q
×
FV = $2,995
I/Y = ?%
Display
18~N
1800
3—————~FV
30000000
—~PV
000
3.6~I/Y
360
PMT=
-1624570
10% = $299.5
Display
000
000
P/Y=
1200