Sharp EL-738XTBN Operation Manual page 33

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.
The number of compounding periods per year is automatically set to
12. Press s to exit the P/Y and C/Y settings.
Enter the total number
of payments.
Enter payment.
Enter the annual inter-
est rate.
Enter the future value.
Calculate the present
value.
Answer: $6,279.95 should be charged for the machine.
4
You wish to buy a house for $180,000. The fi nance company
charges a 5.5% APR, compounded monthly, on a 25-year loan.
If you can afford a monthly payment of $900, how much can you
borrow? How much do you need for a down payment?
PMT = –$900
. b
. "
. w 12 Q
s 34 N
, 200 u
18 f
, 1500 t
@
Calculating down payment and amount to
borrow
PV = ?
N = 12 × 25 years = 300
Key operation
I/Y = 5.5%
. . . . . .
31
Display
000
000
P/Y=
1200
34 ~N
3400
(- 2 ——)~PMt
- 20000
18 ~I/Y
1800
(- 15 ——)~FV
-150000
PV=
627995
FV = 0