Converting Between Nominal Interest Rate And Effective Interest Rate - Casio fx-9860G Series User Manual

a : INT a : INT
PM1 PM1
b : PRN b : PRN
c : BAL c : BAL
Σ Σ
PM2 PM2
d : d : PRN = PRN PRN = PRN
PM1 PM1
Σ Σ
PM2 PM2
e : e : INT = INT INT = INT
PM1 PM1
BAL PV INT
= ( = 0 and
0 1
Converting between the nominal interest rate and effective interest rate
The nominal interest rate (
I
( %' ) for installment loans where the number of installments per year is different from the
number of compound interest calculation periods.
{ {
I%' = I%' =
The following calculation is performed after conversion from the nominal interest rate to the
effective interest rate, and the result is used for all subsequent calculations.
i = I%'÷100 i = I%'÷100
Press 4(AMT) from the Financial 1 screen to display the following input screen for
amortization.
4(AMT)
PM1 .............................. fi rst installment of installments 1 through
PM2 .............................. second installment of installments 1 through
n
.................................. installments
I
% ................................ interest rate
PV
............................... principal
PMT
............................ payment for each installment
FV
............................... balance following fi nal installment
P Y
/ .............................. installments per year
C Y
/ .............................. compoundings per year
7-5-2
Amortization
× i I × (PMT sign) × i I × (PMT sign)
= I BAL = I BAL
PM1–1 PM1–1
= PMT + BAL = PMT + BAL
PM1 PM1 PM1–1 PM1–1
= BAL = BAL + PRN + PRN
PM2 PM2 PM2–1 PM2–1
+ PRN + PRN
PM1 PM1 PM1+1 PM1+1
+ INT + INT
PM1 PM1 PM1+1 PM1+1
PRN PMT
= at beginning of installment term)
1
I
% value input by user) is converted to an effective interest rate
[C / Y ] [C / Y ]
I% I%
[P / Y ] [P / Y ]
(1+ (1+ ) )
100 × [C / Y ] 100 × [C / Y ]
20070201
× i × i
PM2 PM2
+ ... + PRN + ... + PRN
PM2 PM2
+ ... + INT + ... + INT
PM2 PM2
} }
× 100 × 100
–1 –1
n
n