Sharp EL-738F Operation Manual page 30

Specifying payments due (
This calculator can select ordinary annuity or annuity due de-
pending on the regular cash fl ow (payment) conditions.
Ordinary annuity (END):
This is the default setting for fi nancial calculations. BGN is not
displayed. A regular cash fl ow (payment) is received at end of
each payment period. Often applied to loan calculations, etc.
Annuity due (BGN):
BGN appears on the display. A regular cash fl ow (payment) is
received at the beginning of each payment period. Often applied
to the fi nance lease of an asset.
To toggle between ordinary annuity and annuity due, press
. " .
Note: The above selection only affects the TVM solver.
1
Your company wishes to accumulate a fund of $300,000 over the
next 18 months in order to open a second location. At the end of
each month, a fi xed amount will be invested in a money market
savings account with an investment dealer. What should the
monthly investment be in order to reach the savings objective, as-
suming the account will earn 3.6% interest compounded monthly?
PV = 0
PMT = ?
Procedure
Set all the variables to
default values.
Make sure ordinary annuity is set (BGN is not 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.
Ordinary annuity
I/Y = 3.6%
. b
. w 12 Q
. "
. . . . . .
N = 18
Key operation
28
)
FV = $300,000
Display
P/Y=
000
1200