Sharp EL-738F Operation Manual page 32

Procedure
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 the future value.
Enter the present value. 87918
Enter the annual inter-
est rate.
Calculate payment.
Answer: You should pay $1,476.20 each month.
3
Your client wishes to buy a machine currently leased from your
company. On a fi ve-year lease with payments of $200 at the
beginning of each month, the machine has a trade-in value of
$1,500 with 34 monthly payments remaining. If your company
sells the machine at the present value of the lease, discounted
at an annual interest rate of 18%, compounded monthly, how
much should your company charge for the machine?
PMT = –$200
s 60 N
, 17500 t
6.75 f
@ u
Calculating the present value of a lease with
trade-in value
PV = ?
Key operation
I/Y = 18%
. . . . . .
N = 34
30
Display
6 —~N
6000
(- 175 ——)~FV
-1750000
87918 ~PV
8791800
6.75 ~I/Y
675
PMt=
-147620
FV = –$1,500