Converting Between Nominal Interest Rate/ Effective Interest Rate - Casio fx-9860G AU User Manual

a : INT
PM1
b : PRN
c : BAL
Σ
PM2
d : PRN = PRN
PM1
Σ
PM2
e : INT = INT
PM1
BAL PV INT
= ( = 0 and
0 1
u u u u u 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%' =
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
Press 4(AMT) from the Financial 1 screen to display the following input screen for
amortization.
4(AMT)
PM1 ............................. first 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 final installment
P Y
/ .............................. installments per year
C Y
/ .............................. compoundings per year
7-5-2
Amortization
× i I × (PMT sign)
= I BAL
PM1–1
= PMT + BAL
PM1 PM1–1
= BAL + PRN
PM2 PM2–1
+ PRN
PM1 PM1+1
+ INT
PM1 PM1+1
PRN PMT
= at beginning of installment term)
1
I
% value input by user) is converted to an effective interest rate
[C / Y ]
I%
[P / Y ]
(1 + )
100 × [C / Y ]
20070101 20050401
× i
PM2
+ ... + PRN
PM2
+ ... + INT
PM2
}
×100
–1
n
n