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Financial Calculation (TVM) Software for the ALGEBRA FX2.0 1. Before Performing Financial Calculations 2. Simple Interest 3. Compound Interest 4. Cash Flow (Investment Appraisal) 5. Amortization 6. Interest Rate Conversion 7. Cost, Selling Price, Margin 8. Day/Date Calculations 9. Depreciation 10.
1. Before Performing Financial Calculations k k k k k TVM Mode Installing the Financial Application on your ALGEBRA FX2.0 adds a TVM icon to the Main Menu. Entering the TVM Mode displays the Financial screen like the one shown below.
• Whenever performing an actual financial transaction, be sure to check any calculation re- sults obtained using this calculator with against the figures calculated by your financial insti- tution. . Pressing d displays the same values in reverse sequence.
2. Simple Interest This calculator uses the following formulas to calculate simple interest. u u u u u Formula SI' = n 365-day Mode SI' = n 360-day Mode SI = –SI' SFV = –(PV + SI') Press 1(SMPL) from the Financial 1 screen to display the following input screen for simple interest.
After drawing a graph, you can press 1 (TRACE) to turn on trace and read calculation results along the graph. Each press of e while trace is turned on cycles the displayed value in the sequence: present ). Pressing d cycles in the value ( ) ->...
3. Compound Interest This calculator uses the following standard formulas to calculate compound interest. u u u u u Formula I PV+PMT Here: PV= –(PMT FV= – PV + FV PMT= – (1 + i S ) PMT–FVi (1 + i S ) PMT+PVi...
PV + FV PMT = – PV + FV n = – • A deposit is indicated by a plus sign (+), while a withdrawal is indicated by a minus sign (–). u u u u u Converting between the nominal interest rate and effective interest rate The nominal interest rate ( % value input by user) is converted to an effective interest rate ( when the number of installments per year (...
This calculator performs interest calculations using Newton’s Method, which produces ap- proximate values whose precision can be affected by various calculation conditions. Because of this, interest calculation results produced by this calculator should be used keeping the above limitation in mind or the results should be verified.
•An error (Ma ERROR) occurs if parameters are not configured correctly. Use the following function keys to maneuver between calculation result screens. • 1(REPT) ... Parameter input screen • 4(AMT) ... Amortization screen • 6(GRPH) ... Draws graph After drawing a graph, you can press 1(TRACE) to turn on trace and read calculation results along the graph.
4. Cash Flow (Investment Appraisal) This calculator uses the discounted cash flow (DCF) method to perform investment appraisal by totalling cash flow for a fixed period. This calculator can perform the following four types of investment appraisal. • Net present value ( •...
u u u u u PBP > 0. Initial value of when • Press 3 (CASH) from the Financial 1 screen to display the following input screen for Cash Flow. • 3(CASH) ... interest rate (%) Csh ... list for cash flow If you have not yet input data into a list, press 5('LIST) and input data into a list.
After drawing a graph, you can press 1 (TRACE) to turn on trace and read calculation results along the graph. Press i to turn off trace. Press i again to return to the parameter input screen.
5. Amortization This calculator can be used to calculate the principal and interest portion of a monthly installment, the remaining principal, and amount of principal and interest repaid up to any point. u u u u u Formula Amount of single payment...
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 interest rate conversion.
•An error (Ma ERROR) occurs if parameters are not configured correctly. Use the following function keys to maneuver between calculation result screens. • 1(REPT) ... Parameter input screen • 4(CMPD) ... Compound interest screen • 6(GRPH) ... Draws graph After drawing a graph, you can press 1 (TRACE) to turn on trace and read calculation results along the graph.
6. Interest Rate Conversion The procedures in this section described how to convert between the annual percentage rate and effective interest rate. u u u u u Formula EFF = APR = Press 5(CNVT) in the Financial 1 screen to display the following input screen for interest rate conversion.
7. Cost, Selling Price, Margin Cost, selling price, or margin can be calculated by inputting the other two values. u u u u u Formula CST = SEL SEL = 1– MRG(%) = Press 1(COST) from the Financial 2 screen to display the following input screen. •...
8. Day/Date Calculations You can calculate the number of days between two dates, or you can determine what date comes a specific number of days before or after another date. Press 2(DAYS) from the Financial 2 screen to display the following input screen for day/date calculation.
• 1(PRD) ... Number of days from d1 to d2 (d2 – d1) • 2(d1+D) ... d1 plus a number of days (d1 + D) • 3(d1 – D) ... d1 minus a number of days (d1 – D) •An error (Ma ERROR) occurs if parameters are not configured correctly. Use the following function key to maneuver between calculation result screens.
9. Depreciation Any of the following four methods can be used to calculated depreciation. u u u u u Straight-Line Method The straight-line method calculates depreciation for a given period. (PV–FV ) (PV–FV ) (PV–FV ) Depreciation for an item acquired part way through a year can be calculated by month. u u u u u Fixed Percentage Method Fixed percentage method can be used to calculate depreciation for a given period, or to calcu- late the depreciation rate.
u u u u u Sum-of-the-Year's Digits Method The sum-of-the-year's-digits method calculates depreciation for a given period. n (n +1) {Y–1} n' = n – (n' integer part +1)(n' integer part + 2*n' fraction part ) Z' = {Y–1} n'– j+2 n'–...
Press 3(DEPR) from the Financial 2 screen to display the following input screen for depre- ciation. Depreciation for an item acquired part way through a year can be calculated by month. • 6(g)3(DEP) ... useful life in years % ... depreciation rate/factor ...
The following function keys are on the calculation result table screen. • 1(REPT) ... Parameter input screen • 6(GRPH) ... Draws graph After drawing a graph, you can press 1 (TRACE) to turn on trace and read calculation results along the graph. Press i to turn off trace.
10. Bonds The bond calculation function calculates the price and yield of a bond. u u u u u Formula Issue date : price per $100 of face value : annual coupon rate (%) : yield to maturity (%) : accrued days : number of coupon payments per year (1=annual, 2=semi annual) : number of coupon payments between settlement date and maturity date : redemption price or call price per $100 of face value...
Press 4(BOND) from the Financial 2 screen to display the following input screen for band calculation. • 6(g)4(BOND) d1 ... purchase date d2 ... redemption date RDV ... redemption price or call price per $100 of face value CPN ... annual coupon rate (%) PRC ...
•An error (Ma ERROR) occurs if parameters are not configured correctly. Use the following functions key to maneuver between calculation result screens. • 1(REPT) ... Parameter input screen • 5(MEMO) ... Screen of various bond calculation values* • 6(GRPH) ... Draws Graph Pressing5 (MEMO) displays various bond calculation values, like those shown here.
11. TVM Graph The TVM Graph lets you assign two of the five parameters ( -axis of a graph, and plot changes in Press 5(TVM) from the Financial 2 screen to display the following input screen for TVM Graph. • 6(g)5(TVM) After configuring the parameters, press the function keys noted below to assign parameters to -axis and -axis.
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