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

FV = – (PMT × n + PV ) FV = – (PMT × n + PV )
PMT = – PMT = –
PV + FV PV + FV
n = – n = –
• A deposit is indicated by a plus sign (+), while a withdrawal is indicated by a minus sign (–).
Converting between the nominal interest rate and effective interest rate
The nominal interest rate (
rate ( I%' ) when the number of installments per year (
compound interest calculation periods (
savings accounts, loan repayments, etc.
{ {
I%' = I%' =
n PV
When calculating ,
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
I
When calculating %
I
After % is obtained, the following calculation is performed to convert to
{ {
I%' = I%' =
I
The value of %' is returned as the result of the
7-3-2
Compound Interest
PV + FV PV + FV
n n
PMT PMT
I
% value input by user) is converted to an effective interest
C/Y
). This conversion is required for installment
[C / Y ] [C / Y ]
I% I%
[P / Y ] [P / Y ]
(1+ (1+ ) )
100 × [C / Y ] 100 × [C / Y ]
PMT FV
, ,
[P / Y ] [P / Y ] } }
I% I%
[C / Y ] [C / Y ]
× [C / Y ] × 100 × [C / Y ] × 100
(1+ (1+ ) ) –1 –1
100 100
20070201
P/Y
) is different from the number of
P/Y
} }
× 100 × 100
–1 –1
C/Y
P/Y
C/Y
I
% calculation.
: installment
periods per year
: compounding
periods per year
I
%'.
: installment
periods per year
: compounding
periods per year