User Manual

7-10
• “End” selected for the Setup screen Payment setting: BAL0 = PV
• “Begin” selected for the Setup screen Payment setting: INT1 = 0 and PRN1 = PMT
u Converting between the nominal interest rate and effective interest rate
The nominal interest rate ( I % value input by user) is converted to an effective interest rate
(
I % ' ) for installment loans where the number of installments per year is different from the
number of compound interest calculation periods.
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.
Press 4(AMORTZN) from the Financial 1 screen to display the following input screen for
amortization.
4(AMORTZN)
PM1....... first installment of installments 1 through
n
PM2....... second installment of installments 1 through n
n
........... installments
I % ........ interest rate
P V ........ principal
PMT ..... payment for each installment
F V ........ balance following final installment
P / Y ....... installments per year
C / Y ....... compoundings per year
I
%' =
I%
(1+ ) –1
[C/Y ]
[P/Y ]
{ }
× 100
100 × [C/Y ]
I
%' =
I%
(1+ ) –1
[C/Y ]
[P/Y ]
{ }
× 100
100 × [C/Y ]
i = I%'÷100 i = I%'÷100