Owner's Manual
Table Of Contents
- Overview of Calculator Operations
- Turning On the Calculator
- Turning Off the Calculator
- Selecting 2nd Functions
- Reading the Display
- Setting Calculator Formats
- Resetting the Calculator
- Clearing Calculator Entries and Memories
- Correcting Entry Errors
- Math Operations
- Memory Operations
- Calculations Using Constants
- Last Answer Feature
- Using Worksheets: Tools for Financial Solutions
- Time-Value-of-Money and Amortization Worksheets
- TVM and Amortization Worksheet Variables
- Entering Cash Inflows and Outflows
- Generating an Amortization Schedule
- Example: Computing Basic Loan Interest
- Examples: Computing Basic Loan Payments
- Examples: Computing Value in Savings
- Example: Computing Present Value in Annuities
- Example: Computing Perpetual Annuities
- Example: Computing Present Value of Variable Cash Flows
- Example: Computing Present Value of a Lease With Residual Value
- Example: Computing Other Monthly Payments
- Example: Saving With Monthly Deposits
- Example: Computing Amount to Borrow and Down Payment
- Example: Computing Regular Deposits for a Specified Future Amount
- Example: Computing Payments and Generating an Amortization Schedule
- Example: Computing Payment, Interest, and Loan Balance After a Specified Payment
- Cash Flow Worksheet
- Bond Worksheet
- Depreciation Worksheet
- Statistics Worksheet
- Other Worksheets
- APPENDIX - Reference Information
- General Information
30 Time-Value-of-Money and Amortization Worksheets
To Press Display
Enter payment
20000 S /
PMT= -20,000.001
Compute present value
(ordinary annuity)
C .
PV= 122,891.347
Set beginning-of-period
payments
& ] & V
BGN
Return to calculator mode & U
0.00
Compute present value
(annuity due)
C .
PV= 135,180.487
Answer: The present value of the savings is $122,891.34 with an ordinary
annuity and $135,180.48 with an annuity due.
Example: Computing Perpetual Annuities
To replace bricks in their highway system, the Land of Oz has issued perpetual
bonds paying $110 per $1000 bond. What price should you pay for the bonds
to earn 15% annually?
To Press Display
Calculate the present value for a
perpetual ordinary annuity
110 615 2 N
733.33
Calculate the present value for a
perpetual annuity due
H
110 N
843.33
Answer: You should pay $733.33 for a perpetual ordinary annuity and $843.33
for a perpetual annuity due.
A
perpetual annuity
can be an ordinary annuity or an annuity due consisting of
equal payments continuing indefinitely (for example, a preferred stock yielding
a constant dollar dividend).