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Applications
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| | Enter: | | | See Displayed: | | |
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current net present value
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final value is positive; deal OK
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Loans
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Just as in investment calculations, the following applications use the financial (top-row)
keys, pressed in left to right order, for primary entries. In some
cases, basic keys—as well as interactive keys—are used. Again, the
number of years and interest rates must be converted to reflect the
number of compounding periods if different from those stated.
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Annual Percentage Rate of Interest on Installment Loans
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This calculation finds the true annual interest rate of a loan, when the
number of periods, amount of each payment, number of installments and
the principal are known. The formula uses the constant storage location,
therefore, any value stored there will be destroyed when the final key (the one that triggers the result) is pressed. The information is entered as follows:
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Enter number of installments, press n.
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Enter amount of each installment, press PMT.
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Enter principal, press PV.
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Press i to obtain rate of interest per installment.
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Enter number of installments per year, press × to obtain effective annual rate of interest.
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Sample Case: If you borrow $850 to be repaid in 52 equal weekly installments of $20 each, what is the annual percentage rate of interest?
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| | Enter: | | | See Displayed: | | |
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% weekly interest rate (rounded to two decimal places)
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% annual percentage rate
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Add-on Interest to Annual Percentage Rate Conversion
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This calculation finds the annual percentage interest rate and the monthly payment factor when the number of periods (months only in
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