Casio CFX-9970G Manual
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Casio CFX-9970G Manual

Casio CFX-9970G Manual

19. financial calculations
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Download this manual See also: Programming Manual, Manual
Chapter
Financial Calculations
19-1
Before Performing Financial Calculations
19-2
Simple Interest Calculations
19-3
Compound Interest Calculations
19-4
Investment Appraisal
19-5
Amortization of a Loan
19-6
Conversion between Percentage Interest Rate and
Effective Interest Rate
19-7
Cost, Selling Price, Margin Calculations
19-8
Day/Date Calculations
19

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Summary of Contents for Casio CFX-9970G

  • Page 1 Chapter Financial Calculations 19-1 Before Performing Financial Calculations 19-2 Simple Interest Calculations 19-3 Compound Interest Calculations 19-4 Investment Appraisal 19-5 Amortization of a Loan 19-6 Conversion between Percentage Interest Rate and Effective Interest Rate 19-7 Cost, Selling Price, Margin Calculations 19-8 Day/Date Calculations...

  • Page 2: Before Performing Financial Calculations

    19-1 Before Performing Financial Calculations The Financial Mode provides you with the tools to perform the following types of financial calculations. • Simple interest • Compound interest • Investment appraisal (Cash Flow) • Amortization • Interest rate conversion (annual percentage rate and effective interest rate) •...
  • Page 3 19 - 1 Before Performing Financial Calculations • Drawing a financial graph while the Label item is turned on, displays the label CASH for the vertical axis (deposits, withdrawals), and TIME for the horizontal axis (frequency). • The number of display digits applied in the Financial Mode is different from the number of digits used in other modes.

  • Page 4: Simple Interest Calculations

    19-2 Simple Interest Calculations This calculator uses the following formulas to calculate simple interest. SI' = n 365-day Mode : simple interest PV i : number of simple SI' = n interest periods PV i 360-day Mode : present value : periodic interest rate : simple future value SI = –SI'...
  • Page 5 19 - 2 Simple Interest Calculations Now you can perform the following key operation to return to the input screen and then display the principal plus interest. 1(REPT) (Returns to the input screen) You can also press 6(GRPH) to draw a cash flow graph. 6(GRPH) The left side is , while the right side is...

  • Page 6: Compound Interest Calculations

    19-3 Compound Interest Calculations This calculator uses the following standard formulas to calculate compound interest. u u u u u Formula I (1 + i S) (1 + i) –1 PV+PMT + FV i(1 + i) (1 + i) Here: : present value PV= –(PMT + FV...
  • Page 7 19 - 3 Compound Interest Calculations 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...
  • Page 8 19 - 3 Compound Interest Calculations ....payment for each installment (payment in case of loan; deposit in case of savings) ....future value (unpaid balance in case of loan; principal plus interest in case of savings) ....installment periods per year ....
  • Page 9 19 - 3 Compound Interest Calculations Now you can press 6 to draw a cash flow graph. 6(GRPH) The left side is , while the right side is . The upper part of the graph is positive (+), while the bottom part is negative (–). u u u u u Installment savings Input Condition: Future value is greater than the total of payments.
  • Page 10 19 - 3 Compound Interest Calculations Example Calculate the interest rate required to repay a $2,300 balance on a loan in two years paying back $100 per month, when interest is compounded monthly. Perform the following key operation from the input screen. c*bcw(Input 12.) cdaaw(...
  • Page 11 19 - 3 Compound Interest Calculations k k k k k Savings u u u u u Future value Example Calculate the future value after 7.6 years for a principal of $500 and an interest rate of 6%, compounded annually. Perform the following key operation from the input screen.
  • Page 12 19 - 3 Compound Interest Calculations Perform the following key operation from the input screen. ba*bcw(Input = 10 12.) = –6,000) -gaaaw( = 0) baaaaw( = 10,000) bcw(Monthly compounding) u u u u u Compound interest period Example Calculate the amount of time required to increase an initial investment of $5,000 to a total of $10,000 at an annual rate of 4%, compounded monthly.
  • Page 13 19 - 3 Compound Interest Calculations Perform the following key operation from the input screen. f*bcw(Input 12.) = 6.0%) = 0) -cfaw bcw(Monthly installments) (Monthly compounding) Specifying “Begin” for Payment in the set up screen changes to calculation of installments at the beginning of each month. u u u u u Installment amount Example Calculate the amount required for each installment to...
  • Page 14 19 - 3 Compound Interest Calculations u u u u u Number of installments Example Calculate the number of monthly $84 installments required to accumulate a total of $6,000 at an annual interest rate of 6%, compounded annually. In the set up screen, specify “End” for Payment and then press J. Perform the following key operation from the input screen.
  • Page 15 19 - 3 Compound Interest Calculations Perform the following key operation from the input screen. 12.) b*bcw(Input e.fw -baaaw( = –1,000) -faaw( = –500) bcw(Monthly installments) (Monthly compounding) u u u u u Borrowing power Example Calculate how much can be borrowed on a 15-year loan at a 7.5% annual interest rate, compounded monthly, if a payment of $450 per month can be made.
  • Page 16 19 - 3 Compound Interest Calculations u u u u u Number of installments Example Calculate the number of years it will take to repay a $60,000 loan borrowed at 5.5%, compounded monthly, with monthly installments of $840. In the set up screen, specify “End” for Payment and then press J. Perform the following key operation from the input screen.

  • Page 17: Investment Appraisal

    19-4 Investment Appraisal This calculator uses the discounted cash flow (DCF) method to perform invest- ment appraisal by totalling cash flow for a fixed period. This calculator can perform the following four types of investment appraisal. • Net present value ( •...
  • Page 18 19 - 4 Investment Appraisal u u u u u PBP Initial value of when > 0. Press 3 (CASH) from the initial screen 1 to display the following input screen for investment appraisal. % ....interest rate Csh ....list for cash flow •{NPV}/{IRR}/{PBP}/{NFV} ...
  • Page 19 19 - 4 Investment Appraisal Perform the following key operation from the input screen. bbw( % = 11) 6(List)2(List2) Now you can press 6(GRPH) to draw a cash flow graph. 6(GRPH) Pressing !1 (TRCE) activates trace, which can be used to look up the following values.
  • Page 20 19 - 4 Investment Appraisal On the Main Menu, select the LIST icon to enter the LIST Mode and perform the following key operation. ee(List 3) -baaaaw caaaw ceaaw ccaaw caaaw biaa+daaaw Return to the Main Menu by pressing m. Select the TVM icon to enter the Financial Mode, and then press 3 (CASH).

  • Page 21: Amortization Of A Loan

    19 - 4 Investment Appraisal 19-5 Amortization of a Loan 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. Amount of single payment (Number of payments) : Interest portion of installment PM1 (...
  • Page 22 19 - 5 Amortization of a Loan 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 ( ) from the initial screen 1 to display the following input screen for amortization.
  • Page 23 19 - 5 Amortization of a Loan Perform the following key operation from the input screen. bf*bcw (Input = 15 12.) g.fw beaaaaw ( = 140,000) aw ( = 0) bcw(Monthly installments) cw(Semiannual compounding) Pressing 4( ) displays the amortization input screen. Input 24 for PM1 and 49 for PM2.
  • Page 24 19 - 5 Amortization of a Loan Calculate from installment 24 to 49. 1 (REPT) Calculate 1 (REPT) Now you can press 6 to draw a cash flow graph. 6(GRPH) • Trace can be activated following the calculation. Pressing e displays = 1.

  • Page 25: Conversion Between Percentage Interest Rate And Effective Interest Rate

    19-6 Conversion between Percentage Interest Rate and Effective Interest Rate Press 5 (CNVT) in the Financial 1 screen to display the following input screen for interest rate conversion. n ...... number of compoundings % ....interest rate • {' ' ' ' ' EFF}/{' ' ' ' ' APR} ... {annual percentage rate to effective interest rate}/{effective interest rate to annual percentage rate} conversion k k k k k Converting the Annual Percentage Rate (APR) to the Effective Interest Rate (EFF)
  • Page 26 19 - 6 Conversion between Percentage Interest Rate and Effective Interest Rate Example Calculate the annual percentage rate for an account paying an effective interest rate of 12.55%, compounded quarterly. In the set up screen, specify “Norm1” for Display and then press J. Perform the following key operation from the input screen.

  • Page 27: Cost, Selling Price, Margin Calculations

    19-7 Cost, Selling Price, Margin Calculations Cost, selling price, or margin can be calculated by inputting the other two values. CST = SEL 1– SEL = 1– MAR(%) = 1– Press 1 (COST) from the initial screen 2 to display the following input screen. Cst ....
  • Page 28 19 - 7 Cost, Selling Price, Margin Calculations k k k k k Selling Price Example Calculate the selling price for a cost of $1,200 and a margin of 45%. Perform the following key operation from the input screen. bcaaw(Cst = 1,200) efw(Mrg = 45) 2(SEL) k k k k k Margin...

  • Page 29: Day/Date Calculations

    19-8 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 initial screen 2 to display the following input screen for day/date calculation.
  • Page 30 19 - 8 Day/Date Calculations Perform the following key operation from the input screen. i.aibjghw (d1 = August 8, 1967) h.bfbjhaw (d2 = July 15,1970) 1(PRD) Prd ....number of days Example Determine the date that is 1,000 days after June 1, 1997. Note that the attempting to perform the following calculation while the 360-day year is in effect causes an error.

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