3. Press w(Compound Interest).
4. On this screen, n = number of interest periods,
I% = annual interest rate, and PV = principal or present
value. Since she has not made an investment yet, the
PV is 0. PMT = the payment. Amy will invest $100 (-100)
each month. Therefore PMT will be -100 x 12. Enter 0
for FV, since that will be calculated. Enter 1 for P/Y since
interest is compounded annually. Then press y(FV).
5. Amy saves $113803.59 in her annuity over 35 years.
(4b) How to calculate effective annual rate (EAR) using the Casio fx-9860GII
Benny’s credit card APR is 26.55% compounded daily. What is his actual interest rate per
year—that is, his EAR?
1. From the main menu, highlight the TVM icon
and press
l. (If the correct screen does not appear,
press
d until it does. This occurs when the last
operation performed on the calculator was in the same
menu.)
2. Choose
y(Conversion).
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