At a Glance...10
For more information on depreciation, refer to chapter 7, Depreciation.
Interest Rate Conversion
To convert between nominal and effective interest rates, enter the known rate and the number
of periods per year, then solve for the unknown rate.
Find the annual effective interest rate of 10% nominal interest compounded monthly.
For more information on interest rate conversions, refer to the section titled, Interest Rate
Conversions in chapter 6, Time Value of Money Calculations.
\«
7,600.00 Remaining depreciable value
after year one.
G]{
1,900.00 Depreciation of the asset in year
two.
\«
5,700.00 Remaining depreciable value
after year two.
Table 1-18 Calculating the depreciation
Keys Display Description
Table 1-19 Keys for interest rate conversion
Keys Description
\Ó
Nominal interest percent.
\Ð
Effective interest percent.
\Í
Periods per year.
Table 1-20 Calculating the interest rate
Keys Display Description
J:\Ó
10.00 Enters nominal rate.
JG\Í
12.00 Enters payments per year.
\Ð
10.47 Calculates annual effective
interest.