Sharp CS-2630 - Compound Interest

Calculate the new walance ona deposit which i is compounded quarterly for 4 years ata
given annual interest rate. —
SOLUTION:
FORMULA:
EXAMPLE: ~
1. Calculate the quarterly interest rate.
2. Calculate the new balance (principal plus interest)
New balance
Where § P =
i
n
igo pre
i
n
_Then 6,150 (1 +0.0125)'° 5
P (1 +i)"
amount of deposit (principal)
interest rate per period
number of years x 4
$6150
= 5% annum + 4 periods = 0. 0125
16 (4 yéars x 4)
In these example, the display has been omitted
Set Decimal @ F, ve
Enter i
Enter.4: 2%:
Cane porees
Enter 1 from
formula
eye
(2x) fs) ea)
lr} x} e} OK] ] BX]
~ fe] BS
7-502-32071817 *
0-0125
Ria- 1
"40125
1-0125
10125
102515625
1-02515625
1-02515625
1-05094533691
1-05094533691
1-05094533691
1-10448610117
Se: ae
1-10448610117
1-10448610117
1-21988954767
1:21988954767
69150
q
4.=
0:0125 *
0-0125
1
1-0125
1-02515625 *
1-02515625 x
1-02515625
1-050945336 *
1-050945336 x
1-050945336
1:104486099 *
1:104486099 x
1-104486099
1-219889542
1:219889542 x
6150
7502:320683
ut abit
$7,502.32 (New ee
Quarterly int. rate
New Balance