Sharp EL-738

30
Procedure Key operation Display
The number of compounding periods per year is automatically set to
12. Press
s
to exit the P/Y and C/Y settings.
Enter the total number
of payments.
s
24
N
24~N
2400
Enter the future value.
2995
x
10
.
% T
ANS~FV
29950
Enter payment.
,
145
u
(-145)~PMT
-14500
Enter the present value.
2995
v
2995~PV
299500
Calculate the annual
interest rate.
@ f
I/Y=
708
Answer: If you lease the computer system, the annual interest
rate would be 7.08%, which is less than that of the
interest rate on a two-year loan, so it would be more
cost-effective to lease a computer system than to
purchase one.
Calculating the present value of a lease with
trade-in value
Your client wishes to buy a machine currently leased from your
company. On a fi ve-year lease with payments of $200 at the
beginning of each month, the machine has a trade-in value of
$1,500 with 34 monthly payments remaining. If your company
sells the machine at the present value of the lease, discounted
at an annual interest rate of 18%, compounded monthly, how
much should your company charge for the machine?
N = 34
......
PV = ?
FV = –$1,500
I/Y = 18%
PMT = –$200
3
3FinancialFunctionsCurrent.indd303FinancialFunctionsCurrent.indd30 06.7.108:38:22PM06.7.108:38:22PM