197
FINANCIAL FUNCTIONS
• The financial calculation commands of the calculator are located in the Financial
menu.
• Press
Ï
FINANCE
to execute financial calculations (
FINANCE
is the second function
of
/
).
• Numerical value input format and display format in the FINANCE mode comply to
that of SET UP.
• Pressing
Ï
FINANCE
displays the menu screen shown below. The outline of the
main menu is as follows:
Specifies the T.V.M. solver mode
Specifies a financial calculation function
Specifies payment due (beginning of period/end of period)
Specifies individual function within the T.V.M. solver
1. Before Starting Financial Calculations
(1) Differences between simple interest and compound inter-
est
• There are two ways to calculate interest: simple interest and compound interest. The
calculator is capable of executing, both simple and compound interest calculations.
The differences between simple interest and compound interest:
For example, what would the difference be for simple interest and compound interest
when depositing $10,000 (principal sum) in a bank for a period of three years at an
annual interest rate of 3%?
→
→
→
→
CHAPTER 8
FINANCIAL FUNCTIONS
EL-9650-(08)EN (197-210) 8/1/00, 9:09 AM197
To Next Page
Loading...
