Sharp el-9950 - Page 189

188
Chapter 9: Financial Features
17 .Press
E
.
 UsuallyC/Y(cumulative
interest per year) is the same
valueasP/Y.Ifnot,enterthe
value instead.
18 .Press
{
3timestomovethecursortoPMT(payment
amount).
19 .Press
@
h
.
The result will appear as follows.
20 .Paymentamountpermonth
PMT=-1073.643246
(Negativevalueindicates
payment.)
The numerical value input
format and display format in
theFINANCEmodecomplytothatofSETUP.
 TheaboveanswerisgivenwhentheFSEsettinginSETUP
menuissettoFloatPT.Ifyouwishtodisplay2digitdecimal
pointformat,setTABto2andFSEtoFIX.
Answer: Youhavetopay$1,073.64permonthfor30years.
Simple interest and compound interest
Therearetwowaystocalculateinterest:simpleandcompound.IntheFINANCEmode,
the calculator can execute compound interest calculations.
Exampleofdepositing$10,000inabankfor3yearsatanannualinterestrateof3%
 Period Simpleinterest Compoundinterest
 Firstyear Receive$10,000x0.03= Receive$10,000x0.03=
$300 $300
 Secondyear Receive$300(constantly) Receive$10,300x0.03=
$309
 Thirdyear Receive$300(constantly) Receive$10,609x0.03=
$318.27
With compound interest, the amount in the bank is increased by receiving interest on
the interest gained during each calculated period.