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Chapter 11: 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
PM = -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.