Sharp EL-9900 EL-9900C - Page 196

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 First year Second year Third year Simple interest Receive $10,000 x 0.03 = $300 Receive $300 (constantly) Receive $300 (constantly) Compound interest Receive $10,000 x 0.03 = $300 Receive $10,300 x 0.03 = $309 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. 186