User manual CASIO ALGEBRA FX2.0 Software Guide

[. . . ] · Zoom, Scroll, and Sketch cannot be used in the Financial Mode. · Whether you should use a positive or a negative value for the present value (PV) or the purchase price (PRC) depends on the type of calculation you are trying to perform. · Note that graphs should be used only for reference purposes when viewing TVM Mode calculation results. · Note that calculation results produced in this mode should be regarded as reference values only. [. . . ] Cash Flow (Investment Appraisal) This calculator uses the discounted cash flow (DCF) method to perform investment appraisal by totalling cash flow for a fixed period. This calculator can perform the following four types of investment appraisal. · Net present value (NPV) · Net future value (NFV) · Internal rate of return (IRR) · Pay back period (PBP) A cash flow diagram like the one shown below helps to visualize the movement of funds. CF2 CF3 CF4 CF5 CF7 CF6 CF1 CF0 With this graph, the initial investment amount is represented by CF0. The cash flow one year later is shown by CF1, two years later by CF2, and so on. Investment appraisal can be used to clearly determine whether an investment is realizing profits that were originally targeted. uNPV NPV = CF0 + n: natural number up to 254 CF2 CF3 CFn CF1 + + +. . . + (1 + i ) (1 + i )2 (1 + i )3 (1 + i )n i= I 100 uNFV NFV = NPV × (1 + i ) uIRR n 0 = CF0 + CF2 CF3 CFn CF1 + + +. . . + (1+ i) (1+ i)2 (1+ i)3 (1+ i)n In this formula, NPV = 0, and the value of IRR is equivalent to i × 100. It should be noted, however, that minute fractional values tend to accumulate during the subsequent calculations performed automatically by the calculator, so NPV never actually reaches exactly zero. IRR becomes more accurate the closer that NPV approaches to zero. 11 uPBP Initial value of N when NPV > 0. · Press 3 (CASH) from the Financial 1 screen to display the following input screen for Cash Flow. list for cash flow If you have not yet input data into a list, press 5('LIST) and input data into a list. After configuring the parameters, press one of the function keys noted below to perform the corresponding calculation. Specifies a list for data input ·An error (Ma ERROR) occurs if parameters are not configured correctly. Use the following function keys to maneuver between calculation result screens. Draws graph 12 After drawing a graph, you can press 1 (TRACE) to turn on trace and read calculation results along the graph. Press i to turn off trace. Amortization This calculator can be used to calculate the principal and interest portion of a monthly installment, the remaining principal, and amount of principal and interest repaid up to any point. uFormula Amount of single payment ;; ; ;;;;;;;; ;; ; ;;; ;;;;; e ;;;;; ;;;;; ;;;;; ;;;;; ;;;;; ;;;;; ;;;;; d ;;;;; ;;;;; 12 ;;;;;; ;;;;;;;;;;;;; ;;;;;;;;;;;;; ;;;;;;;;;;;;; ;;;;;;;;;;;;; ;;;; ;;; ;;; ;;;;;;;;;;;; ;; a c b n (Number of payments) a: interest portion of installment PM1 (INT) b: principal portion of installment PM1 (PRN) c: balance of principal after installment PM2 (BAL) d: total principal from installment PM1 to payment of installment PM2 (PRN) e: total interest from installment PM1 to payment of installment PM2 (INT) *a + b = one repayment (PMT) a : INTPM1 = I BALPM1­1 × i I × (PMT sign) b : PRNPM1 = PMT + BALPM1­1 × i c : BALPM2 = BALPM2­1 + PRNPM2 d : PRN = PRNPM1 + PRNPM1+1 + . . . + INTPM2 PM2 PM1 BAL0 = PV (INT1 = 0 and PRN1 = PMT at beginning of installment term) uConverting between the nominal interest rate and effective interest rate The nominal interest rate (I% value input by user) is converted to an effective interest rate (I%') for installment loans where the number of installments per year is different from the number of compound interest calculation periods. I%' = (1+ ;;; ;;;;; ;;;;; ;;;;; ;;;; m { [P / Y ] I% ) ­1 ×100 100 × [C / Y ] [C / Y ] } 14 The following calculation is performed after conversion from the nominal interest rate to the effective interest rate, and the result is used for all subsequent calculations. i = I%'÷100 Press 4(AMT) from the Financial 1 screen to display the following input screen for interest rate conversion. interest rate After configuring the parameters, press one of the function keys noted below to perform the corresponding calculation. Converts annual percent rate to effective interest rate · 2('APR) . . . Converts effective interest rate to annual percent rate ·An error (Ma ERROR) occurs if parameters are not configured correctly. Use the following function key to maneuver between calculation result screens. Cost, Selling Price, Margin Cost, selling price, or margin can be calculated by inputting the other two values. uFormula CST = SEL 1­ SEL = MRG 100 CST MRG 100 CST ×100 MRG(%) = 1­ SEL 1­ CST : cost SEL : selling price MRG : margin Press 1(COST) from the Financial 2 screen to display the following input screen. margin After configuring the parameters, press one of the function keys noted below to perform the corresponding calculation. Margin ·An error (Ma ERROR) occurs if parameters are not configured correctly. [. . . ] Draws Graph Pressing5 (MEMO) displays various bond calculation values, like those shown here. *The interest payment date is calculated from d2 when 365 is specified for the Date Mode item in the SET UP screen. · w~w · 6(GRPH) After drawing a graph, you can press 1 (TRACE) to turn on trace and read calculation results along the graph. Press i to turn off trace. TVM Graph The TVM Graph lets you assign two of the five parameters (n, I%, PV, PMT, FV) to the x-axis and y-axis of a graph, and plot changes in y as the value of x changes. Press 5(TVM) from the Financial 2 screen to display the following input screen for TVM Graph. [. . . ]