BASICS
Most keys have three functions:
• Primary function printed in white
• Secondary function printed in orange • Tertiary function printed in blue
Access blue functions
with
[Shift up]
Access orange functions
SETTING UP THE CALCULATOR
1 DECIMALS
• To change number of decimals:
1. Press [Shift down] (Orange) 2. Press [DISPLAY] (=)
3. Enter a number between 0 and 9
• Standard number of decimals is 4
2 DECIMAL SEPARATOR
• Default setup is American (One thousand = 1,000.00) • Change to European setup (One thousand = 1.000,00)
1. Press [Shift down] (Orange) 2. Press [,/.] (.)
3 RAD/DEG
• Toggle between radians & degree angle measure mode:
1. Press [Shift up] (Blue) 2. Press [RAD/DEG] (+)
• When RAD is displayed, the calculator is set to radians • Make sure RAD IS NOT displayed
4 NUMBER OF PAYMENTS PER PERIOD
• To check your calculator setting:
1. Press [Shift down] (Orange) 2. Press [Clear all] (C)
• If you do not see 1 P_Yr, change the set up
1. Enter 1
2. Press [Shift down] (Orange) 3. Press [P/YR] (PMT)
5 BEG/END
• When calculating annuities we pay/receive money at either the
beginning or the end of a period.
• Standard setting is end of period
• To toggle between beginning and end of period payments/
receivments:
1. Press [Shift down] (Orange) 2. Press [BEG/END] (MAR)
• Make sure BEG IS NOT displayed
6 ALGEBRAIC/CHAIN
• Default setting is Algebraic • To change setting:
1. Press [Shift up] (Blue)
2. Press [Alg/Chain] (On/Off button)
STORING NUMBERS
•
Using constants:
•
Use
[K] to store a number and operation
•
Once the constant operation is stored, enter a number and press
[=]
•
Example:
•
Store “+2” as a constant by entering
[+2], followed by [K]
•Store “+10%” as constant by entering
[+10%], followed by
USING THE M REGISTER
•
Perform memory operations on a single storage register
•
Store first number by pressing
[‣M]
•
Add subsequent numbers by pressing
[M+] (Add negative numbers
to subtract)
EXERCISE
Use the M register to add 17, 14,25, and 16,95. Then subtract 4,65 and
recall the result.
EXERCISE
Use the M register to add 17, 14,25, and 16,95. Then subtract 4,65 and
recall the result.
1. Enter 17, and press
[‣M]
2. Enter 14,25, and press
[M+]
3. Enter 16,95, and press
[M+]
4. Enter -4,65, and press
[M+]
USING NUMBERED REGISTERS
• To store first number:• Enter the value you want to store, and press [Shift down] followed by [STO] • Enter a number key from 0 to 9, or [.] followed by 0 to 9 to store into a
numbered register (20 registers in total) • To store subsequent numbers
• Enter the number, followed [Shift down] and [STO]
• Enter what operation you want (For example: [+], [-], [/], or [*]) • Select the register you want to use
• To recall numbers press [RCL] followed by the register number in which you stored your data
NOW YOU TRY!
•
Store 1,25 in register 5
•
Enter 1,25
•
Press
[Shift down], followed by [STO] and [5]
•
Add 3 to register 5
•
Enter 3
•
Press
[Shift down], followed by [STO], then [+], and [5]
•
Recall register 5
TIME VALUE OF MONEY (TVM)
•
Positive values represents money received,
negative values represents money paid out
•
Enter any four values to calculate the fifth
1. PV = Present value
2. FV = Future value
3. I/YR = Interest rate per year
4. N = Number of years
EXERCISES
1. You make a deposit of 24.849 NOK today. If you leave it in the bank for 5 years at an interest rate of 2%, what will your money have grown to?
Answer: 27.435,30 NOK
2. Two years ago, you made a deposit of 42.000 NOK. Today, your balance is 45.287,53. What interest rate did you receive?
Answer: 3,84 %
3. You open a bank account today, and make a deposit of 15.000 NOK every year for 8 years. What is your balance after eight years if the rate of return is 2% and you never withdrew any money?
EXERCISE #3
•
Enter 0, and press
[PV]
•
Enter 8 years, and press
[N]
•
Enter 2, and press
[I/YR]
•
Enter -15.000, and press
[PMT]
•
Press
[FV] to find future value
CASH FLOW
•
Cash flow application is used when cash flows occur over regular
intervals.
•
CF = Cash flow
•
CF0 = Initial investment (negative number)
ENTERING A CASH FLOW
1. Clear cash flow memory ( Press
[Shift down], and then [Clear
All])
2. Enter value of initial investment, and press
[CFj]
3. Enter cash flow for the following year, and press
[CFj]
4. Repeat step 3 for all cash flows
ENTER CASH FLOW
-1.000
400
550
300
250
250
•
Initial investment
•
Cash flow year 1
•
Cash flow year 2
•
Cash flow year 3
•
Cash flow year 4
ENTER CASH FLOW
-1.000
400
550
300
250
250
•
Initial investment
•
Cash flow year 1
•
Cash flow year 2
•
Cash flow year 3
•
Cash flow year 4
•
Cash flow year 5
1. Enter -1.000, and press
[CFj]
2. Enter 400, and press
[CFj]
3. Enter 550, and press
[CFj]
4. Enter 300, and press
[CFj]
5. Enter 250, and press
[CFj]
6. Enter 250, and press
[CFj]
REPEAT VALUES
•
Repeat value refers to the frequency of a cash flow (i.e. how many times that
cash flow occurs)
•
Standard setting is 1, which means that each cash flow occurs only once
•To change the frequency:
1. Fill in cash flow as usual (Enter value, and press
[CFj])
2. Enter the amount of times this cash flow occurs (for example 3 times)
3. Press
[Shift down], and then [Nj]
ENTER CASH FLOW
-1.000
400
200
•
Initial investment
•
Cash flow year 1, 2, & 3
•
Cash flow year 4, & 5
ENTER CASH FLOW
-1.000
400
200
•
Initial investment
•
Cash flow year 1, 2, & 3
•
Cash flow year 4, & 5
1. Enter -1.000, and press
[CFj]
2. Enter 400, and press
[CFj]
3. Enter 3, press
[Shift down],
and then
[Nj]
4. Enter 200, and press
[CFj]
5. Enter 2, press
[Shift down],
NET PRESENT VALUE
1. Enter cash flow for all years
2. Enter discount rate, and press
[I/YR] (Enter 5% as 5, not 0,05)
3. Press
[Shift down], and then [NPV]
EXERCISE
•
You are offered a choice between two investments. You can only
choose one. Given the cash flows and a discount rate of 3%, which
yields the highest net present value (and should be chosen)?
Investment A Initial investment Year 1, 2, & 3 Year 4 & 5 Investment B Initial investment Year 1 Year 2 -1.000 400 200 -1.500 900 1.000
EXERCISE
1. We have already entered this cash flow 2. Enter 3, and press [I/YR]
3. Press [Shift down], and press [NPV]
1. Enter -1.500, and press [CFj] 2. Enter 900, and press [CFj]
3. Enter 1.000, and press [CFj] 4. Enter 3, and press [I/YR]
5. Press [Shift down], and press [NPV] Investment A
Initial investment Year 1, 2, & 3 Year 4 & 5 Net present value
Investment B
Initial investment Year 1
Year 2
Net present value -1.000 400 200 481,66 -1.500 900 1.000 316,38
INTERNAL RATE OF RETURN
1. Enter cash flow for all years
2. Press
[Shift down], and then [IRR/YR]
The discount rate that yields a net present value of zero
Investment A Initial investment Year 1, 2, & 3 Year 4 & 5 -1.000 400 200 Investment B Initial investment Year 1 Year 2 -1.500 900 1.000
1. Enter -1.000, and press [CFj] 2. Enter 400, and press [CFj]
3. Enter 3, press [Shift down], and then [Nj] 4. Enter 200, and press [CFj]
5. Enter 2, press [Shift down], and then [Nj] 6. Press [Shift down], and then [IRR/YR]
1. Enter -1.500, and press [CFj] 2. Enter 900, and press [CFj]
3. Enter 1.000, and press [CFj]
4. Press [Shift down], and then [IRR/YR] Investment A
Initial investment Year 1, 2, & 3 Year 4 & 5
Internal Rate of Return
-1.000 400 200 21,00% Investment B Initial investment Year 1 Year 2
Internal Rate of Return
-1.500 900 1.000 16,99%
