Sharp EL-120 Specifications download pdf (Page 29)

Specifying payments due (

)

This calculator can select ordinary annuity or annuity due de-

pending on the regular cash ﬂ ow (payment) conditions.

Ordinary annuity (END):

This is the default setting for ﬁ nancial calculations. BGN is not

displayed. A regular cash ﬂ ow (payment) is received at end of

each payment period. Often applied to loan calculations, etc.

Annuity due (BGN):

BGN appears on the display. A regular cash ﬂ ow (payment) is

received at the beginning of each payment period. Often applied

to the ﬁ nance lease of an asset.

To toggle between ordinary annuity and annuity due, press

Note: The above selection only affects the TVM solver.

Ordinary annuity

Your company wishes to accumulate a fund of $300,000 over the

next 18 months in order to open a second location. At the end of

each month, a ﬁ xed amount will be invested in a money market

savings account with an investment dealer. What should the

monthly investment be in order to reach the savings objective, as-

suming the account will earn 3.6% interest compounded monthly?

N = 18

PV = 0

FV = $300,000

PMT = ?

......

I/Y = 3.6%

Procedure Key operation Display

Set all the variables to

default values.

000

Make sure ordinary annuity is set (BGN is not displayed).

Set the number of pay-

ments per year to 12.

P/Y=

1200

The number of compounding periods per year is automatically set to

12. Press

to exit the P/Y and C/Y settings.

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Sharp EL-120 Specifications Page 29