ReferenceGuide

1

Basic Instructions

Clearing

To clear display only, press

To clear everything (except constantstorage),CLEAR

Constant Storage

To store a constant, press

To recall a constant, press

NOTE: Certain important pre-programmedcalculations overwrite previous contentsof the constant storage. These are:

= Add-on to annual percentage rate con-version

= Effective yield of an annuity (loan re-payment and sinking fund)

= Accrued interest and discounted noteproblemsTrend lines (least squares linear regres-

sion)Sum-of-the-digits calculationsBond calculations (price and yield)Accumulated interest paid on a loanDiscounted cash flow analysis

Except where noted above, a constant remainsin the machine until overwritten by another con-stant or machine is turned off.

Rounding —_To round-off (the display only), press, then

any desired numeral key between @ and @

1

2

A numeral key greater than @ will put display

in so-called “scientific notation.” Normal turn-

on mode is automatic rounding to two decimal

places.

NOTE: Rounding affects the display only. \The full internal accuracy of the machineis maintained.

Arithmetic Operations

To perform simple arithmetic operations be-

tween two numbers:

® Keyinthefirst number, press

®Key in the second number, press desired

operation,,B,@ or [_:_]

To perform chain calculations, only the first

number has to be loaded through a oper-

ation. . . all subsequent numbers need only be

keyed in and the desired function key pressed

after each one.

Automatic computation betwcen a displayednumber and a stored constant is achieved by

pressing and the desired function.

Changing SignTo change the sign of a displayed number,

press

To enter a negative number, key in number,

press

3

Raising a Number to a Power

® Key in positive basc number (to be raised to

a power), press

@ Keyin power(exponent), press

Square Root of a Positive NumberJE

Key in number, press [

Percentage Operations

To obtain the percentage amount of a number:

® Key in the base number, press

@ Key in the percent (as a % ), press

To add or subtract the percentage amountto the

base number simply press orE],respectively.

To obtain the percent difference between twonumbers:

@ Key in the base (or reference) number,

@ Keyin the second number, press |(answer is displayed in percent)

Calendar Functions

Date entry sequence is: month, decimalpoint, two numeral day and four numeral

year. Example: May 8,/1972 = 5.081972Calendar range is from January 1, 1800 toDecember 31, 2099.

q

To obtain difference between two dates:

@ Keyin first date, press

® Key in second date, press

To obtain a date from a base date:

@ Set roundingto six decimal places, press [ o

@ Key in the base date, press® Keyin the number of days (can be positive or

negative), press [

To obtain the day of the week of a date:

@ Key in today’s date, press

@ Key in desired date, press

® Key in, press E

@ Key in that portion of the display left of thedecimalpoint, press B

® Key in |7|again, press E]

If the date in question is beyond today, its dayof the week will be today’s day plus the numbershown in the display.

If the date in question is before today,its day ofthe week will be today’s day minus the numbershown in the display.

Error IndicationAn improperor illegal operation (such as divid-ing by zero) will result in a steady blinking dis-play.

Battery Condition (low charge indication)

All decimal points in the display indicates lowbattery condition. Plug into recharger.

4

5

Compound Interest

NOTE: To use the compound interest keys(top row) simply remember to enter your

known values in left-to-right sequenceand then press the key which correspondsto the unknown value.

Future Value

@ Key in number of time periods, press

@ Key in interest rate per time period (in % ),

press -

@ Keyin present value (principal), press

® To obtainfuture value, press

NOTE: Simple arithmetic operations may

be performed prior to entering any value.Also, a mistaken last entry may be cor-

rected by pressing , then keying in the

correct value and pressing the appropriatekey.

Present Value

® Keyin number of time periods, press

@ Keyin intercst ratc per time period (in %),

press -

@ Keyin future value amount, press

@ To obtain present value, press §2¥

Rate of Return {(growth rate)

® Key in numberof periods, press

@ Keyin present (beginning) value, press

5

6

@ Keyin future (ending) value, press

® To obtain cffective rate per period (in %),

press [l

Number of Time Periods(for a compounded amount)

® Keyin interest rate per period (in %),

press -

@ Keyin present (beginning) value, press

® Keyin future (ending) value, press

® To obtain number of time periods, press

Nominal Rate Converted to

Effective Annual Rate

® Keyin number of time periods per year,

press (5] [@ Keyin nominal rate (as a %),

press [()@ Key in@@, press

@ To obtain effective annual rate (in % ),

press E}

Effective Annual Rate Converted

to Nominal Rate

® Key in numberof time periods peryear,

press 19[@ Key in@@, press

® Keyin effective annual rate (in % ),

press (=) (0 B@® To obtain nominal rate (in %), press @

6

7

Sinking FundFuture Value of an Annuity (sinking fund)

® Keyin number of time periods, press

@ Keyininterest rate per period (as a %),

press n® Key in payment(installment) amount,

press

® To obtain future value, press

Sinking Fund Payment Amount

@ Keyin numberof time periods, press

®@ Keyininterest rate per period (as a %),

press@ Key in futurc value, press

® To obtain payment amount, press

Effective Yield of a Sinking Fund

@ Keyin number of time periods, press

@ Keyin payment (installment) amount,

press [l

@ Keyin future value, press i

@ To obtain interest rate per period (as a %),

press n

Number of Periods Required

for a Sinking Fund

@ Keyin interest rate per period (as a %),

press -

@ Keyin payment (installment) amount,

press® Keyin future value, press

® To obtain number of time periods, press

7

8

Loan Repayment

Accrued (simple) Interest Payment Due

@ Keyin numberof days, press

@ Keyin annual interest rate (in %), press n

® Keyin the principal (present value), press [}

@ To obtain interest payment due on a 360 day

basis, press [[7]® To obtain interest payment due on a 365 daybasis, press

Discounted Note and EffectiveAnnual Yields

@ Keyin numberof days, press@ Key in annual interest (discount) rate (in % ),press [l

® Keyin the face (future) value of note,

press

@ To obtain the discount amount (i.e.—the in-terest portiqz]) of the note on a 360 day basis,

press® To obtain the effective annual yield on a 360day basis, press

® To obtain the discount amount of the note ona 365 day basis, press

@ To obtain the effective annualyield on a 365day basis, press

True Equivalent Annual Yield

@ Key in numberof days, press

@ Key in@@@, press E]

8

9

® Keyin the principal (present value) of note,

press fgl

@ Key in the face value (future value) of note,

press {4

® To obtain true equivalent annual yield,

press n

Present Value of an Annuity

(Principal Amount of a Loan)

® Keyin the number of time periods (months,

years; elc.), press

@ Keyininterest ratc perperiod (in %),

press

® Keyin the amount of the payment per period,

press@® To obtain present value (principal), press figl

Loan Repayment Amount

@ Keyin numberof time periods, press

@ Keyin interest rate per period (in %),press -

@ Keyin present value (principal), press [0,

@ To obtain payment amount per period,

press [

True Interest Rate of a Loan

@ Key in number of time periods, press

@ Keyin payment amount per period, press

@ Keyin present value (principal), prcés

@ To obtain interest rate per period (in % ),

press n

10

NOTE: To obtain an annual rate simply

key in the number of time periods per

year and press @ Number of Time Periods

Required for a Loan

® Keyin the interest rate per time period,

press n

@ Keyin the payment amount per time period,

press B8

® Keyin the present value (principal), press

® To obtain the number of time periods,

press n

Accumulated Interest Paid on a Loan(between two points in time)

® Keyin the payment number corresponding to

the first point of the time span in question,

press

@ Keyin the payment number coiresponding tothe last point ofthe time span in question,

press

® Keyin the total number of payments of the

loan, press

@ Keyin the interest rate per payment (or peri-

od), press -

@ Keyin the payment amount per period,

press

@© Toobtain the accumulated interest, press

@ To obtain the remaining balance (principal),press

10

"

“Add-on” Interest Converted to a

True Annual Percentage Rate

@ Keyin the number of months of the loan,

press [EB@ Keyin the “add-on”rate (per annum),

press n

® Toobtain true annual percentage rate,

press -

@ To obtain the monthly payment amount,

press

® Then key in the principal amount to be

loaned, press

Interest Rebate (Rule of 78's)

® Keyinlast payment number, press

@ Keyin total number of paymentsfor the loan,

press n

@ Keyin the total finance charge, press [z

@ Toobtain the uncarned interest (rebate),

press

To obtain the remaining principal due.

® Keyin the amount of cach payment,

press® Key in the number of payments remaining,

press [x] [x27] [=

Depreciation Amortization

Sum-of-the-years’ Digits Depreciation

@ Keyin given year number(or beginning vear

number), press n

11

12

@ Keyinlife of asset (rnumberof years),

press

® Keyin depreciable amount (purchaseless

salvage value), press

@® To obtain given year’s depreciation,

press [l® To obtain subsequent year's depreciation,

press

@ Continue step @ as desired

@ To obtain the depreciation for a particular

year not in sequence, simply key in the year

numberdesired and, press

® Continue step @ as desired.

NOTE: To obtain the remaining book value

after each year's depreciation press.

| The key must be pressed again be-

fore the next @ calculation (step 5).L Straight Line Depreciation

® Key in depreciable amount (purchase less

salvage value), press

@ To obtain each year’s depreciation, key in

life of asset (number of years). press [E]

NOTE: To obtain the remaining book value

after each year’s depreciation, first press

B for book value after first year then

(=] for each subsequentyear.

12

13

Variable Rate, Declining-BalanceDepreciation

@ Keyinm@@and, press@ Keyinlifc of asset (nutmberof years) press B

® Keyin declining factororrate (i.e.—1.5, 2

etc). press E]

@ Key in depreciable amount (purchase less

salvage value)

® To obtain year's depreciation, press

® To obtain remaining book value, press B

@ Continue steps @and @ for subsequent years.

Diminishing Balance Depreciation

@ Keyinlife of asset (numberof years),

press n

@ Keyin beginning value of asset, press

® Keyin ending (salvage) value of asset

press {i%

NOTE: Salvage value must be greater thanzero.

® To obtain and store rate of depreciation,

press [l o] (1® Keyin beginning value of asset

®To obtain year’s depreciation, press @

@ To obtain remaining book value, press B

® Continue steps ® and @ for subsequent years.

13

14

Bonds

Price of a Bond

® Keyincither maturity or purchase date,

press@ Keyin remaining date, press

@ Keyin yield-to-maturity (as a % ). press n

® Keyin annual coupon rate (as a %),

press [ -

® To obtain bond price, press -

Yield-to-Maturity of a Bond

® Keyin either maturity or purchase date,

pres@ Keyin remaining date, press

@ Keyin annual coupon rate (as a %),

press@ Keyin the bond price, press T

® To obtain bond yield, press || -f

NOTE: The mathematical approach usedfor bond problems as calculated above ismore precise than the traditional one es-tablished in the 1800’s. The reason is thatwhere the intra-coupon period is applica-ble to the problem, the actual number of

days per month is used instead of an arbi-trary 30 days for all months. The tradi-

tional method is quite close to the actualmethod, and generally the two differ onlybeyond the second decimal place. In de-ference to long standing custom, however,the following option is provided for calcu-lating bond problems in accordance with

traditional trade custom.

14

15

Conventional Bond Calculations

a) Determine the number of days, months andyears to maturity (in accordance with trade

customn)

b) Key in numberof days, press

c) Key in E] @ (days/month), press E]

d) Keyin number of months, press [EJ

¢) Keyin @ (months/year), press [E]

f) Keyin number of years, press

2) Keyin E][E] E](du_\'s/year), press (Z]

Continue with step ® of either price or yieldcalculation above.

INOTE: For maturities of less than 6months, load the number of days to ma-

turity directly into.

Investment Analysis

Discounted Rate of Return{for even cash flows)

@ Key in number of time periods, press

@ Keyin amount of cash flow per period,

press

® Keyin original investment, press

@ To obtain discounted rate of return (in %)

per period, press -

Discounted Cash Flow Analysis(for uneven cash flows) i

® Clearthe entire machine by pressing

15

L

16

@ Keyin discount rate (in %) per period,

press -

@ Keyin original investment, press

@ Keyin cash flow per period, press® Continue step ® for subsequent flows. I

- NOTE: Investmentis profitable (to the ex-| tent of the discount rate) if the result is. positive. Furthermore, the user can deter-

. mine the “break-even” period by notings the period in which step @ first yielded a

f positive result, Statistics

Mean and Standard Deviation

@ Clear the entire machine by pressing -E

@Keyin data item, press

® Continue step @ until all data are entered.

@ To obtain mean (arithmetic average),

pressf| NOTE: To obtain the standard deviation

after each mean calculation press . i

The key must be pressed again before \

i resuming. |

® To return to the summation mode,

-1

® Contmue with step @ if dcsxrcd t NOTE: To correct a gata item key in its |

’ value and press|l |

11||{||i

17

Trend Lines (Least Squares Linear Regression}.;.-

@® Clear the entire machine by pressing |

® Sequentially, key in data item, press [Eil

NOTE: Each time is pressed, the se-

quence numberfor that item is displayed. @ Continue step @ until all data are entered.

@ To terminate the data entry sequence,

press

® To obtain a specific value on the trend line,

key in the appropriate time period number,

press [fll® Repeat step ® as often as desired.

NOTE: The user may also “step-along”

the trend line by simply pressing [ as

many times as desired. Further, the cur-

rent time period number may be obtained

by pressing (x%]. The key must bepressed again before resuming.

@ To obtain the amount of change of the trend

line per period (commonlycalled “slope”),

oTo resume operation, press

17

18

Index

A S———

Accrucd Interest p. 8Accumulated Interest on a Loan p. 10

Addition p. 2Add-on Rate to Effective Rate (APR) p. 11Amortization Methods p. 11Annual Percentage Rate from Add-on Rate p. 11Annuities p. 7, p. 9Arithmetic Operations p. 2Averages (Mean) p. 16

B

Basic Instructlons p-1Battery (low charge indication) p. 4Bond Price p. 14Bond Yield p. 14

Cc

Calendar Operations p. 3Changing Sign p. 2Clearing p. 1Compound Interest Calculations p. §Constant Storage p. 1Conventional Bond Calculations p. 15

bDate Calculation p. 3Date Entry Format p. 3Day (date entry format) p. 3Dayof the Week Calculation p. 4Decimal Setting p. 1Depreciation Methods p. 11Declining Balance Depreciation p. 13Diminishing Balance Depreciation p. 13Discounted Cash Flow(uneven cash flow) p. 15Discounted Rate of Return (even cash flow) p. 15Discounted Notes and Equivalent Yields p. 8Division p. 2Double Declining Balance Depreciation p. 13

18

19

E

Effective Rate Converted to a Nominal Rate p.6Effective Yield of a Sinking Fund p. 7Equivalent Yield on a Discounted Note p-8Error Indication p. 4Exponentiation p. 3

F

Future Value of an Amount Compounded p. 5Future Value of an Annuity (sinking fund) p-7

G

Growth Rate of an Amount Compounded p. 5

Interest Bearing Note p. 8Interest Payment on a Simple Interest Note p.-8Interest Rate of a Loan Repayment p. 9Interest Rebate (Rule of 78’s) p. 11Investment Analysis p. 15

L

Least Squares Linear Regression p.17Linear Regression Analysis p. 17Loan Payment Amount (using Add-on Rate) p. 11Loan Payment Amount (ordinary mortgage) p. 9Loan Repayment Calculations p. §

Mean (Arithmetic Average) p. 16Month (Date Entry Format) p-3Multiplication p. 2

N

Negative Numbers p. 2NetPresent Value p. 15Nominal Rate Converted to Effective Annual

Rate p. 6Number of Periods for a CompoundedAmountp. 6

Numberof Periods for a Loan Repaymentp. 10Number of Periodsfor a Sinking Fund p. 7

19

20P

Payment Amountfor a Loan (Add-on Rate) p. 11Payment Amount (Ordinary Mortgage) p. 9Payment Amountfora Sinking Fund p. 7Percent Difference Between Two Numbers p. 3Percentage Amount of a Number p. 3Powers p. 3Present Value of an Annuity p. 9Present Value (Compound Interest) p. 5Principal Amount of a Loan p. 9

R

Raising a Number to a Powerp. 3Rate of Return for an Amount Compounded p. 5Rate of Return for Even Loan Payments p. 9Remaining Balance (Rule of 78's) p. 11Rounding Numbers p. 1Rule of 78’s p. 11

S

Sign Change p. 2Simple Interest Loan Calculation p. 8Sinking Fund p. 7Square Root p. 3Standard Deviation p. 16Statistics p. 16Storing a Constant p. 1Straight Line Depreciation p. 12Subtraction p. 2Sum-of-the-Months’ Digits p. 11Sum-of-the-Years’ Digits Depreciation p. 11

T

Trend Lines (Linear Re:grressiofi)/p. 17True Equivalent Annual Yield p. 8True Interest Rate of a Loan Repayment p. 9

v

Variable Rate Declining Balance Depreciation p. 13

Yy oYield-to-Maturity of a Bond p. 14

20