Casio ALGEBRA FX2.0 Financial User Manual
Page 7
7
n
PMT =
–
PV
+
FV
PMT
n =
–
PV
+
FV
• A deposit is indicated by a plus sign (+), while a withdrawal is indicated by a minus sign (–).
u
uu
u
u
Converting 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
%')
when the number of installments per year (
P/Y
) is different from the number of compound
interest calculation periods (
C/Y
). This conversion is required for installment savings accounts,
loan repayments, etc.
I%' =
I%
(1 +
)
–1
[
C
/
Y
]
[
P
/
Y
]
100
× [
C
/
Y
]
{ }
×
100
P/Y
: installment
periods per year
C/Y
: compounding
periods per year
When calculating
n
,
PV
,
PMT
,
FV
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
When calculating
I
%
After
I
% is obtained, the following calculation is performed to convert to
I
%'.
I%' =
I%
(1 +
)
–1
[
C
/
Y
]
[
P
/
Y
]
100
{ }
×[
C
/
Y
]×
100
P/Y
: installment
periods per year
C/Y
: compounding
periods per year
The value of
I
%' is returned as the result of the
I
% calculation.
Press
2
(CMPD) from the Financial 1 screen to display the following input screen for com-
pound interest.
•
2
(CMPD)