1. Financial Calculator Fundamentals

2. Menu Menu Keys Display Memory Store Memory Recall Input Scroll Shift On/Clear Display Previous Menu Backspace

3. General Information ^ FIX 3) Type “4” Controlling the Display Format 1) Select “Display” DSP 2) Press “Fix” 4INPUT Showing Full Precision 1) Select Shift “Show”SHOW

4. General Information 0 Storing A Number in Memory 1) Select “Store” STO 2) Press “0” 10 Storage Registers (0 – 9) 0 Recalling A Stored Number 1) Select “Recall” RCL 2) Press “0”

5. General Information 1/X Finding the Reciprocal of A Number.25 = 4 2) Type “.25”.25 3) Press “Shift” “1/X” CLEAR DATA 1) Clear Registers yxyx Raising A Number to A Power 5 3 = 125 2) Type “5” 5 3) Press “Shift” “y x ” CLEAR DATA 1) Clear Registers 4) Press “3” “=” 3=

6. General Information 1/X Finding the “nth” Root of A Number = 2 2) Type “64” 64 5) Press “Shift” “1/X” CLEAR DATA 1) Clear Registers yxyx 4) Type “6” 6 3) Press “Shift” “y x ” 6) Press “=” =

7. General Information Finding the Square Root of A Number (Shortcut) = 6 2) Type “36” 36 CLEAR DATA 1) Clear Registers 3) Press “Shift” “ ” Squaring A Number (Shortcut) 6 2 = 36 2) Type “6” 6 CLEAR DATA 1) Clear Registers 3) Press “Shift” “X 2 ” X 2

8. Simple Math + 4) Type “54” Addition 46 + 54 = 100 2) Type “46” 46 3) Press “+” 54 5) Press “=” = CLEAR DATA 1) Clear Registers

9. Simple Math - 4) Type “323” Subtraction 641 - 323 = 318 2) Type “641” 641 3) Press “-” 323 5) Press “=” = CLEAR DATA 1) Clear Registers

10. Simple Math X 4) Type “47” Multiplication 93.6 X 47 = 4,399.2 2) Type “93.6” 93.6 3) Press “X” 47 5) Press “=” = CLEAR DATA 1) Clear Registers

11. Simple Math  4) Type “601.335” Division 864.45  601.335 = 1.4376 2) Type “864.45” 864.45 3) Press “  ” 601.335 5) Press “=” = CLEAR DATA 1) Clear Registers

12. Simple Math + 4) Type “261” Chain Math 43 + 261  429 X 83 – 671 + 38 X 2 = -1,148.3683 2) Type “43” 43 3) Press “ + ” 261 5) Press “  ”  CLEAR DATA 1) Clear Registers 6) Type “429”429 - 8) Type “83” 83 9) Press “ - ” 7) Press “X ” X 10) Type “671” 671 12) Type “38” 11) Press “ + ” 38 13) Press “X ” X 14) Type “2”2 15) Press “=” = +

13. Financial Calculator Fundamentals The Menu System FINBUSSUMTIMESOLVETEXTTVMICNVCFLOBONDDEPRC NP%YRPVPMTFVOTHER P/YRBEGENDAMRT

14. Time Value Calculations Definitions N I%YR PMT PV FV Stores or calculates the total number of periods or payments Stores or calculates the nominal annual interest rate Stores or calculates the amount of each periodic payment Stores or calculates the present value Stores or calculates the future value P/YR Specifies the number of compounding periods per year BEG Sets Begin mode: payments occur at the beginning of the period END Sets End mode: payments occur at the end of the period

15. Time Value Calculations Concepts Interest Compounding Annual Compounding 0123 $100$110 10% $121 10% $133.10 10% Semi-Annual Compounding 0123 $100$105 10%.51.52.5 $110.25 10% $115.76 10% $121.55 10% $127.63 10% $134.01 10%

16. Time Value Calculations Concepts Interest Compounding Quarterly Compounding Monthly Compounding 0123 $100 $110.38$121.84$134.49 0123 $100.5 1.52.5.25.751.251.752.252.75 12 Periods $110.47$122.04$134.82

17. Time Value Calculations Concepts Interest Compounding 10%AnnualSemi- Annual QuarterlyMonthly Year 0$100.00 Year 1$110.00$110.25$110.38$110.47 Year 2$121.00$121.55$121.84$122.04 Year 3$133.10$134.01$134.49$134.82

18. Annual Compounding Time Value Calculations ^ FIN TVM ^ 1) Select A Menu 2) Select A Menu ^ OTHER 3) Select A Menu 1 ^ P/YR 4) Enter “1” EXIT 5) Press “Exit” Setting Up the Calculator

19. Time Value Calculations What is the PV of $1,000 due in 5 years if the interest rate is 12 percent (ca)? 012345 $1,000?????12% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers 5 ^ N 12 ^ I%YR ^ 0PMT +/- 1000FV ^ 4) Enter Periods 5) Enter Interest Rate 6) Enter Payment 7) Enter Future Value PV ^ 8) Solve For Present Value

20. What is the PV of $1,000 due in 5 years if the interest rate is 12 percent (ca)? 012345 $1,000$567.426912% ^ FIN TVM Clear Data ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers 5 ^ N 12 ^ I%YR ^ 0PMT +/- 1000FV ^ 5) Enter Interest Rate 6) Enter Payment 7) Enter Future Value PV ^ 8) Solve For Present Value Time Value Calculations 4) Enter Periods

21. How much will $600 be worth in 3 years if it is invested at 8% interest (ca)? 0123 ?????$6008% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers 3 ^ N 8 ^ I%YR ^ 0PMT +/- 600PV ^ 5) Enter Interest Rate 6) Enter Payment 7) Enter Present Value FV ^ 8) Solve For Future Value Time Value Calculations 4) Enter Periods

22. How much will $600 be worth in 3 years if it is invested at 8% interest (ca)? 0123 $755.8272$6008% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers 3 ^ N 8 ^ I%YR ^ 0PMT +/- 600PV ^ 5) Enter Interest Rate 6) Enter Payment 7) Enter Present Value FV ^ 8) Solve For Future Value Time Value Calculations 4) Enter Periods

23. How many years will it take for $100 to double at 10% interest (ca)? $200$10010% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers 10 ^ I%YR ^ 0PMT +/- 100PV ^ 4) Enter Interest Rate 5) Enter Payment 6) Enter Present Value FV ^ 7) Enter Future Value 0????? ????? N ^ 8) Solve For N 200 Time Value Calculations

24. How many years will it take for $100 to double at 10% interest (ca)? $200$10010% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers 10 ^ I%YR ^ 0PMT +/- 100PV ^ 4) Enter Interest Rate 5) Enter Payment 6) Enter Present Value FV ^ 7) Enter Future Value 0246 1357 N ^ 8) Solve For N 200 7.2725 Time Value Calculations

25. What interest rate (ca) would I need to earn if I invested $600 today and wanted to received $1000 in 5 years? 012345 $1,000$600?% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers 5 ^ N 600 ^ PV ^ 0PMT +/- 1000FV ^ 5) Enter Present Value 6) Enter Payment 7) Enter Future Value I%YR ^ 8) Solve For Interest Rate Time Value Calculations 4) Enter Periods

26. What interest rate (ca) would I need to earn if I invested $600 today and wanted to received $1000 in 5 years? 012345 $1,000$60010.7566% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers 5 ^ N 600 ^ PV ^ 0PMT +/- 1000FV ^ 5) Enter Present Value 6) Enter Payment 7) Enter Future Value I%YR ^ 8) Solve For Interest Rate Time Value Calculations 4) Enter Periods

27. 012345 $500 8% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 6) Clear Registers 5 ^ N 8 ^ PV ^ 500 PMT 0FV ^ 8) Enter Interest Rate 9) Enter Payment 10) Enter Future Value I%YR ^ 11) Solve For Present Value Time Value Calculations 7) Enter Periods What is the present value of an ordinary annuity of $500 to be received annually for the next five years discounted at 8% interest (ca)? $500 OTHER ^ 3) Select A Menu END ^ 4) Select A Menu EXIT5) Select Exit +/- ?????

28. 012345 $500 8% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 6) Clear Registers 5 ^ N 8 ^ PV ^ 500 PMT 0FV ^ 8) Enter Interest Rate 9) Enter Payment 10) Enter Future Value I%YR ^ 11) Solve For Present Value Time Value Calculations 7) Enter Periods What is the present value of an ordinary annuity of $500 to be received annually for the next five years discounted at 8% interest (ca)? $500 OTHER ^ 3) Select A Menu END ^ 4) Select A Menu EXIT5) Select Exit +/- $1996.3550

29. 012345 $500 8% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 6) Clear Registers 5 ^ N 8 ^ PV ^ 500 PMT 0FV ^ 8) Enter Interest Rate 9) Enter Payment 10) Enter Future Value I%YR ^ 11) Solve For Present Value Time Value Calculations 7) Enter Periods What is the present value of an annuity due of $500 to be received annually for the next five years discounted at 8% interest (ca)? $500 OTHER ^ 3) Select A Menu BEGIN ^ 4) Select A Menu EXIT5) Select Exit +/- ?????

30. 012345 $500 8% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 6) Clear Registers 5 ^ N 8 ^ PV ^ 500 PMT 0FV ^ 8) Enter Interest Rate 9) Enter Payment 10) Enter Future Value I%YR ^ 11) Solve For Present Value Time Value Calculations 7) Enter Periods What is the present value of an annuity due of $500 to be received annually for the next five years discounted at 8% interest (ca)? $500 OTHER ^ 3) Select A Menu BEGIN ^ 4) Select A Menu EXIT5) Select Exit +/- $2156.0634

31. Semi-Annual Compounding Time Value Calculations ^ FIN TVM ^ 1) Select A Menu 2) Select A Menu ^ OTHER 3) Select A Menu 2 ^ P/YR 4) Enter “2” EXIT 5) Press “Exit” Setting Up the Calculator

32. Time Value Calculations What is the PV of $1,000 due in 5 years if the interest rate is 12 percent (csa)? 012345 $1,000?????12% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers 10 ^ N 12 ^ I%YR ^ 0PMT +/- 1000FV ^ 5) Enter Interest Rate 6) Enter Payment 7) Enter Future Value PV ^ 8) Solve For Present Value 4) Enter Periods

33. Time Value Calculations What is the PV of $1,000 due in 5 years if the interest rate is 12 percent (csa)? 012345 $1,000$558.394812% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers 10 ^ N 12 ^ I%YR ^ 0PMT +/- 1000FV ^ 5) Enter Interest Rate 6) Enter Payment 7) Enter Future Value PV ^ 8) Solve For Present Value 4) Enter Periods

34. How many years will it take for $100 to double at 10% interest (csa)? $200$10010% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers 10 ^ I%YR ^ 0PMT +/- 100PV ^ 4) Enter Interest Rate 5) Enter Payment 6) Enter Present Value FV ^ 7) Enter Future Value 0????? ????? N ^ 8) Solve For N 200 Time Value Calculations  9) Convert N to years 2 =

35. How many years will it take for $100 to double at 10% interest (csa)? $200$10010% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers 10 ^ I%YR ^ 0PMT +/- 100PV ^ 4) Enter Interest Rate 5) Enter Payment 6) Enter Present Value FV ^ 7) Enter Future Value 0246 1357 N ^ 8) Solve For N 200 7.1033 Time Value Calculations  9) Convert N to years 2 =

36. Monthly Compounding Time Value Calculations ^ FIN TVM ^ 1) Select A Menu 2) Select A Menu ^ OTHER 3) Select A Menu 12 ^ P/YR 4) Enter “2” EXIT 5) Press “Exit” Setting Up the Calculator

37. 240 6.5% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 6) Clear Registers 240 ^ N 6.5 ^ PMT ^ 150000 PV 0FV ^ 8) Enter Interest Rate 9) Enter Present Value 10) Enter Future Value I%YR ^ 11) Solve For Payment Time Value Calculations 7) Enter Periods What is the monthly payment on a $150,000 loan financed at 6.5% payable for 20 years? 0 $0 OTHER ^ 3) Select A Menu END ^ 4) Select A Menu EXIT5) Select Exit +/- $150,000 ????? 123456789

38. 240 6.5% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 6) Clear Registers 240 ^ N 6.5 ^ PMT ^ 150000 PV 0FV ^ 8) Enter Interest Rate 9) Enter Present Value 10) Enter Future Value I%YR ^ 11) Solve For Payment Time Value Calculations 7) Enter Periods What is the monthly payment on a $150,000 loan financed at 6.5% payable for 20 years? 0 $0 OTHER ^ 3) Select A Menu END ^ 4) Select A Menu EXIT5) Select Exit +/- $150,000 $1,118.3597 123456789

39. 60 10% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 6) Clear Registers 60 ^ N 10 ^ PV ^ 4200 PMT 0FV ^ 8) Enter Interest Rate 9) Enter Payment 10) Enter Future Value I%YR ^ 11) Solve For Present Value Time Value Calculations 7) Enter Periods Michelle wants to withdraw $4,200 at the beginning of each month for the next 5 years. She expects to earn 10% compounded monthly on her investment. How much should she invest today? 0 $0 OTHER ^ 3) Select A Menu BEG ^ 4) Select A Menu EXIT5) Select Exit +/- $$$$$ 123456789

40. 60 10% ^ FIN TVM CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 6) Clear Registers 60 ^ N 10 ^ PV ^ 4200 PMT 0FV ^ 8) Enter Interest Rate 9) Enter Payment 10) Enter Future Value I%YR ^ 11) Solve For Present Value Time Value Calculations 7) Enter Periods Michelle wants to withdraw $4,200 at the beginning of each month for the next 5 years. She expects to earn 10% compounded monthly on her investment. How much should she invest today? 0 $0 OTHER ^ 3) Select A Menu BEG ^ 4) Select A Menu EXIT5) Select Exit +/- $199,321.8378 123456789

41. Financial Calculator Fundamentals The Menu System FINBUSSUMTIMESOLVETEXTTVMICNVCFLOBONDDEPRC PERCONT NOM%EFF%PNOM%EFF%

42. Interest Rate Conversions Definitions PER CONT EFF% NOM% P Selects compounding periods Select continuous compounding Stores or calculates the effective (actual) rate Stores or calculates the stated rate Stores the number of compounding periods

43. What is the effective annual interest rate on a $1000 loan with 10% interest compounded quarterly? 01 $1,000 ?% ^ FIN ICNV ^ 1) Select A Menu 2) Select A Menu 3) Select Compounding 10 ^ NOM% 4 ^ P ^ EFF% 5) Enter Periods 6) Solve for Effective Rate Time Value Calculations 4) Enter Nominal Rate PER ^

44. What is the effective annual interest rate on a $1000 loan with 10% interest compounded quarterly? 01 $1,000 10.3813% ^ FIN ICNV ^ 1) Select A Menu 2) Select A Menu 3) Select Compounding 10 ^ NOM% 4 ^ P ^ EFF% 5) Enter Periods 6) Solve for Effective Rate Time Value Calculations 4) Enter Nominal Rate PER ^

45. What is the nominal annual interest rate on a $1000 loan with 8% interest compounded annually? 01 $1,000 ?% ^ FIN ICNV ^ 1) Select A Menu 2) Select A Menu 3) Select Compounding 8 ^ EFF% 1 ^ P ^ NOM% 5) Enter Periods 6) Solve for Nominal Rate Time Value Calculations 4) Enter Effective Rate PER ^

46. What is the nominal annual interest rate on a $1000 loan with 8% interest compounded annually? 01 $1,000 8% ^ FIN ICNV ^ 1) Select A Menu 2) Select A Menu 3) Select Compounding 8 ^ EFF% 1 ^ P ^ NOM% 5) Enter Periods 6) Solve for Nominal Rate Time Value Calculations 4) Enter Effective Rate PER ^

47. Financial Calculator Fundamentals The Menu System FINBUSSUMTIMESOLVETEXTTVMICNVCFLOBONDDEPRC CALCINSRDELETNAMEGET#T? TOTALIRR%I%NFVNPVNUS

48. Cash Flow Definitions TOTAL IRR% NPV I% NUS Calculates the sum of the cash flows Calculates the internal rate of return Given I% calculates the net present value Stores the periodic interest rate Given I% calculates the net net uniform series NFV Given I% calculates the net future value

49. Cash Flow Calculations What is the IRR of a project that requires an initial cash outflow of $5000, will be sold at then end of year 5 for $3000 and produces cash flows in year 1 of $500, year 2 of $800, year 3 of $1000, year 4 of $1000 and year 5 of $200? 012345 $500 ???% $800$1000 $3200($5000)

50. ^ FIN CFLO CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers INPUT5000 5) Enter flow 0 10) Repeat for flow 3, 4, and 5 Cash Flow Calculations +/- 012345 $500 ???% $800$1000 $3200($5000) YES ^ 4) Select Yes INPUT500 6) Enter flow 1 INPUT1 7) Enter 1 time INPUT800 8) Enter flow 2 INPUT1 9) Enter 1 time EXIT11) Select Exit CALC12) Select Calc ^ IRR%13) Select IRR ^

51. ^ FIN CFLO CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers INPUT5000 5) Enter flow 0 10) Repeat for flow 3, 4, and 5 Cash Flow Calculations +/- 012345 $500 7.1533% $800$1000 $3200($5000) YES ^ 4) Select Yes INPUT500 6) Enter flow 1 INPUT1 7) Enter 1 time INPUT800 8) Enter flow 2 INPUT1 9) Enter 1 time EXIT11) Select Exit CALC12) Select Calc ^ IRR%13) Select IRR ^

52. Cash Flow Calculations What is the IRR of a project that requires an initial cash outflow of $5000, will be sold at then end of year 5 for $3000 and produces cash flows in year 1through 4 of $2000? 012345 $2000 ???% $2000 $3000($5000)

53. ^ FIN CFLO CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers INPUT5000 5) Enter flow 0 Cash Flow Calculations +/- YES ^ 4) Select Yes INPUT2000 6) Enter flow 1 INPUT4 7) Enter 4 times INPUT3000 8) Enter flow 2 INPUT1 9) Enter 1 time EXIT10) Select Exit CALC11) Select Calc ^ IRR%12) Select IRR ^ 012345 $2000 ???% $2000 $3000($5000)

54. ^ FIN CFLO CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers INPUT5000 5) Enter flow 0 Cash Flow Calculations +/- YES ^ 4) Select Yes INPUT2000 6) Enter flow 1 INPUT4 7) Enter 4 times INPUT3000 8) Enter flow 2 INPUT1 9) Enter 1 time EXIT10) Select Exit CALC11) Select Calc ^ IRR%12) Select IRR ^ 012345 $2000 31.3869% $2000 $3000($5000)

55. Cash Flow Calculations What is the NPV of a machine costing $3000, sold at the end of year 5 for $2000 and which produces the following after tax cash flows: year 1- $500, year 2 - $500, year 3 - $400, year 4 - $400 and year 5 - $200? Assume the cost of capital is 5%. 012345 $500 5% $500$400 $2200($3000) NPV=???

56. ^ FIN CFLO CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers INPUT3000 5) Enter flow 0 Cash Flow Calculations +/- YES ^ 4) Select Yes INPUT500 6) Enter flow 1 INPUT2 7) Enter 2 times INPUT400 8) Enter flow 2 INPUT2 9) Enter 2 time EXIT12) Select Exit CALC13) Select Calc ^ NPV15) Select NPV ^ 012345 $500 5% $500$400 $2200($3000) NPV=??? INPUT2200 10) Enter flow 3 INPUT1 11) Enter 1 time I% 14) Enter Interest Rate ^ 5

57. ^ FIN CFLO CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers INPUT3000 5) Enter flow 0 Cash Flow Calculations +/- YES ^ 4) Select Yes INPUT500 6) Enter flow 1 INPUT2 7) Enter 2 times INPUT400 8) Enter flow 2 INPUT2 9) Enter 2 time EXIT12) Select Exit CALC13) Select Calc ^ NPV15) Select NPV ^ 012345 $500 5% $500$400 $2200($3000) NPV=$328.08 INPUT2200 10) Enter flow 3 INPUT1 11) Enter 1 time I%14) Enter Interest Rate ^ 5

58. Cash Flow Calculations What is the IRR, NPV and NFV of a project requiring an initial investment of $8000, and which produces the following cash flows: year 1- $500, year 2 - $450, year 3 - $550, year 4 - $400 and year 5 - $11500? Assume the cost of capital is 10.5%. 012345 $500 IRR% $450$550$400$11500($8000) NPV=???NFV=???

59. ^ FIN CFLO CLEAR DATA ^ 1) Select A Menu 2) Select A Menu 3) Clear Registers INPUT8000 5) Enter flow 0 Cash Flow Calculations +/- YES ^ 4) Select Yes INPUT500 6) Enter flow 1 INPUT1 7) Enter 1 times INPUT450 8) Enter flow 2 INPUT1 9) Enter 1 time EXIT11) Select Exit CALC12) Select Calc ^ 012345 $500 IRR% $450$550$400$11500($8000) NPV=???NFV=??? 10) Repeat for flow 3, 4, and 5

60. ^ TOTAL IRR% ^ 1) Select Total 2) Select IRR% 3) Enter Interest Rate Cash Flow Calculations I% ^ 4) Solve for NPV 012345 $500 11.9262% $450$550$400$11500($8000) NPV=$477.4633 NFV=$786.5953 = $5400 = 11.9262 10.5 ^ NPV = $477.4633 ^ 5) Solve for NFV NFV = $786.5953