CALCULATOR TECHNIQUES

SEMINAR
 ( ny- 1) x100%.

Hence, we Input ( 6y-1) x 100% •

,,canon
_ _ _ _ _ _ ..,lllcl.\
,. ~ ::...t~ i IMf I -

~ (69-Dx10{1.,. . press CA to store the table and cl

51eP4• earthe screen.
~ ,,. •001'0 ltOONO

~
1 X 1 0 0 0

Step 6: Press =, and then the answer will be shown. canon

- I
(69-Dx100 1H e
. To solve for the nominal interest rate u
51eP5• • sethelormul .( •
15.96934182 Since we want to find the nominal ratec a. ny-, }x1~ .
omp0unde<1
([Link]-1) x 100% . seml-annuaUy,weinput
Therefore, the correct answer is choice B.

Example 14.2
Given the effective rate of 12%, find the nominal rate compounded semi-annually.

A. 11 .39% C. 11 .66%
B. 11 .49% D. 12.12%
Step 6: Press =, and then the answer will be shown.
Canon
c....
Step 1: Go to MOOE 3: STAT.
• I •
(0.5}-l)xtee
11 SO 2: L in
31(i1Ulld 41L09
mi] s :e
7:Pwr
~ 6:ab EXP
e 11nv
5.ml52~

Step 7: To get the nominal rate compounded semi-annually,we multiply the answer by 2.
Step 2: Select 6: ab EXP.
..,.
c.-. ·-
LiiiG •
rrisx2
I "'

11. 6601848.9

Step 3: Input the values in the table following the format: Therefore, the correct answer Is choice C.

------
14-2 Compound Interest

Example 14.3 •af P1P,nersyaars1s:

TheInterest rate Is 10% compounded semi-annually, the
where ER is the effective interest rate. In this case, we will Input the values:
A. P4,234.33
B. P3,442.34

Eng
Excel First Review and Training Center, Inc. r. A. 1.:i nn .... ♦, , I r - ~· , , ,.,,....,.,,:i,t:;i ~nd Engr. G•permejo
 . press =, and then the answer
Step 1: Go to MODE 3: STAT. Canon 51tP6• WIil be Sh
<>wn.
@
Jherefore, the correct answer
1s thotcec
Step 2: Select 6: ab EXP.

3 Annuity: Future and Present V

14. - - - - - - - - - - - atue
~pte14,4
(llelll1 needs to deposit a certain amount Of
Step J: Input the values in the table following the format: cc,11ege fund of P250,000 for his kid at the rnone,,allhet!lldo,
' estoftheaccountis4%. elldot1a~Sohe':;,_111~
x(period) Y(interest
rate)
per 111e-...,._
A. P9,748
C. P7,765
1 + r/n
e. P10,043
D. P7,86S

where r Is the rate of interest and n is the number of periods. In this case, we will
5tep 1: Go to MODE 3: STAT.
input the values:

Step 2: Select 6: ab EXP.

Step 4: Press CAto store the table and clear the screen.
canon
or,
- ■
@] IN
Step 3: Input the values in the table following the format:
0

Step 5: To solve for the future worth, use the formula: F= P(ny).
where Pis the present worth and n is the number of periods. Since we want to find
the worth after 5 years with the interest rate compounded semi-annually, we will where r is the rate of interest and n is the number of periods. lnthi5 case,wewill
input Input the values: c.-. ,_

1soo(10v).
0 canon ,_,_
C~Iii[f';
1tou,vr, •• t X
W -
1500(109)1
I IN

0 8 5 0

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Step 4: Press CA to store the table and clear the screen. pie 14.5
6'[Link] payment of P1295 Is ai.,_
• I ... ,serfl
r
d d ~~nsen,1
interest compoun e semi-annuau ·an1111a11y
1~,r1onetarv value of the debt. y, Thefirst p~°' 5~ to
0 ~ lltls~W16Par._,._
A, P10,000 ~~
step s: Press Apps, and store the regression coefficient B to memory variable e. s. P11,000 C.
D.
Canoa . Go to MODE 3: STAT.
• I
51eP 1•
e+B
3 1
Step6: Goto MODE1: COMP. . Select 6: ab EXP.
Canon steP2•
SET.u> I

iLiJ 0
Step3: Input the values in the table following the format:
Step 7: For future worth, we use the formula. F = A~)x-, ,
where A is the periodic equal payments made. Since we want to solve for A, we use
A= F+ L:SX-1

Hence, we input in the calculator the formula for the periodic payments made where r is the rate of interest and n is the numberof periods. [Link]
annually for 18 years: input the values:
18
c....
250000+ L,BX-l .
1

1+ 0.10+2

canon """" Step4: Press CA to store the table and clear the screen.

-' ..
~
0

Step 8: Press =, and then the answer will be shown. .. to memory variable B.
S!ep5: Press Apps, and store the regression coefficient 8
canon ••-•
1250000: f cax-;~ COOi'

9?48~332036
Therefore, the correct answer is choice A.

Excel First Review and Tralnin11 r.i:>nti:>r lnr c._- - - - - - - - - - - - - -

 . setect 6: ab EXP.
Step 6: Go to MODE 1: COMP. steP2•

&1 [[]
3. input the values in the table follo'Ni
=A Lex-, , 51eP •-••'1'1 ~mftl"'9!111!-•ng the forrnat

rr'r'":t•&~
Step 7: For present worth, we use the formula: P

where A is the periodic equal payments made. Hence, we input in the calculator
10
the formula 1295L e- x .

Where i is the annual interest rate. In th·

ts case, we WIU l11put the

r•1il·M1::i4MfiiM, ~- _
1 1 + 0.05 ~ I ~ - -

Step4: Press CA to store the table and clear the screen.

-
Step 8: Press =, and then the answer will be shown.
Canoa ,_,_ c-.
u,' • I • • •
1295 2. (9·X)
X~L-
fflS.6'6?33
step S: Press Apps, and store the regression coefficient Bto memoryvariab(eB.
Therefore, the correct answer Is choice A.
c.-.
14.4 Annuity: Arithmetic Gradient
8+11 -·.
Example 14.6 [Link]
Neighboring p for a certain parish road. At a
meeting, the wlll be deposited at the end of Step 6: Go to MOOE 1: COMP.
next year into c-
• the deposited will Increase bV SU-UP
P100,000 per
if public funds
lne the equivalent present worth,
aTI
A.
C. P7,0S0,026
B.

Step 1: Go to MODE3: STAT.

---~
D. P7 005,026 Slep 7: To solve for the present worth, we use theform •
Where A is the first payment, and Gis the grad •
uta· P= IlA+G(X- 1}p-x,
. . the
ient Hence, we input'"
canon
calculator
1,so
iiLD 31Quact
s,e
71P1-r
~
21Lin
41L09....,,,
&:M> s;.,v-
811,W
I;[sooooo+1ooooo(x-1 )B-
10 X]

Excel First Review and Trainin11: C:[Link] lnr. .

 C\.ll " ~'"' "-"" /lo,; ttOCJNO ,t()(,r.O ttoo,n

~"'1'° ""'- Alpha t X •-1

~ CallOll
.-
x AJpha s', x A Alpha ,
I
1 +0.05

1 0
4: press CA to store the table and clea th
51ep r escreen.
Step 8: Press =, and then the answer will be shown.
ca..
10 ■ t ~
~
~
1 - ~
...;;:
l: ((500000+100~
X-1
?0260?2,252 8
Therefore, the correct answer Is choice A. Step s: Press Apps, and store the regression coeffi .
cient Bto [Link]"'-
.,,. a.

--
14.5 Annuity: Geometric Gradient

Example 14.7
It 1s likely that airplane ticke of the next four years. The cost of a 1.15
plane ticket at the end of the IIIUCh money is needed to be Step6: Go to MODE 1: COMP.
placed in a savings account a student's travel home at the end
of each year for the next four ea.
savings account pays 5% annual interest.
1
A. $745.66 $725.66
B. $735.66 $715.66

Step 1: Go to MODE 3: STAT. canon ,._, L

Step7: To solve for the present worth, we use theformula: P= A(1+gt' s-1 ,
t:SO 21Lin where A is the first cost, and Gis the rate of gradient Hence, we input in the

ELD 3:51U.c:I
s:e
7:PMr
~
4: Lo,
&1at> EXP
e: Inv
calculator

Step 2: Select 6: ab EXP.

Step 3: Input the values in the table following the format:

Excel First Review and Training Center. Inc. Ena, .. ,

 wnere I is the annual intere
st rate. In lhl
Sta5e
·~"""
·•,qlnn..
""'lilt
10

I
C'aloll
.
4+0. 08) X-1) B·X)I
:-, . press CA to store the table and 1
51eP 4: c ear the scree
n.

~ ~
Step 8: Press =, and then the answer will be shown.
caao.
l1
~"""'-
cc 1ooc1+0.ee7 . ro solve for the book value a~erthe.,.,.
51ep 5• Year, use the
~ a
715.665805s reg,esSion
7Y •
Therefore, the correct answer Is choice D. c...
-._;;.____. ,_

14.6 Depreciation: Straight Line Method ~ 'ISi - ~

Example 14.8 5tep 6: Press =, and then the answer will be shown.
A factory equipment has an

-
value after 10 years 1s
P20,000. What is the book ea.

A. S74,000 $88,320
B. SSS,450 $88.333
Therefore, the correct answer Ischoice A.
St ep 1: Go to MODE 3: STAT.
~ USO 21Lin
31au.d 41LOW 14.7 Depreciation: Sinking Fund Method
!UC ~ Ill~ l!XP
71PM" S1Inv
'"'' 3' Elample14.9
Step 2: Select 2: Lm. Aschool purchased computers for their laboratory ,or P250.D_,pid PfO,GGOmore
bdellvery and installation. If these computers each hMal¥eof5,mwllalUIII
lrade-in value of PS0,000, What Is the annualdeprecia(loncostofll~•
the sinking fund method. The interest rate is 35'6 a,nially. Solllefolllleboatvaluellll
3years.

Step 3: Input the values in the table following the format: A. d "' P39, 161; BVa • P144,364
B. d = P39,161; 8Va• P138,357
C. d • P39,161; BV3 • P154,382
D. d ., P39,161; BVa • P190,365

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Eogr. A. JannatuL Ener. J. Lellavada and Engr. [Link]
 FC - SV
Step 1: Go to MODE 3: STAT. d"' L~Bx- 1 •

Hence, we input in the calcutator

th
260000- 50000 eformula:
d::: L~8 x- 1

Step 2: Select 6: ab EXP.

2 6 0
/fOUNO

Step 3: Input the values in the table following the format:

.
..,_, (a,'l-t)
8• Press = to show the answer. We note that the an l
where i is the annual interest rate. In this case, we will input the values: 51ep • P39, 161 . nua depreclati011tharge1s

canon !!- .,_

[ J f ca:-1>
x-1
:-
39161.-

Step 4: Press CA to store the table and clear the screen. canon
-. ... ,.,-..
Step9: To solve for the book value after 3 years, we usetheformula: BV =FC- D
n "'
where Dn is accumulated depreciation charge, and nis lhe nthyearfortotal
depreciation charge. The formula for D, Is
n
0 Dn = LdBx- i,
1
Step 5: Press Apps, and store the regression coefficient B to memory variable 8. where dis the annual depreciation charge.

canon
.... . ... Therefore, we Input in the calculator
3
260000 - L (39161 )Bx-i .

1.035 I

Step 6: Go to MODE 1: COMP. ~ -rX•I3 (c391•

Canon
5£T~P

Bl] •
- I
t'.(39161lsX-l)I
Step 7: To solve for the annual depreciation charge, we use the formula I

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 . press CA to store the table an
eP, . d Cleaqh
Step 10: Press :: to show the answer. We note that the
book value after 3 years is P138,357.
~
@] escreen
,.
. To solve for the depreciation atte •
~epS- 3years from the r·trst cost of themr Years
Therefore, the correct answer Is choice B. 3 a
. , we sub
A achine:11 attthe~
18()()000- 3y • eo boot Yalue In
14.8 Depreciation: Declining Balance Method
IIOOND

Example 14.10 1 8 0
The first cost of a machine is Pl ,800,000 with a salvage valu
life of five years. Determine the depreciation after three ye 3
Method or the Declining Balance Method.
8
• Press =, and then the answer will be shown
A. Pl ,069,963 C. ~~ 6. .
B. Pl ,079,963 D. Pl,

Step 1: Go to MODEJ: STAT.

CUow ,_,......
I ll SO 2 1Li n - Therefore, the correct answer Is choice A.
3 : Qu~ 4 1Lo11
s,e EXP 6 1at> EXP
7 1Pwr 8: Inv
14.9 Depreciation: Double Declining Balance Method
Step 2: Select 6: ab EXP.
canon
Example 14.11
Find the book value after 3 years of a machine Whose first cost 1s P200,000llilllatleal
1oyears and a salvage value of P20,000. Use double declining balance melllodban
~erest rate of 6%.
Step 3: Input the values in the table following the format:
A. P102,400 C. P103,870
B. P103,550 D. P240,054_ __

CMel .....
Step 1: Go to MODE 3: STAT.

Where i is the annual interest rate. In this case, we will input the values:
Nii 3 l
canon ,,......
I Step 2: Select 6: ab EXP.

5t
' ep J: Input the values in the table following theformat:
382 r---- - -- - - - - - - - - --r,
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 . Go to MODE 3: STAT.
eP1•
SI ~

where FC ,s the first cost, and L ls the useful life. In this case, we will input the
values: . Select 3: Quad.
51eP2•

0
3• input the values in the table foll .
51ep • OWing the forrnat
Step 4: Press CA to store the table and clear the screen.
x(period) Y (book value)
0 FC
L sv
L+ 1 sv
0
-
Step 5: To solve for the expected book value after 3 years, we use the regression: where FC is the first cost SV is the sat
. ' vagevaIu
case, we will Input the values: e, an<1 Lis t~e useful life. ln11¥s
canon ..,_
3y.
3)1 - I ... ... X(penod) Y (book value)
0 9000
0 10 1000
11 1000
Step 6: Press =. and then the answer will be shown.
canon ,.,_ Step 4: Press CA to store the table and clear the screen.
39
• I ....
102400
""
@] I - I .. -
.....
Therefore, the correct answer Is choice A.
Step 5: To solve for the expected book value after 3
14.1o Depreciation: Sum of Years Digit Method years, we use the regression: 3y . • I OI
3SI
8
llf8 Is 10 years, after which It will be sold
year If the sumof years digit method
deprecia
Step 6: Press =, and then the answer will be shown.
A.
C. P4,875
B. r,[Link]
D. PS,073

Therefore, the correct answer is choice D.

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