Sharp EL-738: A Short Tutorial
This is a short
tutorial on how to use some of the common features of the Sharp EL-738
financial calculator. There was a
request for a video tutorial in the comments, however given the time frame I am
able to work with, I think I can write a tutorial and cover more faster. So hope this helps!
The full manual
is here: http://sharpcalculators.com/images/Manuals/Financial/EL738F_Manual_Branded.pdf
To see my
review back in August last year, click here:
Let’s get to
it.
Set Decimal Settings
To Fix 2
Mode: [SET UP], 0 (DSP), 0 (TAB), 2
To Float (B)
Mode: [SET UP], 0 (DSP), 3 (FLO_A)
The difference
between FLO_A (option 2) and FLO_B is the limit of how small a number can be
before the calculator switches to scientific notation. .000000001 for A and .01 for B.
Time Value of Money
To set the
number of payments: press [2ndF] [I/Y]
(P/Y). Enter the payments per year and
press [ENT]. You can enter compounding
periods (C/Y) per year separately.
Toggle
Begin/End Mode: [2ndF] [ FV ]
(BGN/END). Beginning mode is indicated
by “BGN” in the display.
Clear the
Financial registers: [2ndF] [MODE] (CA). Caution: This sets
the P/Y to its default value of 1.
Calculation: Enter each of the date and press the
appropriate financial variable (N, I/Y, PV, PMT, or FV). To calculate, press [COMP] then the financial
variable.
Example: Find the monthly payment of a $160,000 loan
to be paid back in 15 years with 3.5% interest.
If not already,
set P/Y to 12 and calculator to END mode (see the above).
160000 [ PV ]
15 [2ndF] [ N ]
(xP/Y) [ N ]
3.5 [I/Y]
0 [ FV ]
[COMP] [PMT]
Result: -1143.81
Amortization
Press
[AMRT]. Enter the first period (P1)
then press [ENT]. Scroll down [ ↓ ] and
enter the second period (P2) then press [ENT].
Scroll down for the following results (calculated automatically): BALANCE, ΣPRINCIPAL (amount of principal paid
in period range specified), ΣINTEREST (amount of interest paid in period range specified).
Take the last
example and set P1 to 1 and P2 to 24.
After two years:
[AMRT] 1 [ENT]
[ ↓ ]
24 [ENT] [ ↓ ]
Result: BALANCE:
143,191.61 [ ↓ ]
Result: ΣPRINCIPAL = -16808.39 [ ↓ ]
Result: ΣINTEREST = -10643.05
Days Between Dates
Press
[DATE]. M-D-Y 1 represents the
beginning date. M-D-Y 2 represents the
ending date. DAYS is the number of days
between the two dates. This assumes the
U.S. date system is set up.
Scroll up and
down. Enter two of the three variables
and press [COMP] to solve for the third.
Example: A bond is issued on 7/1/2016. The bond is to be
repaid in 120 days. When is the bond
supposed to be repaid? Assume an actual
calendar. ([2ndF] [COMP] (360/ACT)
toggles calendar counting mode)
[DATE]
For M-D-Y 1: 07, 01, 2016 [ENT]
[ ↓ ], [ ↓ ]
For DAYS: 120 [ENT]
[ ↑ ] to M-D-Y
2, press [COMP]
Result: 10/29/2016
Cash Flows
To clear all
cash flows: Press [2ndF] [ENT] (CLR-D). I also recommend setting P/Y to 1 (pressing [2ndF]
[MODE] (CA) will do it)
To enter cash
flows: Enter the cash flow, press [ ENT
]. (Don’t be in any menu or worksheet)
To enter cash
flows with frequency greater than 1: Enter
the cash flow, press [(x,y)], enter the frequency, press [ ENT ].
To calculate
NPV (net present value): press [2ndF]
[CFi] (CASH). Enter the periodic rate at
the RATE(I/Y)=, press [ENT], then [ ↓ ], and press [COMP] at the NET_PV prompt.
To calculate
IRR (initial rate of return): press
[2ndF] [CFi] (CASH). Press [COMP] at the
RATE(I/Y)= prompt. For this purpose,
ignore the NET_PV register.
Example: Calculate the NPV and IRR of the following
cash flows:
Flow #
|
Amount
|
CF0
|
-$10,000
|
CF1
|
$5,000
|
CF2
|
$2,000
|
CF3
|
$5,000
|
For NPV, assume
a return rate of 10%.
Cash Flows:
[2ndF] [MODE]
(CA)
[2ndF] [ENT]
(CLR-D)
10000 [+/-]
[ENT] (Display: DATA SET: CF 0.00)
5000 [ENT]
(Display: DATA SET: CF 1.00 (and so on))
2000 [ENT]
5000 [ENT]
Net Present
Value:
[2ndF] [CFi]
(CASH)
RATE I/Y=: 10 [ENT]
[ ↓ ]
NET_PV=: [COMP]
Result: -45.08
Internal Rate
of Return:
[ ↑ ]
RATE(I/Y)=: [COMP]
Result: 9.74
Some quick
instructions about depreciation and statistics:
Depreciation
The EL-738 has
three depreciation modes: Straight Line
(SL), Sum of the Years Digits (SYD), and Declining Balance (DB). To change the depreciation mode, press
[SETUP], 2 and then:
0 for SL, 1 for
SYD, 2 for DB.
To the
Depreciation worksheet: Press [DEPR].
Mode: If the Declining Balance Deprecation Mode is
set, enter the rate (for 200%, enter 200, press [ENT]) [ ↓ ]
Life (N): Enter the number of years of the life of the
asset, [ENT], [ ↓ ]
Start
Month: Enter the month when the asset is
acquired (1 = January, 2 = February, etc), [ENT], [ ↓ ]
COST (PV): Cost
of the asset, [ENT], [ ↓ ]
SALVAGE
(FV): Salvage value of the asset, [ENT],
[ ↓ ]
YEAR= Enter year of depreciation that you want to
analyze, [ENT], [ ↓ ].
The next three
lines are calculated: DEPRECIATE (the deprecation for the year, RBV (remaining
book value), RDV (remaining depreciation value)
Statistics
To enter statistics
mode, press [MODE], 2. Select statistics
type:
0: SD, single variable
1: LINE: linear regression, y = a + bx
2: QUAD: quadratic regression, y = a + bx + cx^2
3: EXP:
exponential regression, y = a * e^(bx)
4: LOG:
logarithmic regression, y = a + b * ln x
5: PWR:
power regression, y = a * x^b
6: INV:
inverse regression, y = a + b/x
Clearing
Data: [2ndF] [DATA] (CLR D)
Entering Data: x [(x,y)] y/freq [ENT] (DATA)
Recall
variables: [ALPHA] [(appropriate key)] [
= ]
Examples:
Mean: μx: [ALPHA], 4; μy: [ALPHA], 7
Sample
Deviation: sx: [ALPHA], 5; sy: [ALPHA], 8
Regression
variables a, b, c, r: [ALPHA] [ ÷ ], [
DEL],. [ × ], [ ( ],
You can find
detailed instructions for the other operations (cost/sell/margin worksheet, Δ%
worksheet, bond worksheet, depreciation, scientific functions), plus more
examples, in the manual: http://sharpcalculators.com/images/Manuals/Financial/EL738F_Manual_Branded.pdf
This blog is property of Edward Shore, 2016.