CALCULATOR-use - FINC 2400/3610/3700 CALCULATOR RECIPE for...

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FINC 2400/3610/3700 CALCULATOR “RECIPE” for annuity problems For every problem you need to solve, do this: a) DETERMINE if the problem at hand qualifies as an annuity . If not, you may need to use the cash flow functions on your calculator instead. b) DETERMINE if your problem involves a normal annuity or an annuity due . If it is a normal annuity, SET your calculator to „END‟ mode. If it is an annuity due, SET it to „BEGIN‟ mode. c) DETERMINE how many payments or compounding periods per year the problem requires. SET your calculator to the required value. d) CLEAR your calculator, to erase values retained from previous problems. e) Of the five possible variables (N, I/YR, PV, PMT, FV), DETERMINE which variable we need to solve for. f) DETERMINE the values for the other four variables and ENTER those values into the calculator. g) SOLVE FOR the fifth variable. Note: be sure to obey the cash flow conventions : dollar amounts that you receive are entered as positive values; dollar amounts that you pay out are entered as negative values. The five variables are:
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This note was uploaded on 09/23/2011 for the course FINC 2400 taught by Professor Caudill during the Fall '07 term at Auburn University.

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CALCULATOR-use - FINC 2400/3610/3700 CALCULATOR RECIPE for...

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