Sharp QS-1760H Manual De Manejo página 50

COMPOUND INTEREST
Calculate the new balance on a deposit which is compounded quarterly for 4 years at a
given annual interest rate.
SOLUTION: 1. Calculate the quarterly interest rate.
2. Calculate the new balance (principal plus interest).
FORMULA: New balance = P (1
Where
EXAMPLE: If
Then 6,150 (1.0125)
(QS-2760H/2770H):
OPERATION
.05
6150
+
P = amount of deposit (principal)
i = interest rate per period
n = number of years × 4
P = $6,150
i = 5% annum
n = 16 (4 years × 4)
16
DISPLAY
4
1
1.02515625
1.02515625
1.05094533691
1.05094533691
1.10448610117
1.10448610117
1.21988954767
1.21988954767
7,502.32071817
n
i)
÷
4 periods = 0.0125
. =
. $7,502.32 (New Balance)
0.05
0.0125
0.0125
1.0125
1.0125
1 . 02515625
1 . 02515625 ×
1 . 02515625 =
1 . 05094533691
1 . 05094533691 ×
1 . 05094533691 =
1 . 10448610117
1 . 10448610117 ×
1 . 10448610117 =
1 . 21988954767
1 . 21988954767 ×
7 , 502 . 32071817
– 48 –
PRINT
0 . 05
÷
Annual int. rate
4 . =
0 . 0125
Quarterly int. rate
0 . 0125
+
1 .
+
1 . 0125 ◊ (1
+
i)
1 . 0125 ×
1 . 0125 =
+
(1 i)
+
(1 i)
+
(1 i)
+
(1 i)
6 , 150 . = Principal
New Balance
2
4
8
16