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tApCalc
Finance for P800
User Manual
Contents
Getting StartedSetting calculator preferences Calculator Key Convention
Tape Functions
Financial Functions
Accounting Functions
Mark-Up and MarkDown Calculation User
Interface
About User InterfacetApCalc Finance provides a very simple and easy to use user interface suitable for a device with touch stylus interface. All keys and commands that tApCalc Finance understands are made available through the user interface and there is no external dependency on device built-in character recognizer. The user interface has the following elements. · Keys that you tap for entering data to tApCalc · Results are displayed on the calculator display area (right above the keys) and the tape area, which is above the area that calculator keys are displayed on. · You can switch between the financial calculator and Accounting calculator by selecting “Financial” or “CPA mode” from the Calculator menu. · Tape menu provides all tape related functions. Setting calculator preferencesThere are 2
preferences you can set for tApCalc Finance:
Calculator keys
About Calculator keystApCalc Finance has
different types of keys, Number keys, Unary keys, Binary keys, and flag keys.
It is not a RPN calculator. Therefore, you must use the keys as you would use a
normal calculator that does not follow RPN.
Binary Function
Keys
Binary keys are the
keys that require 2 inputs to work on. Example of binary keys are +, -, /, X etc.
Unary Function
Keys
Unary keys are the
keys that require only a single input and are evaluated as soon as the operand
is pressed.
Financial
Function Keys
Financial keys are
the keys used to carry out the financial operations. Following financial keys
are available in tApCalc. Time Value of Money (TVM) Keys
TVM keys are
Present Value (PV), Final Value (FV), Payment (PMT),
Interest Rate (i), Periods (n), Amortization (AMO).
Discounted Cash Flow (DCF) Keys
tApCalc support 2
DCF functions, Internal Rate of Return(IRR), and Net Present Value (NPV). In
order to calculate these, 5 keys are available. CF0, CFj, Nj,
IRR and NPV.
Depreciation Keys
tApCalc provides
functions to calculate depreciation of assets. It supports 3 forms of
depreciation calculation, Straight Line (SL), SYD, and Declining Balance (DB)
methods of depreciation. The 3 keys SL, SYD, DB are used for this.
Bond Calculation
tApCalc provides
function to calculate semi-annual bond yield and price. The keys used for
calculating bond are YTM, Price, p.Dt, m.Dt. In addition there is a flag
key m.dt available to indicate to tApCalc that the data entered is a date not a
number.
Tape
Functions
About
Paper tape simulation
tApCalc Finance
provides a simulated paper tape that comes in handy many ways. Most hardware
financial desk calculators come with a paper tape or printer attached to it
that records all calculation for future reference. Paper tape simulation in
tApCalc does exactly that and more. In case of tApCalc tape, a tape saved to
the disk can be reloaded, edited for mistakes and rerun without reentering all
data again, thus saving valuable time for the user. Lets say you have to do
some calculations and you do not have all data handy, you can start the
calculation using tApCalc, enter the known data and save the calculation to a
tape file. In a future time, when you have the remaining data you can load the
tape and extend the calculation with new data. tApCalc provide the
following functionality with the tape:
Save tape
Save tape will save
the entire content of the currently displayed tape on to file on the device. Select “Save” menu item from “Tape” menu to access this function.
Load tape
Use load tape
option to load a previously stored calculation. Select “Load” menu
item from “Tape” menu to load tape
Note: If you selected Output instead of User
Program, the tape will not be loaded to the calculator as a calculation.
Rather, it will open a text window and display the data stored in the tape.
This is the Output screen from where you can print the tape. Edit Tape
Edit tape function
can only operate on tapes displayed on the calculator screen. Therefore, it
will be active when the tape is on and you have entered some calculations, or
you have loaded a previously stored tape. Select “Edit tape”
menu item from “Tools” menu to edit tape. It will be enabled if there is any
content on the tape.
Run Tape
Run tape function
to rerun the calculations from the beginning as if the user enters all the data
from the beginning. This is equivalent to programming. Run is primarily useful
when you want to load a tape to extend the calculation or edit a tape for
mistakes. Select “Run tape”
menu item from “Tools” menu to run tape. It will be enabled only when there is
any content in the tape.
Clear
Tape
Clear tape clears
the tape content. Select “Clear tape”
menu item from “Tools” menu to clear tape. It will be enabled only when there
is any content in the tape. Financial
Functions
Amortization
Amortization
calculations produce the amount applied toward the principal and interest for a
particular loan payment or series of payments. To amortize a loan
payment, follow the following steps: 1.
Clear the
financial registers by pressing C 2.
Key in the loan
amount and then press PV. 3.
Key in the
interest rate and press i. 4.
Key in the
future value and tap on FV if you want
to calculate based on a residual value of the loan. Otherwise, it will be taken
as 0. 5.
If the button
at the top of the calculator key shows BEG then
the payment mode a set to Begin. If you need to set it to end just tap on it
and it will change to END. Same way,
you can change it from End to Begin. 4. Key in the payment amount and
press ± , PMT. 5. Key in the number of payments you
wish to have amortized and press AMO. 6. The amount applied towards
interest is now shown in the display. Example:
Suppose you have purchased an automobile for $25,000 at 8.75% interest
compounded monthly on a 5 year loan.
Find the amount you will have paid in interest and principal on the loan
after 10 months. 1. Press C to clear the financial registers. 2. Press END for end mode. 3. Key in 25000 and press PV to enter the loan amount. 4. Key in 8.75 and press ¸12 to enter the interest compounded monthly or
enter the monthly interest and tap on i. 5. Key in 5 and press ´12 to convert 5 years to number of months and
save it in n. Otherwise, enter number of months and tap
on n. 6. Press PMT to calculate the monthly payment, which will show as
515.9357. 7. Key in 10 and press AMO to amortize the loan. The program will
display the following on the tape Interest Paid Amort 1,711.3645 indicating
the amount of interest you have paid in 10 months Principal Paid Principal 3447.9925 indicating
the amount you have paid towards principal in 10 months after 10 months Remaining PV 21,552.0075 indicating the remaining principal balance
after 10 months. Note: Please note that you actual numbers may be
slightly different because of preferences setting. If your preferences are set
to 2, then the i value calculated will be rounded to next higher decimal point
value causing the difference. Bond
Calculations
The PRI and YTM
functions calculate the price and yield to maturity of a semi-annual coupon
bond. Calculations are made on a
30/360 basis using a par value of 100. Example: You are interested in purchasing a 7.25%
semi-annual coupon bond at 92.25.
Determine the yield this bond will produce if you purchased it on Oct
10, 1987 and it matures on Oct 10, 1997.
The bond will yield
8.4%. Example:
Assume you desire a yield of 8.88% on a bond that reaches maturity on
October 10, 1998. If the bond is a
7.75% treasury bond, how much should you pay for it on October 10, 1988?
You should pay
$92.7096 for the bond. Depreciation
Depreciation
calculations can be performed using Straight Line (SL), Sum of Years Digits
(SYD), or Declining Balance (DB) methods. To calculate
depreciation using any method: 1. Key in the price of the asset and
press PV 2. Key in the salvage value and
press FV 3. Key in the length of time (in
years) of the asset's usefulness and press n 4. If you are using the declining
balance method, key in the percentage declining balance factor and press i 5. Key in the length of time (in
years) to calculate the depreciation on and press either SL or DB or SYD. Example: Compute the depreciation on a $8600
computer workstation after 1 year.
Assume the workstation will be depreciated over 6 years and that the Sum
of Years Digits method will be used. 1. Key in 8,600 and press PV 2. Key in 0 and press FV.
3. Key in 6 and press n. 4. Key in 1 and press SYD. The depreciation for the first year is
$2,457.1429. To compute the
depreciation after the 2nd year, key in 2 and press SYD. The depreciation
after the second year is $2,047.619 Time Value of Money Calculation
Loan
Calculation
Example:
Suppose you wish to take out a Car loan. Calculate the monthly payment if your loan is for $9,000 at
7.95% interest compounded monthly for 7 years. 1. Press C to clear the financial registers. 2. Key in 9,000 and press PV to enter the loan amount. 3. Press End to make sure end-mode is being used. If the
button to the left of to calculator display already shows End, then End mode is
already set. 4. Key in 7.95 and press ¸12 to enter the interest rate per period. 5. Key in 7 and press ´12 to enter the number of compounding periods. 6. Press PMT. The monthly payment is $140.0518. Example:
How much could you afford to pay for a new car if you could afford $450
monthly payments? Assume a 6year
loan with 7.25% interest compounded monthly. 1. Press C
to clear the financial registers and set end mode. 2. Key in 450 and press PMT
to enter the monthly payment amount. 3. Key in 7.25 and press ¸12
to enter the interest rate per period. 4. Key in 6 and press ´12 to enter the number of periods. 5. Press PV to
calculate the purchase price. The amount you
could afford to pay for the car is $26,209.2679. Mortgage Calculation
Example:
How much would your monthly payments be for a house costing $170,000 at
9.75% compounded monthly on a 25 year loan? 1. Press C , End to
clear the financial registers and use end mode. 2. Key in 170,000 and press PV to enter the purchase price. 6.
Key in 9.75
and press ¸12 to
enter the interest rate per compounding period. 7.
Key in 25 and
press ´12 to
enter the number of periods. 8.
Press PMT to compute the monthly payment. The result is $1,514.9336. The result is
negative because it represents an amount paid out. Example: Calculate the payments for the first 2
years of a variable rate mortgage if the interest rate is 9.75% for the first
year and 10.25% for the second year.
The loan amount is $180,000 and has a 15year term. 1.
Press C, End to
clear the financial and select end mode. 2.
Key in 180,000
and press PV to enter the loan amount. 3.
Key in 15 and
press ´12 to
enter the number of compounding periods. 4.
Key in 9.75
and press ¸12 to
enter the 1st year's interest rate 5.
Press PMT to calculate the payments for the 1st year. The result is
$1,906.8528. 6. Key in 1 and press ´12, FV to
calculate the remaining balance after the 1st year. The result is $174,422.9092. 7. Key in the result of FV with sign
change(i.e. 174,422.9092), and press PV to store the new loan amount. 8. Key in 14 and press ´12 to enter the new number of compounding
periods. 9. Key in 10.25 and press ¸12 to enter the new interest rate. 10.
Key in 0 and
press FV since the loan will be paid off at the end. 11.
Press PMT to calculate the 2nd year's payments. The result is
$1,959.2811. Savings Calculation
Example:
Suppose you have $7,000 in a savings account. You have just received a raise and are able to make monthly
deposits of $550 into this account.
How long will it be before you have $19,000 if your account earns 6.75%
interest compounded monthly? 1. Press C , End to
clear the financial registers. 2. Key in 7,000, ± and press PV to
enter the beginning amount. 3. Key in 550, ± and press PMT to
enter the monthly deposit. 4. Key in 6.75, press ¸12 to enter the interest rate per compounding
period. 6.
Key in 19,000
and press FV to enter the future value. 7.
Press n to calculate the number of periods. The result is 19
months. Example:
A savings account has a $100,000 balance and earns 8.25% interest
compounded monthly. How long will
it take before the account is depleted
if regular monthly withdrawals of $1800 are made at the beginning of
each month? 1.
Press C , Beg to clear the financial registers and select
begin mode. 2.
Key in 100,000
and press PV to enter the balance. 3.
Key in 8.25
and press ¸12 to
enter the interest rate per compounding period. 4.
Key in 1800
and press ±, PMT to enter the monthly withdrawal. 5.
Press n to calculate the number of months to
deplete the account. The result is 70
months (5.8333 years). Discounted
Cash Flow Analysis
The Net Present
Value, and Internal Rate of Return functions allows you to compute compound
interest problems at regular intervals where the payment (positive or negative)
amount is irregular. In addition, if a number of the amounts are regular, you
can "group" them together. You must observe the Cash Flow Sign
Convention when entering the payment amounts. The NPV function
calculates the net present value of a series of cash flows made at regular
intervals. It is most commonly
used to perform an analysis between a variety of investment opportunities. A negative NPV represents a loss
on an investment. Example:
Suppose you are considering purchasing a hotel for an initial payment of
$150,000. You predict that cash
flows for the first 3 years to be $50,000 each year, $65,000 for the 4th year,
and $75,000 for the 5th year. You
desire a 20% return on investment.
Can this amount be realized? 1. Press C to clear the financial registers. 2. Key in 150,000 and press +/-, CFo to enter the initial cash outlay. 3. Key in 50,000 and press CFj To enter the 2nd cash flow. 4. Key in 3 and press Nj to "group" 3 cash flows at
45,000. 5. Key in 65,000 and press CFj to enter the 4th cash flow. 6. Key in 75,000 and press CFj to enter the 5th cash flow. 7. Key in 20 and press i to enter the interest rate. 8. Press NPV to calculate the net present value. The result is
$16,811.3426 8.
Press IRR to calculate the Internal Rate of
Return. The investment would yield
24.6367%. Note: Please note the cash Flow Sign Convention.
Compound interest calculations involve money being received as well as paid
out. For example, if you take out
a loan, you initially receive money (positive) and then make periodic payments
(negative). Thus a loan calculation would involve a positive present value and
a negative payment. Accounting functions About CPA ModeTApCalc Finance has a built-in Accounting calculator that provides accounting functions in addition to the standard calculator functions. These include TAX+, TAX-, MU for Markup and Markdown, Sub-total, Total and Grand total functions. You can access the CPA mode by selecting CPA mode from the “Calculator” menu in tApCalc finance. To switch back to the finance mode, you can select “Finance mode” from the menu. Tax Calculation
Tax+ To use TAX+
function, follow the following steps:
Example: Suppose you want to
calculate total of an item with tax and with $10 shipping where the item price is
100, and tax rate is 6%, you will do the following: Make sure TAX rate
is set to 6 by going to the “Preferences” menu option. If you have it already
set to 6 before there is not need to follow this step. Once you set a TAX rate
in preferences, it is saved till you change it again. Enter 100 TAX+
+ 10 =. The tape display will be like the following: TAX+ 100 + 10 --------------- Running ST: = 116 Alternately, you
could also apply TAX+ to a result as in the example below. The sequences will
be 87 + 13 = TAX+ = 87 + 13 --------------- = 100 TAX+ 100 --------------- Running ST: = 106 Tax-To use TAX-
function, follow the following steps:
Example: Suppose you want to
calculate price of an item subtracting the TAX component and add $10 for
shipping and the tax rate is 6%. Make sure TAX rate
is set to 6 by going to the “Preferences” menu option. If you have it already
set to 6 before there is not need to follow this step. Once you set a TAX rate
in preferences, it is saved till you change it again. Enter 100 TAX-
+ 10 = . The display on tape looks like the following: TAX- 100 + 10 --------------- Running ST: = 104.3396 Alternately you can
also apply TAX- to a calculation like the one shown below the sequence will be
87 + 13 = TAX- = |
