# Sharp EL-735 Effective interest rate

How do you calculate the following:
Company L enters into an agreement with Company B to lend it \$1m - The interest to be paid is 5% for each of the first 2 years and 7% for each of the next 2 years, annually in arrears. The loan must be repaid after 4 years. My text states that using a financial calculator the effective interest rate is calculated as 5.24%

How is this calculated?

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SOURCE: SHARP EL-735

Posted on Oct 04, 2009

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To use the power, you use the y to the x key, above the EXP key. To enter 2 to the power of 4, you enter 2 hit the y to the x key and enter 4 and hit enter.

To use percent function, you enter the percent key after the number. To calculate Interest, where Interest = Principal x Interest x Time. For example, if the principal is \$1,000, the interest rate is 8%, and time/term is 4 years, we would enter 1000 x 8 Percent x 4. When the8 is entered followed by the percent key, it should turn into 0.08.

Good luck,

Paul http://www.sharp-world.com/contents/calculator/support/guidebook/pdf/Operation_Guide_EL-531W_ser.pdf

Jul 28, 2016 | Scientific Calculator Office Equipment &...

### Where is iconv function for calculating effective interest rate ?

Page 24 of the attached manual shows you how to calculate the effective interest rate. I couldn't find an iconv function, but there are functions to move between the simple and effective interest rate.

Good luck,

Paul

Feb 16, 2016 | Sharp EL-738 Financial Calculator

### How to calculate effective annual rate

Hi there, if you are following the example from page 24 of the manual - The steps are as follows - reset or clear the previous values by pressing the orange key (2nd F) and MODE.
Then make sure that BGN is not displayed (To do this press 2nd F and FV (above it you will see BGN/END)). To set the number of payments per year press 2nd F I/Y (above it is P/Y). Type in 12 and press ENT. Press the down arrow key and to make sure C/Y also says 12 (12 compounding periods per year). Then press on. Calculate the total number of payments - to do this type in 20 2nd F N (to get xP/Y) and then store the answer in N by pressing N again. (Your screen should say ANS -> 240.00)Type in your present value 56000 and press PV to store it. Enter the monthly payment press +/- 440 PMT. Enter your future value (press 0 then FV). Now to calculate the interest rate press COMP I/Y. It should give you 7.17 %
A very common error is not pressing N to store the number of total payments into the calculator.
If this is not the example you meant, please let me know - and I will explain the other example.
good luck

Jun 23, 2014 | Sharp EL-738 Scientific Calculator

### I cannot get the textbook answer (online calculators are also the same as textbook answer) using my sharp calculator EL738: Monthly payment for \$184,500 at 6.75% interest semi annually, for 5 year term...

Your result is for the 6.75% interest compounded monthly. The problem states that the interest is compounded semiannually. This makes a difference in the effective interest rate.

A 6.75% APR compounded semiannually gives an effective interest rate of about 6.864%:
Press 2 , 6 . 7 5 2nd >EFF

Converting this to APR gives about 6.657%:
Press 1 2 , 6 . 8 6 4 2nd >APR

If you use 6.657 for the interest rate instead of 6.75 you should get the correct result.

Feb 22, 2011 | Sharp EL-738 Scientific Calculator

### Trying to calculate effective rate on sharp el-738.quoterly payments at 5%int

Hi,
I'm trying to find out how to calculate the effective rate on this machine. Example, I receive a 5% interest on a 4 month basis, what will be my annual effective rate ? In fact, what are the steps to follow ?

Many thanks !

Oct 29, 2010 | Sharp EL-738 Scientific Calculator

### Hi! I am using the Sharp EL-735 and I don't

Setup DSP TAB
then you can choose between 0-9 decimal places

Apr 20, 2010 | Sharp EL-738 Scientific Calculator

### Where can i find sharp el735 manual

GOTO http://support.sharp.net.au/

in the pickup menu .. choose alculator... and put in model EL-735

Ive just done that.

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