Financial calculations on Casio fx-CG50
Your Casio fx-GC50 is a great tool for many different types of
financial calculations including compound interest and repayment of loans.
You'll learn how to use it in following examples.
Example 1 – compound interest
Question: You deposit 2500 € in your bank account.
The bank compounds it yearly at interest rate 3% per annum. How much
will you have in your account after 5 years?
To access the financial application press
MENU ► Financial
► Compound Interest.
The following screen will appear.
You must enter the appropriate values, leaving the item with the unknown empty.
| N | = 5 |
| I% | = 3 |
| PV | = −2500 |
| PMT | = 0 |
| FV | = |
| P/Y | = 1 |
| C/Y | = 1 |
Explanations:
-
N means the number of times this deposit is compounded. In our case it's 5
(compounded once a year for the following 5 years).
-
I% means the interest rate per annum. In our case it's 3.
-
PV is the present value. Enter number −2500.
Pay attention to minus and see the note below!
-
PMT is your monthly payment (in case of repaying a loan).
In this case there are no monthly payments, so it must be set to 0.
-
FV is the future value. It's unknown, so leave it empty.
-
P/Y means number of payments per year and C/Y means
number of compound periods per year. In all normal situations these two
settings must be equal. In our case both values are 1, meaning that the
deposit is compounded once a year.
Note: When you give money to your bank, the number entered must be
negative. When you receive money from your bank the number is positive.
In our example PV is negative (you deposit it) and FV will be
positive (you'll get money).
After entering the appropriate values, see the boxes at the bottom of the screen.
Each box is connected to one of the buttons
F1,
F2,
F3,
F4,
F5,
F6.
You must select the appropriate button to find the unknown value. In our case you want to find the future value,
so press the button under the FV box.
The correct result is
FV = 2898.19 €, meaning that you'll have 2898.19 € in your account.
Example 2 – repayment of a loan
Question: You take out a loan of 54000 €. You are going to repay this loan in 15 years.
The bank compounds your debt at interest rate 4% per annum. Calculate your monthly payment.
To access the financial application press
MENU ► Financial
► Compound Interest.
Enter the following values:
| N | = 180 |
| I% | = 4 |
| PV | = 54000 |
| PMT | = |
| FV: | = 0 |
| P/Y | = 12 |
| C/Y | = 12 |
Explanations:
-
N means the number of payments. In our case it's 15 × 12 = 180.
(15 years 12 times a year).
-
I% means the interest rate per annum. In our case it's 4.
-
PV, the present value is 54000. It's your loan. And it's the money you get from the bank, so it's positive.
-
PMT is your monthly payment. You must leave it empty, because it's unknown.
-
FV, the future value is 0. You'll pay all your debt till the last cent.
-
P/Y and C/Y are both 12, because you make 12 payments yearly.
You must enter the appropriate values, leaving the unknown item empty (in this case it's the
PMT). Now select the appropriate button to find the unknown value. In our case you want to find the monthly payment,
so press the button under the PMT box.
The correct result is PMT = −399.43, meaning that your monthly payment will be
399.43 € (minus means that you will have to pay this to the bank).
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