Financial Functions

To use the calculator's financial function keys, you must ensure that they are enabled; this can be done using the 'Specialized Functions' option under the 'View' menu.

With the exceptions of the [NT~FN] and [TAX+], all financial functions operate in standard order input only and are unnaffected by the input order setting.

Interest Calculations

n : Enters the current value into the 'number of payments' TVM register, or calculates the number of payments based on values in the other TVM registers. You can press [n] in conjunction with the [RCL] button to recall the value held in this register.

Note that when calculating the number of payments, some financial calculators round down the result to the nearest integer, thus giving the number of full payments. DreamCalc does not round down; instead it returns the number of full payments plus the fractional component of the final payment.

12× : Multiplies the current value by 12, and enters the result into the 'number of payments' n TVM register.

i : Enters the current percentage value into the 'interest' TVM register, or calculates the interest percentage rate based on values in the other TVM registers. You can press [i] in conjunction with the [RCL] button to recall the value held in this register.

The calculator employs the Newton Raphson method to calculate interest, using an initial starting value of 10%. If it is found that the calculation is non-convergent, DreamCalc returns math error.

12÷ : Divides the current value by 12, and enters the result into the 'interest' i TVM register.

PV : Enters the current value into the 'present value' TVM register, or calculates the present value based on values in the other TVM registers. You can press [PV] in conjunction with the [RCL] button to recall the value held in this register.

PMT : Enters the current value into the 'payment' TVM register, or calculates the payment amount based on values in the other TVM registers. You can press [PMT] in conjunction with the [RCL] button to recall the value held in this register.

FV : Enters the current value into the 'future value' TVM register, or calculates the future value based on values in other the TVM registers. You can press [n] in conjunction with the [RCL] button to recall the value held in this register.

X<>Y : Exchanges the current value in the display with the one held in the Y register. This feature is used to retrieve the second value from functions which return two results simultaneously. You can also press [X<>Y] in conjunction with the [RCL] button to recall the value held, without exchanging it for the current value in the display.

Note that the Y register is static and does not form part of the calculation stack, as it does with some financial calculators.

AMORT : Simultaneously calculates the amount paid as interest and as principal, based on the values in the TVM registers. The current value in the display is taken as the number of periodic intervals over which to amortize. The result returned is the interest paid, and the principal amount paid is placed into the Y register, and can be retrieved by pressing [X<>Y].

In addition, AMORT updates the PV register with the remaining balance and adds the number of periods amortized to the n register. Therefore, you can work forward to calculate the total principal and interest paid over any contiguous set of periods, and determine the remaining balance at the end of that time. Also, if you clear the n register before amortizing, you can keep track of the number of periods amortized by recalling its value.

Example:

{10} [SHIFT] [12×] {9.5} [SHIFT] [12÷] {15,000} [PV] {0} [FV] [PMT] gives result -194.10

{12} [AMORT] gives result -1384.57 (the interest paid in first 12 months)
[X<>Y] gives result -944.63 (the principal paid)
[RCL] [PV] gives 14055.37 (the remaining balance)

Note. AMORT internally rounds payment values to the precision setting of the calculator. This can lead to small rounding errors, but yields results close to those obtained by accounting techniques in general use.

INT : Calculates accrued interest, both on a 360-day and 365-day basis simultaneously. It uses the values stored in the TVM registers as follows: the number of days n, annual interest rate i and principal amount PV. It returns the 360-day result, and places the result of the 365-day calculation in the Y register, which can be retrieved by pressing [X<>Y].

Example:

{150} [n] (stores 150 days)
{6} [i] (stores interest rate)
{450} [+/-] [PV] (stores principal amount)
[SHIFT] [INT] gives result 11.25 (360-day basis)
[X<>Y] gives 11.10 (365-day basis)

PRINT : Sends the values in the TVM registers the Paper Roll Window.

BEG/END : Toggles between the BEGIN (payments in advance) and END (payments in arrears) modes.

Discounted Cash-Flows

NPV : Calculates Net Present Value (NPV) for a series of amounts in the cash-flow list and the value in the interest register i.

For example, enter the following cash-flow, either using the Numeric Data List Window, or the [CF0] and [CFj] keys on the calculator:

CF(n) = -60000, -1000, 3500, 2500, 4500, 80000

Now key in:

{8} [i] (stores interest rate)
[NPV] gives result 1813.63

Note that in DreamCalc, the value in the n register has no effect on NPV calculations, as the number of entries in the cash-flow list is taken to be the number of payments.

IRR : Calculates Internal Rate of Return (IRR), for a series of amounts in the cash-flow list. DreamCalc Pro employs Newton's method to calculate IRR, using an initial starting value of 10%. If it found that the calculation process is non-convergent, DreamCalc returns math error.

For example, enter the following cash-flow either using the Numeric Data List Window, or the [CF0] and [CFj] keys on the calculator:

CF(n) = -60000, -1000, 3500, 2500, 4500, 80000

Now simply pressing [IRR] gives the result 8.67.

Note that in DreamCalc, the value in the n register has no effect on IRR calculations, as the number of entries in the cash-flow list is taken to be the number of payments.

CF0 : Clears the cash-flow list and assigns the current value in the display as the first entry. See also the Numeric Data List Window.

CFj : Adds the current value to the cash-flow list.

Nj : Adds n-1 copies of the last value to the cash-flow list.

Depreciation

SL : Calculates the amount of depreciation and the remaining depreciable value simultaneously, using the straight-line method. It takes the value in the PV register to be the initial cost of the asset, the value in the n register to be its useful life, and FV to be its salvage value. Pressing [SL] then takes the current value in the display to be the period number, and returns amount of depreciation in that period, placing the remaining depreciable balance in the Y register. The value in the Y register can be retrieved by pressing [X<>Y].

Example:

{2,000} [PV] (initial cost)
{5} [n] (useful life in years)
{50} [FV] (salvage value)
{2} [SHIFT] [SL] gives result 390 (amount of depreciation in year 2)
[X<>Y] gives 1,170 (remaining depreciable balance)

SOYD : Calculates the amount of depreciation and the remaining depreciable value simultaneously, using the sum of year digits method. It takes the value in the PV register to be the initial cost of the asset, the value in the n register to be its useful life, and FV to be its salvage value. Pressing [SOYD] then takes the current value in the display to be the period number, and returns amount of depreciation in that period, placing the remaining depreciable balance in the Y register. The value in the Y register can be retrieved by pressing [X<>Y].

Example:

{2,000} [PV] (initial cost)
{5} [n] (useful life in years)
{50} [FV] (salvage value)
{2} [SHIFT] [SOYD] gives result 520 (amount of depreciation in year 2)
[X<>Y] gives 780 (remaining depreciable balance)

DB :Calculates the amount of depreciation and the remaining depreciable value simultaneously, using the declining balance method. It takes the value in the PV register to be the initial cost of the asset, the value in the n register to be its useful life, i to be the declining-balance factor (as a percentage), and FV to be its salvage value. Pressing [DB] then takes the current value in the display to be the period number, and returns amount of depreciation in that period, placing the remaining depreciable balance in the Y register. The value in the Y register can be retrieved by pressing [X<>Y].

Example:

{2,000} [PV] (initial cost)
{5} [n] (useful life in years)
{50} [FV] (salvage value)
{125} [i] (1.25 declining balance factor as a percentage value)
{2} [SHIFT] [DB] gives result 375 (amount of depreciation in year 2)
[X<>Y] gives 1,075 (remaining depreciable balance)

Miscellaneous

NT~FN : Converts from your national currency to a foreign currency, using a configurable exchange rate. The exchange rate can be set in the Options Window or by using the [MODE] key.

FN~NT : Converts from a foreign currency to your national currency, using a configurable exchange rate. The exchange rate can be set in the Options Window or by using the [MODE] key.

TAX+ : Adds tax to the current value to yield a tax inclusive amount, based on a configurable tax rate percentage. The tax rate can be set in the Options Window or by using the [MODE] key.

TAX- : Subtracts tax from the current value to yield a tax exclusive amount, based on a configurable tax rate percentage. The tax rate can be set in the Options Window or by using the [MODE] key.

CLREG : Clears the TVM and Y registers.

CLD : Clears all statistical and cash-flow list data.and financial registers.