Casio CFX-9850G PLUS, User'S Manual & Technical Reference

Page: 373 / 486

345
P.6
19-6 Conversion between Percentage Interest
Rate and Effective Interest Rate
Press
5
(CNVT) in the Financial 1 screen to display the following input screen
for interest rate conversion.
n ......................
number of compoundings
I
% ................... interest rate
• {
' ' ' ' '
EFF
}
/
{
' ' ' ' '
APR
} ... {annual percentage rate to effective interest rate}/{effective
interest rate to annual percentage rate} conversion
k k
k k k
Converting the Annual Percentage Rate (
APR
) to the
Effective Interest Rate (
EFF
)
EFF
=
n
APR/
100
1+
–1
×
100
n
Example Calculate (to two decimal places) the effective interest rate for
an account paying an interest rate of 12%, compounded
quarterly.
In the set up screen, specify “ Fix2 ” for Display and then press
J
.
Perform the following key operations from the input screen.
e w
(
n
= 4)
bc w
(
I
% = 12%)
1
(
'
EFF
)
• The obtained value is assigned to
I
%.
k k
k k k
Converting the Effective Interest Rate (
EFF
) to the Annual
Percentage Rate (
APR
)
APR
=
100
EFF
1+ –1
×
n
×
100
1
n