# NeoCal for Pocket PC User Guide

### Time Value of Money

This application can calculate any single value of the , , , , and registers based on the values of the other four registers. This is useful for compound interest calculations involving regular, uniform payments such as loans, mortgages, leases, and annuities. There must be at least one negative and one positive cash flow (, , and/or ). In addition,

- The value stored in the register is used to convert the annual nominal rate () to the periodic rate (which is required for the calculations).
- stores the displayed number multiplied by the value in the register into the register.
- divides the displayed value by the value in the register.
- switches between
*begin* and *end* modes and is used to specify whether the payments occur at the beginning or the end of the period. When *begin* mode is selected, the *BEG* indicator is displayed, otherwise *end* mode is in effect.

The TVM dialog displays the current values of all the registers used by the various Time Value of Money calculations. Use the Preferences dialog to assign a section of the display for quicker access to this dialog.

For an example, let's consider a car loan. What would the payments be for a three-year loan of $16,500 with an APR of 9.5 percent?

- If the calculator is in
*begin* mode, press to set *end* mode. - Press to clear the financial registers.
- Press for monthly payments.
- Press to store the annual effective rate.
- Press to calculate the annual nominal rate of 9.11 percent (which is stored in the register).
- Press to store 36 in the register for the total number of payments.
- Press to store amount to be financed.
- Press to calculate -525.54 as the monthly payment amount. By convention, positive amounts designate money you receive and negative amounts designate money you pay.

As a comparison, let's calculate the payment for a four-year loan:

- Press to store 48 for the total number of payments.
- Press to calculate -411.46 as the monthly payment amount.