Sharp EL-738C Financial Calculator
Comprehensive Guide to the Sharp EL-738C Financial Calculator
The Sharp EL-738C is a professional-grade financial calculator designed for business professionals, students, and investors who need to perform complex financial calculations with precision. This guide will explore its features, applications, and how to maximize its potential for financial analysis.
Key Features of the Sharp EL-738C
- Dual Power: Solar and battery backup ensure continuous operation
- Large LCD Display: 12-digit display with clear visibility
- Financial Functions: Time value of money, cash flow analysis, amortization, and more
- Statistical Functions: Mean, standard deviation, regression analysis
- Cost-Sell-Margin Calculations: Essential for business and retail applications
- Tax Calculations: Built-in tax functions for financial planning
- Memory Functions: 4-key independent memory for complex calculations
Primary Applications
- Investment Analysis: Calculate future value, present value, interest rates, and payment periods for various investment scenarios.
- Loan Calculations: Determine monthly payments, total interest, and amortization schedules for loans and mortgages.
- Business Financials: Perform cost-volume-profit analysis, break-even calculations, and margin analysis.
- Retirement Planning: Project future values of retirement accounts with regular contributions.
- Educational Use: Ideal for finance and accounting students learning time value of money concepts.
How to Use the Time Value of Money Functions
The time value of money (TVM) functions are among the most powerful features of the Sharp EL-738C. Here’s how to use them:
- Set the calculation mode: Press [2ndF] then [FIN] to enter financial mode.
- Input known values: Enter the values you know (N, I/Y, PV, PMT, FV).
- Calculate the unknown: Press the key for the value you want to calculate.
- Set payment timing: Use [2ndF] [P/Y] to set payments per year and [2ndF] [BEG] for beginning-of-period payments if needed.
For example, to calculate the future value of an investment:
- Enter the number of periods (N)
- Enter the interest rate per period (I/Y)
- Enter the present value (PV) if any
- Enter the payment amount (PMT) if making regular contributions
- Press [FV] to calculate the future value
Advanced Financial Calculations
The EL-738C excels at complex financial scenarios:
Cash Flow Analysis (NPV and IRR)
To perform cash flow analysis:
- Press [2ndF] [CF] to enter cash flow mode
- Enter each cash flow using [CFi] (cash flow input)
- Enter the frequency of each cash flow using [Nj]
- Press [2ndF] [NPV] or [IRR] to calculate
Amortization Schedules
For loan amortization:
- Calculate the payment using TVM functions
- Press [2ndF] [AMORT] to enter amortization mode
- Enter the period number you want to analyze
- Press [BAL] for remaining balance, [PRN] for principal portion, or [INT] for interest portion
Cost-Sell-Margin Calculations
For business applications:
- Press [2ndF] [CST] to enter cost mode
- Enter two known values (cost, selling price, or margin)
- Press the key for the unknown value to calculate it
Comparison with Other Financial Calculators
| Feature | Sharp EL-738C | HP 12C | Texas Instruments BA II Plus |
|---|---|---|---|
| Display Type | LCD (12 digits) | LCD (10 digits) | LCD (10 digits) |
| Power Source | Solar + Battery | Battery only | Battery only |
| TVM Functions | Yes | Yes | Yes |
| Cash Flow (NPV/IRR) | Yes (24 cash flows) | Yes (20 cash flows) | Yes (24 cash flows) |
| Amortization | Yes | Yes | Yes |
| Cost-Sell-Margin | Yes | No | No |
| Statistical Functions | Yes (Advanced) | Basic | Basic |
| Price Range | $30-$50 | $60-$80 | $35-$50 |
| Best For | Business, Accounting, General Finance | Advanced Financial Analysis | Academic, Basic Finance |
Practical Applications in Different Fields
Real Estate Investing
Real estate professionals use the EL-738C to:
- Calculate mortgage payments and amortization schedules
- Determine internal rate of return (IRR) for investment properties
- Analyze cash flows from rental properties
- Compare different financing options
Retirement Planning
Financial planners utilize the calculator for:
- Projecting future values of retirement accounts
- Calculating required annual contributions to reach retirement goals
- Determining sustainable withdrawal rates in retirement
- Comparing different investment strategies
Business Valuation
In business valuation, the EL-738C helps with:
- Discounted cash flow (DCF) analysis
- Terminal value calculations
- Weighted average cost of capital (WACC) computations
- Comparable company analysis metrics
Tips for Maximizing Calculator Efficiency
- Use the Grand Total Key: The [GT] key accumulates a running total of all calculations, useful for multi-step problems.
- Master the Shift Functions: Many advanced functions are accessed via the [2ndF] key – familiarize yourself with these.
- Set Default Values: For repeated calculations, set default values for common variables like payment periods.
- Use the Memory Functions: Store intermediate results in memory for complex, multi-step problems.
- Practice Regularly: Like any tool, proficiency comes with regular use – practice different financial scenarios.
- Keep the Manual Handy: The EL-738C has many features – keep the manual accessible for reference.
- Clean Regularly: Keep the solar panel clean for optimal performance of the solar power function.
Common Mistakes to Avoid
- Incorrect Payment Settings: Forgetting to set payments per year (P/Y) or beginning/end of period can lead to wrong results.
- Sign Conventions: Mixing up cash inflows and outflows (use consistent sign conventions – typically outflows as negative).
- Clearing Memory: Not clearing memory between unrelated calculations can cause errors.
- Interest Rate Format: Entering annual rates when periodic rates are required (or vice versa).
- Overwriting Values: Accidentally overwriting values before completing a calculation sequence.
- Ignoring Rounding: Not accounting for rounding in financial calculations can lead to small discrepancies.
Maintenance and Care
To ensure your Sharp EL-738C remains in optimal condition:
- Storage: Keep in a protective case when not in use to prevent damage to the keys and display.
- Cleaning: Use a soft, slightly damp cloth to clean the calculator. Avoid harsh chemicals or abrasive materials.
- Battery Replacement: If the calculator starts to malfunction, replace the backup battery (typically a CR2032).
- Avoid Extreme Temperatures: Don’t expose the calculator to extreme heat or cold, which can damage the LCD display.
- Key Maintenance: If keys become sticky, use a small amount of isopropyl alcohol on a cotton swab to clean them.
- Solar Panel Care: Keep the solar panel clean and exposed to light when possible to maintain battery charge.
Learning Resources
To master the Sharp EL-738C, consider these resources:
- Official Manual: The manual that comes with the calculator is comprehensive and should be your first reference.
- Online Tutorials: Many finance websites and YouTube channels offer tutorials specifically for the EL-738C.
- Finance Textbooks: Most finance textbooks include sections on financial calculator usage that apply to the EL-738C.
- Practice Problems: Work through practice problems to become familiar with different calculation scenarios.
- Professional Courses: Many professional finance courses (like CFA prep) include calculator training.
For authoritative information on financial calculations and principles that you can apply with your Sharp EL-738C, consider these resources:
- U.S. Securities and Exchange Commission (SEC) – For official information on investment regulations and financial disclosures.
- Federal Reserve Economic Data (FRED) – For economic data that can be used in financial calculations.
- Internal Revenue Service (IRS) – For tax-related calculations and financial planning information.
Advanced Techniques
Once you’ve mastered the basics, explore these advanced techniques:
Bond Valuation
While the EL-738C doesn’t have dedicated bond functions, you can calculate bond values using the cash flow functions:
- Enter the bond’s coupon payments as cash flows
- Enter the face value as the final cash flow
- Use the market interest rate as your discount rate
- Calculate NPV to find the bond’s present value
Uneven Cash Flow Analysis
For investments with irregular cash flows:
- Enter each cash flow amount with [CFi]
- Enter how many times each flow occurs with [Nj]
- Use [NPV] to calculate net present value with your required rate of return
- Use [IRR] to calculate the internal rate of return
Break-Even Analysis
For business applications:
- Calculate fixed costs and variable costs per unit
- Determine selling price per unit
- Use the formula: Break-even = Fixed Costs / (Price – Variable Cost)
- Use the calculator’s arithmetic functions to compute
Foreign Exchange Calculations
For international finance:
- Use the percentage functions to calculate exchange rate changes
- Calculate cross rates between currencies
- Determine forward exchange rates using interest rate parity
Comparison of Financial Calculator Methods vs. Spreadsheet Methods
| Aspect | Financial Calculator (EL-738C) | Spreadsheet (Excel/Google Sheets) |
|---|---|---|
| Portability | Excellent – fits in pocket | Limited – requires computer/tablet |
| Speed for Simple Calculations | Very fast | Slower setup required |
| Complex Models | Limited by memory | Virtually unlimited complexity |
| Data Visualization | None | Excellent charting capabilities |
| Precision | High (12 digits) | Very high (15+ digits) |
| Learning Curve | Moderate (specialized functions) | Steep (formulas, functions) |
| Cost | Low ($30-$50) | Free (with computer ownership) |
| Battery Life | Years (solar + battery) | N/A (device dependent) |
| Best For | Quick calculations, exams, field work | Complex models, documentation, analysis |
Professional Certifications That Allow the Sharp EL-738C
The Sharp EL-738C is approved for use in several professional certification exams:
- CFA (Chartered Financial Analyst): Approved for all levels of the CFA exam
- CFP (Certified Financial Planner): Approved for the CFP certification exam
- Series 7: Approved for the FINRA Series 7 exam
- CPA Exam: Approved for the Uniform CPA Examination
- Actuarial Exams: Approved for many Society of Actuaries exams
- Real Estate Licensing: Approved for most state real estate exams
Always verify with the specific testing organization, as approved calculator lists can change.
Future of Financial Calculators
While software solutions are becoming more prevalent, financial calculators like the Sharp EL-738C remain relevant because:
- Exam Requirements: Many professional exams still require or allow only specific calculator models.
- Reliability: Calculators don’t crash, need updates, or have compatibility issues.
- Speed: For quick calculations, nothing beats the speed of a dedicated calculator.
- Focus: Using a calculator minimizes distractions compared to a computer or phone.
- Battery Life: Modern financial calculators can last years on a single battery.
- Tactile Feedback: Many users find the physical buttons more satisfying and accurate for data entry.
However, the future may bring:
- Hybrid devices that combine calculator functions with smart features
- Enhanced connectivity for data transfer to computers
- Touchscreen interfaces while maintaining physical buttons
- Cloud synchronization of calculation histories
- AI-assisted financial analysis features
Final Recommendations
For professionals and students who need a reliable financial calculator:
- Invest in Quality: The Sharp EL-738C offers excellent value for its price point.
- Practice Regularly: The more you use it, the more proficient you’ll become with its functions.
- Combine with Software: Use the calculator for quick checks and spreadsheets for complex models.
- Stay Updated: While the EL-738C is reliable, be aware of new calculator models that may offer additional features.
- Teach Others: Sharing your knowledge can reinforce your own understanding.
- Explore All Features: Many users only use a fraction of the calculator’s capabilities – take time to learn them all.
The Sharp EL-738C remains one of the most versatile and reliable financial calculators available. Whether you’re a student learning finance concepts, a professional making quick calculations in the field, or an investor analyzing potential opportunities, the EL-738C provides the tools you need in a portable, easy-to-use package. By mastering its functions and understanding its applications, you can significantly enhance your financial analysis capabilities.