Sharp El 738 Financial Calculator Manual

Sharp EL-738 Financial Calculator

Sharp EL-738 Financial Calculator: Complete User Manual & Expert Guide

The Sharp EL-738 is one of the most powerful financial calculators available, designed for professionals in finance, accounting, and business. This comprehensive guide will walk you through all its features, from basic operations to advanced financial calculations, with practical examples and expert tips.

Key Features of the Sharp EL-738

  • Two-line display (12-digit main + 10-digit secondary)
  • Over 130 built-in financial and scientific functions
  • Time-value-of-money (TVM) calculations
  • Amortization schedules
  • Cash flow analysis (NPV, IRR)
  • Depreciation calculations
  • Statistical and regression analysis
  • Cost-sell-margin calculations
  • Bond calculations
  • Break-even analysis

Getting Started with Your Sharp EL-738

Basic Operations

The EL-738 operates in two main modes:

  1. COMP mode (Computational): For basic arithmetic operations
  2. FIN mode (Financial): For financial calculations

Switching Modes

Press [2ndF] + [FIN] to switch to financial mode. The display will show “FIN” in the upper left corner.

Clearing Memory

Press [2ndF] + [CA] to clear all financial registers and memory.

Setting Decimal Places

Press [2ndF] + [SETUP] then select decimal places (0-9) or floating decimal.

Time-Value-of-Money (TVM) Calculations

The TVM functions are the heart of financial calculations. The five key variables are:

  • N = Number of periods
  • I/Y = Interest rate per period
  • PV = Present value
  • PMT = Payment per period
  • FV = Future value

Example: Calculating future value of an investment

  1. Enter FIN mode ([2ndF] + [FIN])
  2. Clear registers ([2ndF] + [CA])
  3. Enter 10000 and press [PV] (present value)
  4. Enter 7.5 and press [I/Y] (annual interest rate)
  5. Enter 10 and press [N] (number of years)
  6. Press [CPT] then [FV] to calculate future value
  7. Result: $20,610.32 (future value after 10 years at 7.5% interest)

Amortization Schedules

The EL-738 can generate complete amortization schedules for loans. Here’s how:

  1. Enter loan amount and press [PV]
  2. Enter interest rate and press [I/Y]
  3. Enter term in months/years and press [N]
  4. Press [PMT] to calculate payment amount
  5. Press [2ndF] + [AMORT] to view amortization schedule
  6. Use arrow keys to scroll through payment periods
Payment Number Payment Amount Principal Paid Interest Paid Remaining Balance
1 $599.55 $399.55 $200.00 $19,600.45
12 $599.55 $444.15 $155.40 $17,912.43
24 $599.55 $489.90 $109.65 $15,937.78
36 $599.55 $536.80 $62.75 $13,654.33
60 $599.55 $596.62 $2.93 $0.00

Sample amortization schedule for a $20,000 loan at 5% interest over 5 years (60 months)

Advanced Financial Functions

Cash Flow Analysis (NPV and IRR)

The EL-738 can handle up to 24 uneven cash flows for NPV and IRR calculations:

  1. Press [2ndF] + [CF] to enter cash flow mode
  2. Enter each cash flow amount and press [CF]
  3. Enter frequency for each cash flow (default is 1)
  4. Press [2ndF] + [NPV] to calculate Net Present Value
  5. Enter discount rate when prompted
  6. Press [2ndF] + [IRR] to calculate Internal Rate of Return

NPV vs IRR Comparison

Metric NPV IRR
Definition Difference between present value of cash inflows and outflows Discount rate that makes NPV of all cash flows equal to zero
Decision Rule Accept if NPV > 0 Accept if IRR > required rate of return
Units Dollar amount Percentage
Best For Evaluating absolute project value Comparing projects of different sizes
Limitations Requires discount rate input May give multiple rates for non-conventional cash flows

Depreciation Calculations

The EL-738 supports four depreciation methods:

  1. Straight-Line (SL): Equal amount each year
  2. Declining Balance (DB): Fixed percentage of book value
  3. Sum-of-Years’ Digits (SYD): Accelerated depreciation
  4. Units of Production: Based on actual usage

Example: Calculating straight-line depreciation

  1. Enter asset cost: 10000 [±] [PV]
  2. Enter salvage value: 2000 [FV]
  3. Enter useful life: 5 [N]
  4. Press [2ndF] + [DEPR]
  5. Select SL (1) for straight-line method
  6. Result: $1,600 annual depreciation

Bond Calculations

The bond functions help calculate:

  • Bond price given yield
  • Yield to maturity given price
  • Accrued interest
  • Duration and convexity

Example: Calculating bond price

  1. Enter bond face value: 1000 [FV]
  2. Enter annual coupon rate: 5 [I/Y]
  3. Enter years to maturity: 10 [N]
  4. Enter market yield: 6 [P/Y] (then press [I/Y] again)
  5. Press [CPT] then [PV] to calculate price
  6. Result: $926.40 (bond price)

Statistical and Regression Analysis

The EL-738 includes comprehensive statistical functions:

  • Single-variable statistics (mean, standard deviation)
  • Linear regression
  • Logarithmic, exponential, and power regression
  • Correlation coefficient
  • Forecasting

Example: Performing linear regression

  1. Press [2ndF] + [STAT] to enter statistics mode
  2. Enter data points using [DATA] key
  3. Press [2ndF] + [x̄] for mean of x values
  4. Press [2ndF] + [ȳ] for mean of y values
  5. Press [2ndF] + [REG] for regression coefficients
  6. Use [a] and [b] keys to get intercept and slope

Cost-Sell-Margin Calculations

Essential for business and retail applications:

Cost Function

Calculate cost given selling price and margin:

  1. Enter selling price: 100 [±] [PV]
  2. Enter margin percentage: 30 [I/Y]
  3. Press [2ndF] + [COST]
  4. Result: $70.00 (cost)

Sell Function

Calculate selling price given cost and margin:

  1. Enter cost: 70 [±] [PV]
  2. Enter margin percentage: 30 [I/Y]
  3. Press [2ndF] + [SELL]
  4. Result: $100.00 (selling price)

Margin Function

Calculate margin given cost and selling price:

  1. Enter cost: 70 [±] [PV]
  2. Enter selling price: 100 [FV]
  3. Press [2ndF] + [MARGIN]
  4. Result: 30.00% (margin)

Break-Even Analysis

Determine the point at which total cost equals total revenue:

  1. Enter fixed costs: 5000 [PV]
  2. Enter variable cost per unit: 10 [PMT]
  3. Enter selling price per unit: 25 [FV]
  4. Press [2ndF] + [BREAK-EVEN]
  5. Result: 334 units (break-even quantity)

Expert Tips for Maximum Efficiency

Customizing Calculator Settings

  • Decimal Places: Adjust with [2ndF] + [SETUP] + decimal number
  • Payment Mode: Set beginning/end of period with [2ndF] + [PMT] + [SETUP]
  • Date Format: Choose MM.DD or DD.MM with [2ndF] + [DATE]
  • Chain Calculation: Enable/disable with [2ndF] + [CHAIN]

Using the Grand Total (GT) Function

The GT function accumulates results across multiple calculations:

  1. Perform your first calculation (e.g., 5 × 3 = 15)
  2. Press [GT] to add to grand total
  3. Perform another calculation (e.g., 10 × 2 = 20)
  4. Press [GT] again to add to total
  5. Press [2ndF] + [GT] to view grand total (35)
  6. Press [2ndF] + [CA] to clear GT

Memory Functions

The EL-738 has 9 memory registers (M1-M9) plus independent memory:

  • [M+]: Add to independent memory
  • [M-]: Subtract from independent memory
  • [MR]: Recall independent memory
  • [MC]: Clear independent memory
  • For M1-M9: Use [STO] and [RCL] with number keys

Error Messages and Troubleshooting

Error Cause Solution
E 1 Stack overflow Simplify calculation or clear memory
E 2 Syntax error Check operation sequence
E 3 Memory full Clear memory with [2ndF]+[CA]
E 4 Invalid entry Check for negative values where not allowed
E 5 Division by zero Check for zero denominators
E 6 Overflow Result exceeds display capacity
E 7 Underflow Result too small to display

Comparing the Sharp EL-738 to Other Financial Calculators

Feature Sharp EL-738 HP 12C Texas Instruments BA II Plus Casio FC-200V
Display Type 2-line LCD (12+10 digits) 1-line LCD (10 digits) 1-line LCD (10 digits) 2-line LCD (10+4 digits)
TVM Calculations Yes (5 variables) Yes (5 variables) Yes (5 variables) Yes (5 variables)
Cash Flow Analysis 24 cash flows 20 cash flows 24 cash flows 32 cash flows
Amortization Full schedules Basic Basic Full schedules
Depreciation 4 methods No No 3 methods
Bond Calculations Full (price, yield, accrued interest) Basic Basic Full
Statistical Functions Comprehensive (regression, forecasting) Basic Basic Advanced
Cost-Sell-Margin Yes No No Yes
Break-Even Analysis Yes No No Yes
Programmability No Yes (RPN) No No
Price Range $$$ $ $$
Best For Comprehensive financial analysis Professionals who prefer RPN Basic financial calculations Business and statistical analysis

Learning Resources and Certification

To master the Sharp EL-738, consider these authoritative resources:

For professional certification that may require financial calculator proficiency:

  • CFA (Chartered Financial Analyst): The EL-738 is approved for all three levels
  • CFP (Certified Financial Planner): Recommended for examination use
  • Series 7 Exam: Approved for the securities license examination
  • CPA Exam: Permitted for the financial accounting and reporting section

Maintenance and Care

To ensure your Sharp EL-738 remains in optimal condition:

  • Battery Replacement: Uses 1 CR2032 lithium battery. Replace when display dims.
  • Cleaning: Use a soft, slightly damp cloth. Avoid harsh chemicals.
  • Storage: Keep in a protective case away from extreme temperatures.
  • Button Care: Press keys firmly but don’t use excessive force.
  • Display: Avoid direct sunlight which can cause display fading.

Common Financial Formulas You Can Calculate

Future Value of a Single Sum

Formula: FV = PV × (1 + r)n

Where:
FV = Future Value
PV = Present Value
r = Interest rate per period
n = Number of periods

Future Value of an Annuity

Formula: FV = PMT × [((1 + r)n – 1) / r]

Where:
PMT = Payment per period

Present Value of a Single Sum

Formula: PV = FV / (1 + r)n

Present Value of an Annuity

Formula: PV = PMT × [1 – (1 + r)-n] / r

Loan Payment Calculation

Formula: PMT = PV × [r(1 + r)n] / [(1 + r)n – 1]

Real-World Applications

Retirement Planning

Use the EL-738 to:

  • Calculate required monthly savings to reach retirement goal
  • Determine sustainable withdrawal rates in retirement
  • Compare different investment scenarios
  • Calculate impact of inflation on retirement savings

Mortgage Analysis

Perfect for:

  • Comparing 15-year vs 30-year mortgages
  • Calculating savings from extra principal payments
  • Determining break-even point for refinancing
  • Analyzing adjustable-rate mortgage scenarios

Business Valuation

Essential for:

  • Discounted cash flow analysis
  • Terminal value calculations
  • WACC (Weighted Average Cost of Capital) computations
  • Comparable company analysis

Investment Analysis

Use for:

  • Comparing investment alternatives
  • Calculating holding period returns
  • Determining dollar-weighted vs time-weighted returns
  • Analyzing investment risk metrics

Advanced Techniques

Using the Solver Function

The EL-738 can solve equations numerically:

  1. Enter your equation using the calculator’s functions
  2. Press [2ndF] + [SOLVE]
  3. Enter an initial guess
  4. Press [=] to solve
  5. Use arrow keys to refine solution if needed

Complex Number Calculations

For electrical engineering or advanced math:

  1. Press [2ndF] + [CPLX] to enter complex mode
  2. Enter real part, press [a+b/i], enter imaginary part
  3. Perform calculations normally
  4. Press [2ndF] + [→rθ] to convert to polar form

Base-N Calculations

For computer science applications:

  • Binary (BASE 2)
  • Octal (BASE 8)
  • Hexadecimal (BASE 16)
  • Decimal (BASE 10)

Use [2ndF] + [BASE] to switch between bases.

Frequently Asked Questions

How do I reset my Sharp EL-738 to factory settings?

Press [2ndF] + [CA] + [ON] simultaneously to perform a full reset.

Can I use the EL-738 for the CFA exam?

Yes, the Sharp EL-738 is on the CFA Institute’s list of approved calculators for all three levels of the exam.

How do I calculate modified internal rate of return (MIRR)?

The EL-738 doesn’t have a dedicated MIRR function, but you can calculate it manually:

  1. Calculate NPV of all negative cash flows at finance rate
  2. Calculate future value of all positive cash flows at reinvestment rate
  3. Use IRR function with these two values to get MIRR

What’s the difference between the EL-738 and EL-738C?

The EL-738C is a newer model with:

  • Slightly updated keyboard layout
  • Improved display contrast
  • Longer battery life
  • Same core functionality

Can I print results from my EL-738?

The EL-738 doesn’t have printing capability, but you can:

  • Use the display review function to recall previous calculations
  • Manually record results
  • Consider using Sharp’s PC connectivity software for some models

Conclusion

The Sharp EL-738 is an incredibly powerful financial calculator that can handle virtually any financial computation a professional might need. From basic time-value-of-money calculations to complex statistical analyses, this calculator provides the tools needed for accurate financial decision-making.

By mastering the functions outlined in this guide, you’ll be able to:

  • Make informed investment decisions
  • Analyze loan options comprehensively
  • Perform sophisticated business valuations
  • Prepare for professional financial examinations
  • Solve complex mathematical problems

Remember that while the calculator provides the computational power, your financial acumen determines how effectively you can apply these tools. Regular practice with real-world scenarios will help you develop both the technical skills with the calculator and the financial intuition to interpret the results correctly.

For the most accurate results, always:

  • Double-check your inputs
  • Understand the assumptions behind each calculation
  • Verify results with alternative methods when possible
  • Stay updated with current financial regulations and standards

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