Sharp EL-738 Financial Calculator
Perform advanced financial calculations including time value of money, cash flow analysis, amortization, and more with this interactive Sharp EL-738 simulator.
Calculation Results
Comprehensive Sharp EL-738 Financial Calculator Manual & 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 the essential functions, advanced features, and practical applications of this remarkable device.
Key Features of the Sharp EL-738
- Time Value of Money (TVM) Calculations: Compute present value, future value, payments, interest rates, and number of periods
- Cash Flow Analysis: NPV, IRR, and modified IRR calculations with up to 24 uneven cash flows
- Amortization Schedules: Generate complete payment schedules for loans and investments
- Statistical Functions: Mean, standard deviation, linear regression, and more
- Cost-Sell-Margin Calculations: Essential for retail and business applications
- Depreciation Methods: Straight-line, declining balance, and sum-of-years’ digits
- Bond Calculations: Price, yield to maturity, and accrued interest
- Break-Even Analysis: Calculate break-even points for business decisions
Basic Operations and Setup
Before diving into complex calculations, it’s important to understand the basic operation of your Sharp EL-738:
- Power and Reset: Press [ON/C] to turn on the calculator. Press [2ndF][CA] to reset all settings to default.
- Display Settings: Press [2ndF][FIX] to set decimal places (0-9 or F for floating).
- Mode Selection: Press [2ndF][MODE] to switch between different calculation modes (COMP, CASH, AMORT, etc.).
- Memory Functions: Use [M+], [M-], [MR], and [MC] for memory operations.
- Chain Calculations: The EL-738 uses algebraic logic with operator precedence.
Time Value of Money (TVM) Calculations
The TVM functions are among the most powerful features of the Sharp EL-738. These calculations form the foundation of financial mathematics and are essential for investment analysis, loan calculations, and retirement planning.
The five basic TVM variables are:
- N: Number of periods
- I%: Interest rate per period
- PV: Present value (lump sum)
- PMT: Payment per period
- FV: Future value
To perform TVM calculations:
- Press [2ndF][COMP] to enter the COMP mode
- Enter the known values using the appropriate keys
- Press the key for the unknown value you want to calculate
- Press [COMP] to compute the result
| Calculation Type | Example | Keystrokes | Result |
|---|---|---|---|
| Future Value of Lump Sum | $10,000 invested at 6% for 5 years | 5 [N], 6 [I%], 10000 [PV], [FV], [COMP] | $13,382.26 |
| Loan Payment | $200,000 mortgage at 4.5% for 30 years | 360 [N], 4.5 [I%], 200000 [PV], [PMT], [COMP] | -$1,013.37 |
| Present Value of Annuity | Receive $1,000/month for 10 years at 7% | 120 [N], 7 ÷ 12 [=] [I%], 1000 [PMT], [PV], [COMP] | $84,437.84 |
| Interest Rate | $5,000 grows to $8,000 in 5 years | 5 [N], -5000 [PV], 8000 [FV], [I%], [COMP] | 9.85% |
Cash Flow Analysis
The cash flow functions allow you to analyze uneven cash flows, which is essential for evaluating investment opportunities with irregular payment streams.
Key cash flow functions:
- NPV (Net Present Value): Calculates the present value of a series of cash flows
- IRR (Internal Rate of Return): Calculates the discount rate that makes NPV zero
- NFV (Net Future Value): Calculates the future value of a series of cash flows
- PI (Profitability Index): Ratio of NPV to initial investment
To use cash flow functions:
- Press [2ndF][CASH] to enter CASH mode
- Enter each cash flow using [CFj] (use [±] for negative cash flows)
- Enter the frequency of each cash flow using [Nj]
- Press the function key ([NPV], [IRR], etc.) to compute
Amortization Schedules
The amortization functions help you create payment schedules for loans or investments, showing how each payment is divided between principal and interest over time.
To generate an amortization schedule:
- Press [2ndF][AMORT] to enter AMORT mode
- Enter the loan parameters (N, I%, PV)
- Press [P1] and [P2] to set the range of payments to display
- Press [≈AMORT] to view the schedule
The EL-738 can display:
- Payment number
- Payment amount
- Principal portion
- Interest portion
- Remaining balance
Advanced Financial Functions
Bond Calculations
The Sharp EL-738 can perform comprehensive bond calculations, including:
- Bond price given yield
- Yield to maturity given price
- Accrued interest
- Modified duration
- Convexity
To perform bond calculations:
- Press [2ndF][BOND] to enter BOND mode
- Enter bond parameters (settlement date, maturity date, coupon rate, etc.)
- Press the appropriate function key ([PRC] for price, [YTM] for yield)
Depreciation Methods
The calculator supports multiple depreciation methods:
- Straight-line (SL): Equal depreciation each period
- Declining balance (DB): Accelerated depreciation
- Sum-of-years’ digits (SYD): Also accelerated but less aggressive than DB
| Depreciation Method | Example | Year 1 Depreciation | Year 2 Depreciation | Year 3 Depreciation |
|---|---|---|---|---|
| Straight-line | $10,000 asset, 5-year life, $1,000 salvage | $1,800 | $1,800 | $1,800 |
| Declining Balance (200%) | $10,000 asset, 5-year life, $1,000 salvage | $4,000 | $2,400 | $1,440 |
| Sum-of-Years’ Digits | $10,000 asset, 5-year life, $1,000 salvage | $3,000 | $2,400 | $1,800 |
Cost-Sell-Margin Calculations
These functions are particularly useful for retail and business applications:
- Cost: Calculate the maximum cost you can pay given a desired selling price and margin
- Sell: Calculate the selling price needed given cost and desired margin
- Margin: Calculate the margin percentage given cost and selling price
Example calculations:
- To find selling price: Enter cost, desired margin, press [SELL]
- To find cost: Enter selling price, desired margin, press [COST]
- To find margin: Enter cost and selling price, press [MARGIN]
Statistical Functions
The EL-738 includes comprehensive statistical capabilities:
- Single-variable statistics: Mean, standard deviation, variance, etc.
- Linear regression: Best-fit line calculations
- Combination/permutation: nCr and nPr functions
- Normal distribution: Probability calculations
To use statistical functions:
- Press [2ndF][STAT] to enter STAT mode
- Enter data points using [DATA]
- Press the appropriate function key for your calculation
Break-Even Analysis
The break-even functions help determine:
- Break-even point in units
- Break-even point in dollars
- Margin of safety
- Contribution margin
To perform break-even analysis:
- Enter fixed costs (FC)
- Enter variable cost per unit (VC)
- Enter selling price per unit (P)
- Press [B/E] for break-even in units or [B/E$] for break-even in dollars
Memory and Programming Features
The Sharp EL-738 includes several memory functions and limited programming capabilities:
- Independent Memory: [M+], [M-], [MR], [MC] for basic memory operations
- Variable Memory: Store and recall values in variables A-F
- Last Answer Memory: [ANS] recalls the last computed result
- Programming: Limited macro recording for repetitive calculations
Maintenance and Care
To ensure your Sharp EL-738 remains in optimal condition:
- Store in a protective case when not in use
- Avoid exposure to extreme temperatures or moisture
- Clean the keyboard with a slightly damp cloth (never use solvents)
- Replace the battery when the display becomes dim (uses LR44 button cell)
- Press [ON/C] to turn off when not in use to conserve battery
Common Errors and Troubleshooting
If you encounter errors, try these solutions:
- Error 1 (Overflow): Result is too large. Try breaking the calculation into smaller parts.
- Error 2 (Underflow): Result is too small. Check your input values.
- Error 3 (Division by zero): You’ve attempted to divide by zero. Check your calculation.
- Error 5 (Invalid input): You’ve entered an invalid value for the current mode.
- Error 7 (Calculation error): The calculation cannot be performed with the given inputs.
For persistent issues, try resetting the calculator by pressing [2ndF][CA].
Comparing the Sharp EL-738 to Other Financial Calculators
| Feature | Sharp EL-738 | HP 12C | Texas Instruments BA II Plus | Casio FC-200V |
|---|---|---|---|---|
| TVM Calculations | ✓ | ✓ | ✓ | ✓ |
| Cash Flow Analysis (NPV/IRR) | 24 cash flows | 20 cash flows | 24 cash flows | 32 cash flows |
| Amortization Schedules | ✓ | ✓ | ✓ | ✓ |
| Bond Calculations | ✓ | ✓ | ✓ | ✓ |
| Depreciation Methods | 3 methods | Limited | 2 methods | 3 methods |
| Cost-Sell-Margin | ✓ | ✗ | ✗ | ✓ |
| Statistical Functions | Comprehensive | Basic | Basic | Advanced |
| Display Type | 2-line LCD | 1-line LCD | 1-line LCD | 2-line LCD |
| Programmability | Limited macros | Full RPN programming | Limited | Limited |
| Price Range | $$$ | $ |
Practical Applications in Different Fields
Finance and Investing
- Evaluating investment opportunities using NPV and IRR
- Calculating bond yields and prices
- Determining future value of retirement accounts
- Analyzing mortgage options and refinancing decisions
Accounting
- Creating depreciation schedules for assets
- Calculating present value of lease obligations
- Determining bond amortization for financial statements
- Analyzing capital budgeting decisions
Real Estate
- Calculating mortgage payments and amortization schedules
- Evaluating investment property cash flows
- Determining cap rates and IRR for properties
- Analyzing refinancing options
Business Management
- Setting prices using cost-sell-margin functions
- Performing break-even analysis for new products
- Evaluating equipment purchase vs. lease decisions
- Analyzing customer lifetime value
Advanced Tips and Tricks
- Chaining Calculations: The EL-738 uses algebraic logic, so you can chain operations (e.g., 5 + 3 × 2 = 11, not 16).
- Grand Total (GT): Use [GT] to accumulate a running total across calculations.
- Date Calculations: Press [2ndF][DATE] to access date functions for calculating days between dates.
- Percentage Changes: Use [Δ%] to calculate percentage changes between values.
- Quick Square Root: Enter a number, press [√] for square root.
- Reciprocal: Enter a number, press [1/x] for its reciprocal.
- Memory Arithmetic: You can perform operations directly with memory (e.g., [MR] + 5 [M+]).
Frequently Asked Questions
How do I calculate the future value of an investment with regular contributions?
Use the TVM functions in COMP mode. Enter the number of periods (N), interest rate (I%), present value if any (PV), payment amount (PMT), and then press [FV] followed by [COMP].
Can I calculate the internal rate of return for uneven cash flows?
Yes. Enter CASH mode, input each cash flow with [CFj] and its frequency with [Nj], then press [IRR] to calculate the internal rate of return.
How do I create an amortization schedule for a loan?
Enter AMORT mode, input the loan parameters (N, I%, PV), set the payment range with [P1] and [P2], then press [≈AMORT] to view the schedule.
What’s the difference between end-of-period and beginning-of-period payments?
End-of-period payments (ordinary annuity) are made at the end of each period, while beginning-of-period payments (annuity due) are made at the start. This affects the present and future value calculations. Use [2ndF][BEG/END] to toggle between them.
How do I calculate depreciation using the EL-738?
Enter the asset’s cost, salvage value, and life in years. Then use the appropriate depreciation function ([SL] for straight-line, [DB] for declining balance, or [SYD] for sum-of-years’ digits).
Can I use this calculator for statistical analysis?
Yes. Enter STAT mode to access statistical functions including mean, standard deviation, linear regression, and more. Enter your data points and use the appropriate function keys.
Conclusion
The Sharp EL-738 financial calculator is an incredibly powerful tool that can handle virtually any financial calculation you might encounter in business, finance, or accounting. By mastering its functions—from basic arithmetic to advanced cash flow analysis—you’ll be able to make more informed financial decisions, evaluate investments more accurately, and solve complex financial problems with ease.
Remember that while the calculator can perform the computations, understanding the financial concepts behind these calculations is crucial. Always verify your inputs and double-check your results, especially when making important financial decisions.
For professionals who work with financial calculations regularly, the time invested in learning the Sharp EL-738 will pay dividends throughout your career. Its comprehensive feature set, intuitive interface, and reliable performance make it one of the best financial calculators available today.