FIN 365: Business Finance Calculator Suggestions and Reminders- MY CALCULATOR IS BROKEN: If your calculator seems to be brokenand you cannot get the correct answer for even simple problems,try the following:o Clear or reset your calculator (see the ‘Financial CalculatorGuide’ for details).o Check that the payments per year (P/Y) value is correct. Itshould be set to 1 for the annual problems with which webegan (see the ‘Financial Calculator Guide’ for details).  Defaults: TI calculators normally have the defaultvalue set to 1 (annual); HP calculators normally havethe default value set to 12 (monthly).- PERCENTAGESo Enter 12% as ‘12’ not ‘0.12’.o You normally enter the annual interest rate even if you aredoing non-annual compounding or discounting (Changingthe period per year, P/Y, allows the calculator to use thecorrect rate).o On some calculators, the interest rate button is labeled ‘I’(not ‘I/Y’).- ORDER OF OPERATIONS: The order you enter the input values doesnot matter.- NEGATIVES: The basic rule is: Make one (and only one) of thedollar inputs negative.o This will work for the problems we will do in the course.o Some more complicated problems may require more thanone dollar value be negative.o As a time saver, you can leave off the negative sign for PVand FV problems, then take the negative sign off theanswer.o For time and interest rate problems, you cannot leave offthe negative sign–this will give you an error.- TIME INPUTSo The N input is the number of periods, not the number ofyears.o This only matters for non-annual problems.o For example,  if you are discounting monthly for 5 years: N = 60 = 5 (years) x 12 (periods per year) if you are discounting monthly for 5 years and 3months: N = 63 = (5 x 12) + 3 (months)o Do not adjust the interest rate for non-annual problems–always use the annual rate.- PAYMENTS: The payment (PMT) amount must be the cash flowper period.o This is only relevant for non-annual cash flows, especiallybonds.o For example, if a semi-annual bond has a par value of$1,000 and an annual coupon rate of 5%, The annual coupon is $50 = 1,000 x 5%, but The period (semiannual) coupon is $25 = $50/2, so PMT = 25.- SCALE: For time and interest rate problems, you can scale thedollars values, i.e., input $4 instead of $4,000; $1.5 instead of$1,500. o For example, if you need to find the time it will take for$1,000 to grow to $3,400 at 15%, you can use thefollowing inputs:I/Y = 15; PV = 1; FV = 3.4o This will normally not work for PV and FV problems, sincethe answers will not be accurate, that is, they will not haveenough significant digits.- REPETITIONS: Your calculator keeps your inputs in memory, so youcan save time if you are doing a series of problems with onlyminor variations.o For example, ”Find the future value of $100 invested at 5%in 10 years, 15 years, and 20 years.” Do the first problem using the following inputs: N = 10; I/Y = 5; PV = 100 For the second problem just enter the new time input(N = 15), then FV. For the third problem just enter the last time input (N= 20), then FV.o Caution: I recommend that you only use this method is youare comfortable and experienced with using