Sharp EL-9900 User Manual

• Vertical arrows along the horizontal line indicate the cash flow.

An UP arrow indicates inflow (

+

) and a DOWN arrow indicates

outflow (

–

).

• The calculator considers the cash inflow for each period is

constant. (Even payment.)

2. Determine the time each payment is due.

For deposits and loan payments, the time each payment is

due (paid at the beginning or the end of the period) makes for

a different cash flow diagram.

In this case payment is due at the end of the period.

3. Determine the inflow and outflow and place the present value

(PV = $200,000) on the diagram.

We can consider the present value (PV) as a loan and thus

inflow (revenue) from the customer’s point of view. So, place

the PV at the top left end of the diagram. We also can consider

the principal interest total (Future value) as outflow (payment).

Draw a vertical line with a DOWN arrow on the top of the

diagram.

4. Complete the diagram with interest (I%), number of payment

periods (N), future value (FV), and other required numbers.

Cash flow

PV

FV

PMT

Time flow

I %

N

N 

–

 1

2

1

(

+

)

(

–

)

Cash flow

PV

FV

PMT

Time flow

I %

N

N 

–

 1

2

1

(

+

)

(

–

)