How to Use a Financial Calculator – A Complete Guide
Math would have been a lot simpler if it was just limited to basic addition and subtraction. However, the basics of mathematics itself are governed by two additional calculations including multiplication and division but does it stop there though? Definitely not!
There is more to math that one can imagine. No wonder many of us still wet our beds when we think of differentiation, integration, trigonometry, variable analysis, and so on. Not all of us are Euler, Gauss, Ramanujan, or Jacobi. However, we should be thankful to other great scientists like Blaise Pascal and Edith Clarke who presented us with the basic and more advanced versions of the calculators. If not for these, we would have been cutting down more trees than we plant.
However, using an advanced calculator such as a financial calculator remains a challenge to some of us. Therefore, here are some tips on how to use a financial calculator. This should be your complete guide on how to use one comfortably.
- Firstly, you should be aware of the purpose of a financial calculator. For instance, it is used to compute more advanced levels of math and helps us to understand the basics of financial concepts.
- Secondly, you must be aware of the fundamental concepts of finance and the basics of the time value related to money without which using a financial calculator serves no purpose.
- Thirdly, you must use a well branded calculator, for instance, the Texas Instruments or the Hewlett Packard.
- Next, you need to check the default settings and make certain tweaks to suit your preferences based on the purpose of your usage, for instance, increasing the number of decimal places as per your requirement.
- Lastly, you are also expected to provide certain basic inputs such as the interest rates, giving an option to feed vas outflows in negative values, and so on.
For a complete product review on financial calculators, check out dickmarcinko.com. Happy computing!