A Financial Calculator Guide To The Beginners

A laptop computer sitting on top of a table

If this is your first time looking at the financial calculator, you might be as clueless as anybody who has never worked on one. Well, there are the known parts like the digits and the basic mathematical operation symbols; however, that’s not all. This financial calculator guide will break down the functions of all the ‘curious additions’ and how they are going to make your life easier. 

Financial Calculator Guide For The Dummies 

A close up of a keyboard

We all are well acquainted with the regular calculators. However, advanced calculations require additional support, and there comes the need to have advanced calculators. Thanks to the digital calculators available with Smartphones, you are probably well aware about the scientific calculators. But, that’s not the only one providing additional functions. If you are associated with the finance sector, or planning to do so in near future, you need to get yourself acquainted with the financial calculators. In this financial calculator guide you will get a brief introduction to the various functions, the symbols and their meanings, that you will see in a financial calculator. 

Important Financial Calculator Functions 

Now, to make your life easier and calculations simpler, here are few distinguished functions in a financial calculator. 

You will find the following five special keys: 

  • “N” key – This key is used for a number of periods 
  • “I” key – This is the periodic interest key 
  • “PV” key – This one denotes the present value
  • “FV” key – This one is used to denote the future value 
  • “P” or “PMT” key – This key is for the calculation of payment

Using a combination of these keys will help you solve various equations. Here is an example on how to do it. 

Let’s suppose you have to calculate the present value when you have the data for the other four variables. So you enter 10000 and press the FV key. Then enter 12 and press N key. Now enter 7% and press I key to denote rate of interest. And finally enter 0 and press the P key. Now that you have entered four variables, press the PV key to get the present value. 

This was a rather simple example of a financial calculator. If you get an even more advanced one, you will find that there are other functions included as well.

Additional Functions In A Financial Calculator

In advanced financial calculators you will be able to get more work done, thanks to advanced functionalities available for the same. One of the most useful of them all is the graph function. This will allow you to get X and Y axis values, thereby allowing you to draw a graph over a time period. This is particularly useful while visualizing trend and analyzing historical data. Business use this to determine the cash flow and periodical growth. 

Besides the graph functionality, there are needs of scientific calculations as well. And, financial calculators with relevant scientific operations are extremely useful in such scenarios. Use of square root and integration are useful in financial calculations as well. These functions in the calculator helps solve critical financial problems. 

Modern Evolution

The advancement of science and technology has enabled almost every person to afford personal computers and laptops. The modern day financial calculators available online can pack in much more functions and provide greater versatility. Moreover, specialized software such as MS Excel and Stata are coming out as better alternatives. However, when you need to perform some quick calculations, it’s still the calculator that’s the best option you have!

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