For the Calculator wizzes!

[Buffettology]

Calculator problem:

My texas instrument has died.

I just bought a SHARP - EL-735 (Financial calculator) and I am trying to run very simple intrinsic value equations on it.

I am trying to calculate the annual compounding rate of growth for a stock, however I keep getting an error at the end.

Say for example, I am looking at a stock worth $1.45, 10 years ago, with value today being $8.89

For this equation I would usually enter:

1.45PV
8.89FV
10n

Then press Compute and the i button. However, this is coming up with an error. Since I am not a gun on financial calculators (or any calculator for that matter), can someone who knows give me a hand on how I could work out the annual compounding rate of growth for a stock on this calculator?

Would be very much appreciated.

Thanks guys.

 

[Snagglepuss]

Dunno about the Sharp, but on my HP you need to put a minus sign in front of the present value (to indicate a cash outflow). This gives the result 19.88%.

 

[Buffettology]

Dunno about the Sharp, but on my HP you need to put a minus sign in front of the present value (to indicate a cash outflow). This gives the result 19.88%.

Your the MAN Snagglepuss!!!!!

I thought for a second there I was gonna have to find myself another texas instrument and I have waited long enough for this financial calculator to be ordered in! They were all sold out in about 5 different stores around me!

Time to get cracking on these calculations again! Too good Snaggle!

Cheers

 

[astroboydivx]

Can you tell me how to punch that into excel please.

Thanks.

 

[wabbit]

See INTRATE worksheet function.


wabbit

 

[astroboydivx]

I can't get it.

I mean, I know you're right because I've worked it out manually, but using excel I'm getting 0.51

I have:

Settlement: 1
Maturity: 3650 (ie 10 years)
Investment: 1.45
Redemption: 8.89
Basis: 1

 

[Snagglepuss]

I'm not sure what INTRATE() is doing, but this works:

=RATE( 10, 0, -1.45, 8.89)