Time Saving Tips and Tricks to Use Calculator in CA Inter/IPCC Exams
Calculator tricks for ca students, In Chartered Accountancy course, subjects like accountancy, costing, financial management, etc. require use of calculator to solve the numeric sums. Time management plays an important role in CA exams. So it is very important for a student to be well aware with the time savings tips and tricks to use calculator. In this article, we are going to learn some tricks of calculator which will save your crucial time in your exams.
A) Calculation of NPV using a 12 digit calculator –
Case 1. Where the Cash outlay is equal for all the years –
For Example – Rs 10,000/- is a cash outflow at the end of each year for five years taking 5% as cost of capital. Find the last installment then your calculation will be as follows –
Step 1 – Submit 1.05 and then press / / (to make 1.05 as a constant number). Thereafter, press 1 and M+ for 5 times.
Step 2 – Now, submit 10,000 then press / button and enter MRC button. Thereafter press = to get your answer.
Case 2. – Where the cash outflow or inflow is different in every year.
Let us understand it with an example –
Initial capital outflow is Rs 100000 in the Project. No scrap value of the Machinery at the end of life and the cost of capital is 10%.
Below given are the cash inflows. Calculate its NPV.
How to calculate –
NPV = [45,000/(1.10) + 66,000/(1.10) 2 + 80,000/(1.10) 3 + 1,05,000/(1.10) 4 ] – 100000
Submit 1.10 and then // to make it is a constant number for your repeated calculations.
Then submit 45,000 = M+ for first year
Then 66,000 = = M+ for second year
Then 80,000 = = = M+ for Third Year
Then 1,05,000 = = = = M+ for Fifth Year
Enter MRC for the result.
Result – 100000
You will get your NPV.
B) Calculation of Xn
Let us calculate Xn in the calculator using an example.
Take a figure like 3.10512 (0.05)
Submit the base figure to your calculator and then press root key for 12 times. You will get 1.00027666236
Subtract you step (i) result with 1. ex.- (1.00027666236– 1)
Now, multiply your result in Step (ii) with n i.e. 0.05. [ 0.00027666236 * 0.05] = 0.00001383311.
Again add number 1 to the result of step (iii) i.e. 0.00001383311+ 1 = 1.00001383311.
And last step is press * and = with the result of Step (iv) for 12 times to reverse the square root.(Like 1.00001383311=,=,=,=,=,=,=,=,=,=,=,= where you will get your final result i.e.1.05829).
Using Memory Function
Whenever you press M+, the number displayed on your screen will get added to M+, and similar with M-, then press MRC for the result. M+ is used to add the numbers while M- is used to subtract the numbers. Let’s understand it with a short example –
(2502) + (0.025000) – (700/2)
First calculate 250*2 and press M+ button
Then calculate 0.02*5000 and press M+ button
Then calculate 700/2 and press M- button
After that press MRC and you will get your final result.