Texas Instruments BA II PLUS User Manual page 53

Example: Present Value of Lease Payments
Procedure
Set all variables to defaults.
Set payments per year to 1.
Set beginning-of-period
payments.
Return to calculator mode.
Enter number of periods.
Enter periodic interest rate at
which your firm can borrow.
Enter annual lease payment.
Compute present value of
lease payments.
The present value of the lease payments is greater than the
purchase price of $125,000, so it would be best to buy the server
outright.
2: TVM and Amortization Worksheets
Keystrokes
& } !
& [ !
1
& ]
& V
& U
,
5
-
15
S /
36000
% .
Display
RST 0.00
P/Y= 1.00
BGN
0.00
N= 5.00
I/Y= 15.00
PMT= -36,000.00
PV= 138,779.22
P
P
P
P
Q
47