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BA II Plus Tutorial
By default the BA II Plus displays only two decimal places. At most you will usually need four
decimal places. To change the display, press the second function key and then the "FORMAT"
key. Enter the number 4 and then press the "ENTER" key. Press "CE/C" to exit.
The calculator also has periods per year set equal to 12. You can change the periods per year for
each problem, but the solutions in the lecture supplement are based on the periods per year being
set to one. To change the setting, press the second function key and then press the "P/Y" key.
Enter the number 1 and then press the "ENTER" key. Press "CE/C" to exit.
The "CE/C" key is the key that clears the display. To clear the time value function keys press the
second function key and then "CLR TVM." To clear the cash flow register for uneven cash flow
problems, press the second function key and then "CLR Work." You should get into the habit of
clearing the time value keys before starting a new problem.
Note that the calculator treats PV as negative numbers (cash outflows). Therefore, it is good to
enter all PV's as negative numbers. To make a number negative, be sure to enter the number first
and then press the "+/-" key. Do not use the subtraction key ("-").
You will use the time value keys at the top of the calculator to solve "lump sum" and annuity
future and present value problems. To enter values simply type the number first and then press
the associated time value key. For example, if you want n=8, press the number 8 and then press
the "N" key.
EXAMPLES:
(A) calculate PV
What is the present value of $2000 received 10 years from now if the interest rate you could have
received is 7%?
First enter the information that is given.
N = 10
I% = 7
PV =
PMT = 0
FV = 2000
To solve the problem, press the "CPT" key and then then "PV" key.
Answer:
$1016.70 (The answer will appear with a negative sign.)
(B) calculate FV
What is the future value 10 years from now of $2000 deposited today in an account which has a
quoted annual interest rate of 10% with quarterly compounding of interest?
First enter the information that is given.
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Summary of Contents for Texas Instruments BA II Plus
- Page 1 BA II Plus Tutorial By default the BA II Plus displays only two decimal places. At most you will usually need four decimal places. To change the display, press the second function key and then the “FORMAT” key. Enter the number 4 and then press the “ENTER” key. Press “CE/C” to exit.
- Page 2 Note: For the calculated values, be sure to hit the “=” key before pressing the time value key. N = 10X4 (This indicates 10 years times 4 interest payments per year.) I% = 10/4 (This indicates 2.5% per quarter.) PV = -2000 (The negative sign is a result of the calculator’s default programming.) PMT = 0 FV = To solve the problem, press the “CPT”...
- Page 3 shown, press the “CE/C” key to exit. If you are in the begin mode, the letters “BGN” will show in the display. To change to the end mode, do the same again. EXAMPLE: You are offered an investment that will pay you $5000 per year for the next 10 years. Each payment will be made at the end of each year.
- Page 4 To solve the problem, first enter the cash flows. Remember you must start with cash flow zero. Since nothing happens now in the problem, cash flow zero equals 0. Press “CF” and then the second function key and the “CLR Work” key. Press 0 then “ENTER”...
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