Answer Sheet - Texas Instruments BA II Plus User Manual

Answer Sheet

Answer 1. You borrow $75,000 to buy a house and agree to repay the loan in 20 years at
an interest rate of (6.5%, 2). How much lower would your monthly payment be
with an interest rate of (6%, 2)?
a) $555.38
b) $534.15
c) $21.24
d) $24.21
e) $34.24
The correct answer is c).
Reason:
Sequence of entries
CE/C > 2ND > CLR TVM
2ND > P/Y > 12 > ENTER
> 2 > ENTER
CE/C > CE/C
75,000 > +/− > PV
6.5 > I/Y
20 > 2ND > xP/Y > N
CPT > PMT
6 > I/Y
CPT > PMT
Therefore, $555.38 − $534.14 = $21.24
Display
0
P/Y = 12
C/Y = 2
0
PV = − 75,000
I/Y = 6.5
N = 240
PMT = 555.3753129
Do not clear the values of the financial variables
I/Y = 6
PMT = 534.1413314
Explanation
Resets the default values.
Enters a monthly payment
period.
Enters a semi-annual interest-
calculation period.
Exits the entry of the C/Y
variable.
Enters the loan amount.
Enters the nominal interest rate.
Enters the number of monthly
payments over a 20-year period.
Calculates the amount of the
monthly payment.
Enters the second nominal
interest rate.
Calculates the amount of the
monthly payment.
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