Texas Instruments BA II Plus User Manual page 16

The correct answer is a).
Reason:
Sequence of entries
CE/C > 2ND > CLR TVM
2ND > P/Y > 12 >
ENTER
> 2 > ENTER
CE/C > CE/C
25 > 2ND > xP/Y > N
8 > I/Y
110,000 > +/− > PV
CPT > PMT
After four years: Do not clear the values of the financial variables
21 > 2ND > xP/Y > N
CPT > PV
The mortgage balance after four years is $103,361.
Answer 5. What is the cumulative value after seven years of a monthly investment of $500
(made at the end of each month) if the nominal rate is (9%, 12) (round off to the
nearest dollar)?
a) $48,213
b) $43,000
c) $53,000
d) $55,813
e) $58,213
The correct answer is e).
Display
0
P/Y = 12
C/Y = 2
0
N = 300
I/Y = 8
PV = − 110,000
PMT = 839.5348005
N = 252
PV = − 103,360.9468
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 number of monthly
payments over a 25-year period.
Enters the nominal interest rate.
Enters the loan amount.
Calculates the amount of monthly
payments.
Enters the number of monthly
payments over 21 years.
Calculates the loan balance after 48
monthly payments.
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