Xfile
Compounding Assumptions
The TI BAII Plus has built-in preset assumptions about compounding and payment frequencies.
Compounding and Payment frequencies are controlled with the [P/Y] key
Financial Calculations on the
Texas Instruments BAII Plus
This is a first draft, and may contain errors. Feedback is appreciated © Copyright 2002, Alan Marshall
1
Compounding Assumptions
For the first part of the Time Value of
Money slides, we are dealing with annual compounding and annual payments, so these values need to be changed:
[P/Y] = 1 [ENTER]
[C/Y] will automatically be changed to 1
[^] [C/Y] Display = 1
To return to the calculator mode press
[QUIT] or [2nd][CPT]
3
© Copyright 2002, Alan Marshall
An Alternative
4
Clearing
One way to make the BAII Plus work very much like the Sharp EL-733A is to set the
[P/Y] and [C/Y] to 1 and leave it there all the time.
If you do this, some of the directions that follow will not work if the values of [P/Y] and
[C/Y] are changed
© Copyright 2002, Alan Marshall
2
Compounding Assumptions
Press the [P/Y] key ([2nd][I/Y])
Unless the settings have been changed, you will see the default, preset payment frequency: P/Y = 12.00 - 12 payments/year
Using the down arrow [^] or up arrow [v] will scroll you to the next window, the number of times per year the interest is compounded: C/Y = 12.00 - 12 times/year
© Copyright 2002, Alan Marshall
© Copyright 2002, Alan Marshall
It is also very important to clear the Time
Value worksheet before doing a new set of calculations [CLR][TVM]
5
© Copyright 2002, Alan Marshall
6
1
A Word on Rounding
Future Values
I set my BA II Plus to an artificially large number of decimals - usually 7 - which will rarely all be displayed. The BA II Plus will display the answer rounded correctly to the number of decimals available or as set by you, whichever is less.
In these notes, 1/7 = 0.142857... may be written
as
The TI BAII Plus has built-in preset assumptions about compounding and payment frequencies.
Compounding and Payment frequencies are controlled with the [P/Y] key
Financial Calculations on the
Texas Instruments BAII Plus
This is a first draft, and may contain errors. Feedback is appreciated © Copyright 2002, Alan Marshall
1
Compounding Assumptions
For the first part of the Time Value of
Money slides, we are dealing with annual compounding and annual payments, so these values need to be changed:
[P/Y] = 1 [ENTER]
[C/Y] will automatically be changed to 1
[^] [C/Y] Display = 1
To return to the calculator mode press
[QUIT] or [2nd][CPT]
3
© Copyright 2002, Alan Marshall
An Alternative
4
Clearing
One way to make the BAII Plus work very much like the Sharp EL-733A is to set the
[P/Y] and [C/Y] to 1 and leave it there all the time.
If you do this, some of the directions that follow will not work if the values of [P/Y] and
[C/Y] are changed
© Copyright 2002, Alan Marshall
2
Compounding Assumptions
Press the [P/Y] key ([2nd][I/Y])
Unless the settings have been changed, you will see the default, preset payment frequency: P/Y = 12.00 - 12 payments/year
Using the down arrow [^] or up arrow [v] will scroll you to the next window, the number of times per year the interest is compounded: C/Y = 12.00 - 12 times/year
© Copyright 2002, Alan Marshall
© Copyright 2002, Alan Marshall
It is also very important to clear the Time
Value worksheet before doing a new set of calculations [CLR][TVM]
5
© Copyright 2002, Alan Marshall
6
1
A Word on Rounding
Future Values
I set my BA II Plus to an artificially large number of decimals - usually 7 - which will rarely all be displayed. The BA II Plus will display the answer rounded correctly to the number of decimals available or as set by you, whichever is less.
In these notes, 1/7 = 0.142857... may be written
as