[PDF] Financial Calculations on the Texas Instruments BAII Plus PDF TIBAIIPlus.pdf

The TI BAII Plus has built-in preset assumptions I set my BA II Plus to an artificially large number of decimals have special functions for these cash flows

The bond worksheet on a BAII Plus calculator can compute the bond price, the yield to maturity or call, and accrued interest To access the bond worksheet, press [2nd] [BOND] Use the [↓] or [↑] keys to access bond variables

[PDF] Review of Calculator Functions For The Texas Instruments BA II Plus

The bond amortization components can be found using the calculator's amortization worksheet in much the same way they are found for loan amortization A bond

[PDF] BA II PLUS™ - UNCW

In no event shall Texas Instruments be liable to anyone for special, collateral BA II PLUS™ Calculator Turning The calculator will access the second function of the next key For example, in the Bond worksheet, you might want to round

[PDF] Financial Calculations on the Texas Instruments BAII Plus

The TI BAII Plus has built-in preset assumptions I set my BA II Plus to an artificially large number of decimals have special functions for these cash flows

[PDF] Texas Instruments BAII Plus Tutorial for Use with - CSUN

The calculator's 110-page manual covers all of its functions in detail, and it is worth the dealing with bond and stock valuation and capital budgeting The TI BAII Plus usually comes out-of-the-box set to assume that 12 payments are made

[PDF] BA II Plus Tutorial

Payments per year: The calculator is initially set at twelve payments per year (it E g: For bond-valuation, your initial purchase price (present value) of the bond is Note: To being a TVM calculation, you should make sure that the financial

[PDF] how to use your ti ba ii plus calculator - Questrom Apps

This function clears all entries into the time value of money functions (N, I/Y, PMT, PV, FV) This function is important because each TVM function button represents

[PDF] TI BA II Plus® Calculator Functions

To calculate IRR, press IRR then CPT 19 Fixed Income Investments Time Value of Money Advanced Calculator Functions

[PDF] BA II Plus™ - FIU Faculty Websites

Purpose of Guide This Quick Guide is a supplement to the BA II Plus Guidebook prompted worksheet and return to standard-calculator mode You can use the BA II Plus to calculate bond maturity based on either an http://www ti com/ calc

© Copyright 2002, Alan Marshall1

Financial Calculations on theFinancial Calculations on the

Texas Instruments BAII Plus

This is a first draft, and may

contain errors. Feedback is appreciated

© Copyright 2002, Alan Marshall2

Compounding AssumptionsCompounding Assumptions

The TI BAII Plus has built-in preset

assumptions about compounding and payment frequencies. Compounding and Payment frequenciesare controlled with the [P/Y] key

© Copyright 2002, Alan Marshall3

Compounding AssumptionsCompounding 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] willscroll 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 Marshall4

Compounding AssumptionsCompounding 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]

© Copyright 2002, Alan Marshall5

An AlternativeAn Alternative

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 thatfollow will not work if the values of [P/Y] and[C/Y] are changed

© Copyright 2002, Alan Marshall6

ClearingClearing

It is also very important to clear the Time

Value worksheet before doing a new set of

calculations [CLR][TVM] 2

© Copyright 2002, Alan Marshall7

A Word on RoundingA Word on Rounding

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 roundedcorrectly to the number of decimals available oras set by you, whichever is less.

In these notes, 1/7 = 0.142857... may be writtenas 0.1428..., where the "..." simply means that I have stopped writing down the decimals, but I have not rounded.

© Copyright 2002, Alan Marshall8

Future ValuesFuture Values

5n 05

© Copyright 2002, Alan Marshall9

On the TI BAII PlusOn the TI BAII Plus

44651.06 [PV]; 6 [I/Y]; 5 [N]

[CPT][FV] Display = -59,753.19

To get the FV

k,n , simply use PV = 1

1 [PV]; 6 [I/Y]; 5 [N]

[CPT][FV] Display = -1.338225...

© Copyright 2002, Alan Marshall10

Present ValuesPresent Values

A contract that promised to pay you v59,753.19 in

5 years would be worth today, at 6% interest:

55%,650

© Copyright 2002, Alan Marshall11

On the TI BAII PlusOn the TI BAII Plus

59753.19 [FV]; 6 [I/Y]; 5 [N]

[CPT][PV] Display = -44,651.06

To get the PV

k,n , simply use FV = 1

1 [FV]; 6 [I/Y]; 5 [N]

[CPT][PV] Display = -0.747258...

© Copyright 2002, Alan Marshall12

PerpetuitiesPerpetuities

Perpetuities, growing perpetuities and

growing finite annuities must be done using the formulae as financial calculators do not have special functions for these cash flows 3

© Copyright 2002, Alan Marshall13

PV of Annuity ExamplePV of Annuity Example

)k1(1600,10$PV 5n 0

© Copyright 2002, Alan Marshall14

On the TI BAII PlusOn the TI BAII Plus

10,600 [PMT]; 6 [I/Y]; 5 [N]

[CPT][PV] Display = -44,651.06

To get the PVA

k,n , simply use PMT = 1

1 [PMT]; 6 [I/Y]; 5 [N]

[CPT][PV] Display = -4.21236...

© Copyright 2002, Alan Marshall15

FV of Annuity ExampleFV of Annuity Example

1)k1(600,10$FV

5n 5

© Copyright 2002, Alan Marshall16

On the TI BAII PlusOn the TI BAII Plus

10,600 [PMT]; 6 [I/Y]; 5 [N]

[CPT][FV] Display = -59,753.19

To get the FVA

k,n , simply use PMT = 1

1 [PMT]; 6 [I/Y]; 5 [N]

[CPT][FV] Display = -5.63709...

© Copyright 2002, Alan Marshall17

Annuities DueAnnuities Due

To access the toggle that switches the

annuity payments between regular (END) and due (BGN) you use the [BGN] key ([2nd][PMT])

To toggle between the BGN and ENDsetting, use [SET] ([2nd][ENTER]) and[QUIT] to return to the calculator mode

If set for annuities due, you will see BGN inthe display

© Copyright 2002, Alan Marshall18

PV of an Annuity DuePV of an Annuity Due

5n 0 4

© Copyright 2002, Alan Marshall19

On the TI BAII PlusOn the TI BAII Plus

[BGN][SET] to set to BGN

10,000 [PMT]; 6 [I/Y]; 5 [N]

[CPT][PV] Display = -44,651.06

To get the PVA

k,n , simply use PMT = 1

1 [PMT]; 6 [I/Y]; 5 [N]

[CPT][PV] Display = -4.4651056...

© Copyright 2002, Alan Marshall20

FV of an Annuity DueFV of an Annuity Due

k1FVPMTk1k1)k1(PMTDueFVA n,kn k,n

© Copyright 2002, Alan Marshall21

On the TI BAII PlusOn the TI BAII Plus

[BGN][SET] to set to BGN

10,000 [PMT]; 6 [I/Y]; 5 [N]

[CPT][FV] Display = -59,753.19

To get the FVA

k,n , simply use PMT = 1

1 [PMT]; 6 [I/Y]; 5 [N]

[CPT][FV] Display = -5.9753185...

© Copyright 2002, Alan Marshall22

Example, Uneven Cash FlowsExample, Uneven Cash Flows

Valued at 6%

0 12345

0 $20,000 $15,000 $25,000 $30,000 $10,000

$18,867.92 $84,443.74 $7,472.58$13,349.95 $20,990.48 $23,762.81

On the TI BAII PlusOn the TI BAII Plus

We use the [CF] key,

Initially, we see the Display: Cf0 = 0.00

The down arrow [v] and up arrow [^] allow

us to scroll through the displays Each Cnn is followed by Fnn to allow theuser to enter multiple occurrences of avalue

On the TI BAII PlusOn the TI BAII Plus

After the cash flows are entered, we use

the [NPV] key The first display is I = and is asking us toenter the interest or discount rate. After entering the rate the [v] gives us theNPV = display. [CPT] will give us the net present value of the cash flows. 5

Example on the TI BAII PlusExample on the TI BAII Plus

CF0 = 0.00 [v]

C01 = 20000 [ENTER] [v] F1 = 1 [v]

C02 = 20000 [ENTER] [v] F2 = 1 [v]

C03 = 20000 [ENTER] [v] F3 = 1 [v]

C04 = 20000 [ENTER] [v] F4 = 1 [v]

C05 = 20000 [ENTER] [v] F5 = 1 [v]

[NPV] Display: I = 6 [ENTER] [v]

Display: NPV = [CPT]

Display: NPV = 84,443.74

Look for hidden annuitiesLook for hidden annuities Sometimes there will be annuities to simplify your calculations that are not so obvious

0 12345

0 $15,000 $15,000 $20,000 $20,000 $20,000

$47,579.42 $53,460.24 $75,080.31 A 3 Yr $20,000 annuity$27,500.89

Example on the TI BAII PlusExample on the TI BAII Plus

CF0 = 0.00 [v]

C01 = 15000 [ENTER] [v] F1 = 2 [ENTER] [v]

C02 = 20000 [ENTER] [v] F2 = 3 [ENTER] [v]

[NPV] Display: I = 6 [ENTER] [v]

Display: NPV = [CPT]

Display: NPV = 75,080.31

ExampleExample

Suppose that Consolidated Moose Pasture

(CMP) borrowed $466,500 and promised to repay $1,000,000 eight years from now.

There will be no intermediate interest

payments. What is the implied rate of interest?

On the TI BAII PlusOn the TI BAII Plus

466500 [PV]; 1000000 [+/-] [FV]; 8 [N]

[CPT][I/Y] Display = 10.00

Example - AnnuitiesExample - Annuities

Suppose you have the choice to receive

$100,000 now or $15,000 per year at the start of each of the next 10 years. [BGN][SET] (to toggle to BGN)

15000 [PMT]; 100000 [+/-][PV], 10 [N]

[CPT][I/Y] Display: 10.409 6

Converting from APR to EARConverting from APR to EAR

Consider $1 for 1 year 6% compounded

quarterly: 1.5% every quarter for 4 quarters monthly: 0.5% every month for 12 months daily: (6/365)% every day for 365 days

Effective Annual RateEffective Annual Rate

%1831.6EAR061831....1$365/61*1$FV Daily%1678.6EAR061678.1$1.005*1$FV Monthly%136.6EAR06136.1$1.015*1$FV Quarterly

365124

On the TI BAII PlusOn the TI BAII Plus

quotesdbs_dbs17.pdfusesText_23

[PDF] [PDF] Financial Calculations on the Texas Instruments BAII Plus

© Copyright 2002, Alan Marshall1

Texas Instruments BAII Plus

Texas Instruments BAII Plus

This is a first draft, and may

© Copyright 2002, Alan Marshall2

Compounding AssumptionsCompounding Assumptions

The TI BAII Plus has built-in preset

© Copyright 2002, Alan Marshall3

Compounding AssumptionsCompounding Assumptions

Press the [P/Y] key ([2nd][I/Y])

Unless the settings have been changed,

© Copyright 2002, Alan Marshall4

Compounding AssumptionsCompounding Assumptions

For the first part of the Time Value of

Money slides, we are dealing with annual

© Copyright 2002, Alan Marshall5

An AlternativeAn Alternative

One way to make the BAII Plus work very

© Copyright 2002, Alan Marshall6

ClearingClearing

It is also very important to clear the Time

Value worksheet before doing a new set of

© Copyright 2002, Alan Marshall7

A Word on RoundingA Word on Rounding

© Copyright 2002, Alan Marshall8

Future ValuesFuture Values

© Copyright 2002, Alan Marshall9

On the TI BAII PlusOn the TI BAII Plus

44651.06 [PV]; 6 [I/Y]; 5 [N]

To get the FV

1 [PV]; 6 [I/Y]; 5 [N]

© Copyright 2002, Alan Marshall10

Present ValuesPresent Values

A contract that promised to pay you v59,753.19 in

5 years would be worth today, at 6% interest:

55%,650

© Copyright 2002, Alan Marshall11

On the TI BAII PlusOn the TI BAII Plus

59753.19 [FV]; 6 [I/Y]; 5 [N]

To get the PV

1 [FV]; 6 [I/Y]; 5 [N]

© Copyright 2002, Alan Marshall12

PerpetuitiesPerpetuities

Perpetuities, growing perpetuities and

© Copyright 2002, Alan Marshall13

PV of Annuity ExamplePV of Annuity Example

© Copyright 2002, Alan Marshall14

On the TI BAII PlusOn the TI BAII Plus

10,600 [PMT]; 6 [I/Y]; 5 [N]

To get the PVA

1 [PMT]; 6 [I/Y]; 5 [N]

© Copyright 2002, Alan Marshall15

FV of Annuity ExampleFV of Annuity Example

1)k1(600,10$FV

© Copyright 2002, Alan Marshall16

On the TI BAII PlusOn the TI BAII Plus

10,600 [PMT]; 6 [I/Y]; 5 [N]

To get the FVA

1 [PMT]; 6 [I/Y]; 5 [N]

© Copyright 2002, Alan Marshall17

Annuities DueAnnuities Due

To access the toggle that switches the

© Copyright 2002, Alan Marshall18

PV of an Annuity DuePV of an Annuity Due

© Copyright 2002, Alan Marshall19

On the TI BAII PlusOn the TI BAII Plus

10,000 [PMT]; 6 [I/Y]; 5 [N]

To get the PVA

1 [PMT]; 6 [I/Y]; 5 [N]

© Copyright 2002, Alan Marshall20

FV of an Annuity DueFV of an Annuity Due

© Copyright 2002, Alan Marshall21

On the TI BAII PlusOn the TI BAII Plus

10,000 [PMT]; 6 [I/Y]; 5 [N]

To get the FVA

1 [PMT]; 6 [I/Y]; 5 [N]

© Copyright 2002, Alan Marshall22

Valued at 6%

0 12345