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titutorial[1] - BA II Plus Tutorial Payments per year: The...

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BA II Plus Tutorial 1 Payments per year: The calculator is initially set at twelve payments per year (it assumes monthly compounding). You need to set the payments per year to one. nd key, then press I/Y. Now enter the number 1, and press the ENTER key. nd to get back to the normal screen. If your calculator is ever reset, the payments per year will automatically default to twelve and you will need to change it back to one. What if there are multiple compounding periods in a year? You will adjust your interest rate and time period to accommodate the multiple compounding periods. Setting decimal places: The calculator can be set so that answers are displayed with zero to eight decimal places. The default is two decimal places. It is preferred that you set your calculator to five decimal places. nd key and · Enter the number 5 then press the ENTER key. nd and CPT to return to the normal screen. Why do you need to do this? Numbers should display five decimal places so that there are four significant digits and a fifth digit that is sufficient for rounding. Time Value of Money Variables: The five main variables that you will use in problems are: number of periods N , interest per year (periods) I/Y , present value PV , payment PMT , and Future Value FV . !!! To enter a value for your variable, you first enter the number and then press the desired variable key. If you do not have a number for a variable, you should enter zero for that value (press zero and then press the desired variable key).
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This note was uploaded on 10/05/2011 for the course FIN 350 taught by Professor Chen during the Spring '07 term at S.F. State.

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titutorial[1] - BA II Plus Tutorial Payments per year: The...

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