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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 Spring '07
 Chen
 Time Value Of Money, Compounding, Net Present Value, Enter key

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