PV,FV and the TI BA II Plus

[jt]

trying to work through examples f and g in the Schweser notes on page 77 book 2. Unclear if I have to know formula, or if calculator can take inputted values and compute. not sure I am using the calculator properly. can anyone out there take a look at this and tell me how the book came up with the answers?thx - good luck everyone

 

[Charl]

You can use the TI BAII plus calculator to do the examples (F) and (G) in Schweser Book 2 p. 77.
Remember to use a negative value for one of PV and FV and a positive value for the other one.
i.e. -PV and +FV OR +PV and -FVexample:
N = 15yrs
PV = -$500
PV = $2000Now press CPT and I/Y : answer = 9.68%

 

[julie turnbull]

thx for the quick response, I did figure that one out some time later. . .this is a great resource for questions like that. did you do the summary questions at the end of that section of the notes? how did you find them? I found the last third quite difficult. . .

 

[SANTHOSH ABRAHAM]

One more thing for the users of TI BA II ...remember that the factory settings for the calculator is 12 for the payments per year.You might want to change it to 1 for normal problems because i had difficulty in th begining trying to find the answers to those bond questions until i had changed the P/Y.