BA II Plus Quick Start - PC
Contents
1. CEIC 0 0000 A small BGN appears above the number display indicating the mode is beginning of period The BGN setting continues indefinitely even though the calculator is turned off and on until you change it To set the calculator back to end of period Press Display BGN BGN SET END CEC 0 0000 Once you press BGN the SET keys act as a toggle switch between BGN and END Resetting the Calculator Important Reset the BA II PLUS only when you want to erase all data stored in all memories and restore all settings to their factory defaults Resetting the calculator e Reverts decimals to two places e Reverts P Y and C Y to 12 e Reverts to end of period payments END e Erases all numbers stored in all ten memories e Clears the display and any unfinished calculation e Returns the calculator to standard calculator mode Clears all worksheet data and restores the default worksheet settings Refer to the Notes section for each worksheet in the BA II PLUS Guidebook to see how reset affects specific worksheets To clear all data and restore the calculator to factory defaults Press RESET Lets you reconsider resetting the calculator You have two options e CEC To cancel the reset operation or e ENTER To reset the calculator Whether you cancel or reset the calculator the BA II PLUS returns to operation in the standard calculator mode To reset the BA II PLUS using the RESET but2. Display MEM MO 0 00 You access the Memory worksheet 1 10 00 M2 20 00 3 repeat to display M 30 00 After displaying M9 press 4 to return to MO pan other memory values 16 Storing and Using Values in Memory continued To clear a stored value from memory You can clear a value without disturbing values stored in other memories A new value overwrites a previously stored value Storing a value of zero is the same as clearing the memory Press Display 0 1 0 00 0 S10 2 0 00 0 S10 3 0 00 To clear all stored values from all memories This erases all numbers stored in all memories and reverts MO through M9 to 0 00 Press Display MEM Moz o Old contents appear if any CLR WORK MO 0 00 17 Acknowledgments Bibliography Appreciation goes to the following for their contributions to the BA II PLUS Quick Guide Emery Douglas R and John D Finnerty Corporate Financial Management Prentice Hall Inc a Simon amp Shuster Company Upper Saddle River NJ 1997 Keown Arthur J David F Scott Jr John D Martin and J William Petty Basic Financial Management Seventh Edition Prentice Hall Inc a Simon amp Shuster Company Upper Saddle River NJ 1996 Gallagher Timothy J and Joseph D Andrew Jr Financial Management Principles and Practice Prentice Hall Inc a Simon amp Shuster Company Upper Saddle River NJ 1997 By permission of the publisher Adapted fro
3. II PLUS prompted worksheet look for small words and symbols that appear in the top line of the display These help you to remember what you can and cannot do within a worksheet Refer to Chapter 2 of your BA II PLUS Guidebook for an overview of worksheet operations and to Chapter 4 for Cash Flow worksheet details To calculate the IRR and NPV for a cash investment This example assumes you have an investment of 7 000 that is projected to generate a 20 return Over the next six periods the investment will generate the cash flows shown below Next you will access and clear the Cash Flow worksheet enter the data compute the IRR and compute the NPV using an interest rate per period 1 of 20 Press Display CLR WORK CFo 0 00 You must be in a worksheet before you can clear it 7000 CFo 7 000 00 Initial cash flow 3000 C01 3 000 00 Cash flow for first year F01 1 00 Frequency of C01 is 1 5000 C02 5 000 00 4 4 J a Frequency of C02 is 4 which represents cash flows for years two through five 4000 C03 4 000 00 Cash flow for sixth year F03 1 00 Frequency of C03 is 1 13 Cash Flow Analysis CF continued To compute the internal rate of return IRR Press Display 0 00 Look for the word Compute in small letters at the top of the display CPT IRR 55 63 Look for an asterisk in the display When the word Compute appears in the disp
4. as a negative value the other must be an inflow which is entered or computed as a positive number To clear the TVM worksheet Press Display CE C 0 00 CLR TVM 0 00 The TVM examples use a two decimal setting Time Value of Money TVM continued To calculate a car payment If your loan amount is 15 000 with an interest rate of 6 9 how much will you pay per month if you spread your payments over four years For this example set the BA II PLUS to e Two decimal places e 12 for P Y and C Y e End of period payment e Clear the TVM worksheet see page 7 Do not clear the TVM worksheet again until you have completed the entire car payment example Press Display 15000 PV 15 000 00 12 payments per year for 48 N N 48 00 four years 6 9 VY 6 90 PMT 358 50 Payment per month You can always change one or more variables and recompute The next example changes the payment variable without disturbing the other TVM variables Press 300 Payment is a negative number N 59 12 Almost five years If you want to repay the loan within four years but need the payment to remain 300 00 you could determine the interest rate you would need Press Display 48 N N 48 00 WV 1 98 Since you probably won t find an interest rate that low increasing your payment term to 60 months five years seems to be the most viable option Time Value of Money TVM continued To calculate a mortgage p
5. 0 and a coupon rate of 8 which is paid semi annually Your required rate of return is 10 For this example set the BA II PLUS to e 2 for P Y and C Y e 4 decimal places e End of period payment Clear the TVM worksheet page 7 30 N 2 payments x 15 years 10 Annual interest rate 40 8 interest 2 coupon payments per year 1000 Face value Present value 11 Bond Valuation continued To calculate the value of this bond using the Bond worksheet Next the Bond worksheet is used to calculate the example from the previous page Refer to Chapter 5 of your BA IT PLUS Guidebook for Bond worksheet details Press Display BOND SDT Old contents Access the worksheet CLR WORK Old contents You must be in a worksheet before you can clear it 1 0199 SDT 1 01 1999 Start date a CPN 0 0000 8 ENTER CPN 8 0000 Coupon rate in percent i 1 0114 RDT 1 01 2014 Redemption date yD lt ll 100 0000 100 of redemption value Actual day count method 2nd SET 360 day count method o Two coupons per year o 10 ENTER 10 0000 Yield to redemption o CPT 100 of redemption value Bonds are usually calculated on a 360 day year rather than a 365 day year 12 Cash Flow Analysis CF The BA II PLUS Cash Flow worksheet analyzes unequal cash flows by calculating the internal rate of return IRR and or net present value NPV While using any BA
6. ange one or more variables and recompute Rather than seeing how much you need to save each month the next example forecasts your monthly income To calculate monthly income Assuming you will live 20 years after retiring at age 60 and will earn 8 on your investments what will be your monthly income from the 1 000 000 00 For this example e Clear the TVM worksheet see page 7 press 1000000 This is a negative number 240 N Months from age 60 to 80 8 Compounded monthly If you saved 1 000 000 00 by age 60 you could retire and receive 8 364 40 per month for 20 years 10 Bond Valuation You can use the BA II PLUS to calculate bond maturity based on either an even or uneven number of years An even number of years means that the month and day of the start and maturity dates are the same with only the year changing An uneven number of years means that the month and or day vary in addition to the year For bond maturity based on an even number of years use either the TVM worksheet Bond worksheet For bond maturity based on an uneven number of years use the Bond worksheet Examples of using both worksheets to calculate the value of a bond for an even number of years follow To calculate the value of a bond using the TVM worksheet Assume the current date is January 1 1999 and you want to know the value of a bond that matures in 15 years on January 1 2014 The bond has a face value of 1 000 0
7. ayment If your mortgage amount is 150 000 with an interest rate of 8 how much will you pay per month if you spread your payments over thirty years For this example set the BA II PLUS to e Two decimal places e 12 for P Y and C Y e End of period payment Clear the TVM worksheet see page 7 Press sm 12 payments per year for 30 xP Y N 360 00 30 years PMT 1 100 65 Payment per month Your monthly payment will be 1 100 65 To calculate the future value of a current amount What is the future value of 2 000 00 invested for 7 years at an annual percentage yield APY of 9 For this example set the BA II PLUS to e Two decimal places 1 for P Y and C Y e End of period payment e Clear the TVM worksheet see page 7 Press Display 70 N 7 00 9 WY 9 00 2000 PV 2 000 00 FV 3 656 08 The future value is 3 656 08 Time Value of Money TVM continued To calculate monthly retirement income If you are 25 years old and want to retire at age 60 with 1 000 000 00 how much do you need to save each month In this example your savings account pays 6 interest compounded monthly For this example set the BA II PLUS to e Two decimal places e 12 for P Y and C Y e End of period payment Clear the TVM worksheet see page 7 Press Display 420 N N 420 00 12 monthly payments for 35 years 6 WY 6 00 PMT 701 90 If saving 701 90 per month is too much you can ch
8. d worksheet other than TVM Also returns you to the first variable in the worksheet 2nd MEM 2nd CLR WORK 0 and the key for the number of the memory 0 9 All values stored in all 10 memories One memory You must be in the worksheet you want to clear before using CLR WORK Refer to the Notes section for each worksheet in the BA II PLUS Guidebook to see how clearing affects specific worksheets Time Value of Money TVM The TVM concept assumes a dollar today is worth more than a dollar in the future because the dollar received today can earn interest until the time the future dollar is received Use the TVM worksheet to analyze equal cash flows such as loans annuities mortgages leases and savings TVM variables There are five TVM variables which you can enter in any sequence You can check the value of any variable during the calculation by pressing and the variable key Variable Key Meaning N Total number of payment periods Y Annual interest rate PMT Payment amount FV Future value You will usually enter three variables and calculate the fourth In some calculations you will enter four variables and calculate the fifth Changing one variable does not affect either entered or calculated values in the other variables Positive and negative cash flows In general each Time Value of Money problem will have at least two cash flows one must be an outflow which is entered or computed
9. es zero data to compute Press Display STAT LIN Standard linear regression Press SET to display other statistics calculation methods The other calculation methods are In Logarithmic regression e EXP Exponential regression PWR Power regression IV One variable statistics If the data portion of the worksheet contains information press 4 to step through the calculated values If the data portion of the worksheet does not contain information an error message appears when you press 4 15 Storing and Using Values in Memory The BA II PLUS has 10 separate memories You can perform memory operations in either the standard calculator mode or in the Memory worksheet Refer to pages 1 16 and 8 19 in your BA IT PLUS Guidebook for Memory details To store a value in memory This example shows how to store the number 10 in memory 1 and the number 20 in memory 2 Repeat the process to store numbers in other memories The memories are numbered 0 through 9 Press Display 10 1 10 00 20 2 20 00 To add stored values and store the sum in memory You can perform mathematical operations other than addition on stored numbers Press Display 1 10 00 2 20 00 E 30 00 3 30 00 To display each value stored in memory You can press and a digit key 0 through 9 to display a previously stored value or you can use the Memory worksheet to display stored values This example uses the Memory worksheet Press
10. kiz TEXAS INSTRUMENTS BA II PLUS Advanced Business Analyst Calculator Quick Guide to Settings and Concepts Purpose of Guide This Quick Guide is a supplement to the BA II PLUS Guidebook It includes brief examples of commonly used BA II PLUS calculator settings and financial management concepts Refer to your BA II PLUS Guidebook for detailed BA II PLUS instructions Outside the U S and Canada warranty information may be provided on a separate printed insert Keys and Functions The primary function of each key is printed on the key For example press to turn the calculator on or off Some keys provide a secondary function The secondary function is printed above the key When you press the key the character abbreviation or word printed above a key becomes active for the next keystroke For example press QUIT to leave a prompted worksheet and return to standard calculator mode This Quick Guide is available on the Internet for downloading printing and distribution To access the Guide online visit education ti com Turning the Calculator On and Off The key turns the calculator on or off If you do not press any key for approximately 10 minutes the Automatic Power Down APD feature turns the calculator off automatically To turn the calculator on When you press ON OFF to turn the calculator on Ifyou turned the calculator off by pressing ON OFF the calculator returns to operation in the s
11. lay it means the only function you can perform is to compute the value of IRR The asterisk indicates a computed answer To compute the net present value NPV using a 20 interest rate Press Display NPV Look for the word Enter in small letters at the top of the display 20 ENTER NPV 7 625 99 Compute the net present value When the word Enter appears in the display it means you can enter a different interest rate If you enter a different interest rate and press CPT the computed NPV reflects the change When the NPV displays you can press t to return to the interest rate and change it again 14 Clearing the Statistics Worksheet The Statistics worksheet is comprised of two portions data entry and statistical calculation You enter values in the data entry portion and compute results in the statistical calculation portion You must be in a worksheet before you can use CLR WORK to clear it Be sure you are in the correct portion of the Statistics worksheet before you clear it Refer to Chapter 7 of your BA II PLUS Guidebook for Statistics worksheet details To access and clear the data entry portion of the worksheet Press Display DATA X01 Old contents appear if any CLR WORK X01 0 00 To access the statistical calculation portion of the worksheet You do not need to clear the statistical calculation portion of the worksheet because clearing the data portion of the Statistics worksheet leav
12. m Corporate Financial Management Basic Financial Management Seventh Edition and Financial Management Principles and Practice 1996 and 1997 Prentice Hall Inc Upper Saddle River N J All rights reserved 18
13. on until you change it 2 Payment and Compounding Settings P Y C Y The BA II PLUS defaults to 12 payments per year P Y and 12 compounding periods per year C Y You can change one or both of the settings to any number The examples below assume the BA II PLUS is set to four decimal places To set both the P Y and the C Y to 1 Press Display Py 1 P Y 1 0000 CY 1 0000 ouit 0 0000 The above example shows annual compounding You may want to set the P Y to a different number than the C Y The following example shows how to set the BA II PLUS for a monthly payment that is compounded quarterly To set the P Y to 12 and the C Y to 4 Press Display Py 12 P Y 12 0000 CIY 12 0000 4 CIY 4 0000 ouit 0 0000 The P Y and C Y settings continue indefinitely even though the calculator is turned off and on until you change them To calculate the future value of a dollar What is the future value of 1 00 invested for five years at an interest rate of 7 compounded annually For this example set P Y and C Y to 1 Press Display CLR TVM 0 0000 1 PV 1 0000 5N N 5 0000 7 VY 7 0000 FV 1 4026 Beginning and End of Period Settings BGN and END The BA II PLUS can assume that payments occur either at the beginning BGN of a period or at the end END of a period The BA II PLUS default setting is END To set the calculator to beginning of period Press Display BGN END SET BGN
14. tandard calculator mode A value of zero is displayed and the values in all of the worksheets are the same as you left them as are the formats for numbers angle units dates separators and calculation method Ifthe APD feature turned the calculator off the calculator including the display and any error condition returns exactly as you left it To turn the calculator off When you press to turn the calculator off e The displayed value is cleared e Any unfinished standard calculator operation is canceled e Any worksheet calculation in progress is canceled e Any error condition is cleared The Constant Memory feature retains all worksheet values and settings including the contents of the 10 memories and all format settings If the BA II PLUS does not turn on or off and does not respond to keyboard input it may need to be reset Resetting the BA II PLUS erases all data stored in all memories and restores all settings to their factory defaults Please see Resetting the Calculator on page 5 for additional information and instructions Decimal Place Settings The BA II PLUS displays two decimal places by default You can change how many decimal places the calculator displays You can display up to eight decimal places To set the number of decimal places to four Press Display FORMAT 4 DEC 4 0000 uit 0 0000 This four decimal setting continues indefinitely even though the calculator is turned off and
15. ton Pressing the RESET button located on the back of the calculator causes an immediate reset without a cancellation option This may be useful if the BA II PLUS appears to be locked up and does not respond to keyboard input To reset the BA II PLUS turn the unit over and insert a small thin object into the recessed area below the word RESET Pressing the RESET button has the same effect as pressing RESET and performs the same reset actions as described above Clearing the Calculator Clearing the calculator is different from resetting it You can clear one or more values while retaining other data whereas resetting the calculator clears all data and restores all settings to factory defaults To clear the calculator To clear One character at a time including decimal points CE C An incorrect entry an error condition or error message ouit All pending operations in standard calculator mode or Out of a prompted worksheet and return to standard calculator mode values previously entered remain in the prompted worksheet CE C CE C An unfinished calculation Sor A keyed but not yet entered variable value in a prompted worksheet or Out of a prompted worksheet and return to standard calculator mode values previously entered remain in the prompted worksheet CEC 2nd CLR TvM All values N I Y PV PMT FV in the TVM Time Value of Money worksheet 2nd CLR work A prompte
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