![]() ABC company purchased equipment providing an annual savings of $20,000 over 10 years. The last example that we will calculate is the Future Value of an Annuity using an ordinary annuity and an annuity due. If you don't clear any values just yet and press the IRR key and then the CPT key, you will get an IRR equal to 13.94%. You will get a net present value equal to $238.17. Seven, and finally, press compute, or the CPT key. Six, enter the interest rate by pressing NPV and enter 10, not 0.10, and press Enter and the down arrow. Fifth, press Enter 1 for frequency, 2, F02 and press Enter and down arrow. Fourth, enter 2000 as your second cash inflow, press Enter and down arrow. Third, enter 2 for frequency and press Enter and the down arrow. Second, enter 1000 as your first year cash inflow, press Enter and the down arrow. First, Press CF key and enter 3,000 followed by negative sign as your C of 0 value and press Enter and the down arrow. To find the Net Present Value, or NPV, use these simple steps. F01 is 2, because you get 1000 after both year one and year two, and then your C02 is 2000, and F02 is 1. Suppose you invest $3000, which will generate the following end of year cash flows. ![]() C02 is cash flow for year two, where F02 is the frequency of C02 and so on. C01 is cash flow for year one, where F01 is the frequency of C01. Note your calculator has the Cash Flow or CF key that will take care of uneven series of cash flows. The Net Present Value or NPV, and the internal rate of return, or IRR. Now let's learn what are likely two of the most widely used financial functions. You will get the answer $37,106.30, which is what you will have 20 years from now if you contribute $1,000 every year earning 6% interest rate. To solve the problem, press the CPT key, followed by the FV key. Finally, enter -1,000, because it is a cash outflow, and press PMT button. Now enter 6, and press IY button, which specifies the interest rate. Now enter the data 20 followed by pressing the N button specifies the number of periods. If you retire in 20 years, how much will you have saved? Let's begin by clearing the memory by pressing the 2ND and CLR TVM keys. Suppose you plan to contribute $1,000 every year into a Registered Retirement Savings Plan that is expected to earn 6%. Next, let's work with annuities to solve a future value. All present value and future value problems follow the same steps. ![]() Note, if you got -161.05, you forgot to put a negative sign in front of the present value. All the given values have now been entered, so we can solve for future value by pressing the CPT button, which in this case, is future value, FV. Now, enter 10 then press IY, which stands for the interest rate, and finally enter the number of period by entering 5 and pressing N button. Enter 100 followed by negative side and press PV, the present value button. Clear the calculator's memory by pressing the 2ND and CLR TVM keys. Now suppose you are calculating the future value of $100 invested at 10% for five years. To solve Time Value problems, notice there are five time value money keys in the third row. Now let's look at how to solve the Time Value problems using the financial calculator. Third, when you enter an interest rate expressed as 0.08 simply enter 8. This allows for the calculator to convert them into present or future value. Second, make sure you are entering either negative amounts for outflows or positive amounts for inflows. This prevents previously stored data from interfering in your calculations. First, clear the calculator's memory by pressing the 2nd and CLR TVM keys. Please remember three steps before you start. It is important to clear your calculator before performing each calculation by pressing 2ND and CLR TVM keys. The CLR TVM function cancels all the numerical values and resets the calculator's default financial values. The CE/C key clears the on-screen data, but it doesn't delete any numerical values that have been entered. The BGN function sets the amounts at the beginning of each period, as opposed to the end of each period. The 2ND key is typically used for financial calculations. Let's go over a few basic functions to get you started. A financial calculator has a lot of computational power, but to use it effectively, it's important to spend time understanding the problem. Hello, everyone? In this tutorial we will learn how easy it is to use the BA II PLUS financial calculator.
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