Texas Instruments BA-II-PLUS - User Manual

vi G eneral I nf ormat ion 99 Contact TI Support 99 Service and Warranty Information 99

Overview of Calculator Operations This chapter describes the basic operation of your BA II PLUS™ calculator,including how to: • Turn on and turn off the calculator • Select second functions • Read the display and set calculator formats • Clear the calculator and correct entry errors • Perform math a...

2 Overview of Calculator Operations Automatic Power Down™ (APD™) Feature To prolong battery life, the Automatic Power Down (APD) feature turns off thecalculator automatically after about five minutes of inactivity. The next time you press $ , the calculator turns on exactly as you left it, saving di...

4 Overview of Calculator Operations Setting Calculator Formats You can change these calculator formats: To Select Press Display Default Number of decimal places &| DEC 0–9 (Press 9 for floating- decimal) 2 Angle units # DEG (degrees) RAD (radians) DEG Dates # US (mm-dd-yyyy) Eu r (dd-mm-yyyy) US...

6 Overview of Calculator Operations Resetting the Calculator Resetting the calculator: • Clears the display, all 10 memories, any unfinishedcalculations, and all worksheet data. • Restores all default settings • Returns operation to the standard-calculator mode Because the calculator includes altern...

To clear Press keyed in An incorrect entry, error condition, or error message P The prompted worksheet and reset default values & z Calculator format settings and reset default values & | & z • Out of the prompted worksheet and return to standard-calculator mode • All pending operations ...

8 Overview of Calculator Operations To Press Display Begin the expression 3 < 3 .0 0 Enter a number 1 2 3 4 .8 6 1 ,2 3 4 .8 6 Erase the entry error * * 1 ,2 3 4 . Key in the correct number 5 6 1 ,2 3 4 .5 6 Compute the result N 3 ,7 0 3 .6 8 Math Operations When you select the chain ( Ch n ) cal...

10 Overview of Calculator Operations To Press Display Find hyperbolic arctangent: tanh - 1 (.5) .5 & c 8 f 0 .5 5 * The random number you generate might be different. ** Angles can be computed in degrees or radians. Examples show angles in degrees. (See: Choosing the Angle Units ). Universal Pow...

Combinations & s The calculator computes the number of combinations of n items taken r at a time. Both the n and r variables must be greater than 0. Permutations & m The calculator computes the number of permutations of n items taken r at a time. Both the n and r variables must be greater th...

12 Overview of Calculator Operations Scientific Notation ; When you compute a value in the standard-decimal format that is either toolarge or small to be displayed, the calculator displays it in scientific notation,that is, a base value (or mantissa), followed by a blank space, followed by an expone...

14 Overview of Calculator Operations Calculations Using Constants To store a constant for use in repetitive calculations, enter anumber and an operation, and then press & ` . To use the stored constant, key in a value and press N . Note: Pressing a key other than a number or N clears the constan...

* The letter c denotes the constant value. ** Repeat constant calculations with n N . Last Answer Feature Use the Last Answer ( ANS ) feature with problems that call repeatedly for the same value or to copy a value: • From one place to another within the same worksheet. • From one worksheet to anoth...

16 Overview of Calculator Operations Using Worksheets: Tools for Financial Solutions The calculator contains worksheets with embedded formulasto solve specific problems. You apply settings or assignknown values to worksheet variables and then compute theunknown value. Changing the values lets you as...

18 Overview of Calculator Operations Accessing Prompted-Worksheet Variables After you access a worksheet, press # or " to select variables. For example, press & \ to access the Amortization worksheet, and then press # or " to select the amortization variables ( P1 , P2 , BAL , PRN , INT ...

20 Overview of Calculator Operations Selecting Worksheet Settings Many prompted worksheets contain variables consisting of two or moreoptions, or settings (for example, the Date worksheet ACT / 3 6 0 variable). When you select variables with settings, the calculator displays the SET indicator and th...

Time-Value-of-Money and AmortizationWorksheets Use the Time-Value-of-Money (TVM) variables to solveproblems with equal and regular cash flows that areeither all inflows or all outflows (for example, annuities,loans, mortgages, leases, and savings). For cash-flow problems with unequal cash flows, use...

To compute a TVM value, press C and a TVM key in standard-calculator mode. Using [xP/Y] to Calculate a Value for N 1. Key in the number of years, and then press & Z to multiply by the stored P/Y value. The total number of payments appears. 2. To assign the displayed value to N for a TVM calculat...

26 Time-Value-of-Money and Amortization Worksheets 7. To generate the amortization schedule, repeat steps 2 through 5 for each range of payments. G enerating an Amortization Schedule Automatically After entering the initial values for P1 and P2 , you can compute an amortization schedule automaticall...

To Press Display using the payment multiplier Enter loan amount 7 5 0 0 0 . PV= 7 5 ,0 0 0 .0 0 1 Enter payment amount 4 2 5 .8 4 S / PMT= -4 2 5 .8 4 1 Compute interest rate C - I/Y= 5 .5 0  Answer: The interest rate is 5.5% per year. Examples: Computing Basic Loan Payments These examples show you...

28 Time-Value-of-Money and Amortization Worksheets To Press Display Set payments per year to 4 & [ 4 ! P/Y= 4 .0 0 1 Return to standard-calculator mode & U 0 .0 0 Enter number of payments using payment multiplier 3 0 & Z , N= 1 2 0 .0 0 1 Compute payment C / PMT= -1 ,2 7 9 .8 2 7 Answer:...

Answer: You must deposit $9,050.63. Example: Computing Present Value in Annuities The Furros Company purchased equipment providing an annual savings of$20,000 over 10 years. Assuming an annual discount rate of 10%, what is thepresent value of the savings using an ordinary annuity and an annuity due?...

30 Time-Value-of-Money and Amortization Worksheets To Press Display Enter payment 2 0 0 0 0 S / PMT= -2 0 ,0 0 0 .0 0 1 Compute present value (ordinary annuity) C . PV= 1 2 2 ,8 9 1 .3 4 7 Set beginning-of-period payments & ] & V BGN Return to calculator mode & U 0 .0 0 Compute present v...

Perpetual ordinary annuity Perpetual annuity due Because the term (1 + I/Y / 100) - N in the present value annuity equations approaches zero as N increases, you can use these equations to solve for thepresent value of a perpetual annuity: • Perpetual ordinary annuity • Perpetual annuity due Example:...

32 Time-Value-of-Money and Amortization Worksheets Year 1 2 3 4 Amount $5000 $7000 $8000 $10000 Given a 10% discount rate, does the present value of the cash flows exceedthe original cost of $23,000? To Press Display Set all variables to defaults & } ! RST 0 .0 0 Enter interest rate per cash flo...

34 Time-Value-of-Money and Amortization Worksheets The total value of the machine is the present value of the residual value plusthe present value of the lease payments. To Press Display Set all variables to defaults. & } ! RST 0 .0 0 Set beginning-of-period payments. & ] &V BGN Return t...

To Press Display Set all variables to defaults. & } ! RST 0 .0 0 Set payments per year to 12. & [ 1 2 ! P/Y= 1 2 .0 0 1 Return to standard-calculator mode & U 0 .0 0 Enter number of payments using payment multiplier. 2 & Z , N= 2 4 .0 0 1 Enter interest rate. 2 0 - I/Y= 2 0 .0 0 1 En...

To Press Display View interest paid after five years # # INT= -2 7 ,9 2 0 .7 2 * If the sellers financed the sale, they would receive: • Monthly payment: $545.55 for five years • Interest: $27,790.72 over the five years • Balloon payment: $77,187.72 Time-Value-of-Money and Amortization Worksheets 41

42 Cash Flow Worksheet Cash Flow Worksheet Use the Cash Flow worksheet to solve problems withunequal cash flows. To solve problems with equal cash flows, use the TVMworksheet. Time-Value-of-Money and AmortizationWorksheets • To access the Cash Flow worksheet and initial cash flowvalue ( CFo ), press...

Resetting Variables • To reset CFo , C nn , and F nn to default values, press ' and then & z . • To reset NPV to the default value, press ( and then & z . • To reset IRR to the default value, press ) and then & z . • To reset all calculator variables and formats to default values, includ...

44 Cash Flow Worksheet All cash-flow problems start with an initial cash flow labeled CFo . CFo is always a known, entered value. G rouped Cash Flows Cash-flow problems can contain cash flows with unique values as well asconsecutive cash flows of equal value. Although you must enter unequal cash flo...

Deleting Cash Flows When you delete a cash flow, the calculator decreases the number ofsubsequent cash flows automatically. The DEL indicator confirms that you can delete a cash flow. 1. Press # or " until the cash flow you want to delete appears. 2. Press & W . The cash flow you specified a...

46 Cash Flow Worksheet Computing Cash Flows The calculator solves for these cash-flow values: • Net present value ( NPV) is the total present value of all cash flows, including inflows (cash received) and outflows (cash paid out). A positive NPV value indicates a profitable investment. • Internal ra...

• When a sequence of cash flows has two or more sign changes: - At least one solution exists. - As many solutions can exist as there are sign changes. When more than one solution exists, the calculator displays the one closest to zero. Because the displayed solution has no financial meaning, you sho...

50 Cash Flow Worksheet Example: Value of a Lease with Uneven Payments A lease with an uneven payment schedule usually accommodates seasonal orother anticipated fluctuations in the lessee’s cash position. A 36-month lease has the following payment schedule and beginning-of-period payments. Number of ...

52 Bond Worksheet Bond Worksheet The Bond worksheet lets you compute bond price,yield to maturity or call, and accrued interest. You can also use the date functions to price bondspurchased on dates other than the couponanniversary. • To access the Bond worksheet, press & l . • To access bond var...

54 Bond Worksheet • For to call analysis, enter the call price for RV . Setting the Day-Count Method 1. To display the day-count method, press # until ACT or 3 6 0 appears. 2. To change the day-count method, press & V . Setting the Coupon Frequency 1. To display the coupon frequency, press # unt...

Term Definition call premium. The calculator treats the redemption value in terms of dollars per $100 of par value. Se ttle me n t Da te The date on which a bond is exchanged for funds. Yie ld to Ma tu rity The rate of return earned from payments of principal and interest, with interest compounded s...

56 Bond Worksheet 2. Key in a value for YL D and press ! . 3. Press # to display PRI , and then press C . The calculator displays the computed PRI value. Computing the Bond Yield (YLD) 1. Press # until PRI appears. 2. Key in a value for PRI and press ! . 3. Press # to display YL D , and then press C...

To Press Display Enter yield. # 8 ! YL D = 8 .0 0 1 Compute price # C PRI = 9 8 .5 6 7 View accrued interest. # AI = 3 .1 5 7 An swe r: The bond price is $98.56 per 100. The accrued interest is $3.15 per 100. Bond Worksheet 57

58 Depreciation Worksheet Depreciation Worksheet The Depreciation worksheet lets you generate adepreciation schedule using your choice ofdepreciation methods. • To access the Depreciation worksheet, press & p . • To change depreciation methods, press & V until the desired method appears. • T...

60 Depreciation Worksheet • The calculator computes values for DEP, RBV , and RDV automatically when you press # to display each variable. Entering Values for DB and DBX If you choose either the declining balance ( DB ) or declining balance with crossover to SL ( DBX ) depreciation method, remember ...

Entering Data and Computing Results Because the Depreciation worksheet stores values and settings until you eitherchange them or clear the worksheet, you should not have to perform every stepeach time you work a problem. Selecting a Depreciation Method 1. To access the Depreciation worksheet, press ...

62 Depreciation Worksheet Example: Computing Straight-Line Depreciation In mid-March, a company begins depreciation of a commercial building with a31½ year life and no salvage value. The building cost $1,000,000. Use thestraight-line depreciation method to compute the depreciation expense,remaining ...

Statistics Worksheet The Statistics worksheet performs analysis on one-andtwo-variable data with four regression analysis models. • To enter statistical data, press & j . • To choose a statistics calculation method andcompute the results, press & k . • To access statistics variables, press #...

Analyzing Two-Variable Statistics You can choose from among these four regression-analysis methods: • L IN • L n • EXP • PWR Computing Values Automatically Except for the predicted X' and Y' values, the calculator computes and displays values for statistics variables automatically when you access th...

66 Statistics Worksheet Correlation Coefficient The calculator also determines r , the correlation coefficient, which measures the goodness of fit of the equation with the data. Generally: • The closer r is to 1 or - 1, the better the fit. • The closer r is to zero, the worse the fit. Entering Stati...

2. The last selected statistics calculation method is displayed ( L IN , L n , EXP , PWR , or 1 -V ). 3. Press & V repeatedly until the statistics calculation method you want is displayed. 4. If you are analyzing one-variable data, select 1 -V . 5. Press # to begin computing results. Computing R...

68 Other Worksheets Other Worksheets The calculator also includes these worksheets: • Percent Change/Compound Interest worksheet( & q ) • Interest Conversion worksheet ( & v ) • Date worksheet ( & u ) • Profit Margin worksheet ( & w ) • Breakeven worksheet ( & r ) • Memory worksh...

70 Other Worksheets 2. To clear the worksheet, press & z . 3. To enter values for the known variables, press # or " until the variable you want is displayed, then key in a value, and press ! . (Do not enter a value for the variable you wish to solve.) • Percent Change — Enter values for two ...

72 Other Worksheets Interest Conversion Worksheet The Interest Conversion worksheet converts interestrates between nominal rate (or annual percentagerate) and annual effective rate. • To access the Interest Conversion worksheet,press & v . • To select interest conversion variables, press # or &#...

74 Other Worksheets To Press Display Compute annual effective interest rate. " C EFF= 1 5 .8 7 7 Answer: A nominal interest rate of 15% compounded quarterly is equivalent to an annual effective interest rate of 15.87%. Date Worksheet Use the Date worksheet to find the number of daysbetween two d...

76 Other Worksheets Example: Computing Days between Dates A loan made on September 4, 2003 defers the first payment until November 1,2003. How many days does the loan accrue interest before the first payment? To Press Display Select Date worksheet & u DT1 = 1 2 -3 1 -1 9 9 0 Enter first date 9 ....

78 Other Worksheets Breakeven Worksheet The Breakeven worksheet computes the breakevenpoint and sales level needed to earn a given profit byanalyzing relationships between fixed costs, variablecosts per unit, quantity, price, and profit. You operate at a loss until you reach the breakevenquantity (t...

Computing Breakeven 1. To access the Breakeven worksheet, press & r . The FC variable appears. 2. Press # or " to select a known variable, key in the value, and press ! . 3. Repeat step 3 for each of the remaining known variables. 4. To compute a value for the unknown variable, press # or &#...

80 Other Worksheets Memory Worksheet The Memory worksheet lets you compare and recallstored values by accessing the calculator’s 10memories. All memory variables are enter-only. Typesof Worksheet Variables • To access the Memory worksheet, press & { . • To access memory variables, press " or...

82 APPENDIX - Reference Information APPENDIX - Reference Information This appendix includes supplemental information to help you use your BA IIPLUS™ calculator: • Formulas • Error conditions • Accuracy information • IRR (internal-rate-of-return) calculations • Algebraic operating system (AOS™) • Bat...

84 APPENDIX - Reference Information where: where: where: Amortization If computing Let: Iterate from: to then: where: round the diplay to the number or decimal places selected round to 12 decimal places Balance, principal, and interest are dependent on the values of PMT, PV, I/ Y , and pmt1 and pmt2...

88 APPENDIX - Reference Information Straight-line depreciation First year: Last year or more: DEP = RDV Sum-of-the-years’-digits depreciation First year: Last year or more: DEP = RDV Declining-balance depreciation where: is for YR First year: Unless; ; then use If , use

90 APPENDIX - Reference Information Interest Rate Conversions where: where: Percent Change where: OLD = old value NEW = new value %CH = percent change #PD = number of periods Profit Margin Breakeven where: PFT = profit P = price FC = fixed cost

VC = variable cost Q = quantity Days between Dates With the Date worksheet, you can enter or compute a date within the rangeJanuary 1, 1980, through December 31, 2079. Actual/actual day-count method Note: The method assumes the actual number of days per month and per year. DBD (days between dates) =...

Error Messages Note: To clear an error message, press P . Error Possible Causes Erro r 1 Overflow • A result is outside the calculator range ( ± 9.9999999999999E99). • Tried to divide by zero (can occur internally). • Tried to compute 1/x when x is zero. • Statistics worksheet: a calculation include...

Error Possible Causes Iteration limit exceeded very complex problem involving many iterations. • Cash Flow worksheet: the calculator computed IRR for a complex problem with multiple sign changes or PB / DPB with no payback period based on input cash flow values. • Bond worksheet: the calculator comp...

96 APPENDIX - Reference Information 2. 0.3333333333333 Q 3 = 0.9999999999999 The calculator rounds the result and displays it as 1. This rounding enables thecalculator to display the most accurate result. Although most calculations are accurate to within ±1 in the last displayed digit,higher-order m...

1. Turn off the calculator and turn it over with the back facing you. 2. Using a small Phillips screwdriver, remove the four screws from the back cover. 3. Carefully pry off the back cover. 4. Using a small Phillips screwdriver, remove the screws from the metal battery cover and lift the cover off t...

General Information Contact TI Support education.ti.com/ti-cares Select your country for technical and other support resources. Service and Warranty Information education.ti.com/warranty Select your country for information about the length and terms of the warrantyor about product service. Limited W...