Texas Instruments Calculator - Manual

2 Overview of Calculator Operations • The Constant Memory™ feature retains all worksheet values and settings, including the contents of the 10 memories and all format settings. Automatic Power Down ™ (APD ™ ) Feature To prolong battery life, the Automatic Power Down (APD) feature turns off the calcu...

4 Overview of Calculator Operations Setting Calculator Formats 1. To access format options, press & | . The DEC indicator appears with the selected number of decimal places. 2. To change the number of decimal places displayed, key in a value and press ! . 3. To access another calculator format, ...

Overview of Calculator Operations 5 Changing the number of decimal places affects the display only. Except for amortization and depreciation results, the calculator does not round internal values. To round the internal value, use the round function. (See “Rounding & o ” on page 10.) Note: All ex...

6 Overview of Calculator Operations Resetting the Calculator Because the calculator includes alternative methods that let you clear data selectively, use reset carefully to avoid losing data needlessly. (See “Clearing Calculator Entries and Memories” on page 6.)For example, you might reset the calcu...

Overview of Calculator Operations 7 Correcting Entry Errors Example: You mean to calculate 3 Q 1234.56 but instead enter 1234.86. The prompted worksheet and reset default values & z Calculator format settings and reset default values & | & z • Out of the prompted worksheet and return to ...

8 Overview of Calculator Operations Math Operations When you select the chain ( Chn ) calculation method, the calculator evaluates mathematical expressions (for example, 3 + 2 Q 4) in the order that you enter them. Examples of Math Operations These operations require you to press N to complete. Thes...

Overview of Calculator Operations 9 * 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” on page 5.) Universal Power ; Press ; to raise the displayed positive number to any power (for ex...

10 Overview of Calculator Operations Parentheses 9 : Use parentheses to control the order in which the calculator evaluates a numeric expression in division, multiplication, powers, roots, and logarithm calculations. The calculator includes up to 15 levels of parentheses and up to 8 pending operatio...

Overview of Calculator Operations 11 For example, working in the Bond worksheet, you might want to round a computed selling price to the nearest penny (two decimal places) before continuing your calculation. Note: The calculator stores values to an accuracy of up to 13 digits. The decimal format set...

12 Overview of Calculator Operations Memory Operations Clearing Memory Clearing memory before you begin a new calculation is a critical step in avoiding errors. • To clear an individual memory, store a zero value in it. • To clear all 10 calculator memories, press & { & z . Storing to Memory...

Overview of Calculator Operations 13 • Memory arithmetic changes only the value in the affected memory and not the displayed value. • Memory arithmetic does not complete any calculation in progress. The table lists the available memory arithmetic functions. In each case, the specified memory stores ...

14 Overview of Calculator Operations Keystrokes for Constant Calculations This table shows how to create a constant for various operations. *The letter c denotes the constant value. ** Repeat constant calculations with n N . Last Answer Feature To display the last answer computed, press & x . No...

Overview of Calculator Operations 15 Using Worksheets: Tools for Financial Solutions Each worksheet is independent of the others: operations in a worksheet do not affect variables in other worksheets. When you exit a worksheet or turn off the calculator, the calculator retains all worksheet data. Ke...

16 Overview of Calculator Operations Accessing the TVM Worksheet Variables Statistics worksheet (Chapter 6) Analyzes statistics on one- or two-variable data using four regression analysis options & k Percent Change/Compound Interest worksheet (Chapter 7) Computes percent change, compound interes...

Overview of Calculator Operations 17 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 ...

18 Overview of Calculator Operations When you display a compute-only variable, the COMPUTE indicator reminds you to press % to compute its value. After you press % , the  indicator confirms that the displayed value has been computed. Automatic-Compute Variables When you press # or " to display ...

Overview of Calculator Operations 19 Display Indicators • The  indicator confirms that the calculator entered the displayed value in the worksheet. • The  indicator confirms that the calculator computed the displayed value. • When a change to the worksheet invalidates either entered or computed va...

22 Time-Value-of-Money and Amortization Worksheets TVM and Amortization Worksheet Variables Note: This guidebook categorizes calculator variables by the method of entry. (See “Types of Worksheet Variables” on page 17.) Using the TVM and Amortization Variables Because the calculator stores values ass...

24 Time-Value-of-Money and Amortization Worksheets Entering Values for I/Y, P/Y, and C/Y • Enter I/Y as the nominal interest rate. The TVM worksheet automatically converts I/Y to a per period rate based on the values of P/Y and C/Y . • Entering a value for P/Y automatically enters the same value for...

Time-Value-of-Money and Amortization Worksheets 25 • In worksheet modes the calculator displays only the value you enter or recall, although any variable label previously displayed remains displayed. Note: You can tell that the displayed value is not assigned to the displayed variable, because the =...

26 Time-Value-of-Money and Amortization Worksheets 6. Press & \ . — or —If INT is displayed, press # to display P1 again. 7. To generate the amortization schedule, repeat steps 2 through 5 for each range of payments. Generating an Amortization Schedule Automatically After entering the initial va...

Time-Value-of-Money and Amortization Worksheets 27 Answer: The interest rate is 5.5% per year. Examples: Computing Basic Loan Payments These examples show you how to compute basic loan payments on a $75,000 mortgage at 5.5% for 30 years. Note: After you complete the first example, you should not hav...

28 Time-Value-of-Money and Amortization Worksheets Answer: The quarterly payments are $1,279.82. Examples: Computing Value in Savings These examples show you how to compute the future and present values of a savings account paying 0.5% compounded at the end of each year with a 20-year time frame. Co...

Time-Value-of-Money and Amortization Worksheets 29 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 the present value of the savings using an ordinary annuity an...

30 Time-Value-of-Money and Amortization Worksheets Answer: The present value of the savings is $122,891.34 with an ordinary annuity and $135,180.48 with an annuity due. Example: Computing Perpetual Annuities To replace bricks in their highway system, the Land of Oz has issued perpetual bonds paying ...

Time-Value-of-Money and Amortization Worksheets 31 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 the present value of a perpetual annuity: • Perpetual ordinary annuity • Perpe...

32 Time-Value-of-Money and Amortization Worksheets Given a 10% discount rate, does the present value of the cash flows exceed the original cost of $23,000? To Press Display Set all variables to defaults. & } ! RST 0.00 Enter interest rate per cash flow period. 10 - I/Y= 10.00  Enter 1st cash fl...

34 Time-Value-of-Money and Amortization Worksheets The total value of the machine is the present value of the residual value plus the present value of the lease payments. Answer: Peach Bright should pay your company $40,573.18 for the machine. Example: Computing Other Monthly Payments If you finance...

Time-Value-of-Money and Amortization Worksheets 35 Answer: Your monthly payment is $26.72. Example: Saving With Monthly Deposits Note: Accounts with payments made at the beginning of the period are referred to as annuity due accounts. Interest begins accumulating earlier and produces slightly higher...

36 Time-Value-of-Money and Amortization Worksheets Answer: Depositing $200 at the beginning of each month for 20 years results in a future amount of $111,438.31. Example: Computing Amount to Borrow and Down Payment You consider buying a car for $15,100. The finance company charges 7.5% APR compounde...

Time-Value-of-Money and Amortization Worksheets 37 Answer: You can borrow $13,441.47 with a down payment of $1,658.53. Example: Computing Regular Deposits for a Specified Future Amount You plan to open a savings account and deposit the same amount of money at the beginning of each month. In 10 years...

Time-Value-of-Money and Amortization Worksheets 39 Example: Computing Payment, Interest, and Loan Balance After a Specified Payment A group of sellers considers financing the sale price of a property for $82,000 at 7% annual interest, amortized over a 30-year term with a balloon payment due after fi...

40 Time-Value-of-Money and Amortization Worksheets Generating an Amortization Schedule for Interest and Balloon Payment 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 To Press Di...

Cash Flow Worksheet 41 3 Cash Flow Worksheet Cash Flow Worksheet Variables Use the Cash Flow worksheet to solve problems with unequal cash flows. To solve problems with equal cash flows, use the TVM worksheet. • To access the Cash Flow worksheet and initial cash flow value ( CFo ), press ' . • To ac...

42 Cash Flow Worksheet * nn represents the cash flow ( C01 – C32 ) or frequency ( F01 – F32 ) number. ** This guidebook categorizes variables by the method of entry. (See “Types of Worksheet Variables” on page 17.) Resetting Variables • To reset CFo , C nn , and F nn to default values, press ' and t...

Cash Flow Worksheet 43 Uneven and Grouped Cash Flows Uneven Cash Flows The Cash Flow worksheet analyzes unequal cash flows over equal time periods. Cash-flow values can include both inflows (cash received) and outflows (cash paid out). All cash-flow problems start with an initial cash flow labeled C...

44 Cash Flow Worksheet 5. To select the cash-flow frequency variable ( F01 ), press # . The F01 value appears. 6. To change F01 , key in a value and press ! . 7. To select an additional cash-flow variable, press # . The C02 value appears. 8. Repeat steps 4 through 7 for all remaining cash flows and ...

Cash Flow Worksheet 45 1. Press # or " to select the cash flow where you want to insert the new one. For example, to insert a new second cash flow, select C02 . 2. Press & X . 3. Key in the new cash flow and press ! . The new cash flow is entered at C02 . Computing Cash Flows The calculator ...

46 Cash Flow Worksheet Computing IRR and MOD 1. Press ) . The IRR variable and current value are displayed (based on the current cash-flow values). 2. To compute the internal rate of return, press % . The calculator displays the IRR value. 3. To select the reinvestment rate ( RI ), press # . 4. Key ...

Cash Flow Worksheet 47 The time line reflects a sequence of cash flows with three sign changes, indicating that one, two, or three IRR solutions can exist. • When solving complex cash-flow problems, the calculator might not find PB , DPB , IRR , and MOD , even if a solution exists. In this case, the...

48 Cash Flow Worksheet Entering Cash-Flow Data Editing Cash-Flow Data After entering the cash-flow data, you learn that the $4,000 cash-flow value should occur in the second year instead of the sixth. To edit, delete the $4,000 value for year 6 and insert it for year 2. To Press Display Select Cash ...

Cash Flow Worksheet 49 Computing NPV, NFV, PB, and DPB Use an interest rate per period ( I ) of 20%. Answers: NPV is $7,266.44. NFV is $21,697.47. PB is 2.00. DPB is 2.60. Computing IRR and MOD Answer: IRR is 52.71%. MOD is 35.12%. Example: Value of a Lease with Uneven Payments A lease with an uneve...

50 Cash Flow Worksheet If the required earnings rate is 10% per 12-month period with monthly compounding: • What is the present value of these lease payments? • What even payment amount at the beginning of each month would result in the same present value? Because the cash flows are uneven, use the ...

Cash Flow Worksheet 51 Enter third group of cash flows. # # 3 ! C03= F03= 0.00  3.00  Enter fourth group of cash flows. # 6000 S ! # 9 ! C04= F04= -6000.00  9.00  Enter fifth group of cash flows. # # 2 ! C05= F05= 0.00  2.00  Enter sixth group of cash flows. # 7000 S ! # 10 ! C06= F06= -7000.0...

Bond Worksheet 53 4 Bond Worksheet Note: Pressing # or " to navigate through the Bond worksheet before you enter values causes an error ( Error 6 ). To clear the error, press P . The Bond worksheet lets you compute bond price, yield to maturity or call, accrued interest, and modified duration. Y...

54 Bond Worksheet Bond Worksheet Variables Resetting Bond Worksheet Variables • To reset the Bond worksheet variables to default values, press & z while in the Bond worksheet. • To reset all calculator variables and formats to default values, including the Bond worksheet variables, press & }...

Bond Worksheet 55 Entering Dates • Use the following convention to key in dates: mm.ddyy or dd.mmyy . After keying in the date, press ! . Note: You can display dates in either US or European format. (See “Setting Calculator Formats ” on page 4.) • You can enter dates from January 1, 1950 through Dec...

56 Bond Worksheet Bond Worksheet Terminology Entering Bond Data and Computing Results To compute values for price ( PRI ), modified duration ( DUR ), or yield ( YLD ) and accrued interest ( AI ), first enter the four known values for settlement date ( SDT ), coupon rate ( CPN ), redemption date ( RD...

Bond Worksheet 57 redemption value ( RV ). If necessary, change the day-count method ( ACT or 360 ) and coupon- frequency ( 2/Y or 1/Y ). The Bond worksheet stores all values and settings until you clear the worksheet or change the values and settings. Note: Dates are not changed when you clear a wo...

Depreciation Worksheet 59 5 Depreciation Worksheet Depreciation Worksheet Variables The Depreciation worksheet lets you generate a depreciation schedule using your choice of depreciation methods. • To access the Depreciation worksheet, press & p . • To change depreciation methods, press & V ...

60 Depreciation Worksheet * SLF and DBF are available only if you select the European format for dates or separators in numbers. (See “Setting Calculator Formats ” on page 4.)**This guidebook categorizes variables by their method of entry. (See “Types of Worksheet Variables” on page 17.) Resetting t...

Depreciation Worksheet 61 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 to enter a value representing the percent of declining balance for the DB or DBX variable. Note: The declining ba...

62 Depreciation Worksheet Selecting a Depreciation Method 1. To access the Depreciation worksheet, press & p . The current depreciation method is displayed. 2. To clear the worksheet, press & z . 3. Press & V until you display the depreciation method you want ( SL , SLF , SYD , DB , DBX ...

Depreciation Worksheet 63 Answer: For the first year, the depreciation amount is $25,132.28, the remaining book value is $974,867.72, and the remaining depreciable value is $974,867.72. For the second year, the depreciation amount is $31,746.03, the remaining book value is $943,121.69, and the remai...

Statistics Worksheet 65 6 Statistics Worksheet Statistics Worksheet Variables The Statistics worksheet performs analysis on one-and two-variable data with four regression analysis models. • To enter statistical data, press & j . • To choose a statistics calculation method and compute the results...

66 Statistics Worksheet * nn represents the number of the current X or Y value. ** Not displayed for one-variable statistics. *** This guidebook categorizes calculator variables by their method of entry. (See “Types of Worksheet Variables” on page 17.) Resetting Statistics Worksheet Variables • To c...

Statistics Worksheet 67 • When you enter data for one-variable statistics, X nn represents the value and Y nn specifies the number of occurrences (frequency). • When you enter a value for X nn , the value for Y nn defaults to 1. Analyzing One-Variable Statistics To analyze one-variable statistics, s...

68 Statistics Worksheet • Ln uses ln(X) and Y. • EXP uses X and ln(Y). • PWR uses ln(X) and ln(Y). The calculator determines the values for a and b that create the line or curve that best fits the data. Correlation Coefficient The calculator also determines r , the correlation coefficient, which mea...

Statistics Worksheet 69 Computing Statistical Results Selecting a Statistics Calculation Method 1. Press & k to select the statistical calculation portion of the Statistics worksheet. 2. The last selected statistics calculation method is displayed ( LIN , Ln , EXP , PWR , or 1-V ). 3. Press &...

Other Worksheets 71 7 Other Worksheets The calculator also includes these worksheets: Percent Change/Compound Interest Worksheet Percent Change/Compound Interest Worksheet Variables Note: This guidebook categorizes variables by their method of entry. (See “Types of Worksheet Variables” on page 17.) ...

72 Other Worksheets Resetting the Percent Change/Compound Interest Worksheet Variables • To reset the Percent Change/Compound Interest variables to default values, press & z while in the Percent Change/Compound Interest worksheet. • To reset default values for all calculator variables and format...

Other Worksheets 73 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 of these three variables: OLD , NEW , and %...

74 Other Worksheets Answer: The annual growth rate is 8.45%. Example: Computing Cost-Sell-Markup The original cost of an item is $100; the selling price is $125. Find the markup. Answer: The markup is 25%. Interest Conversion Worksheet Note: The calculator categorizes variables by their method of en...

Other Worksheets 75 Comparing the Nominal Interest Rate of Investments Comparing the nominal interest rate (annual percentage rate) of investments is misleading when the investments have the same nominal rate but different numbers of compounding periods per year. To make a more valid comparison, con...

76 Other Worksheets 6. To compute a value for the unknown variable (interest rate), press # or " until NOM or EFF is displayed, and then press % . The calculator displays the computed value. Example: A bank offers a certificate that pays a nominal interest rate of 15% with quarterly compounding....

Other Worksheets 77 Note: The calculator categorizes variables by their method of entry. (See “Types of Worksheet Variables” on page 17.) Resetting the Date Worksheet Variables • To reset default values for all calculator variables and formats, including the Date worksheet variables, press & } !...

78 Other Worksheets 6. To change the day-count method setting, press # until ACT or 360 is displayed. 7. To compute a value for the unknown variable, press # or " to display the variable, and then press % . The calculator displays the computed value. Example: Computing Days between Dates A loan ...

Other Worksheets 79 Note: This guidebook categorizes calculator variables by their method of entry. Gross Profit Margin and Markup The terms margin and markup often are used interchangeably, but each has a distinct meaning. • Gross profit margin is the difference between selling price and cost, expr...

80 Other Worksheets Answer: The original cost is $100. Breakeven Worksheet Note: To solve for quantity ( Q ), enter a value of zero for profit ( PFT ). Breakeven Worksheet Variables Note: This guidebook categorizes calculator variables by their method of entry. Resetting the Breakeven Worksheet Vari...

Other Worksheets 81 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 var...

82 Other Worksheets Memory Worksheet Memory Worksheet Variables Note: This guidebook categorizes calculator variables by their method of entry. (See “Types of Worksheet Variables” on page 17.) Clearing the Memory Worksheet Variables To clear all 10 memories at once, press & z in the Memory works...

Other Worksheets 83 • To view the contents of the memories, press # or " once for each memory. • To store a value, select a memory ( M0 - M9 ), key in a value, and press ! . • Memory arithmetic. (See “Memory Arithmetic” on page 12.) Examples: Using the Memory Worksheet To Press Display Access Me...

Appendix — Reference Information 85 A Appendix — Reference Information This appendix includes supplemental information to help you use your BA II PLUS é and BA II PLUS é PROFESSIONAL calculator: • Formulas • Error conditions • Accuracy information • IRR (internal-rate-of-return) calculations • Algeb...

Appendix — Reference Information 87 where: i ƒ 0 FV = L ( PV + PMT Q N ) where: i =0 Amortization If computing bal (), pmt2 = npmt Let bal (0) = RND ( PV ) Iterate from m = 1 to pmt2 then: bal( ) = bal(pmt2) G Prn ( ) = bal ( pmt2 ) N bal ( pmt1 ) G Int ( ) =( pmt2 N pmt1 +1) Q RND ( PMT ) N G Prn (...

88 Appendix — Reference Information Net present value depends on the values of the initial cash flow ( CF0 ), subsequent cash flows ( CFj ), frequency of each cash flow ( nj ), and the specified interest rate ( i ). where: i is the periodic interest rate used in the calculation of NPV. where: is the...

Appendix — Reference Information 89 Bonds 1 Price (given yield) with one coupon period or less to redemption: where: PRI =dollar price per $100 par value RV =redemption value of the security per $100 par value ( RV = 100 except in those cases where call or put features must be considered) R =annual ...

90 Appendix — Reference Information Price (given yield) with more than one coupon period to redemption: where: N =number of coupons payable between settlement date and redemption date (maturity date, call date, put date, etc.). (If this number contains a fraction, raise it to the next whole number; ...

Appendix — Reference Information 91 where Duration is calculated using one of the following formulas used to calculate Macaulay duration: • For a bond price with one coupon period or less to redemption: • For a bond price with more than one coupon period to redemption: Depreciation RDV = CST N SAL N...

92 Appendix — Reference Information Sum-of-the-years’-digits depreciation First year: Last year or more: DEP = RDV Declining-balance depreciation where: RBV is for YR - 1 First year: Unless ; then use RDV Q FSTYR If DEP > RDV , use DEP = RDV If computing last year, DEP = RDV Statistics Note: Form...

Appendix — Reference Information 93 Standard deviation with n - 1 weighting (s x ): Mean: Regressions Formulas apply to all regression models using transformed data. Interest Rate Conversions where: x =.01 Q NOM P C ˆ Y where: x =.01 Q EFF Percent Change 1 2 ⁄ x 2 x ∑     2 n -------------------...

94 Appendix — Reference Information where: OLD =old value NEW =new value %CH =percent change #PD =number of periods Profit Margin Breakeven PFT = P Q N ( FC + VC Q ) where: PFT =profit P =price FC =fixed cost VC =variable cost Q =quantity Days between Dates With the Date worksheet, you can enter or ...

Appendix — Reference Information 95 where: M1 =month of first date DT 1 =day of first date Y 1 =year of first date M 2 =month of second date DT 2 =day of second date Y 2 =year of second date MB =base month (January) DB =base day (1) YB =base year (first year after leap year) 30/360 day-count method ...

96 Appendix — Reference Information Error Messages Note: To clear an error message, press P . Error Possible Causes Error 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. • Statisti...

98 Appendix — Reference Information Accuracy Information The calculator stores results internally as 13-digit numbers but displays them rounded to 10 digits or fewer, depending on the decimal format. The internal digits, or guard digits, increase the calculator’s accuracy. Additional calculations us...

Appendix — Reference Information 99 Battery Information Replacing the Battery Replace the battery with a new CR2032 lithium battery. Caution: Risk of explosion if replaced by an incorrect type. Replace only with the same or equivalent type recommended by Texas Instruments. Dispose of used batteries ...

100 Appendix — Reference Information • Install battery according to polarity (+ and - ) diagrams. • Do not place non-rechargeable batteries in a battery recharger. • Properly dispose of used batteries immediately. • Do not incinerate or dismantle batteries. • Seek Medical Advice immediately if a cel...

Appendix — Reference Information 101 If you experience difficulties other than those listed above, press & } ! to clear the calculator, and then repeat your calculations. Note: You can also perform a hard reset using the reset hole in back of the calculator. Texas Instruments Support and Service...

102 Appendix — Reference Information Texas Instruments (TI) Warranty Information Customers in the U.S. and Canada Only One-Year Limited Warranty for Commercial Electronic Product This Texas Instruments ("TI") electronic product warranty extends only to the original purchaser and user of the ...

Appendix — Reference Information 103 This Texas Instruments electronic product warranty extends only to the original purchaser and user of the product. Warranty Duration. This Texas Instruments electronic product is warranted to the original purchaser for a period of one (1) year from the original p...

Index Index 105 Symbols #PD (number of periods) 72 , 73 , 74 #PD (number of periods, Percent Change/Compound Interest worksheet) 72 %CH (percent change) 72 , 73 , 74 ( - (negative) indicator 3 ( #$ indicator 3 ( 1 (value entered) indicator 3 ( G X (sum of X) 65 , 67 ( G X² (sum of X²) 65 , 67 ( G XY...