Using a Financial Calculator

Using a Financial Calculator

(1) Setting up your calculator

TI-BA II Plus

(a) Set the display format to four decimals (the default is two decimals) by first pressing 2nd FORMAT to enter the format worksheet, then pressing 4 ENTER. Then press 2nd QUIT.

(b) Set both the payment(P/Y) and compounding frequency(C/Y) to 1x per period (the default is 12 x per period) by first pressing 2nd P/Y to enter the payment worksheet, then pressing 1 ENTER 1 ENTER. Then press 2nd QUIT.

(c) Set payments to occur at the end of a period. This is the default setting, so you dont need to set up for this. The BGN annunciator should NOT appear in the display. In case BGN appears in the display, press 2nd BGN 2nd SET to toggle between Begin and End modes.

The TI-BA II Plus and HP-10B should remember the latter three setting even after the calculator is turned off. However, sometimes these settings can change for no apparent reason, so check them every once in a while. (2) Please remember

The sign convention:

Treat cash flows you are receiving (such as FV) as positive numbers.

Treat cash flows you are paying out (such as PV) as negative numbers.

To turn a positive number into a negative number, enter the number on your keypad and press +/- .

Before beginning calculations, remember to clear your calculator by pressing

TI-BA II Plus

2nd CLR TVM