How can I change my TI BAII Plus to calculate business loan payments on a 365 360 basis?

interest is interest
fixed is calculated yearly on the principle and is paid 365 days time
variable changes and is calculated daily ( 1/365 part of the interest rate ) and added to the remaining principle monthly
so if you have a loan of $1000.00 on fixed interest of 10% , regardless of how much you have repaid in a 12 month period , it is 10% of the principle loaned
with a variable interest the interest rate could be 10% today, 15% in 2 months time or 6% later on
it is variable
to add to that it is calculated on a daily basis (1/365 of 10%) and added to the principle left after receiving a payment on the loan
so for a $1000.00 the interest is added to that principle at the end of the month if there is no loan repayment or is added to the principle balance after a payment
the difference is that a variable interest rate loan will allow you to save money if you pay off well before the period of the loan but will add almost 2 to 3 times the loan if you pay the absolute minimum for the period of the loan
a fixed rate is where you know exactly the total interest to be paid at the end of term

$596.57 is what I get with payments occurring at the beginning of the month. Set it to handle payments at the end of the month. My calculator gives $599.55 for this case.

I'm not sure about the BA RE, but on the BA-II Plus you change the Begin/End setting by pressing 2nd [BGN] and 2nd [SET].

GOOD QUESTION, Patweetyp...

I've got you covered.

Seeing how it's been three weeks since you posted this there's a chance you've already gotten your answer, but let me go ahead solve this for those out there who may have had the same problem.

Background: There are FIVE TVM Keys; and as you would assume, you MUST input FOUR of them in order for the BA II Plus to solve for the fifth. Now let's get down to business.

1. Hit CLR TVM. [This is just a cleanup maneuver]
1a. Hit ENTER [yes, BA II Plus always needs to be told to store the value, ALWAYS]
2. Type in -2400
3. Hit PV [Since you are investing money at time 0, your present value is negative 2400]
3a. Hit ENTER
4. Type 6
5. Hit I/Y [Your annually compounded interest rate is 6 percent]
5a. Hit ENTER
6. Type 0
7. Hit PMT [you do not have any recurring deposits*]
7a. Hit ENTER
8. Type 1
9. Hit N [there is one year until expiration/liquidation/termination]
9a. Hit ENTER
10. Hit CPT
11. Hit FV [this is your ANSWER = 2544]
----- From here, all you would need to do is change N in order to get your other answers (5 years, 10 years, etc) ----

*If your calculation does not require a recurring payment then you really just have a basic equation of value which would be solved faster by hand. (IE, 2400*(1.06)^1=FV=2544).

You'll notice that I underlined "annually compounded" as well as "one year". The reason for this is because you ALWAYS need your interest term to match your time interval. For instance, if you had monthly payments of which you wanted the year-end total you would need a monthly effective interest rate, and N would be 12.



Okay, I hope that helped. The BAII Plus is the best calculator for time-value-money calculations I've come across. When things get more advanced, you will start using the amortization table which cannot be found in any other TI Calculator (from what I know). TVM is perfect for annuities, mortgages, loans, bonds, and more.

[email protected] for more questions.
TEXAS INSTRUMENTS = 1-800-TI-CARES...they are friendly.

You can download the manual from the manufacturer's web site at
http://education.ti.com/calculators/downloads/US/Guidebooks/Detail?id=6114

If $100,000.00 loan: enter 100000. in pv, if interest rate is 5%, enter 5 divided by 12 = %i if 30 year mortgage, enter 360 N enter 2nd PMT to get monthly principle and interest. You may have already solved this problem.

Once you're in the TVM solver:
On the top line (N=) type in 5 * 12 ENTER for five years of month payments.
On the I% lline type in 5.5 / 12 ENTER for the month interest rate.
On the PV line type in 18000 ENTER
Make sure the FV is 0 and END is highlighted on the bottom line.
Move the cursor to the PMT line and press ALPHA [SOLVE] (that's ALPHA ENTER) and see -343.82 for the monthly payment.

No. To the nearest cent, the monthly interest is $162.50. The monthly payments only pay the interest, without reducing the principal.

Check to make sure you have the proper value set for payments-per-year.

Are you putting 30x12=360 for N? Since you have monthly payments, you have to compute it a little different. Also, you have to find the effective monthly interest rate. 1.0575^(1/12) = .4669839%.

Another way is to enter 30 for N and 5.57 for I/Y, and change P/Y to 12.

Hope this helps!

http://education.ti.com/educationportal/downloadcenter/SoftwareDetail.do?website=US&tabId=2&appId=6114