I would like some help in solving some TVM problems using the BA II Plus calculator. i.e. How to solve: I invested a lump sum of $2400 in an investment that returns 6% annually. How much will the investment be worth after: a) 1 year b) 5 years c) 10 years d) 30 years

Download the Guide of Calculator form Texas Instruments official website BA II PLUS™ Guidebook - Texas Instruments - US and Canada (ti.com) and refer to page 82 (Reference Information)

Here it is.

Were you also clearing the financial memory with 2nd [CLR TVM], or just the storage memory? If you don't, it's going to keep using whatever value you last used for PMT.

Actually, you don't need the y^x key.

Clear the financial registers with 2nd [CLR TVM]
Enter the present value: 1 0 0 0 0 0 0 +/- FV
Enter the future value: 2 0 0 0 0 0 0 FV
Enter the interest rate: 7 I/Y
Compute the number of periods: CPT N

According to the manual, error 1 indicates "Overflow", a number whose magnitude is greater than 9.9999999999999E99. Error 5 indicates "No solution exists", for example when FV, (N*PMT), and PV all have the same sign.

If you still have trouble, please feel free to reply to this post, giving sample problems producing these errors.

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.

2nd [CLR TVM] (clear old data)
6 2 5 PV (present value)
8 I/Y (annual interest)
1 2 8 4 +/- FV (future value)
CPT N / 1 2 = (compute number of months, divide by 12 to get number of years)

It's more common that one of the settings is not correct. Check the BEGIN/END setting, the number of payments per year, and the number of compounding periods per year.

If you still have problems, please give an example of a TVM problem, with your results and the correct result. Simply saying "incorrect results" doesn't let anyone help you.

Before each calculation of a TVM problem you must fully clear the calculator ... Press [2ND] [CPT] [2ND] [FV]

Best of luck

I get 6.085%. Make sure the fv and pmt are of opposite signs. You're either making annual payments and getting a lump sum back at the end, or receiving annual payments and then paying it all back in a lump at the end. Either way, the money is moving in opposite directions.