how to use ba ii plus to calculate pv

0000004701 00000 n 0000005227 00000 n 0000003885 00000 n H��VmO�0�^��>:�0�c��Đ+��@h�4Mh2jh��4��ww!�N�M��w��y��^��?A||'�N�d2�)PF�&�Á�hee��ә�L��p��e/o��!��$:��x%"#��UtЬϢT�K�/"'ʛ9~+ͮ��F�D�X/Z��K�TE?`�y8a�se��2u�Q^#�[]�l$��5(�M��ҀÂh��V�0��k#�P�K,��0��{��I{w�J�Ru��u��`d-ꙏT,��k��)�ʴL��sdE��SjjM�3\�*��b��+C��Ke��w�[�J�33�= ��H߁�J��>�|E��^FV�)�' 0000002977 00000 n 0000003028 00000 n PMT should be entered as a positive value when the account balance is increasing. We have looked at the PV/FV calculations for single sums of money and for annuities in which all the cash flows are equal. We will now look at how to calculate the PV and FV of such an uneven series of cash flows. While the time value of money keys can find the present value of a lump sum payment or stream of cash flows that does not change over the whole investment horizon, the NPV function does even more. FV4: PV = +1,500, N = 1, I/Y = 8. endstream endobj 252 0 obj<>>> endobj 254 0 obj<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]/ExtGState<>>>/Group<>/StructParents 0/Tabs/S>> endobj 255 0 obj[226 0 0 0 0 0 0 0 0 0 0 0 0 0 0 430 0 507 507 0 0 0 0 0 0 0 276 0 0 0 0 0 0 606 561 529 630 488 459 637 0 267 0 0 0 874 659 0 532 0 0 0 495 0 591 0 0 520 0 0 0 0 0 0 0 494 537 418 537 503 316 474 537 246 0 480 246 813 537 538 537 0 355 399 347 537 473 745 0 474] endobj 256 0 obj<> endobj 257 0 obj<> endobj 258 0 obj<> endobj 259 0 obj<>stream 0000013402 00000 n CPT > FV = -$755.827. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute. 0 0000275948 00000 n 253 0 obj<>stream All rights reserved. 0000288632 00000 n CPT > FV = +$2,000. CPT > FV = -$680.244. %PDF-1.5 %�� Nominal Interest Rate and Effective Yield, Time Value of Money for Different Compounding Frequencies, Future Value and Present Value of Ordinary Annuity, Present Value and Future Value of Annuity Due, Present Value and Future Value of Uneven Cash Flows, Annuities with Different Compounding Frequencies, Using a Timeline to Solve Time Value of Money Problems, Time Value of Money Quiz 1 ( Reading 6, CFA Level I), CFA® Exam Overview and Guidelines (Updated for 2021), Changing Themes (Look and Feel) in ggplot2 in R, Facets for ggplot2 Charts in R (Faceting Layer). The negation key is at the lower right (+| –). 0000006601 00000 n 0000004409 00000 n High Quality tutorials for finance, risk, data science. 0000302409 00000 n 0000011586 00000 n So, if you look at the mathematics here, what we’ve got is the present value of some end of period payments. 0000001733 00000 n 0000275879 00000 n The net present vale (NPV) function on the BA II Plus Financial Calculator finds the present value of a stream of cash flows. 0000002035 00000 n 0000007954 00000 n PMT should be entered as a 0 if there is no payment. FV3: PV = +1,000, N = 2, I/Y = 8. To calculate the future value of this series of cash flows, we will need to treat each cash flow as an independent cash flow and calculate its future value. 0000179246 00000 n CPT > FV = +$2,000, Future Value of cash flows = Sum of all Future Values = $3350.328, PV1: FV = -500, N = 1, I/Y = 8. 0000288480 00000 n Suppose that you are offered an investment that will pay you $1,000 per year for 10 years. 0000004578 00000 n 0000001913 00000 n 0000002736 00000 n Copyright © 2020 Finance Train. FV2: PV = -600, N = 3, I/Y = 8. However, there may be an investment where the cash flows are not equal. 0000008784 00000 n The present value of the uneven series of cash flows can also be calculated using the Cash Flow (CF) key and NPV function. 0000302597 00000 n CPT > FV = -$755.827, FV3: PV = +1,000, N = 2, I/Y = 8. 0000010576 00000 n 0000013798 00000 n 0000004991 00000 n 0000012573 00000 n \2e@hBѹ.L�w捃2��V�� 3״��1k|�2�# %%EOF 0000302176 00000 n 0000006223 00000 n Assuming an interest rate of 8%, we will now calculate the present value and future value of this uneven series of cash flows. x�bbb`b``Ń3� �� w�� CPT > FV = +$1,620, FV5: PV = +2,000, N = 0, I/Y = 8. As with the IRR and NPV calculations, to use the data functions in your TI-BA II Plus, you must first familiarize yourself with the up and down arrows (↑↑↓↓) at the top of the keyboard. 0000275846 00000 n These keys will help you navigate your way through the data entry process. CPT > PV = +$1,361.166, Future Value of cash flows = Sum of all Future Values = $2280.177. 0000002456 00000 n 0000013638 00000 n 0000004860 00000 n CPT > FV = +$1,166.400 . 0000003665 00000 n The following calculations are demonstrated using BA II Plus calculator. endstream endobj 303 0 obj<>/W[1 1 1]/Type/XRef/Index[24 227]>>stream FV1: PV = -500, N = 4, I/Y = 8. 0000288953 00000 n endstream endobj 260 0 obj[283 0 R] endobj 261 0 obj[278] endobj 262 0 obj<> endobj 263 0 obj[226 0 0 0 507 715 0 0 303 303 0 498 250 306 252 386 507 507 507 507 507 507 507 507 507 507 268 268 0 498 0 463 0 579 544 533 615 488 459 631 623 252 319 520 420 855 646 662 517 673 543 459 487 642 567 890 0 487 0 0 0 0 0 0 0 479 525 423 525 498 305 471 525 230 0 455 230 799 525 527 525 525 349 391 335 525 452 715 433 453 0 0 460] endobj 264 0 obj<> endobj 265 0 obj<> endobj 266 0 obj<> endobj 267 0 obj<> endobj 268 0 obj<> endobj 269 0 obj<> endobj 270 0 obj<>stream TI BAII Plus Financial Calculator To enter data: ... PV means “present value.” PMT is the dollar amount of the payment. We will adopt the procedure that we used to calculate the future value of a single cash flow. 0000004235 00000 n 0000009794 00000 n x�b```b``��s�A��X��,{�'z7�~ ��\�`�,�U6��2$�ו/=��I$b�Sr"��u�&Ef�"n�O�ܺ��P]��P�-(�c w4 �|,�� iC 6kcd8�� x�� P0�!�|Nf &�[��3H�~��r��-��c �w��Fl�4�3��^Áac��3��qf��0:�� `�@�[��+ H3C/"` f�C~ 0000001383 00000 n CPT > FV = +$1,166.400, FV4: PV = +1,500, N = 1, I/Y = 8. This is N periods from now, supposed to be equals N there. 0000302571 00000 n CPT > FV = +$1,620. 0000006356 00000 n 0000003643 00000 n CPT > PV = -$462.963, PV2: FV = -600, N = 2, I/Y = 8. startxref FV1: PV = -500, N = 4, I/Y = 8. trailer _v/*��D��R'H�ض��> 'Ej 9�"o�fm7�T$��x�s�ؓ��6��X��j�vl�:�Kw �gj�Dd�n�a"�V�OҘ��]޵�.Y�X�+.^�pc�;�I�j��}��ٷ�I��F?��o�g�X@L��җ�e{�Ɋ�'g�">y��z��D��X��U��\�|$��H�%��D�zRDfZى,h �]�DF��I��P�ф�TZ�h9Ec�Κ%��5!d2Dz�Ђ��A�A��}/�jj �7wB�\��JT"[Y��V-!�*�Z4��A�_i�?i��N 8�q�6�ӫfz�F%�r"X)��H2j�� t�hwW0�40A�A�.RL"�z*O&�-"�� TX}θF�\�C�f�� And this is time equals two. 0000000016 00000 n <]>> 0000288254 00000 n If this is the end of the first period, that’s time one, one period from now. 0000007007 00000 n 0000003617 00000 n To calculate the future value of this series of cash flows, we will need to treat each cash flow as an independent cash flow and calculate its future value. If you can earn a rate of 9% per year on similar investments, how much should you be willing to pay for this annuity?In this case we need to solve for the present value of this annuity since that is the amount that you would be willing to pay today. 0000093205 00000 n 0000288658 00000 n 251 0 obj<> endobj 0000289055 00000 n CPT > FV = -$680.244, FV2: PV = -600, N = 3, I/Y = 8. CPT > PV = -$514.403, PV3: FV = +1,000, N = 3, I/Y = 8. We will adopt the procedure that we used to calculate the present value of a single cash flow. 0000092676 00000 n PMT should be entered as a negative value when the account balance is decreasing. ��_�.��.��hi�Vv�@�2�WlA�|)�K��EF��_͗�HYI" �t�hɎ�Ij��(oXN�[��p;l/Ҿ�`A�k�v��1x+"?��dyl�ыz*��ա�;��a/�ti�XU. 0000013867 00000 n CPT > PV = +$793.832, PV4: FV = +1,500, N = 4, I/Y = 8. ��䱨)W5��ݑ�d��Hd��&��2�&7�ی��K:��6Ns�� '��8)��%�ud��I��!�@x"�D�X� �7�"�п� q��c�N��^p�� J��k��4��_��ͦ#�Ed]��A�F�ݓ�O��+R�r�ji�I�}=�a��gk�Ua��N�Ih[x\��x5/��Y�U�!֦�\��>YY�A�>�Z��{%i� ��[�4��!�\"�}L0��ڜ"c��8v�qwԚ]�V��w+�ݗ@�I�;��{Mwg��ۙ��^[��/J�/ 0000288986 00000 n 251 53 0000006831 00000 n Enter the numbers into the appropriate keys: 10 into N, 9 into I/Y, and 1000 (a cash inflow) into PMT. Press 2nd FV to clear the financial keys. xref FV5: PV = +2,000, N = 0, I/Y = 8. The following calculations are demonstrated using BA II Plus calculator. CPT > PV = +$1,102.545, PV5: FV = +2,000, N = 5, I/Y = 8. 0000003079 00000 n To enter a data series into your BAII Plus… CFA Institute does not endorse, promote or warrant the accuracy or quality of Finance Train. x�}��n�0��y

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