Calculators for Course 2

[VernSchil]

Right now I have the TI-30X which I used for Course 1. I hear the BA-35 and BA II Plus have a bunch of interest functions. I would imagine this would come in extremely handy, but from people who've taken course 2 and used these calculators, just how useful are they? And if these financial calculators do have such an advantage over the 30X such that it would warrant me buying one, which one do you all think is more useful. I'd be using this calculator for the exam(s) only, as I use an HP-12c for work related calculation.

[avocadoboy]

In my opinion it is a definite advantage to have one of these financial calculators, and when you consider that they only cost $20 - $25 I can't imagine why anyone would not want to buy one. Sure you can do the problems without it, but in the exam your scraping for every mininute you can, and having a calculator that does present values and future values will save you time.

[glenn]

I've got the BA35 battery(old style), BA35, TI30XIIS, and the new BA35 Plus. The BA35 Plus is hands down the best of the bunch. Get two.

glenn

[Summer]

I have had so many of those calculators and have lost them all (I think I have had at least 6). If i can't find one around the house before my exam, I am definitely buying one.

I think it just lessens the calculation time, adn on these exams, the more time you have the better.

[Alya]

Right now I have the TI-30X which I used for Course 1. I hear the BA-35 and BA II Plus have a bunch of interest functions. I would imagine this would come in extremely handy, but from people who've taken course 2 and used these calculators, just how useful are they? And if these financial calculators do have such an advantage over the 30X such that it would warrant me buying one, which one do you all think is more useful. I'd be using this calculator for the exam(s) only, as I use an HP-12c for work related calculation.

Are you going to calculate all " a double dots" by hand? If you think you will have that much time ... I don't know if they still give this type of questions, but what if you need to back into interest rate from annuity? Don't think you can do this w/o a calculator. By the way, you will need same BA-35 for C3, C4 (statistics), C5 (pension annuities), ... So it looks like a good investment.

And if you are working (pension consulting?), so why not let your employer get you a nice $25 present?

[Avi]

Well, right now I'm studying for Course 2 (or I should be at least) and I find it simpler to work with the TI-30X IIS than the BA II Plus. Somehow I find the plethora of options confuses me on the II Plus with beginning and end etc. If I just plug the formulas into the 30X IIS I usually find my accuracy is higher even though it does take more time.

--Avi

[Macroman]

It's more important to learn the material than the calculator. It's still very important to know how to use a financial calculator, and it's actually not all that easy.

Don't figure that you will want to work out all the problems longhand when it comes to the exam or you'll be sorry

[VernSchil]

Well, my BA-35 came in today, and much to my dismay I noticed that the nPr and nCr keys seem to be missing. From people who've already studied for and/or taken course 2, are there keys such as nPr and nCr that would commonly require utilization during the actual Course 2 exam that are missing from the BA-35 but present on a scientific calculator like the Ti-30x? I'll be annoyed if I have to go order a 30x again ( I already gave my old one to a co-worker) Thanks.

[Bama Gambler]

Well, my BA-35 came in today, and much to my dismay I noticed that the nPr and nCr keys seem to be missing. From people who've already studied for and/or taken course 2, are there keys such as nPr and nCr that would commonly require utilization during the actual Course 2 exam that are missing from the BA-35 but present on a scientific calculator like the Ti-30x? I'll be annoyed if I have to go order a 30x again ( I already gave my old one to a co-worker) Thanks.

You will not need those keys for course 2, but they do help (a little) for course 3.

[Bama Gambler]

Well, right now I'm studying for Course 2 (or I should be at least) and I find it simpler to work with the TI-30X IIS than the BA II Plus. Somehow I find the plethora of options confuses me on the II Plus with beginning and end etc. If I just plug the formulas into the 30X IIS I usually find my accuracy is higher even though it does take more time.

--Avi

Learn how to use the calculator!!! I can work 90% of the interest theory problems with out picking up a pencil. This gives you a lot of extra time to figure out those tricky finance, micro, and macro problems. In fact, I finished the exam in less than 3 hours. I left the exam room 45 minutes early. I got a 9. I learned how to use the calculator from Bob Batten.

I love the Crimson Tide!!
Bama Gambler

[Bama Gambler]

BTW, while I didn't use HTP for the interest theory portion of course 2, I think he has some calculator stuff in there.

[Bama Gambler]

Post an exam problem with numbers (i.e. not one with just symbols) and I try to give you a list of keystrokes to solve the problems.

[littlegenius]

Bama Gambler,

Which calculator you are talking about for calculating the interest theory part?

[Bama Gambler]

Bama Gambler,

Which calculator you are talking about for calculating the interest theory part?

BA-35 Solor, but any calculator with financial functions will do.

[GenkiGirl]

What are the differences between the BA35 and the BA35 Plus. I just realized i have the non plus one and am wondering if I should go looking for the other one. Also are they both ok for the test???\

GG

[glenn]

GG: Both are OK for the test. The calculators are different enough however, that they aren't really the same calculator. I recommend getting the Plus.

[Avi]

Post an exam problem with numbers (i.e. not one with just symbols) and I try to give you a list of keystrokes to solve the problems.

Well, I haven't been studying these past two weeks, truth be told. After I got my scores back for Course 1, I went on job interviews, and thankfully got a decent job that very week. However, it starts Aug 19, so I have to prepare to move from Miami to New York in that short amount of time :o .

So between packing my family, making arrangements for temporary housing in NY, and having my wife be able to join me only 3 weeks from now (HER work) I've put my books and calculators down until I finally get to NY.

I still hope to sit for the Nov session of Course 2, but I am a tad less optimistic about my scores now :D .

When I get back to normalcy I'll take you up on it :)

Thanks

[Tomoyo]

An example from the BA II Plus book:
A bank is offering a certificate that pays a nominal interest rate of 15% with quarterly compounding. What is the annual effective interest rate?

TI-30X
Use the formula i = (1 + (i^(m)/n))^n - 1.
(1 + (.15/4))^4 - 1 = .15865.

BA-35
Input the following keys: 15 [2nd] [EFF] 4 [=]
to get the annual effective interest rate 15.865%.

BA II Plus
Access the Interest Conversion Worksheet by inputting [2nd] [ICONV].
Clear previous data with [2nd] [CLR WORK].
Input 15 [ENTER] for NOM = 15.00.
Press up once, then input 4 [ENTER] for C/Y = 4.00.
Press up again so "EFF =" is showing, then press [CPT] to get EFF = 15.87.

See the FAQs and guidebooks on the TI website for more info: BA-35 Solar (http://education.ti.com/product/tech/ba35s/features/features.html), BA II PLUS (http://education.ti.com/product/tech/baii/features/features.html), TI-30X IIS (http://education.ti.com/product/tech/30xiis/features/features.html).

[J-Man]

Isn't the big advantage of the BA Plus that you can do irregular cash flows? I think NPV can be done with irregular cash flows and also the IRR can be found. This is a big advantage of this one over the others. (When I took course 2, one of the questions on the exam involved computing the IRR -- there so few cash flows that the equation was a quadratic in IRR and could be solved.) I still think that for ordinary calculations, the 30XIIS is the best. The person that said you will need to back out an interest rate from an annuity value is correct -- you need a financial calculator for this -- they do this on purpose.

:)

[Bama Gambler]

An example:

The present value of a 15 year annuity paying 25 per year is 161.60. What is the effective annual interest rate?

Solve formula:

100*{(1-v^n)/i}=161.6
100*{(1-(1/(1+i))^25/i}=161.6


Or use BA-35:
[2nd][CMR] 'clear the financial keys
15[N] 'N = number of years = 15
161.6[PV] 'PV = present value = 161.6
25[PMT] 'PMT = payment = 25
[CPT][%i] 'compute the interest rate

Answer = 13%.

BTW, if you hit [2nd][BGN] the calculator assumes all payments are made at the beginning of the period.

Bama Gambler

[RiSK kid]

thanks for the help everyone,

Now the easy part....

passing course 2 :D

[Bama Gambler]

Nov. 01 #6:

[2nd][CMR] 'Clear the registers
10[N]
2000[PV]
8.07[%i]
[CPT][PMT] 'compute yearly payment for option 1
[X]10[=] 'total payments for option 1
[-]2000[=] 'subtract 2000 (200 per month) for option 2
[/]11000[=] 'see below
Ans = 9%.


Unpaid balance at time 0 = 2000 so extra payment (interest payment_ at time 1 = 2000i
Unpaid balance at time 1 = 1800 (2000 - 200 principle payment) so interest payment at time 2 = 1800i
...
Unpaid balance at time 9 = 200 so interest payment at time 10 = 200i

2000i + 1800i + .... + 200i = i(2000+200)*10/2 = 11000i

Roll Tide,
Bama Gambler

[Bama Gambler]

Best way to do interest theory problems:

1. Read the problem carefully. Pay close attention to type of interest rate (effective vs. nomial). Play close attention to the timing of cash flows (end of period vs. beginning of period).

2. Re-read the problem.

3. Draw a time diagram.

4. Write down equation(s).

5. Pick up a financial calculator and solve.

Bama Gambler

[Avi]

Thanx for the advice. Now if I can just start studying again..... :wink: