Calculators for Course 2

[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

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]

Originally Posted by 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.

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 .

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, BA II PLUS, TI-30X IIS.

[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