
Further, the price of an asset is treated as a cash outflow at date zero. We adopt the convention that cash inflows are positive and outflows are negative. Present Value Mixed Stream Problems Define CF0 as the date zero cash flow, CF1 as the date one cash flow, etc. Number of Payments: Input 8, 1, and 5.8666. Future Value Annuity Problems Assume N = 5, I/Y = 8%, PMT = $ -1, and FV = $ 5.8666. Number of Payments: Input 8, 1, and 3.9927. It is the Internal Rate of Return of the annuity. This is the interest rate implicit in the cash flow stream and the PV. Imagine all the different possible combinations and interpret each one as a financial problem. Of a loan, and ask to solve for the periodic Payment (PMT). For example, you may be given the Number of Payments (N), the Interest Rate (I/Y), and the Present Value (PV) Present Value Annuity Problems In a present value annuity problem, we are given three of four possible inputs (N, I/Y, PMT, and PV) and are asked to solve for the one not given. To make matters concrete, assume N = 10, I/Y = 6%, PV = $ -1, and FV = $1.7908. In lump-sum problem, we are given three of four possible inputs (N, I/Y, PV, and FV) and are asked to solve for the one not given. These definitions correspond to the third row of keys on your calculator. Present and Future Value of a Lump Sum Define N = Number of Payments, I/Y = Interest Rate, PV = Present Value, PMT = Payment, and FV = Future Value. If display reads press, so that display reads Then exit by pressing. Check if Payments are End-of-Year: Press. is up arrow (third key first row), and is down arrow. All rights reserved.Instructions for using Texas Instruments BA II Plus Calculator by Joel Barber RECOMMENDED INITIAL SETTINGS Note: An expression in brackets is a calculator key.

TI-83 Plus and TI-84 Plus family (including the TI-84 Plus C Silver Edition): jsTIfied and Wabbitemu.
