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Texas Instruments BAII PLUS Tutorial

Texas Instruments BAII PLUS Tutorial

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<strong>Texas</strong> <strong>Instruments</strong> <strong>BAII</strong> <strong>PLUS</strong> <strong>Tutorial</strong><br />

Page 7<br />

ENTER<br />

0 Sets CF 0 equal to 0 and moves to CF 1 .<br />

ENTER<br />

50 Sets CF 1 equal to 50 and moves to frequency of occurrence of CF 1 .<br />

ENTER<br />

1 Tells calculator that the $50 CF occurs only once.<br />

100<br />

1<br />

150<br />

1<br />

200<br />

ENTER<br />

ENTER<br />

ENTER<br />

ENTER<br />

ENTER<br />

<br />

<br />

<br />

<br />

<br />

1<br />

ENTER<br />

The CFs from the time line are entered. Now enter the interest rate.<br />

NPV ENTER<br />

10<br />

<br />

At this point the <strong>BAII</strong> <strong>PLUS</strong> knows the cash flows, the number of periods, and the interest rate. To find<br />

CPT<br />

the PV, press to get PV = NPV = $377.40.<br />

Example 2: Embedded Annuities<br />

We have these cash flows, which contain embedded annuities:<br />

0 10%<br />

1 2 3 4 5 6 7 8 9<br />

/)))))))3))))))3))))))3))))))3))))))3))))))3))))))3))))))3))))<br />

))1<br />

0 100 100 100 200 200 300 300 300 300<br />

What’s the PV?<br />

Clear, set P/YR = 1 if changed.<br />

First enter the cash flow worksheet by pressing<br />

CF<br />

then clear any previous cash flow analyses,<br />

2nd<br />

CLR WORK<br />

. Next, enter the cash flows:

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