BASICS. Access blue functions with [Shift up] Access orange functions with [Shift down]


 Clara Fowler
 3 years ago
 Views:
Transcription
1 CALCULATOR COURSE
2 BASICS Most keys have three functions: Primary function printed in white Secondary function printed in orange Tertiary function printed in blue Access blue functions with [Shift up] Access orange functions with [Shift down]
3 SETTING UP THE CALCULATOR 1 2 DECIMALS To change number of decimals: 1. Press [Shift down] (Orange) 2. Press [DISPLAY] (=) 3. Enter a number between 0 and 9 Standard number of decimals is 4 DECIMAL SEPARATOR Default setup is American (One thousand = 1,000.00) Change to European setup (One thousand = 1.000,00) 1. Press [Shift down] (Orange) 2. Press [,/.] (.)
4 3 4 RAD/DEG Toggle between radians & degree angle measure mode: 1. Press [Shift up] (Blue) 2. Press [RAD/DEG] (+) When RAD is displayed, the calculator is set to radians Make sure RAD IS NOT displayed NUMBER OF PAYMENTS PER PERIOD To check your calculator setting: 1. Press [Shift down] (Orange) 2. Press [Clear all] (C) If you do not see 1 P_Yr, change the set up 1. Enter 1 2. Press [Shift down] (Orange) 3. Press [P/YR] (PMT) 4. Check setting
5 5 6 BEG/END When calculating annuities we pay/receive money at either the beginning or the end of a period. Standard setting is end of period To toggle between beginning and end of period payments/ receivments: 1. Press [Shift down] (Orange) 2. Press [BEG/END] (MAR) Make sure BEG IS NOT displayed ALGEBRAIC/CHAIN Default setting is Algebraic To change setting: 1. Press [Shift up] (Blue) 2. Press [Alg/Chain] (On/Off button) Make sure Algebraic is selected
6 STORING NUMBERS Using constants: Use [K] to store a number and operation Once the constant operation is stored, enter a number and press [=] Example: Store +2 as a constant by entering [+2], followed by [K] Store +10% as constant by entering [+10%], followed by [K]
7 USING THE M REGISTER Perform memory operations on a single storage register Store first number by pressing [ M] Add subsequent numbers by pressing [M+] (Add negative numbers to subtract) Recall the result by pressing [RM]
8 EXERCISE Use the M register to add 17, 14,25, and 16,95. Then subtract 4,65 and recall the result.
9 EXERCISE Use the M register to add 17, 14,25, and 16,95. Then subtract 4,65 and recall the result. 1. Enter 17, and press [ M] 2. Enter 14,25, and press [M+] 3. Enter 16,95, and press [M+] 4. Enter 4,65, and press [M+] 5. Recall result of 43,55 by pressing [RM]
10 USING NUMBERED REGISTERS To store first number: Enter the value you want to store, and press [Shift down] followed by [STO] Enter a number key from 0 to 9, or [.] followed by 0 to 9 to store into a numbered register (20 registers in total) To store subsequent numbers Enter the number, followed [Shift down] and [STO] Enter what operation you want (For example: [+], [], [/], or [*]) Select the register you want to use To recall numbers press [RCL] followed by the register number in which you stored your data
11 NOW YOU TRY! Store 1,25 in register 5 Enter 1,25 Press [Shift down], followed by [STO] and [5] Add 3 to register 5 Enter 3 Press [Shift down], followed by [STO], then [+], and [5] Recall register 5 Press [RCL], followed by [5], to get a value of 4,25
12 TIME VALUE OF MONEY (TVM) Positive values represents money received, negative values represents money paid out Enter any four values to calculate the fifth PV = Present value FV = Future value I/YR = Interest rate per year N = Number of years PMT = Yearly payment
13 EXERCISES 1. You make a deposit of NOK today. If you leave it in the bank for 5 years at an interest rate of 2%, what will your money have grown to? Answer: ,30 NOK 2. Two years ago, you made a deposit of NOK. Today, your balance is ,53. What interest rate did you receive? Answer: 3,84 % 3. You open a bank account today, and make a deposit of NOK every year for 8 years. What is your balance after eight years if the rate of return is 2% and you never withdrew any money? Answer: ,54 NOK
14 EXERCISE #3 Enter 0, and press [PV] Enter 8 years, and press [N] Enter 2, and press [I/YR] Enter , and press [PMT] Press [FV] to find future value FV = ,54
15 CASH FLOW Cash flow application is used when cash flows occur over regular intervals. CF = Cash flow CF0 = Initial investment (negative number) CF1, CF2,, CFn = Cash flow for that year
16 ENTERING A CASH FLOW 1. Clear cash flow memory ( Press [Shift down], and then [Clear All]) 2. Enter value of initial investment, and press [CFj] 3. Enter cash flow for the following year, and press [CFj] 4. Repeat step 3 for all cash flows
17 ENTER CASH FLOW Initial investment Cash flow year 1 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year
18 ENTER CASH FLOW Initial investment Cash flow year 1 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year Enter , and press [CFj] Enter 400, and press [CFj] Enter 550, and press [CFj] Enter 300, and press [CFj] Enter 250, and press [CFj] Enter 250, and press [CFj]
19 REPEAT VALUES Repeat value refers to the frequency of a cash flow (i.e. how many times that cash flow occurs) Standard setting is 1, which means that each cash flow occurs only once To change the frequency: 1. Fill in cash flow as usual (Enter value, and press [CFj]) 2. Enter the amount of times this cash flow occurs (for example 3 times) 3. Press [Shift down], and then [Nj]
20 ENTER CASH FLOW Initial investment Cash flow year 1, 2, & 3 Cash flow year 4, &
21 ENTER CASH FLOW Initial investment Cash flow year 1, 2, & 3 Cash flow year 4, & Enter , and press [CFj] 2. Enter 400, and press [CFj] 3. Enter 3, press [Shift down], and then [Nj] 4. Enter 200, and press [CFj] 5. Enter 2, press [Shift down], and then [Nj]
22 NET PRESENT VALUE The present value of future net cash flows 1. Enter cash flow for all years 2. Enter discount rate, and press [I/YR] (Enter 5% as 5, not 0,05) 3. Press [Shift down], and then [NPV]
23 EXERCISE You are offered a choice between two investments. You can only choose one. Given the cash flows and a discount rate of 3%, which yields the highest net present value (and should be chosen)? Investment A Initial investment Year 1, 2, & 3 Year 4 & Investment B Initial investment Year 1 Year
24 EXERCISE Investment A Initial investment Year 1, 2, & 3 Year 4 & 5 Investment B Initial investment Year 1 Year Net present value 481,66 1. We have already entered this cash flow 2. Enter 3, and press [I/YR] 3. Press [Shift down], and press [NPV] Net present value 316, Enter , and press [CFj] Enter 900, and press [CFj] Enter 1.000, and press [CFj] Enter 3, and press [I/YR] Press [Shift down], and press [NPV]
25 INTERNAL RATE OF RETURN The discount rate that yields a net present value of zero 1. Enter cash flow for all years 2. Press [Shift down], and then [IRR/YR] Investment A Initial investment Year 1, 2, & 3 Year 4 & Investment B Initial investment Year 1 Year
26 Investment A Initial investment Year 1, 2, & 3 Year 4 & 5 Investment B Initial investment Year 1 Year Internal Rate of Return 16,99% Internal Rate of Return 21,00% Enter , and press [CFj] Enter 400, and press [CFj] Enter 3, press [Shift down], and then [Nj] Enter 200, and press [CFj] Enter 2, press [Shift down], and then [Nj] Press [Shift down], and then [IRR/YR] Enter , and press [CFj] Enter 900, and press [CFj] Enter 1.000, and press [CFj] Press [Shift down], and then [IRR/YR]
27 ANY QUESTIONS?
Hewlett Packard (HP) 10BII
Hewlett Packard (HP) 10BII The HP10BII is programmed to perform two basic types of operations: statistical operations and financial operations. Various types of computations are activated by depressing
More informationUsing Financial Calculators
Chapter 4 Discounted Cash Flow Valuation 4B1 Appendix 4B Using Financial Calculators This appendix is intended to help you use your HewlettPackard or Texas Instruments BA II Plus financial calculator
More informationBUSI 121 Foundations of Real Estate Mathematics
Real Estate Division BUSI 121 Foundations of Real Estate Mathematics SESSION 2 By Graham McIntosh Sauder School of Business University of British Columbia Outline Introduction Cash Flow Problems Cash Flow
More informationCalculator (HewlettPackard 10BII) Tutorial
UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT Calculator (HewlettPackard 10BII) Tutorial To begin, look at the face of the calculator. Most keys (except a few) have two functions: Each key s primary function
More informationUsing Financial And Business Calculators. Daniel J. Borgia
Using Financial And Business Calculators Daniel J. Borgia August 2000 Table of Contents I. Texas Instruments BA35 SOLAR II. Texas Instruments BAII PLUS III. Hewlett Packard 12C IV. Hewlett Packard 17BII..
More informationDiscounted Cash Flow Valuation
Discounted Cash Flow Valuation Chapter 5 Key Concepts and Skills Be able to compute the future value of multiple cash flows Be able to compute the present value of multiple cash flows Be able to compute
More informationEhrhardt Chapter 8 Page 1
Chapter 2 Time Value of Money 1 Time Value Topics Future value Present value Rates of return Amortization 2 Time lines show timing of cash flows. 0 1 2 3 I% CF 0 CF 1 CF 2 CF 3 Tick marks at ends of periods,
More informationUsing Financial and Business Calculators. Daniel J. Borgia
Using Financial and Business Calculators Daniel J. Borgia Table of Contents Texas Instruments (TI) BA35 SOLAR......................................1 Texas Instruments (TI) BA II PLUS........................................11
More informationNote: In the authors opinion the Ativa AT 10 is not recommended as a college financial calculator at any level of study
Appendix 1: Ativa AT 10 Instructions Note: DNS = Does Not Calculate Note: Loan and Savings Calculations Automatically round to two decimals. Clear Store Data in Memory Recall Stored Data in Memory [CE]
More informationHewlettPackard 10B Tutorial
To begin, look at the face of the calculator. Every key (except one, the gold shift key) on the 10B has two functions: each key's primary function is noted in white on the key itself, while each key's
More informationContinue this process until you have cleared the stored memory positions that you wish to clear individually and keep those that you do not.
Texas Instruments (TI) BA II PLUS Professional The TI BA II PLUS Professional functions similarly to the TI BA II PLUS model. Any exceptions are noted here. The TI BA II PLUS Professional can perform two
More informationTexas Instruments BAII PLUS Tutorial
To begin, look at the face of the calculator. Almost every key on the BAII PLUS has two functions: each key's primary function is noted on the key itself, while each key's secondary function is noted in
More informationCHAPTER 2. Time Value of Money 21
CHAPTER 2 Time Value of Money 21 Time Value of Money (TVM) Time Lines Future value & Present value Rates of return Annuities & Perpetuities Uneven cash Flow Streams Amortization 22 Time lines 0 1 2 3
More informationIn this section, the functions of a financial calculator will be reviewed and some sample problems will be demonstrated.
Section 4: Using a Financial Calculator Tab 1: Introduction and Objectives Introduction In this section, the functions of a financial calculator will be reviewed and some sample problems will be demonstrated.
More informationhp calculators HP 12C Net Present Value Cash flow and NPV calculations Cash flow diagrams The HP12C cash flow approach Practice solving NPV problems
Cash flow and NPV calculations Cash flow diagrams The HP12C cash flow approach Practice solving NPV problems How to modify cash flow entries Cash Flow and NPV calculations Cash flow analysis is an extension
More informationIntroduction to the HewlettPackard (HP) 10BII Calculator and Review of Mortgage Finance Calculations
Introduction to the HewlettPackard (HP) 10BII Calculator and Review of Mortgage Finance Calculations Real Estate Division Sauder School of Business University of British Columbia Introduction to the HewlettPackard
More informationHOW TO USE YOUR HP 12 C CALCULATOR
HOW TO USE YOUR HP 12 C CALCULATOR This document is designed to provide you with (1) the basics of how your HP 12C financial calculator operates, and (2) the typical keystrokes that will be required on
More informationKey Concepts and Skills
McGrawHill/Irwin Copyright 2014 by the McGrawHill Companies, Inc. All rights reserved. Key Concepts and Skills Be able to compute: The future value of an investment made today The present value of cash
More informationTexas Instruments BA II Plus. Calculator tutorial
Chartered Financial Analyst Program Texas Instruments BA II Plus calculator tutorial Nicholas J Blain, CFA Chief Executive Quartic Training 1 outline 0. Calculator setup and introduction 1. Basic algebra
More informationInstructions for Using the Casio FC range of Business/Financial Calculators
Instructions for Using the Casio FC range of Business/Financial Calculators These instructions are based on the Casio FC100 Financial Consultant calculator, and may vary slightly with different models.
More informationHP 12C Calculations. 2. If you are given the following set of cash flows and discount rates, can you calculate the PV? (pg.
HP 12C Calculations This handout has examples for calculations on the HP12C: 1. Present Value (PV) 2. Present Value with cash flows and discount rate constant over time 3. Present Value with uneven cash
More informationCHAPTER 9 Time Value Analysis
Copyright 2008 by the Foundation of the American College of Healthcare Executives 6/11/07 Version 91 CHAPTER 9 Time Value Analysis Future and present values Lump sums Annuities Uneven cash flow streams
More informationTime Value of Money. If you deposit $100 in an account that pays 6% annual interest, what amount will you expect to have in
Time Value of Money Future value Present value Rates of return 1 If you deposit $100 in an account that pays 6% annual interest, what amount will you expect to have in the account at the end of the year.
More informationhp calculators HP 12C Internal Rate of Return Cash flow and IRR calculations Cash flow diagrams The HP12C cash flow approach
Cash flow and IRR calculations Cash flow diagrams The HP12C cash flow approach Practice with solving cash flow problems related to IRR How to modify cash flow entries Cash Flow and IRR calculations Cash
More informationOrdinary Annuities Chapter 10
Ordinary Annuities Chapter 10 Learning Objectives After completing this chapter, you will be able to: > Define and distinguish between ordinary simple annuities and ordinary general annuities. > Calculate
More informationappendix B COMPOUND SUM OF AN ANNUITY OF $1 appendix C PRESENT VALUE OF $1 appendix D PRESENT VALUE OF AN ANNUITY OF $1
appendices appendix A COMPOUND SUM OF $1 appendix B COMPOUND SUM OF AN ANNUITY OF $1 appendix C PRESENT VALUE OF $1 appendix D PRESENT VALUE OF AN ANNUITY OF $1 appendix E TIME VALUE OF MONEY AND INVESTMENT
More informationSharp EL733A Tutorial
To begin, look at the face of the calculator. Almost every key on the EL733A has two functions: each key's primary function is noted on the key itself, while each key's secondary function is noted in
More informationTIME VALUE OF MONEY. HewlettPackard HP12C Calculator
SECTION 1, CHAPTER 6 TIME VALUE OF MONEY CHAPTER OUTLINE Clues, Hints, and Tips Present Value Future Value Texas Instruments BA II+ Calculator HewlettPackard HP12C Calculator CLUES, HINTS, AND TIPS Present
More informationFin 5413 CHAPTER FOUR
Slide 1 Interest Due Slide 2 Fin 5413 CHAPTER FOUR FIXED RATE MORTGAGE LOANS Interest Due is the mirror image of interest earned In previous finance course you learned that interest earned is: Interest
More informationChapter 4 Time Value of Money ANSWERS TO ENDOFCHAPTER QUESTIONS
Chapter 4 Time Value of Money ANSWERS TO ENDOFCHAPTER QUESTIONS 41 a. PV (present value) is the value today of a future payment, or stream of payments, discounted at the appropriate rate of interest.
More informationDISCOUNTED CASH FLOW VALUATION and MULTIPLE CASH FLOWS
Chapter 5 DISCOUNTED CASH FLOW VALUATION and MULTIPLE CASH FLOWS The basic PV and FV techniques can be extended to handle any number of cash flows. PV with multiple cash flows: Suppose you need $500 one
More information3. If an individual investor buys or sells a currently owned stock through a broker, this is a primary market transaction.
Spring 2012 Finance 3130 Sample Exam 1A Questions for Review 1. The form of organization for a business is an important issue, as this decision has very significant effect on the income and wealth of the
More informationChapter 8. Present Value Mathematics for Real Estate
Chapter 8 Present Value Mathematics for Real Estate Real estate deals almost always involve cash amounts at different points in time. Examples: Buy a property now, sell it later. Sign a lease now, pay
More informationChapter 5 & 6 Financial Calculator and Examples
Chapter 5 & 6 Financial Calculator and Examples Konan Chan Financial Management, Spring 2016 Five Factors in TVM Present value: PV Future value: FV Discount rate: r Payment: PMT Number of periods: N Get
More information1. If you wish to accumulate $140,000 in 13 years, how much must you deposit today in an account that pays an annual interest rate of 14%?
Chapter 2  Sample Problems 1. If you wish to accumulate $140,000 in 13 years, how much must you deposit today in an account that pays an annual interest rate of 14%? 2. What will $247,000 grow to be in
More informationTexas Instruments BAII PLUS Tutorial
Omar M. Al Nasser, Ph.D., MBA. Visiting Assistant Professor of Finance School of Business Administration University of HoustonVictoria Email: alnassero@uhv.edu Texas Instruments BAII PLUS Tutorial To
More informationTopics. Chapter 5. Future Value. Future Value  Compounding. Time Value of Money. 0 r = 5% 1
Chapter 5 Time Value of Money Topics 1. Future Value of a Lump Sum 2. Present Value of a Lump Sum 3. Future Value of Cash Flow Streams 4. Present Value of Cash Flow Streams 5. Perpetuities 6. Uneven Series
More informationHewlettPackard 10BII Tutorial
This tutorial has been developed to be used in conjunction with Brigham and Houston s Fundamentals of Financial Management 11 th edition and Fundamentals of Financial Management: Concise Edition. In particular,
More informationTexas Instruments BAII Plus Tutorial for Use with Fundamentals 11/e and Concise 5/e
Texas Instruments BAII Plus Tutorial for Use with Fundamentals 11/e and Concise 5/e This tutorial was developed for use with Brigham and Houston s Fundamentals of Financial Management, 11/e and Concise,
More informationMain TVM functions of a BAII Plus Financial Calculator
Main TVM functions of a BAII Plus Financial Calculator The BAII Plus calculator can be used to perform calculations for problems involving compound interest and different types of annuities. (Note: there
More informationPrepared by: Dalia A. Marafi Version 2.0
Kuwait University College of Business Administration Department of Finance and Financial Institutions Using )Casio FC200V( for Fundamentals of Financial Management (220) Prepared by: Dalia A. Marafi Version
More informationCourse FM / Exam 2. Calculator advice
Course FM / Exam 2 Introduction It wasn t very long ago that the square root key was the most advanced function of the only calculator approved by the SOA/CAS for use during an actuarial exam. Now students
More informationTT03 Financial Calculator Tutorial And Key Time Value of Money Formulas November 6, 2007
TT03 Financial Calculator Tutorial And Key Time Value of Money Formulas November 6, 2007 The purpose of this tutorial is to help students who use the HP 17BII+, and HP10bll+ calculators understand how
More informationBA II Plus Advanced Business Analyst Calculator
BA II Plus Advanced Business Analyst Calculator Quick Guide to Settings and Concepts Purpose of Guide This Quick Guide is a supplement to the BA II Plus Guidebook. It includes brief examples of commonly
More informationTime Value of Money Problems
Time Value of Money Problems 1. What will a deposit of $4,500 at 10% compounded semiannually be worth if left in the bank for six years? a. $8,020.22 b. $7,959.55 c. $8,081.55 d. $8,181.55 2. What will
More informationTime Value of Money 1
Time Value of Money 1 This topic introduces you to the analysis of tradeoffs over time. Financial decisions involve costs and benefits that are spread over time. Financial decision makers in households
More informationThe time value of money: Part II
The time value of money: Part II A reading prepared by Pamela Peterson Drake O U T L I E 1. Introduction 2. Annuities 3. Determining the unknown interest rate 4. Determining the number of compounding periods
More informationhp calculators HP 17bII+ Discounting & Discounted Cash Flow Analysis It's About Time The Financial Registers versus Discounted Cash Flow
HP 17bII+ Discounting & Discounted Cash Flow Analysis It's About Time The Financial Registers versus Discounted Cash Flow Discounting a Single Sum Discounting and Compounding Discounting a Series of Sums
More informationTHE TIME VALUE OF MONEY
QUANTITATIVE METHODS THE TIME VALUE OF MONEY Reading 5 http://proschool.imsindia.com/ 1 Learning Objective Statements (LOS) a. Interest Rates as Required rate of return, Discount Rate and Opportunity Cost
More information3. Time value of money. We will review some tools for discounting cash flows.
1 3. Time value of money We will review some tools for discounting cash flows. Simple interest 2 With simple interest, the amount earned each period is always the same: i = rp o where i = interest earned
More informationIntroduction. Turning the Calculator On and Off
Texas Instruments BAII PLUS Calculator Tutorial to accompany Cyr, et. al. Contemporary Financial Management, 1 st Canadian Edition, 2004 Version #6, May 5, 2004 By William F. Rentz and Alfred L. Kahl Introduction
More informationIntegrated Case. 542 First National Bank Time Value of Money Analysis
Integrated Case 542 First National Bank Time Value of Money Analysis You have applied for a job with a local bank. As part of its evaluation process, you must take an examination on time value of money
More informationFINANCIAL CALCULATIONS
FINANCIAL CALCULATIONS 1 Main function is to calculate payments, determine interest rates and to solve for the present or future value of a loan or an annuity 5 common keys on financial calculators: N
More informationCALCULATOR TUTORIAL. Because most students that use Understanding Healthcare Financial Management will be conducting time
CALCULATOR TUTORIAL INTRODUCTION Because most students that use Understanding Healthcare Financial Management will be conducting time value analyses on spreadsheets, most of the text discussion focuses
More informationNotes on the SHARP EL738 calculator
Chapter 1 Notes on the SHARP EL738 calculator General The SHARP EL738 calculator is recommended for this module. The advantage of this calculator is that it can do basic calculations, financial calculations
More informationFormulas, Symbols, Math Review, and Sample Problems
Formulas, Symbols, Math Review, and Sample Problems Mathematics and Analytical Skills Review... 1 Summary of Basic Formulas... 11 Direct Capitalization... 11 Yield Capitalization... 13 Present Value of
More informationHewlettPackard 17BII Tutorial
To begin, look at the face of the calculator. Most keys on the 17BII have two functions: a key's primary function is noted in white on the key itself, while the key's secondary function is noted in gold
More informationProblem Set: Annuities and Perpetuities (Solutions Below)
Problem Set: Annuities and Perpetuities (Solutions Below) 1. If you plan to save $300 annually for 10 years and the discount rate is 15%, what is the future value? 2. If you want to buy a boat in 6 years
More informationrate nper pmt pv Interest Number of Payment Present Future Rate Periods Amount Value Value 12.00% 1 0 $100.00 $112.00
In Excel language, if the initial cash flow is an inflow (positive), then the future value must be an outflow (negative). Therefore you must add a negative sign before the FV (and PV) function. The inputs
More informationChapter 4: Time Value of Money
Chapter 4: Time Value of Money BASIC KEYS USED IN FINANCE PROBLEMS The following two key sequences should be done before starting any "new" problem: ~ is used to separate key strokes (3~N: enter 3 then
More informationMath Workshop Algebra (Time Value of Money; TVM)
Math Workshop Algebra (Time Value of Money; TVM) FV 1 = PV+INT 1 = PV+PV*I = PV(1+I) = $100(1+10%) = $110.00 FV 2 = FV 1 (1+I) = PV(1+I)(1+I) = PV(1+I) 2 =$100(1.10) 2 = $121.00 FV 3 = FV 2 (1+I) = PV(1
More informationPrinciples of Annuities
Principles of Annuities The Mathematical Foundation of Retirement Planning Knut Larsen Brigus Learning Inc. Friday, June 5, 2015 Learning Objectives for this Presentation 1. Know the structure of the course
More informationUSING FINANCIAL CALCULATORS
lwww.wiley.com/col APPEDIX C USIG FIACIAL CALCULATORS OBJECTIVE 1 Use a financial calculator to solve time value of money problems. Illustration C1 Financial Calculator Keys Business professionals, once
More informationHANDBOOK: HOW TO USE YOUR TI BA II PLUS CALCULATOR
HANDBOOK: HOW TO USE YOUR TI BA II PLUS CALCULATOR This document is designed to provide you with (1) the basics of how your TI BA II Plus financial calculator operates, and (2) the typical keystrokes that
More informationChapter 7 SOLUTIONS TO ENDOFCHAPTER PROBLEMS
Chapter 7 SOLUTIONS TO ENDOFCHAPTER PROBLEMS 71 0 1 2 3 4 5 10% PV 10,000 FV 5? FV 5 $10,000(1.10) 5 $10,000(FVIF 10%, 5 ) $10,000(1.6105) $16,105. Alternatively, with a financial calculator enter the
More information132. Annuities Due. Chapter 13. MH Ryerson
132 Annuities Due Chapter 13 133 Learning Objectives After completing this chapter, you will be able to: > Calculate the future value and present value of annuities due. > Calculate the payment size,
More informationTimeValueofMoney and Amortization Worksheets
2 TimeValueofMoney and Amortization Worksheets The TimeValueofMoney and Amortization worksheets are useful in applications where the cash flows are equal, evenly spaced, and either all inflows or
More informationBA II PLUS Calculator
BA II PLUS Calculator 1997, 2002 Texas Instruments Incorporated Important Texas Instruments makes no warranty, either expressed or implied, including but not limited to any implied warranties of merchantability
More informationReview Page 468 #1,3,5,7,9,10
MAP4C Financial Student Checklist Topic/Goal Task Prerequisite Skills Simple & Compound Interest Video Lesson Part Video Lesson Part Worksheet (pages) Present Value Goal: I will use the present value formula
More informationsubstantially more powerful. The internal rate of return feature is one of the most useful of the additions. Using the TI BA II Plus
for Actuarial Finance Calculations Introduction. This manual is being written to help actuarial students become more efficient problem solvers for the Part II examination of the Casualty Actuarial Society
More informationEXAM 2 OVERVIEW. Binay Adhikari
EXAM 2 OVERVIEW Binay Adhikari FEDERAL RESERVE & MARKET ACTIVITY (BS38) Definition 4.1 Discount Rate The discount rate is the periodic percentage return subtracted from the future cash flow for computing
More informationHow to calculate present values
How to calculate present values Back to the future Chapter 3 Discounted Cash Flow Analysis (Time Value of Money) Discounted Cash Flow (DCF) analysis is the foundation of valuation in corporate finance
More informationA Textual Explanation
NAVIGATION INSTRUCTIONS GLOSSARY FINANCIAL CALCULATIONS FOR LAWYERS LECTURES INDEX INTRODUCTION PRESENT VALUE OF A SUM FUTURE VALUE OF A SUM SINKING FUND AMORTIZATION WITH CHART PRESENT VALUE OF AN ANNUITY
More informationSolutions to Time value of money practice problems
Solutions to Time value of money practice problems Prepared by Pamela Peterson Drake 1. What is the balance in an account at the end of 10 years if $2,500 is deposited today and the account earns 4% interest,
More informationChapter 5 Time Value of Money 2: Analyzing Annuity Cash Flows
1. Future Value of Multiple Cash Flows 2. Future Value of an Annuity 3. Present Value of an Annuity 4. Perpetuities 5. Other Compounding Periods 6. Effective Annual Rates (EAR) 7. Amortized Loans Chapter
More informationMAT116 Project 2 Chapters 8 & 9
MAT116 Project 2 Chapters 8 & 9 1 81: The Project In Project 1 we made a loan workout decision based only on data from three banks that had merged into one. We did not consider issues like: What was the
More informationTVM Appendix B: Using the TI83/84. Time Value of Money Problems on a Texas Instruments TI83 1
Before you start: Time Value of Money Problems on a Texas Instruments TI83 1 To calculate problems on a TI83, you have to go into the applications menu, the blue APPS key on the calculator. Several applications
More informationFIN 5413: Chapter 03  Mortgage Loan Foundations: The Time Value of Money Page 1
FIN 5413: Chapter 03  Mortgage Loan Foundations: The Time Value of Money Page 1 Solutions to Problems  Chapter 3 Mortgage Loan Foundations: The Time Value of Money Problem 31 a) Future Value = FV(n,i,PV,PMT)
More informationChapter 4. The Time Value of Money
Chapter 4 The Time Value of Money 1 Learning Outcomes Chapter 4 Identify various types of cash flow patterns Compute the future value and the present value of different cash flow streams Compute the return
More informationHP 20b Business Consultant. Financial Calculator Manual. For free training, visit www.hp.com/go/calctraining. HP part number: F221990201
HP 20b Business Consultant Financial Calculator Manual For free training, visit www.hp.com/go/calctraining HP part number: F221990201 First edition: August 2008 Legal Notices Legal Notices This manual
More informationChapter 10. What is capital budgeting? Topics. The Basics of Capital Budgeting: Evaluating Cash Flows
Chapter 10 The Basics of Capital Budgeting: Evaluating Cash Flows 1 Topics Overview and vocabulary Methods NPV IRR, MIRR Profitability Index Payback, discounted payback Unequal lives Economic life 2 What
More informationChapter 6 Contents. Principles Used in Chapter 6 Principle 1: Money Has a Time Value.
Chapter 6 The Time Value of Money: Annuities and Other Topics Chapter 6 Contents Learning Objectives 1. Distinguish between an ordinary annuity and an annuity due, and calculate present and future values
More informationhp calculators HP 12C Operating Modes and Clearing Procedures Number representation Settings and annunciators Memory organization
HP 12C Operating Modes and Clearing Procedures Number representation Settings and annunciators Memory organization How to selectively clear memory contents Number representation There are many different
More informationfirst complete "prior knowlegde"  to refresh knowledge of Simple and Compound Interest.
ORDINARY SIMPLE ANNUITIES first complete "prior knowlegde"  to refresh knowledge of Simple and Compound Interest. LESSON OBJECTIVES: students will learn how to determine the Accumulated Value of Regular
More informationChapter 02 How to Calculate Present Values
Chapter 02 How to Calculate Present Values Multiple Choice Questions 1. The present value of $100 expected in two years from today at a discount rate of 6% is: A. $116.64 B. $108.00 C. $100.00 D. $89.00
More informationIntroduction to the Time Value of Money
Module 3 Introduction to the Time Value of Money David Mannaioni CPCU, CLU, ChFC, CFP 7483 This publication may not be duplicated in any way without the express written consent of the publisher. The information
More informationBA II PLUS Calculator
BA II PLUS Calculator Important Information Texas Instruments makes no warranty, either express or implied, including but not limited to any implied warranties of merchantability and fitness for a particular
More informationThe Time Value of Money
C H A P T E R6 The Time Value of Money When plumbers or carpenters tackle a job, they begin by opening their toolboxes, which hold a variety of specialized tools to help them perform their jobs. The financial
More informationLease Analysis Tools
Lease Analysis Tools 2009 ELFA Lease Accountants Conference Presenter: Bill Bosco, Pres. wbleasing101@aol.com Leasing 101 9145223233 Overview Math of Finance Theory Glossary of terms Common calculations
More informationThe Time Value of Money
The following is a review of the Quantitative Methods: Basic Concepts principles designed to address the learning outcome statements set forth by CFA Institute. This topic is also covered in: The Time
More informationThe values in the TVM Solver are quantities involved in compound interest and annuities.
Texas Instruments Graphing Calculators have a built in app that may be used to compute quantities involved in compound interest, annuities, and amortization. For the examples below, we ll utilize the screens
More informationTime Value of Money. Reading 5. IFT Notes for the 2015 Level 1 CFA exam
Time Value of Money Reading 5 IFT Notes for the 2015 Level 1 CFA exam Contents 1. Introduction... 2 2. Interest Rates: Interpretation... 2 3. The Future Value of a Single Cash Flow... 4 4. The Future Value
More informationTVM Functions in EXCEL
TVM Functions in EXCEL Order of Variables = (Rate, Nper, Pmt, Pv, Fv,Type, Guess) Future Value = FV(Rate,Nper,Pmt,PV,Type) Present Value = PV(rate,nper,pmt,fv,type) No. of Periods = NPER(rate, pmt, pv,
More informationBA II PLUS PROFESSIONAL Calculator
BA II PLUS PROFESSIONAL Calculator Important Information Texas Instruments makes no warranty, either express or implied, including but not limited to any implied warranties of merchantability and fitness
More information5. Time value of money
1 Simple interest 2 5. Time value of money With simple interest, the amount earned each period is always the same: i = rp o We will review some tools for discounting cash flows. where i = interest earned
More informationWeek 1: Solutions to HW Problems
Week 1: Solutions to HW Problems 101 a. Payback A (cash flows in thousands): Annual Period Cash Flows Cumulative 0 ($5,000) ($5,000) 1 5,000 (0,000) 10,000 (10,000) 3 15,000 5,000 4 0,000 5,000 Payback
More informationTime Value of Money Practice Questions Irfanullah.co
1. You are trying to estimate the required rate of return for a particular investment. Which of the following premiums are you least likely to consider? A. Inflation premium B. Maturity premium C. Nominal
More informationMODEL EL738 BUSINESS/FINANCIAL CALCULATOR OPERATION MANUAL
MODEL EL738 BUSINESS/FINANCIAL CALCULATOR OPERATION MANUAL NOTICE SHARP makes no guarantee that this product or this manual is suitable or accurate for any purpose, commercial or otherwise. Rules and
More informationChapter 3 Present Value
Chapter 3 Present Value MULTIPLE CHOICE 1. Which of the following cannot be calculated? a. Present value of an annuity. b. Future value of an annuity. c. Present value of a perpetuity. d. Future value
More informationFinancial Math on Spreadsheet and Calculator Version 4.0
Financial Math on Spreadsheet and Calculator Version 4.0 2002 Kent L. Womack and Andrew Brownell Tuck School of Business Dartmouth College Table of Contents INTRODUCTION...1 PERFORMING TVM CALCULATIONS
More information