Brief Tutorial for the Texas Instruments BAII PLUS

Brief Tutorial for the Texas Instruments BAII PLUS Part One By John Stansfield, CFA, Ph D, MBA, and calculator enthusiast. The Texas Instruments BAII PLUS is the only calculator for the well-dressed finance geek. Seriously it’s the only one for a serious student of finance. Unfortunately the manual runs 142 pages. This document is not meant to replace that book but rather to give you a look around the tool box. Our first chapter this semester (Chapter 4 of the book) is all about the time value of money. After reading this chapter and going to class, you should be able to: 1. Use the Time Value of Money (TVM) keys a. Get into the habit of checking the payments per year b. Know what to do with the begin/end mode 2. Use your cash flow keys to solve for a. IRR b. NPV c. Realize that you have to specify the correct periodic rate in your cash flow menu 3. Use the interest rate conversion menu 4. Use the amortization menu This document is intended to give you a “Fast Start” on these functions of your calculator. This tutorial is designed to get you comfortable and familiar with the following: • The Time Value of Money keys: N , I/Y , PV , PMT, and FV , their associated second functions: [×P/Y], [P/Y], [AMORT], [BGN] and [CLR TVM]. • The cash flow menu: CF , NPV , and IRR . • The interest rate conversion menu: [ICONV]. • How to clear out the whole calculator 2nd [RESET] ENTER 2nd [QUIT]. • and how to clear out ...