# Key Stroke by Key Stroke Examples [Under Constructions]

Note One: These examples are taken from the manual for BA II PLUS PROFESSIONAL By Texas Instruments. However the sequence of key strokes are how the financial calculations performed in Financial Calculator++ and do not match the key strokes of the same calculation performed in BA II PLUS PROFESSIONAL By Texas Instruments.

Note Two: All these examples assume that you have reset the parameters of the corresponding financial calculation. In order to reset the parameters, you will press the arrow key that points to the name of the calculation (Section Title) and choose Reset on top-right of the screen.

Example 1:

If you make a monthly payment of $425.84 on a 30-year mortgage for $75,000, what is the interest rate on your mortgage?

12 [P/Y]

30 [xP/Y] [N]

75000 [PV]

-425.84 [PMT]

[CPT] [I/Y]

Result: 5.5

Example 2:

Compute basic loan payments on a $75,000 mortgage at 5.5% for 30 years.

12 [P/Y]

30 [xP/Y] [N]

75000 [PV]

5.5 [I/Y]

[CPT] [PMT]

Result: -425.84

Example 3:

Compute quarterly loan payments on a $75,000 mortgage at 5.5% for 30 years.

4 [P/Y]

30 [xP/Y] [N]

75000 [PV]

5.5 [I/Y]

[CPT] [PMT]

Result: -1,279.82

Example 4:

Assume that a saving account pays 0.5% compounded at the end of each year with a 20-year time frame. If you open the account with $5000, how much will you have after 20 years?

20 [N]

0.5 [I/Y]

-5000 [PV]

[CPT] [FV]

Result: 5,524.48

Example 5:

In the previous example, how much money must you deposit to have $10,000 in 20 years?

20 [N]

0.5 [I/Y]

10000 [FV]

[CPT] [PV]

Result: -9,050.63

Example 6:

The Furros Company purchased equipment providing an annual savings of $20,000 over 10 years. Assuming an annual discount rate of 10%, what is the present value of the savings using an ordinary annuity and an annuity due?

10 [N]

10 [I/Y]

-20,000 [PMT]

[CPT] [PV]

Result: 122,891.34 (The present value of savings with an ordinary annuity).

Set the payment period to the beginning of period payments by going to the menu mode of TVM.

[CPT] [PV]

Result: 135,180.48 (The present value of savings with an annuity due).

Example 7

The ABC Company purchased a machine that will save the following end of year amounts at each year:

Year 1: $5000

Year 2: $7000

Year 3: $8000

Year 4: $10000

Given a 10% discount rate, does the present value of the cash flows exceed the original cost of $23,000?

10 [I/Y]

-5,000 [FV]

1 [N]

[CPT] [PV]

MC (Clear Memory)

M+ (Save to the Memory)

-7,000 [FV]

2 [N]

[CPT] [PV]

M+

-8,000 [FV]

3 [N]

[CPT] [PV]

M+

-10,000 [FV]

4 [N]

[CPT] [PV]

M+

MR (Recall Memory)

Result: 23,171.23

[-] 23,000 [=]

Result: 171.23 (The present value of the cash flow is $23,171.23, which exceeds the machine's cost by $171.23. This is a profitable investment.

Example 8

The Peach Bright Company wants to purchase a machine currently leased from your company. You offer to sell it for the present value of the lease discounted at an annual interest rate of 22% compounded monthly. The machine has a residual value of $6,500 with 46 monthly payments of $1,200 remaining on the lease. If the payments are due at the beginning of each month, how much should you charge for the machine?

Set the payment period to the beginning of period payments by going to the menu mode of TVM.

46 [N]

22 / 12 = [I/Y]

-6,500 [FV]

[CPT] [PV]

-1,200 [PMT]

[CPT] [PV]

Result: 40,573.18

Example 9

If you finance the purchase of a new desk and chair for $525 at 20% APR compounded monthly for two years, how much is the monthly payment?

12 [P/Y]

2 [xP/Y] [N]

20 [I/Y]

525 [PV]

[CPT] [PMT]

Result: -26.72

Example 10

You invest $200 at the beginning of each month in a retirement plan. What will the account balance be at the end of 20 years, if the fund earns an annual interest of 7.5% compounded monthly, assuming beginning of-period payments?

Set the payment period to the beginning of period payments by going to the menu mode of TVM.

12 [P/Y]

20 [xP/Y] [N]

7.5 [I/Y]

-200 [PMT]

[CPT] [FV]

Result: 111,438.31

Example 11

You consider buying a car for $15,100. The finance company charges 7.5% APR compounded monthly on a 48-month loan. If you can afford a monthly payment of $325, how much can you borrow? How much do you need for a down payment?

12 [P/Y]

4 [xP/Y] [N]

7.5 [I/Y]

-325 [PMT]

[CPT] [PV]

Result: 13,441.47 (Loan Amount which is how much you can borrow)

[-]15,100 [=]

Result: -1,658.53 (Down payment = $1,658.53)

Many more examples will come very soon. If you are visting this page and your question is not answered, please contact us at calc@dogahe.com. We will make sure we update this page to answer your question first.