How to do present value on BA II Plus?
To calculate present value on the BA II Plus calculator, follow these steps:
1. Press the “2nd” key and then the “CLR TVM” key to clear any previous values.
2. Input the interest rate by pressing “i” and then entering the percentage rate. Press the “Enter” key.
3. Input the number of periods by pressing “n” and entering the total number of periods. Press the “Enter” key.
4. Input the payment amount by pressing “PMT” and entering the payment value. Press the “Enter” key.
5. Input the future value by pressing “FV” and entering the future value. Press the “Enter” key.
6. Press the “2nd” key and then the “NPV” key to calculate the present value.
The present value will be displayed on the screen of the calculator.
FAQs on Present Value Calculation with BA II Plus:
1. How do I calculate the present value of an investment using the BA II Plus?
To calculate the present value of an investment, you need to input the interest rate, number of periods, payment amount, and future value into the calculator following the steps mentioned above.
2. Can I use the BA II Plus for present value calculations for multiple investments?
Yes, you can use the BA II Plus for present value calculations for multiple investments by entering the values for each investment separately and calculating the present value for each one.
3. What if I only have the present value and the future value?
If you only have the present value and the future value, you can input these values into the calculator along with the interest rate and number of periods to calculate the payment amount.
4. Is it necessary to clear the previous values before calculating present value?
Yes, it is recommended to clear the previous values by pressing the “2nd” and “CLR TVM” keys before inputting new values for a present value calculation to avoid any errors.
5. Can I calculate present value with uneven cash flows on the BA II Plus?
Yes, you can calculate present value with uneven cash flows on the BA II Plus by inputting the cash flows for each period separately using the “CF” function and then calculating the present value.
6. How accurate are the present value calculations on the BA II Plus?
The present value calculations on the BA II Plus are accurate as long as the input values are entered correctly and the settings are adjusted accordingly for the type of calculation being performed.
7. Can the BA II Plus calculate present value for a perpetuity?
Yes, the BA II Plus can calculate present value for a perpetuity by entering the payment amount as the perpetuity payment and setting the number of periods to “∞” for infinite cash flows.
8. What is the difference between present value and net present value (NPV)?
Present value is the current worth of a future sum of money, while net present value (NPV) is the difference between the present value of cash inflows and outflows of an investment project.
9. How can I use the BA II Plus to calculate present value for a loan?
To calculate the present value for a loan on the BA II Plus, input the loan amount as the future value, the annual interest rate, the number of periods for the loan term, and set the payment amount to calculate the present value.
10. Can I calculate present value with different compounding periods on the BA II Plus?
Yes, you can calculate present value with different compounding periods on the BA II Plus by adjusting the settings for the type of compounding periods being used for the calculation.
11. How do I interpret the present value calculation result on the BA II Plus?
The present value calculation result on the BA II Plus represents the current worth of a future sum of money in today’s dollars, which can be used to make informed financial decisions.
12. Is it possible to calculate the present value of an annuity on the BA II Plus?
Yes, it is possible to calculate the present value of an annuity on the BA II Plus by entering the payment amount, interest rate, and number of periods for the annuity to determine the present value.