How to Use a BA II Plus Calculator For Financial Mathematics | Exam FM | JK Math

[@ChristinaLuong-c5i]

THANK YOU SO MUCH FOR THIS VIDEO. I WAS READING MY TEXTBOOK AND SCRATCHING MY HEAD OUT OF ANGER UNTIL I STUMBLED UPON YOUR KZbin VIDEO. YOU SAVED MY LIFE AND HAIRLINE. LOVE YOU!!!!

[@JKMath]

You're very welcome! Always happy to save someone's hairline haha. But really, glad the video was able to help you :)

[@raphaelyounes4308]

Thanks for the video man! Brazilian here, going to do CFA lcl 1 in november24. The first thing i've studied after getting the calculator was your video. Not only i learned how to use the calculator, but also some key concepts along the way!

[@JKMath]

You're welcome! Glad to be able to help in some way. I wish you the best in your studies!

[@sohailabbas3607]

Excellent video. Very simple and easy to understand

[@JKMath]

Thank you! Glad to know the video was helpful for you :)

[@adamsalem7566]

Thank you so much for your videos .. I have tried all other videos for teaching how to use the calculator .. and your video is the best one in KZbin...The only thing that you might wants to add to this tutorial or you add it in separate videos: How to clear the different values , and functions. . and which button to use for clearing each function.. I am still struggling with that ....Thanks again for all your efforts.

[@JKMath]

You're welcome! Glad the video has been helpful. A couple tips on clearing values/work: If you want to clear basic number values on your screen, CE|E is your go-to button for clearing. If you are inside a menu of some kind, such as the cashflow menu in the CF button or the interest rate conversion menu, the best way to clear those menus is to hit 2ND and then CE|E which has a second function of CLRWORK (or "clear work"). Finally, if you want to clear out the values for the TVM buttons (the white ones) then you want to use 2ND and then FV which has a second function of CLR TVM (or "clear time value money"). Hope this helps!

[@aydenreaume8961]

YOU ARE AMAZING!!! This helped me so much!

[@jordankopal1412]

I have a business math exam this Monday, your video might save me yet.

[@Knightly_Bean]

How did you do I got one today 😅

[@AnnamalaiAshokanMD]

Fantastic thnx a million1

[@benevolentlovemama]

What a life saver! Thank you!!

[@sandyd3975]

omg i love you ! thank you

[@genuinereviews10]

THANK YOU SO MUCH! You are a legend :) !

[@arturkhalikov6050]

underrated video. 👍

[@hoangkimkhanhle5126]

Thank you so so much ❤

[@JKMath]

You’re welcome! :)

[@rabindranathlaha9545]

extremly good

[@trinityworld588]

good teaching

[@MajidRahmanifirouzjaei]

Thanks for the video

[@davgrex]

Thank you so much buddy

[@SanyaSingla]

Sir I have my FM exam in 2days. I’m bit nervous, can you please guide me on what to do and what not to?

[@JKMath]

I would make sure that you know all your formulas for the various concepts. Take the time to memorize as many as you can. The more formulas you know, the better off you will be. Also, make sure you are familiar with the BAII Plus and that you know how to use it well. It can save you a lot of time on the exam, and time management is key. Finally, don't overwhelm yourself, but the best thing you can do to practice for the exam is to practice lots of example problems. The SOA (society of actuaries) website has a sample exam as well as a packet of previous exam questions with solutions that you can use to study. The more problems you practice solving, the more confident you'll feel about solving exam problems, in my opinion at least. If you have any specific questions about any topics, feel free to let me know. Best wishes in your studies and on your exam!!

[@SanyaSingla]

Thanks a lot sir.! All your videos played a very crucial role in my preparation. In my calculator the CF is till CF1 only after I reset the calculator. How to get back with different number of CF?

[@JohnHannan-e7c]

Sorry you spent so much time on this as I thought it would be simple to calculate. The customer is investing a total amount of $3,540 payable over 24 months ($147.50/mo.) into an upgrade of his electric system and at the end of 10 years has saved $24,480 on his electric bill. If we just assumed he invested the total amount of $3,540 upfront in year one and at the end of year 10 has $24,480 in total net energy savings what would be his ROI and what buttons on the calculator do I use? Thanks so much for helping me with this!! John

[@JKMath]

Ah! That is a much more manageable problem. The $3540 is exactly the number I needed haha. Alright, so to find the rate of investment/internal rate of return (ROI or IRR) in this case you will want to watch section 4) on future value. In this particular scenario you do not know the interest rate, but you do know the PV, FV, and amount of time. The "PV" is the 3540 which if I understand your wording correctly is valued at t=1 (could also be t=2? I am not sure, you said 24 months, but then also it is invested upfront at year 1 so that is a bit inconsistent, but no worries. If it is supposed to be t=2, then there is an easy adjustment). First, hit 2ND and CLR TVM to clear any previous work, then you would type in -3540 and hit the PV button, then type in 24480 and hit the FV button, then hit 9 and hit the N button. (9 because the 3540 at t=1 needs to be brought forward 9 years to be valued at t=10, the FV value date. If 3540 should be at t=2, then you would hit 8 instead. It would need to be brought forward 8 years from t=2 to t=10). It's important to remember to make the PV number negative so the calculator does the calculation correctly. After entering all the information, then hit CPT (compute) and hit I/Y and that will give you the rate of return. When valuing the 3540 at t=1, this resulted in me getting a yearly rate of 23.97% which is pretty large, but makes sense given the information in the problem. If you want the equivalent monthly rate of return, then you could convert that rate using the process I show at part 7) in the video. I believe I got a 1.8% monthly rate when converting it myself. Hope this helps!

[@sandeepreddykolli]

Thanks for the amazing video. Present Value should always be negative right (Input & Output). We should always input present value as a negative number while calculating any other value using PV And we should always get the negative output PV number too..! Am i correct!

[@JKMath]

Yep, I believe you’ve got it 👍

[@doinabunescu1183]

Great video, thank you 🙏

[@JKMath]

You're welcome! :)

[@donnaannclark2912]

I have to use this calculator for the Heist test. Can you do a video on fractions and algebra and what decimal place I need to set the calculator to. 😊😊😊😊

[@JKMath]

Hi! I'm not too familiar with the Heist test, so I'm not sure exactly what calculator settings you might need. If you are doing FM calculations, I always recommend about 8 decimals, which is perhaps overkill in most cases, but I like to see/use a lot of decimals to avoid rounding errors. I show how to set the decimal places at 00:08:51. In terms of videos on fractions and algebra, I will probably do that one day, but for right now my focus is on more advanced math courses such as FM, Calculus 3, etc., which do not have as many quality resources/videos available on KZbin. Hope you can understand! :)

[@kunallobo4136]

What is the difference between clear term and clear work? Which should we use?

[@JKMath]

Good question, I don't exactly make that clear in the video and I apologize for that. CLR TVM is for clearing out values dealing with the TVM buttons such as N, I/Y, PV, PMT, and FV. On the other hand, CLR WORK is for clearing out other menus you may be working in such as the cashflows menu in CF, and the interest rate conversion menu in ICONV. Hope this helps!

[@ShadrackBadia]

Thank you.

[@NIRANJANMEHTA09]

G8 Video thanks you got new subscriber 😊

[@krupenbechra8559]

Hi, I was wondering if we can calculate the PV of geometric decreasing annuity. I tried using negative sign for r even though it doesnt make much sense. Could you help me out please.

[@JKMath]

Yes, you definitely can! The inflation rate r would be negative if the payments are decreasing, you are right. So using the method I show in section 11) of the video, the rate k that you would use in the calculator would be found using (1+i)/(1+(-r))-1. So if i=.05 and r=-.03, then k is (1.05)/(0.97)-1. Calculate that rate then use it for the PV of an annuity due and multiply it by the first term from step 1 of my geometric annuity process. Does that help? Let me know!

[@chrismarrone4560]

It seems that if you set the calculator to 9 decimal places and you do something like 2*2 you get just 4 instead of 4.0000000. But then if you so something like sqrt(2) you still get the full decimals places. So setting the calculator to 9 decimals removes the repetitive place holder 0's that you would get in some problems when you set the calculator to 8 decimals.

[@JKMath]

Interesting! I did not know this. Nice find. It all comes down to personal preferences for what you want to set the number of decimal places to. 8 is just what I personally use, so that's why I recommend it/use it in the video.

[@pochenlai4108]

Thank you so much for all of ur videos and I just have a small question, For 15)Bond Valuation, I tried to calculate it as of we know the pv= 92.56 and want to get the future value(or the redemption price), but the result i get seems weird. My approach is: 2.5 -> PMT, 20 -> N, 3 -> I/Y, 92.56 -> PV, CPT -> FV, but what i get is a number around -234.3495. Did I do something wrong or it just can't calculate future value of bond like that?

[@JKMath]

Hi! You are very welcome. I just tried the calculation on my calculator and it did work, I got 99.99... or 100 for the redemption value. Be sure to put the PV in as negative when doing TVM calculations for bonds. I believe if you make the PV -92.56 that should get you the right answer. Let me know if this helps!

[@pochenlai4108]

@@JKMath Oh thank you so much! It works when I assign -92.56 instead of 92.56 to PV, now i also get 99.99! But I'm still a little bit confused of the reason why it's like that, cuz at 18:10 you say it's just going to get a negative future value that we need to make it positive, why doesn't it work this time? And I also tried to set the FV to -100 in 15)Bond Valuation, in order to think of getting a positive PV, but the PV is 18.1738, which is certainly not correct. So I have a small conclusion that, it's always better to set the PV to negative and not the FV to negative. If this is correct, why in 5) present value, we set the FV to negative? Thank you beforehand for your patience and profession! I learned a lot from your videos!

[@JKMath]

​@@pochenlai4108 When I talk about ignoring the negative around 18:10, I was referring to the very basic scenarios where you are not working with a bond. If you have a simple FV or PV you need to calculate, either the PV or FV can be entered in as negative (but only one), and the one you compute will have the opposite sign, nothing should be incorrect either way. In regular annuity scenarios, the same idea applies except for the PMT and PV/FV buttons. Either the payments need to be entered in as negative, or the PV/FV. However, the moment you start working with ALL the TVM buttons for bond scenarios, the PV should always be entered in as negative to make the calculation as easy as possible. The reasoning behind all this deals with the idea of net present value and cash inflows/outflows. It is most common to consider the PV of a set of cashflows as an "outflow" or money that is being paid out, so it is a negative cashflow, whereas payments coming in (like bond coupons) are "inflows" or money coming in, so they are positive cashflows. The redemption value (or FV for the bond), is also an inflow because it will be received at the end of maturity (in the future). With that being said, the net present value would still be the same if you flipped the signs of the inflows and outflows (the net present value means valuing all the cashflows at time 0 and setting them equal to 0). If you made all the inflows positive and the outflows negative, the net present value equation would still be true, because you essentially just moved everything over to the other side of the equation via addition/subtraction. So if you wanted to enter in the FV as negative, you would need to put the PMT amount in as negative too, then calculating the PV would get you 92.56. I apologize for not making this clear in the video, I suppose I was trying to simplify things but may have made it a bit more confusing in the process. Hope this helps!

[@pochenlai4108]

@@JKMath Thank you so so much for this clarification! I now understand how it works better and is super thankful for you to clarify all these to me, I wish you have a good rest of your day and hope more people see your videos, it's super clear and enrich with good examples, subscribed already!

[@JKMath]

@@pochenlai4108 You're very welcome! Glad I could help, and thanks for the kinds words, I really appreciate it :)

[@MrPrasji]

Dear Sir, Kindly assist me today I bought an brand new BA II Plus professional calculator . But when I calculate PV or AV getting wrong answers. To overcome that issue after every calculation I have to reset it. In that way my stored data also gets deleted. Is it a manufacture defect or any other way to fix it ? Thank you

[@JKMath]

Make sure you are clearing the TVM buttons before every new calculation using them. You want to press 2ND and then FV to clear TVM. If you don’t do this before a new calculation you will most likely get a wrong answer. Hope this helps!

[@MrPrasji]

@@JKMath Thank you so much, Got it. Now its work perfectly.

[@JohnHannan-e7c]

Can you help me as I'm trying to figure out how to have my TI BAII Plus compute the IRR of the following example- investing $147.50 each month for 24 months and in 10 years it grows to $24,480. What would be my ROI and how do I input this information into the calculator to get the answer?

[@JKMath]

To my knowledge, I do not believe it is possible for the BAII plus to calculate the IRR in that scenario. I tried to do it by hand and also found it to be quite difficult. Assuming the information you provided is accurate, this is the equation of value I get: 147.50*s[24]i*(1+i)^96=24480. In other words, 147.50*s[24]i is the future value of an annuity with 24 payments of 147.50 at year 2, or t=24 (in months). Then, multiplying that by (1+i)^96 brings it 8 years or 96 months into the future to year 10, or month 120 (t=120), which is the 24480. As you can see, that creates a pretty complex equation where solving for the interest rate is extremely difficult. I tried having a different, more powerful calculator solve that equation by brute force and it completely froze. Needless to say that the large exponents for the number of months we are compounding for is causing an issue. Are you sure you provided me with all the information for this problem? I think knowing the amount of the annuity at year 2, or t=24 for months would be valuable information here, and would allow you to find both the monthly rate of return and the yearly. I spent some time thinking about this, and that is the only conclusion I have come to. My apologies for not being able to help further, but please let me know if there was some information missing that could be helpful.

[@shawnalindsey2881]

Hi there! I followed your guide exactly i believe for FV, but when I compute it i get 610. I really have no clue what I could be doing wrong, as i've cleared the calculator trying with CE/C 2nd+ CE/C and 2nd+FV

[@JKMath]

Are you referring to the calculation for FV at part 4)? I just tried doing the calculation again myself and got 729.99, so I believe it is still correct. If you are not getting 729.99 and are following my steps exactly, then the first thing I would try is resetting the calculator. There is a small button on the back of the calculator you can press with a pencil or paper clip that will reset all the memory, settings, etc. on the calculator. My guess is that you may have accidentally or unknowingly changed a setting in the calculator that is effecting your answer. The only other possibility I can think of is that you may be entering in the interest rate incorrectly. With a present value of 600 only becoming 610 after 5 years, the interest rate would have to be extremely small, not 4% like it is in the example. Let me know if this helps! And feel free to provide me with any more info if you continue to have issues.

[@amerul-vk6qi]

Hi I know what's your problem. That's because your payment P/Y is set to 12 ie. monthly. To change to annual, press [2nd] , [P/Y] , 1 , [ENTER]. Hope that helps.

[@alfredogomez2087]

@@amerul-vk6qi Thank you! I was having the same problem as well.

[@marymotabo8120]

Anyone doing the FM (SOA)exam next month

[@singkong7341]

Does it have replay bottom?

[@neetubinwani7111]

How do you clear any existing data that is still there even after pressing on 2ND and CLR WORK?

[@neetubinwani7111]

after doing the above, when i checked all the white buttons, they all showed zero, but when i clicked on 2nd I/Y and scrolled up and down, I saw the figures were 1 for P/Y and I/Y.

[@JKMath]

If you want to clear everything I would recommend resetting the calculator with the little button on the back. You may need to use a pencil or a paper clip to press it in. This will reset all your settings and put everything back to the default. Should clear any values you can’t figure out how to clear.

[@emkulukumlachew9022]

Nice

[@intwizzard]

How would I solve a question like this?: Deposits of​ $1500 are made every 3 months starting​ today, October​ 5, 2006. The final deposit is made on January​ 5, 2011. If the fund earns 8% quarterly, how much is in the fund immediately after the deposit on January​ 5, 2011?

[@JKMath]

There are likely several different ways you could go about this problem, but here's the way I would probably do it: First, the deposit amount if 1500 each, so PMT = 1500. Since the deposits are being made every 3 months (or 4 times a year, a.k.a. quarterly deposits), I'm going to let quarters be the primary period type for this problem. Meaning, in order to calculate the FV of the fund after the final deposit, we need to know the total number of deposits/quarters between Oct 5 2006 and Jan 5 2011, which would be your value of N. I believe there is a way to have the calculator count these periods (using the DATE 2nd function for the 1 button), but I personally prefer to count them myself. In this case, there is one quarter to count for in 2006, and then 4 quarters each in 07, 08, 09, and 2010. Finally, there is one last deposit/quarter we need to account for in 2011. So in total we have 1+4+4+4+4+1 = 18 deposits/quarters. That is N. Now, your given interest rate is quarterly (8%), so that's good, there is no need to convert it, assuming it is not a nominal rate (which from what you have given me, it does not seem that it is nominal). The interest rate frequency matches the payment cycle, so I/Y = 8. Finally, you are told that the deposits are being made starting today, which means that the deposits will be made at the beginning of each period, so these series of deposits/payments would be classified as an annuity-due. So you need to switch the calculator from END to BGN mode. Then, once you've done that you can calculate the FV of the annuity due, using the TVM buttons on the calculator as I laid out. Now, one more thing... your question asks to find the value AT THE TIME OF the final deposit, which is slightly tricky in this case given that the deposits from an annuity due. When calculating the FV of an annuity due, the FV is valued at the time one period after the final deposit... so to get the value your problem wants, you will need to take your FV from the calculator and bring it back one period by multiplying it by a present value factor, 1/(1.08). That will take the FV from being valued one quarter after the final deposit, to being valued at the time of the final deposit. And I believe that should do it! Hope this helps!

[@intwizzard]

Oh my god thanks so much this helps immensly!!!@@JKMath

[@cedates214]

Each time I try to calculate the Future Value example you gave, I get 589.09. I can't figure out what I'm doing wrong

[@JKMath]

Couple things you can check: 1) Make sure you clear TVM before doing a new calculation using the white TVM buttons. So make sure to hit [2ND] and then [FV] to clear TVM. If that doesn't work then 2) For annuities, make sure your payment P/Y is set to 1. To check this/change it, press [2nd] , [P/Y] , 1 , [ENTER]. Also, 3) make sure you are entering the interest rate in as a percentage, not a decimal (meaning 5 for 5%, not 0.05). If all of this fails to help, then 3) reset your calculator using the small button on the back and then try again. Hope this helps!

[@cedates214]

@ Thank you so much, turns out I had my P/Y set incorrectly!

[@alexanicoles]

CAN SOMEHOME HELP PLEASE? I keep getting the wrong answers and all of my values are cleared :( I have this same exact calculator.

[@alexanicoles]

nevermind i had to reset the whole calculator. it works now!

[@JKMath]

Make sure to clear TVM before doing new calculations with the TVM buttons, press 2ND and then FV to clear them out. If that is not cleared before each new calculation you will most likely get the wrong answer. Let me know if this helps!

[@EXPLORADVEN]

👌👌👌

[@tunnaungsoe]

8. FV Not get 12298.65

[@JKMath]

If you are not getting that result, make sure that your calculator is in "END" mode, not "BGN" mode. BGN is for an annuity-due, and for 8) we are calculating the FV of an annuity-immediate. I show how to switch between these two modes in part 9) of the video. If that is not your issue, make sure you are clearing time value money (TVM) before starting a new calculating with the TVM buttons. I do not say that explicitly in the video every time before doing a calculation, but this should be done regardless. If that still is not helping, I would recommend resetting your calculator using the small button on the back of the calculator. Then try the calculation again. Let me know if this helps!

[@MuzghanParwanta]

you teach this calculator so you should assum that people already should know what is addition fonction and how to solve 2+2....to boring as start

[@JKMath]

I included chapters on the video so you can skip the parts of the video on the functions you already know how to do. Hope you find the rest of the video helpful!

[@karaboletooane1145]

Thank you so much 🎉🎉🎉❤

[@JKMath]

You’re welcome!