Time Value of Money Calculations on the BA II Plus Calculator

IMPORTANT: Please set P/Y =1 and C/Y = 1 for the examples in this video:
Press 2nd P/Y (I/Y) = 1 ENTER, 2nd QUIT (CPT)
For examples that require changing P/Y and C/Y, please see the following playlist:
• BA II Plus Calculator
Calculating Bond Price: • Calculating Bond Value...
Compound Interest in Excel: • Solved: Compound Inter...
Problems Solved (Compiled by Andrew Rossman):
Example 1: Laura takes a 15-year, $500 000 mortgage, on a new condo. At an interest rate of 4% (that is compounded monthly), what is the monthly payment?
Example 2:Helene is planning ahead for her daughter Paula’s college tuition. Paula begins college in 5 years and will need $80,000. How much would Helene have to invest today at 6% compounded annually to have $80,000 in 5 years?
Example 3: Josh has an investment account with $50,000. If Josh earns 6% per year and contributes $400 each month, how much will his investments be worth in 10 years?
Example 4: Steven has $25,000 in credit card debt. His credit card charges 2% in monthly interest and Steven pays $1,000 each month toward the balance. If Steven doesn’t make any further purchases, how many months will it take to fully repay his debt?
Example 5: Martin’s savings account has $25,000 today. In 5 years, the account is worth $32,000. What is the annual interest rate?
00:00 Intro
01:24 Ex1-Find Payment
03:11 Ex2-Find PV
04:19 Ex3-Find FV
05:27 Ex4-Find N
06:23 Ex-5-Find I/Y

[@joshuajonme48]

Great video, but there is an error in example 3. Since payments are made monthly while interest is compounded annually (i.e. payments are more frequent than interest), the annuity is nominal. This problem cannot be solved using the calculator if P/Y isn't changed.

[@joshemman]

You're right Joshua. There is an assumption missing there ==> The $400 payments are saved up and added to the investment at the end of each year.

[@ldw47]

Very good video !

[@jacea5739]

im confused so is the video correct for example 3? and if not why and what is the correct one as for example 4 why is the i/y 2 since its monthly and your p/y u made it only 1

[@joshemman]

@@jacea5739 No. Example 3 is not correct as is. P/Y is supposed to be set to 12. But in this video, it is assumed that the $400 payments are applied at the end of each year, totaling $4,800.

[@joshemman]

@@jacea5739 I/Y = 2 in example 4 because 2% is a periodic (monthly) interest rate, not annual. Hence N is counting the number of months (not the number of years).

[@dakotapoore1670]

Pays thousands for college. Gets taught by Joshua Emmanuel for free on youtube. You are a blessing sir.

[@GavinVox68]

This is amazing. I spent hours watching my instructor's online lectures on this, and was banging my head against the wall trying to understand this. It was hopeless. You explained it in very simple terms in less than 10 minutes, and now I actually stand a chance on my upcoming exam. I cannot thank you enough.

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learn easier and faster here than I do paying for my college degree

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Facts

[@gino20916]

You explained this better than the multiple CFA prep providers i've paid hundreds of dollars for, thank you!

[@MemeBaz11824]

Thank you Joshua, this video helped me immensely. You touched on many points that really clarified everything for me. I sent it to my professor so he could share it with my graduate finance class. The way you include the calculator and show which buttons to press in order to get the answer is absolutely golden. Subscribed!

[@TheCbone1979]

I really like your voice, clear and concise verbiage and the video itself helped me revisit how valuable the TVM functions are on my BA II.

[@hugoender]

Amazingly clear and concise examples! If only all the youtube video tutorials were this great. Thanks a ton! By the way, your voice and accent are awesome and make this video even better!

[@shellyparker3881]

Great video. Joshua gets straight to the point, and works through practical examples. Very well done!

[@shellywheeler8984]

Thank you for showing the basics-enter your values then select CPT, then what your solving for i.e.PMT. Ugh this calculator has been driving me crazy! Thanks to you I'm solving problems without any issues!

[@nitanice]

thank you for the simple, straight-forward instruction!

[@cherrypickingcards2413]

Amazing video! I greatly appreciate this!!! Doing my business math class and this is my first exposure to a financial calculator and this makes me feel much better. Thanks again!! 🍒

[@lynxlynx79]

Perfect video! nothing extra and everything you need to know. Very helpful that you solved every type of problem!

[@MZtaeyeon1992]

What the hell ! You help me with one problem that has been haunting me forever ! CLR TVM !

[@praveenswaroop]

Thank you Joshua for explaining in such an easy & clear way.

[@reginaldhardaway2596]

You are a great teacher. I didn’t understand any of my college instructions but I understood yours. Thank you.

[@razazeltom9742]

Thank you so very much! this is the best KZbin video to understand FV and financial calculator

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This is class. You made everything so simple and easy to learn. You sir are a legend

[@patriciapvn]

Thank you for the video. You explain it very thoroughly. I learned extensively from this video more than my college professor explained it. Thank you!!

[@aislyngarbs4341]

best tutorial on the BA II so far. Thank you so much for posting

[@MrDoctorDylan]

best youtube tutorial ive ever watched for school, thank you so much.

[@ZakharychRUS]

Thank you! Very informative. It helps in preparing for the CFA exam.

[@divinityx2011]

Best tutorial on this topic ever!! Thank you. I was struggling.

[@CurvyMeli]

This is a great tutorial explaining with button presses exactly how to do basic computations with the BAIIPlus

[@angelbishop5180]

Excellent tutorials - Thanks so much Joshua!

[@kevintanyagiles6297]

Awesome video! I tried following a different one and I think that presenter just wants to be a KZbin star. This was super helpful. Thank you!

[@austinxu5844]

Thank you very much! Your teaching is so clear and understandable.

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You’re a life saver. I’m my finance course my professor was teaching us how to use the financial calculator and she was way too fast. So I KZbind it abd man you’re literally a life saver

[@ouaispasmal]

THIS SAVED MY LIFE OML

[@robertkay9349]

Thank you for posting this video Joshua. This simplified calculations for FVM for me.

[@a.y.8591]

Great video, clear instructions. Thanks a lot!!

[@kyikyiwinkyikyiwin5325]

today my teacher teach in the class i nearly give up, i found this then i happy to do my finance course. i really appreciate Joshua.

[@crustychips6406]

omg i had the p/y set to 52 for like 2 weeks and i wondered why i could never get the right answers in class, this video saved me!

[@adelnemes7306]

Excellent, superb, explanation. You saved my day.

[@al3yoonalsood38]

I Love your videos and you reply to emails on time thank you so much for your help. I always use your videos for my homeworks. Thank You.

[@Essays4College]

For the first calculation I did exactly what you said on my BA II and I came up with a monthly payment of -$2,848.19

[@bigbrother9273]

same as u lol... did u set any mode for ur calculator?

[@Essays4College]

@@bigbrother9273 No I did not. I even verified that the decimals were set to 2 places.

[@bigbrother9273]

Jenny Titus Try to reset

[@jessieli1871]

I had the same problem before. I reset the calculator by pressing 2nd +|- enter and I finally got the correct answer. Hope this helps.

[@jessieli1871]

And remember to press 2nd FV to clear the history before calculating next question.

[@alisabiq]

Many many thanks...First time I am using my calculator...Ur examples are so clear and easy to understand

[@sooohaib92]

simple, concise and to the point. Thank you, sir!

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Dope tutorial’s Joshua!

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You are a savior. Thanks for your wonderful tutorial

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Omg thank you so much I was trying to learn to use the calculator while trying to solve these to understand for the exam and you took the time to save me from frustration, THANK YOU!😩

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Thank you for your tutorial. It helps a lot to understand how to use calculator.

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Your videos are very helpful for my financial management class

[@kevin48269]

beautiful I've just caught up 4 weeks of college in just one video

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That was really helpful! Quality content

[@craigsmith8165]

Super helpful. Thanks Joshua!!

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Very clear explanation, thank you so much!

[@clarainesaguilararias705]

Excellent video, thanks a lot. Very clear!

[@spazzappleee]

Thank you! Very helpful.... other videos did not help, but finally able to use my finance calc now for my class

[@carlachristian7089]

Thank you so much for your tutorial. It was very helpful.

[@wellsaid8463]

Very helpful. Easy to follow.

[@2229lionman]

Great video, as always. Thanks

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This was invaluable. Thank you!

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Your's is the best, no doubt Joshua - keep it up!

[@TheKarver21]

Thank you so much for this tutorial! I'm taking financial management while in an MBA and this helped me so fast and easier than I'd think. Thank you again 😊🙏🏽

[@joshemman]

Glad it was helpful!

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This was a great video. Thank you!

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Thanks, O'Neil.

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Thank you so much for this video!

[@cobythe_animal_expert3961]

Superb...You made my life easier. Thanks

[@ronoc89]

Thanks for the tutorial.

[@markzalig4991]

Dude thank you. Just taught me better than my snooty professor could.

[@mohdsharanrajbinmohamadakb2510]

As before, we need to be careful when entering the PV and FV into the calculator. In this case, you are going to invest $20,000 today (a cash outflow) and receive $100,000 in 18 years (a cash inflow). Therefore, we will enter -20,000 into PV, and 100,000 into FV. Type 18 into N, and then press CPT I/Y to find that you need to earn an average of 9.35% per year. Again, if you get Error 5 instead of an answer, it is because you didn't follow the cash flow sign convention.

[@anmolnagar5333]

HIGHLY INFORMATIVE FOR BASIC

[@majithabanu1308]

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[@liliavalos6901]

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Thank you soooo much! i had no idea what to do

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Thank you very much, Sir.

[@joshemman]

You are most welcome

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Thank you Joshua!

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