bag TEXAS INSTRUMENTS BA II PLUS™ CalculatorImportant Information Texas Instruments makes no warranty, either express or implied, including but not limited to any implied warranties of merchant and fitness for a particular purpose, regarding any progra ‘materials and makes such materials available solely on an "as ‘no event shall Texas instruments be liable to anyone for special, collateral, incidental, or consequential damages in connection with or arising out of the purchase or use of these materials, and the sole and exclusive liability of Texas Instruments, regardless of the form of action, shall not exceed the purchase price of this product. Moreover, Texas Instruments shall not be liable for any claim of any kind whatsoever against the use of these materials by any other party. ity sor book basis. In USA FCC Information Concerning Radio Frequency Interference This equipment has been tested and found to comply with the limits for a Class B digital device, pursuant to Part 15 of the FCC rules. These limits are designed to provide reasonable protection against harmful interference in a residential installation, This equipment generates, uses, and can radiate radio frequency energy and, if not installed and used in accordance with the instructions, may cause harmful interference to radio communications. However, there is no guarantee that interference will not occur in a particular installation. If this equipment does cause harmful interference to radio or television reception, which can be determined by turning the equipment off and fon, you can try to correct the interference by one or more of the following measures: ‘+ Reorient or relocate the receiving antenna, ‘+ _ Increase the separation between the equipment and receiver, + Connect the equipment into an outlet on a circuit different from at to which the receiver is connected. = Consult the dealer or an experienced radio/television technician for help. Caution: Any changes or modifications to this equipment not expressly approved by Texas instruments may void your authority to operate equipment, (© 2005 Texas Instruments IncorporatedContents Important Information. USA FCC Information Concerning Radio Frequency Interferencei 1 Overview of Calculator Operations Turning On the Calculator ‘Turning Off the Calculator. Selecting 2nd Functions Reading the Display Setting Calculator Formats Resetting the Calculator Clearing Calculator Entries and Memories Correcting Entry Errors Math Operations. Memory Operations... Calculations Using Constants Last Answer Feature. Using Worksheets: Tools for Financial Solutions 2. Time-Value-of-Money and Amortization Worksheets...21 VM and Amortization Worksheet Variables. Entering Cash Inflows and Outflows. Generating an Amortization Schedule Example: Computing Basic Loan interest. Examples: Computing Basic Loan Payments... Examples: Computing Value in Savings Example: Computing Present Value in Annuities, Example: Computing Perpetual Annuities. Example: Computing Present Value of Variable Cash Flows Example: Computing Present Value of a Lease With Residual Value, 33 Example: Computing Other Monthly Payments. 34 Example: Saving With Monthly Deposits 35 Example: Computing Amount to Borrow and Down Payment. 36 Example: Computing Regular Deposits for a Specified Future ‘Amount a7 Example: Computing Payments and Generating an Amortization Schedule 38 Example: Computing Payment, Interest, and Loan Balance After a Specified Payment 39 3. Cash Flow Worksheet. a4 Cash Flow Worksheet Variables. aUneven and Grouped Cash Flows 42 Entering Cash Flows. 3 Deleting Cash Flows, o vn 3 Inserting Cash Flows 44 Computing Cash Flows. 44 Example: Solving for Unequal Cash FIOWS snsrarnarn 46 Example: Value of a Lease with Uneven Payments 48 Bond Worksheet .. Bond Worksheet Variables. 52 Bond Worksheet Terminology 54 Entering Bond Data and Computing Results 54 Example: Computing Bond Price and Accrued Interest. 56 Depreciation Worksheet Depreciation Worksheet Variables o Entering Data and Computing Results 59 Example: Computing Straight-Line Depreci Statistics Worksheet .. Statistics Workshee: Regression Models Entering Statistical Data 66 Computing Statistical RESUlS..unnen smn 87 Other Worksheets Percent Change/Compound interest Worksheet «0. 68 Interest Conversion Worksheet, 2 Date Worksheet. 74 Profit Margin Worksheet 76 Breakeven Worksheet 78 ‘Memory Worksheet a0 Appendix — Reference Information. Formulas. 23 Error Messages. 94 Accuracy Information 95 AOS™ (Algebraic Operating System) Calculations... 96 Battery Information 97 In Case of Difficulty. 98 Texas Instruments Support and Service 99 Texas Instruments (TI) Warranty Information .orurnsnnsnens 100 Index ..Overview of Calculator Operations ‘This chapter describes the basic operation of your BA II PLUS™ ‘aleulator, including how to: + Turn on and turn off the calculator + Select second functions + Read the display and set calculator formats + Clear the calculator and correct entry errors + Perform math and memory operations + Use the Last Answer feature + Use worksheets Turning On the Calculator Press + Ifyou tured off the calculator by pressing (ONO, the calculator returns to the standard-calculator mode with a displayed value of zero. All worksheets and formats for numbers, angle units, dates, separators, and calculation method retain previous values and configurations. + If the Automatic Power Down™ (APD™) feature ‘turned off the calculator, the calculator turns on exactly as you left it, saving display settings, stored memory, pending operations, and error conditions. Turning Off the Calculator Press SRD + The displayed value and any error condition clear. + Any unfinished standard-calculator operation and worksheet calculation in progress cancel Overview of Calculator Operations‘+The Constant Memory™ feature retains all worksheet values and settings, including the contents of the 10 memories and all format settings. Automatic Power Down™ (APD™) Feature To prolong battery life, the Automatic Power Down (APD) feature turns off the calculator automatically after about five minutes of inactivity ‘The next time you press (HE, the calculator turns on exactly as you left it, saving display settings and stored memory and any pending ‘operations or error conditions. Selecting 2nd Functions ‘The primary function of a key is printed on the key itself For example, the primary function of the [ONO key is to turn on or turn off the calculator, - Most keys include a second function printed above the key. ‘To select a second function, press Zid and the corresponding key, (When you press fd, the 2nd indicator appears in the upper left corner of the display.) For example, pressing fia [au] exits the selected worksheet and returns the calculator to the standard- calculator mode. Note: To cancel after pressing (2a, press [ai] again, Reading the Display “The display shows the selected variable labels with values up to 10 digits. (The calculator displays values exceeding 10 digits in scientific notation.) [ana ev HY COMPUTE ENTER SET £8 DEL INS BGN RAD ABG=-i23 456 7892 aa 2 Overview of Calculator OperationsThe indicators along the top of the display tell you which keys are active and offer information about the status of the calculator. Indicator_Meaning 2nd Press a key to select its second function. INV Press a key to select its inverse trigonometric function, HYP. Press a key to select its hyperbolic function. COMPUTE Press FT] 10 compute a value for the displayed variable. ENTER Press ENTE] to assign the displayed value to the displayed variable, SET Press Gd [SE7| to change the setting of the displayed variable, TW ress [i] or[i) to display the previous or next variable in the worksheet, Note: To easily scroll up or dows variables, press and hold [or DEL Press (id el] to delete a cash flow or sta Ins. Press [i]s] to Insert a cash flow or yough a range of ical data point. istical data point. BGN TV calculations use beginning-of period payments, When BGN is not displayed, TVM calculations use end-of-period payments (END). RAD —_Angle values appear in radians. When RAD is not displayed, angle values appear and must be entered in degrees. 4 ‘The displayed value is entered in the selected worksheet, The indicator clears following a computation. : ‘The displayed value is computed in the selected worksheet When a value changes and invalidates a computed value, the indicator clears - ‘The displayed variable is assigned the displayed value. The displayed value is neg Overview of Calculator Operations 39 Calculator Formats You can change these calculator formats: To Select Press Display Default a=" Womber of Gallfomu) DECO-9 (Press 9for 2 decimal floating-decimal) places e Anate units DEG (degrees) DES RAD (radians) Dates USinmddyy) US Eur (de-mm-yyy) Nomber U5 (1,000.00) us ‘separators Eur (1.000,00) Calculation hn (chain) cha method AOS™ (algebraic ‘operating system) 1. To access format options, press [ad FORK]. The DEC indicator appears with the selected number of decimal places. 2. To change the number of decimal places displayed, key ina value and press [TE 3. To access another calculator format, press {iJ or [i] once for each format. For example, to access the angle unit format, press (1). To access the rumber-separator format, press (2) [2)[Hor [0 (1. 4. To change the selected format, press [d(T 5. To change another calculator format, repeat step 3 and step 4 ‘To return to the standard-zero EXP Y=abe ALY values > zero PWR SS*«Y = aXD~SCAMIX and Yvalues>zero ‘The calculator interprets the X value as the independent variable and the Y value as the dependent variable. The calculator computes the statistical results using these transformed values: LIN uses X and Y. Statistics Worksheet 65+ Lmuses Ing) and ¥. © EXP uses X and In(Y). + PWR uses In(X) and In(¥). ‘The calculator determines the values for a and b that create the line or curve that best fits the data Correlation Coefficient ‘The calculator also determines r, the correlation coefficient, which measures the goodness of fit of the equation with the data. Generally +The closer ri 10 1 or-1, the better the fit. +The closer ris to zero, the worse the fit. Entering Statistical Data Because the Statistics worksheet lets you enter and display up to 50 data points, and then stores the values until you clear the worksheet or change the values, you probably will not have to perform every step for each Statistics calculation, 1. Toselect the data-entry portion of the Statistics worksheet, press 23) [bara X01 is displayed along with any previous value. 2. To clear the worksheet, press [rd (alr woax] 2. Key ina value for X01 and press TFA + For one-variable data, X01 is the first data point. + For twowariable data, X01 isthe first X value. 4, To display the YO1 variable, press 7. 5. Key ina value for YO1 and press (IT + For one-variable data, you can enter the number of times the X value occurs (frequency) ‘The default value is 1 + For two-variable data, enter the first ¥ value. 6. To display the next X variable, press [i 7. Repeat steps 2 through 5 until you enter all of the data points, Note: To easily scroll up or down through a range of variables, press and hold (3) or 66 Statistics WorksheetComputing Statistical Results Selecting a Statistics Calculation Method 1. Press ffs] to select the statistical calculation portion of the Statistics worksheet. 2. The last selected statistics calculation method is displayed (LIN, Ln, EXP, PWR, oF 1-V). 3. Press ser] repeatedly until the stat want is displayed, calculation method you 4, Ifyou are analyzing one-variable data, select 1-V, Press[Z] to begin computing results. Computing Results ‘To compute results based on the current data set, press 1] repeatedly after you have selected the statistics calculation method. ‘The calculator computes and displays the results of the statistical ‘alculations (except for X' and ¥") automatically when you access them. For one-variable statistics, the calculator computes and displays only the values for n, & $x, oX, EX, and 32, Computing Y* 1, Toselect the Statistics worksheet, press [2a] St} Press [i] or [3] until X* is displayed. 2 3. Key ina value for X' and press ENTE 4, Press{T] to display the "variable. 5. 10 compute a predicted Y" value. Computing x’ 1, Toselect the Statistics worksheet, press [a] St] Press [i] or [7] until ¥*is displayed. Key in a value for ¥" and press ENTE. Press [i] to display the X* variable. Press [FT] to compute an X* value. Statistics Worksheet o68 Statistics WorksheetOther Worksheets The calculator also includes these worksheets: + Percent Change/Compound Interest worksheet (exd (9) + Interest Conversion worksheet (2a icow]) + Date worksheet (aa) + Profit Margin worksheet (Bid PRo=1)) + Breakeven worksheet (zi) @°Kevn) + Memory worksheet (id) fveu)) Percent Change/Compound Interest Worksheet Use the Percent Change/Compound Interest worksheet to solve percent change, compound interest, and cost-sll markup problems. - + To access the Percent Change/Compound Interest worksheet, press) [4 ‘= + Toaccess the Percent Change/Compound Interest variables, press [7] or (7. rcent Change/Compound Interest Worksheet Variables Percent change/Percent [i] CH Entericompute markup Other Worksheets 69Resetting the Percent Change/Compound Interest Worksheet Variables ‘+ To reset the Percent Change/Compound interest variables to default values, press [fn] [oUn Wonk] while in the Percent Change/Compound Interest worksheet Variable Default Variable Default oo CH 0 NEW OO wD 1 + To reset default values for all calculator variables and formats, press (a) eS ENTE Entering Values + For percent-change calculations, enter values for any two of the three variables (OLD, NEW, and %CH) and compute a value for the unknown variable (leave #PD=1). A positive percent change represents a percentage increase; a negative percent change represents a percentage decrease. + For compound-interest calculations, enter values for the three known variables and compute a value for the unknown fourth variable, = OLD= present value = NEW= future value — %CH= interest rate per period = #PD= number of periods + For cost-sell-markup calculations, enter values for two of the three variables (OLD, NEW, and %CH) and compute a value for the unknown, = OLD =cost — _ NEW= selling price = CH= percent markup — Computing Values 1. To select the Percent Change/Compound Interest worksheet, press (2d Lax), The current value for OLD is displayed, 2. To dear the worksheet, press ad]. work) 70 Other Worksheets3. To enter values for the known variables, press [1] or (#] until the variable you want is displayed, then key in a value, and press (ITE (Do not enter a value for the variable you wish to solve.) + Percent Change — Enter values for two of these three variables: OLD, NEW, and %CH. Leave #PD set to 1. + Compound Interest — Enter values for three of these four variables: OLD, NEW, %CH, and #PD. ‘+ Cost-SelMarkup — Enter values for two of these three variables: OLD, NEW, and %CH. Leave #PD set to 1. 4, To compute a value for the unknown variable, press[Z] or(H] until the variable you want is displayed and press (1). The calculator displays the value, Example: Computing Percent Change First, determine the percentage change from a forecast amount of $658 an actual amount of $700. Second, determine what the new amount would be if it were 7% below the original forecast. To Press: Select Percent Change/Compound — ail#] Interest worksheet, Enter original forecast amount. Enter actual amount. 700 TE) Compute percent change. a iter ~7 as percent change. 7GE)ENER] CH= Compute new actual amount. [GT] _—=CNEW= 611.94 Answer: $700 represents a 6.38% increase over the original forecast of $658, A decrease of 7% would result in a new actual amount of $611.94. Example: Computing Compound Interest You purchased stock in 1995 for $500. Five years later, you sell for $750. What was the annual growth rate? stock 0 Press play Select Percent Change/Compound (@id)ias) — OLD= ° Interest worksheet, Enter stock purchase price. 500 (7) OLD= 500.00 Enter stock selling price. 750 (BF) NEW= 750,00: Other Worksheets 7‘Answer: The annual growth rate is 8.45%. Example: Computing Cost-Sell-Markup ‘The original cost of an item is $100; the selling price is $125. Find t markup, Enter original cost. 100TH] —OLD=—a90,002 Answer: The markup is 25%. Interest Conversion Worksheet . Variable Key Display Variable Type Compounding periods per year [1 GY Enteronly n Other WorksheetsComparing the Nominal Interest Rate of Investments Comparing the nominal interest rate (annual percentage rate) of investments is misleading when the investments have the same nominal rate but different numbers of compounding periods per year. ‘To make a more valid comparison, convert the nominal interest rate (NOM) to the annual effective interest rate (EFF) for each investment. + The nominal interest rate (NOM) is the interest rate per compounding period multiplied by the number of compounding periods per year. + The annual effective interest rate (EFF) is the compound annual interest rate that you actually earn for the period of time stated, Resetting Variables * Toreset all calculator variables and forrrats to default values, including the Interest Conversion worksheet variables, press [72] Reser ENTE). Variable Default Nom 0 EFF 0 ow 7 + Toclear the NOM and EFF variables and reset default values without affecting CY, press 2d) [1R worK] in the Interest Conversion worksheet Converting Variables You can convert a nominal rate to an annual effective rate or vi Entering Values for Nom and EFF Enter a value for NOM or EFF as an annual rate. Converting Interest Rates 1. To access the Interest Conversion worksheet, press [9 [ica]. The current NOM value appears. 2. To clear the worksheet, press [id [1R WORK) Enter a value for the known interest rate (either NOM or EFF). 4, To enter a value for a known variable, press] or [2] until NOM or EFF is displayed, key in a value, and press ENTE 5. Press(1] to display Cn. If necessary, change the value and press [ENTER Other Worksheets 76. Tocompute a value for the unknown variable (interest rate), press (i) or (until NOM or EFF is displayed, and then press [T. The calculator displays the computed value, Example: A bank offers a certificate that pays a nominal interest rate of 15% with quarterly compounding. What is the annual effective interest rate? Yo Press Display Select interest Conversion Gieow] NOM: ° ‘worksheet. Enter nominal interest rate. 1ST) NOM: 15.002 Enter number of compounding [IN a(2m8) CY: “4.00 periods per year. Compute annual effective men EF 158% interest rate. Answer: A nominal interest rate of 15% compounded quarterly is equivalent to an annual effective interest rate of 15.87%. Date Worksheet Use the Date worksheet to find the number of days between two dates. You can also compute a date and day of the week based on a starting date and a specified number of days, ‘+ To-access the Date worksheet, press i041. s + To access the date variables, press [2] or ‘+ Toselect the day-count method (ACT and 360), press a [5] once for each option. Date Worksheet Variables Variable Key Display Variable Type Datet——~=~”~*~*~*~*~*«wIDNTE]_CTA—Cntevcompute Date2 a DT2___Entericompute Days between dates w DBD __Entericompute 30/360 day-count method a 360° _Setting ma Other WorksheetsNote: The calculator categorizes variables by their method of entry. (See “"Tvoes of Worksheet Variables" on oaae 17.) + Toclear Date worksheet variables and reset default values without, affecting the day-count method, press id (c.R woRK] while in the Date worksheet. Entering Dates + The calculator assumes that DT1 is earlier than DT2. + Enter dates for DT1 and DT2 in the selected US or European date format. + When you compute a date for DT1 or DTZ, the calculator displays a three-letter abbreviation for the day of the week (for example, wep). Selecting the Day-Count Method Affects Calculations + When you select ACT as the day-count method, the calculator uses the actual number of days in each month and each year, including adjustments for leap years. + When you select 360 as the day-count method, the calculator assumes 30 days per month (360 days per year). You can compute DBD using this day-count me Computing Dates 1. Toselect the Date worksheet, press 2i[DATe). The DT1 value is displayed, 2. To clear the worksheet, press [ain work) 3. Enter values for two of the three variables: DT1, DT2, and DED. Note: Do not enter a value for the variable you wish to solve for. 4, To center a value for a variable, press (7) or {7} to display the variable. Key in a value and press TER, Other Worksheets 756. To change the day-count method setting, press 1] until ACT or 360 is, displayed, 7. To compute a value for the unknown variable, press 1] or [] to display the variable, and then press [PT]. The calculator displays the computed value. Example: Computing Days between Dates ‘Alloan made on September 4, 2003 defers the first payment until November 1, 2003. How many days does the loan accrue interest before ‘the first payment? Enter second date. [11.0103 EE) _DT2= 11-01-2003 ‘Answer: Because there are 58 days between the two dates, the loan accrues interest for 5B days before the first payment, Profit Margin Worksheet cost, selling price, use the Percent = Gee “Percent. “on page 63) ect, press) + Toaccess profit margin variables, press [7] or [7)- ‘+ Enter values for the two known variables, and then ‘compute a value for the unknown variable. Profit Margin Worksheet Variables 76 Other WorksheetsGross Profit Margin and Markup ‘The terms margin and markup often are used interchangeably, but each has a distinct meaning * Gross profit margin is the difference between selling price and cost, expressed as a percentage of the selling price + Markup isthe difference between selling price and cost, expressed as a percentage of the cost. Clearing Profit Margin Worksheet Variables + Toclear the Profit Margin worksheet variables and reset default values, press 2 [cur woAK). All Profit Margin worksheet variables default to zero, * Toreset default values for all calculator variables and formats, including the Profit Margin worksheet variables, press [fal RESET] Computing Profit Mar 1. Toselect the Profit Margin worksheet, press 2d) PAO=T). The CST value appears. 2. Toentera value for one of the two known variables, press [i] or i] to select a variable, then key in a value and press [NT Repeat step 2 for the second known variable. 4, To compute a value for the unknown variable, press 7] or [7 to select the variable and press GFT) The calculator displays the computed value. Example: Computing Profit Margin The selling price of an item is $125. The gross profit margin is 20%. Find the original cost. Other Worksheets 7‘Answer: he original cost is $100. Breakeven Worksheet ‘The Breakeven worksheet computes the breakeven point and sales level needed to earn a given profit by analyzing relationships between fixed costs, variable costs per unit, quantity, price, and profit, You operate at a loss until you reach the breakeven quantity (that is, total costs = total revenues) + Toaccess the Breakeven worksheet, press [2d [eRKEVN + To access breakeven variables, press (or [i ‘Enter known values for the four known variables, then ‘compute a value for the fifth, unknown variable. Note: To solve for quantity (Q), enter a value of zero for profit (PFT) Breakeven Worksheet Variables Profit PFT Enter/compute Resetting the Breakeven Worksheet Variables + Toreset default values for all Breakeven worksheet variables, press id (aun Wea), All Breakeven worksheet variables default to zero. + To clear all calculator variables and formats and reset default values, including the Breakeven worksheet variables, press [a [RESET 78 Other WorksheetsComputing Breakeven 1. Toaccess the Breakeven worksheet, press [il [BFK¢VN) The FC variable appears. 2. Press 7 or Hi] to select a known variable, key in the value, and press eT Repeat step 3 for each of the remaining known variables. 4, To compute a value for the unknown variable, press[Z] or) until the variable is displayed, and then press (6°. The calculator displays the computed value. Example: Computing Breakeven Quantity Acanoe company sells paddles for $20 each. The unit variable cost is $15, and the fixed costs are $3,000. How many paddles must be sold to break ye Press Display ‘Access Breakeven worksheet Dalibwen) f= OO Enterfixedcosts. —=«*«*«é ODOR] FC=~~S~S*C« 000.00 Enter variable cost per unit.) 415(ETER) Vi 15.002 Enter price (201 20,00 Leave profit ass. o Compute quantity nen 600.00 Answer: 600 paddles must be sold to break even, Other Worksheets 79Memory Worksheet ‘ory worksheet lets you compare and recall stored accessing the calculator’s 10 memories. All sariables are enter-only. (See “Ivoes of Worksheet "on page 17.) xcess the Memory worksheet, press [a] MEM) ‘cess memory variables, press i] or - You can access memories individually using STO), TRE. and the diait kevs. (See “Memory Onerations” on Memory2 wz Enteronly Memory 5 Ms Enteronly, Memory8 — () ms Enteronly, Clearing the Memory Worksheet Variables ‘To clear all 10 memories at once, press (2 CLA vioRK] in the Memory worksheet Using the Memory Worksheet 1. Toselect the Memory worksheet, press (EN). MO apears. 2. Perform any of the following operations: + To dear all 10 memories at once, press ur von 80 Other Worksheets‘To view the contents of the memories, press[I) or(#] once for each memory, + Tostore a value, select a memory (MO-M9), key in a value, and press [RTE ‘+ Memory arithmetic. (See "Memory Arithmetic" on page 12.) Store 95, osm ma. Matiply by 95, mesBi Ma 72,350.00. Other Worksheets ara2 Other WorksheetsA Appendix — Reference Information ‘This appendix includes supplemental inform: BA II PLUS™ calculator: n to help you use your + Formulas + Error conditions + Accuracy information + IRR (internat-rate-of-return) calculations + Algebraic operating system (AOS™) + Battery information + Incase of difficulty + Tiproduct service and warranty information Formulas This section lists formulas used internally by the calculator. Time Value of Money coe tne i=l x=(01x1 +0" -ompounding periods per year ayment periods per year terest rate per year ciexy 1 = (FV= PV) where: PMT=0 The iteration used to compute i: Appendix — Reference Information 83I= 100%C/¥ x [e2* 8879) 4 where: for end-of-period payments for beginning-of-period payments PMPxG,-PVx y _ DAPMTRG, + PV T+) where: 140 NevOV 4 FIs PMT where: <0 +i pv+FV PMT = ado ee) where: #0 PMT =v 6 FAN where: /=0 a4 ‘Appendix — Reference informationPMG, yr (py g PEG v= MEG yf (ove HT*S) hr: 10 FV =-(PV + PMT xN) where: i=0 Amortization I computing bald), pmi2 = nome Let balfo) = RNDIPY) Irerate from m =1 to pm? [Iq = RND[RND12(~ix bal(m —1)) {balim) = bal(m—1)~Iy-+ RND(PMT) ‘then: ball )=balfpm2) 2Prn() sballpma2) ~ bailpmtl) Ina) =(pmt2 ~ pmtl +1) x RNDIPMD) ~ EPrn() where: RND =round the display to the number of decimal places selected RNDI2 =round to 12 decimal places Balance, principal, and interest are dependent on the values of PMT, PV, WY, and pmtl and prt Cash Flow Appendix — Reference Information 85Net present value depends on the values of the initial cash flow (CF), subsequent cash flows (CF), frequency of each cash flow (n), and the specified interest rate (i. Ri 00 i, where i satisfies npr) Internal rate of return depends on the values of the initial cash flow (CFo) and the subsequent cash flows (CF). wy = 100 86 Appendix — Reference InformationBonds? Price (given yield) with one coupon period or less to redemption: 100k Mm RVs 100 xR Ms [Ax lg where: PRI =dollar price per $100 par value RY =redemption value of the security per $100 par value (RV = 100 except in those cases where call or put features must be considered) R =annual interest rate (as a decimal; CPN _ 100) |M =number of coupon periods per year standard for the Particular security involved (set to 1 of 2 in Bond worksheet) DSR =number of days from settlement date to redemption date (maturity date, call date, put date, etc) E =number of days in coupon period in which the settlement date falls annual yield (as a decimal) on investment with security held to redemption (YLD + 100) 1umber of days from beginning of coupon period to settlement date (accrued days) Note: The first term computes present value of the redemption amount, including interest, based on the yield for the invested period. The second ‘term computes the accrued interest agreed to be paid to the seller. Yield (Given price) with one coupon period or less to redemption T(RV,R)_(PRI,(A, RY) ot) (00+ EBD] pape PAI, (8) DSR 100 * Ea 1. Source for bond formulas (except duration): Lynch, Job J, Jt and Jan H. Mayle Siandord Securities Calelation Methods. New York: Securlies Industry sociation, Appendix — Reference Information 7Price (given yield) with more than one coupon period to redemption: RV. (144)"" Uw 1umber of coupons payable between settlement date and redemption date (maturity date, call date, put date, etc). (If this ‘number contains a fraction, raise it to the next whole number; for example, 2.4 = 3) DSC =number of days from settlement date to next coupon date K summation counter Note: The first term computes present value of the redemption amount, not including interest, The second term computes the present values for all future coupon payments. The third term computes the accrued Interest agreed to be paid to the seller. Yield (given price) with more than one coupon period to redemption: Yield is found through an iterative search process using the “Price with ‘more than one coupon period to redemption” formula. Accrued interest for securities with standard coupons or interest at maturity: RUA A= PARxR yA ME where: AI =accrued interest PAR =par value (principal amount to be paid at maturity) Depreciation RDV = CST ~ SAL ~ accumulated depreciation Values for DEP, RDV, CST, and SAL are rounded to the number of decimals you choose to be displayed. In the following formulas, FSTYR = (13 - MON) + 12, 38 Appendix — Reference InformationStraight-line depreciation cst TF ‘ST SAL Tipo x FSTYR First year: Last year or more: DEP = RDV Appendix — Reference Information 89Sum-of-the-years’-digits depreci LIF +2~YR~FSTYR) x (CST~SAL) (LIF (LIF + 1))=2) LIF x (CST~SAL) (UF «(LIF #1) +2) Last year or more: DEP = RDV First year: x FSTYR \g-balance depreciation RBV x DB% LIF x 100 where: RBV is for YR-1 CST x DB% LIF x 100 *~ FSTYR First year: CST xDB% LIF = 100 If DEP > RDV, use DEP = RDV Unies > RDV; then use RDV x FSTYR If computing last year, DEP = RDV Statistics Note: Formulas apply to both x and »: Standard deviation with n weighting (a) (yy 90 Appendix — Reference InformationStandard deviation with n-1 weighting (s) - oy Mean:i = Regressions Formulas apply to all regression models using transformed data. ay - UL nF) (Ea oy-eyp Interest Rate Conversions EFF = 100 (eC/¥*Ie*9)—1) where: 1 =.01 x NOM +Co=¥ NOM = 100 C/¥ x (el*C/1*Imx2) 1) where: x=01 x EFF Percent Change (CHO NEW = oLp(1+ 36) Appendix — Reference Information onwhere: OLD =old value NEW =new value CII =percent change 4D =number of periods Profit Margin 5 5 Selling Price ~ Cost . Gross Profit Margin, = ce * 100 Breakeven PFT =PQ-(FC+VCQ) where: PFT =profit VC =variable cost, Q=quantity Days between Dates With the Date worksheet, you can enter or compute a date within the range January 1, 1950, through December 31, 2049. Actual/actual day-count method Note: The method assumes the actual number of days per month and per year. DBD (days between dates) = number of days II- number of days T Number of Days I= (¥1 ~ ¥B) x 365 + (number of days MB to M1) +071 (Ya) 4 Number of Days I=(Y2 - YB) x 365 + (number of days MB to M2) +P Y2— YB) 4 92 Appendix — Reference Informationwhere: MI =month of first date DT1 =day of first date Y1 =year of first date ‘onth of second date DI2 =day of second date ¥2 =year of second date MB =base month Vanuary) Bi =base day (1) YB =base year (fit * year after leap year) 30/360 day-count method? Note: The method assumes 30 days per month and 360 days per year. DBD = (Y2~¥1) x 360+ (M2 +M1) x 30+(DT2~-DT1) where: M1 =month of first date DI' =day of first date Yt =year of first date M2 =month of second date DI2 =day of second date ¥2 =year of second date Note: If DI1 is 31, change DT? to 30, If DI2 is 31 and DI1 is 30 or 31, change DT2 to 30; otherwise, leave it at 31 2, Source for 301360 day-count method formula: lynch, John J, Jr and Jan H. Mayle Standord Securities Calelation Methods. New York Securities industry Association, Appendix — Reference Information 9BError Messages Note: To clear an error message, press EEX) Error Error? Overflow Err Invalid argument Error 3 Too many pending operations Possible Causes + Aresult is outside the calculator range (© 9,9999999999999¢99), + Tried to divide by zero (can occur internally). + Tried to compute 1x when x is zero, + Statistics worksheet: a calculation included X or ¥ values that are all the same, ‘Tried to compute x! when x 69. * Tried to compute LN of x when xis not >0. not an integer * Tried to compute yX when y <0 and x is not an Integer or the inverse of an integer. + Tried to compute {1x when x <0, + Amortization worksheet: tried to compute BAL, PRN, and INT when P2 < Pt + Depreciation worksheet: a calculation included SAL> CST. + More than 15 active levels of parentheses were tried in a calculation, + Acalculation tried to use more than 8 pending oper Error 4 Out of range 94 + _ Amortization worksheet: the value entered for PT or P2 is outside the range 1-9,999 © TVM worksheet: the PIV of CY value <0, + Cash Flow worksheet: the Fn value is outside the range 0.5-9,999. + Bond worksheet: the RV, CPN, or PRI value < 0. + Date worksheet: the computed date is outside the range January 1, 1950 through December 31, 2049, + Depreciation worksheet: the value entered for: declining balance percent <0; LIF <0; YR <0; CST < 0; SAL <0; of MOT 1 < MO1 < 13. + Interest Conversion worksheet: the CIY value 0. +The DEC value is outside the range 0-9, Appendix — Reference InformationError Possible Causes Error 5 = TVM worksheet: the calculator computed VY when No solution FY, (N x PMT), and PV all have the same sign. exists (Make sure cash inflows are positive and outflows are negative.) ‘+ TVM, Cash Flow, and Bond worksheets: the LN (logarithm) input is not > 0 during calculations. + Cash Flow worksheet: the calculator computed IRR without at least one sign change in the cash-flow list Error 6 + Bond and Date worksheets: a date is invalid for Invalid date ‘example, January 32) or in the wrong format (for ‘example, MM.DDYYYY instead of MM.DDYY. + Bond worksheet: the calculator attempted a calculation with a redemption date earlier than or the same as the settlement date Error? TVM worksheet: the calculator computed WY for @ Ireration limit very complex problem involving many iterations. exceeded + Cash Flow worksheet: the calculator computed IRR. for @ complex problem with multiple sign changes. Bond worksheet: the calculator computed ¥LD for a very complex problem. Error TV worksheet: DUDE! was pressed to stop the Canceled evaluation of W¥. iterative ‘+ Amortization worksheet: [OVDEE] was pressed to cakulation stop the evaluation of BAL or INT. + Cash Flow worksheet: OTM was pressed to stop e evaluation of IRR. + Bond worksheet: [HIDE was pressed to stop the evaluation of YLD. + Depreciation worksheet: OHUE was pressed to stop ¢ evaluation of DEP or RDV. Accuracy Information The calculator stores results internally as 13-digit numbers but displays them rounded to 10 digits or fewer, depending on the decimal format. The internal digits, or guard digits, increase the calculators accuracy. Additional calculations use the internal value, not the value displayed, Appendix — Reference Information 95Rounding If a calculation produces a result with 11-digits or more, the calculator uses the internal guard digits to determine how to display the result, If ‘the eleventh digit of the result is 5 or greater, the calculator rounds the result to the next larger value for display. For example, consider this problem. 232? Internally, the calculator solves the problem in two steps, as shown below. 1, 153=0,3333333333333, 2, 0,3333333333333 x 3 = 0,9999999999999 ‘The calculator rounds the result and displays it as 1. This rounding enables the calculator to display the most accurate result, Although most calculations are accurate to within #1 in the last displayed digit, higher-order mathematical functions use iterative calculations, in which inaccuracies can accumulate in the guard digits. In most cases, the cumulative error from these calculations is maintained beyond the 10- digit display so that no inaccuracy is shown. AOS™ (Algebraic Operating System) Calculations ‘When you select the AOS calculation method, the calculator uses the standard rules of algebraic hierarchy to determine the order in which it performs operations. Algebraic Hierarchy ‘The table shows the order in which the calculator performs operations using the AQS calculation method. Priority Operations 1 (highest) 22, x1, Ux, %, Vx, LN, €2, HYP, INV, SIN, COS, TAN 2 nC, nPr 3 vx 4 xt 5 te 6 ) 7 (lowest) 96 ‘Appendix — Reference InformationBattery Information Replacing the Battery Replace the battery with a new R202 lithium battery. Caution: Risk of explosion if replaced by an incorrect type. Replace only with the same or equivalent type recommended by Texas Instruments. Dispose of used batteries according to local regulations, Note: The calculator cannot retain data when the battery is removed or discharged. Replacing the battery has the same effect as resetting the calculator, 1, Turn off the calculator and tur it over with the back facing you, 2, Using a small Phillips screwdriver, remove the four screws from the back cover. Carefully pry off the back cover. 4. Using a small Phillips screwdriver, remove the screws from the metal battery cover and lift the cover off the battery. 5. Tip the calculator slightly to remove the battery Caution: Avoid contact with other calculator components. 6. Install the new battery with the positive sign (+) sign down (not showing). Replace the battery cover and the screws that hold it in place. 8 Align the screw holes in the back cover with those in the calculator, then snap the back cover onto the calculator. Replace the screws, Caution: Risk of explosion if replaced by an incorrect type. Replace only with the same or equivalent type recommended by Texas Instruments. Dispose of used batteries according to local regula Battery Precautions + Do not leave battery within the reach of children, + Donot mix new and used batteries. * Do not mix rechargeable and non-rechargeable batteries + Install battery according to polarity (+ and - ) diagrams, + Do not place non-rechargeable batteries in a battery recharger, + Properly dispose of used batteries immediately. + Donot incinerate or dismantle batt + Seek Medical Advice immediately if a cell or battery has been swallowed. (In the USA, contact the National Poison Control Center collect at 202-625-3333.) Used only for small button cell batteries Appendix — Reference Information 7Battery Disposal + Do not mutilate, or dispose of batteries in fire, ‘+The batteries can burst or explode, releasing hazardous chemicals ies according to local regulations. + Discard used ba In Case of Difficulty Use this list of possible solutions to difficulties you might encounter with ‘the calculator to determine if you can correcta problem before having to return it for service. The calculator computes Check the settings of the current wrong answers. worksheet to make sure they are correct for the problem you are ‘working; for example, in the TVM ‘worksheet, check END and BGN and be sure the unused variable is set to zero, The calculator does notdisplay Be sure you have selected the correct ‘the correct worksheet workshe variables, ‘The calculator does not display Press [je MA] [1] [to check or ‘the correct separator format. adjust the setting for separator format. If you experience difficulties other than those listed above, press [a] [peser] EME to clear the calculator, and then repeat your calculations. Note: You can also perform a hard reset using the reset hole in back of ‘the calculator. (See "Resettina the Calculator” on naar 6.) 98 Appendix — Reference InformationTexas Instruments Support and Service For general information Home Page: education:ticom Knowledge Base and e-mail inquiries: Phone: 2737 Puerto Rico, and International, | —______ Information: (Click the International information link.) For technical support Knowledge Base and support by It education ti.com/sunnort Phone (not toll-free): (972) 917-8324 For Product (hardware) Service Customers in the U.S., Canada, Mexico, Puerto Rico and Virgin Islands: Always contact Texas Instruments Customer Support before returning a product for service. All other customers: Refer to the leaflet enclosed with this product (hardware) or contact your local Texas Instruments retailer/distributor. Appendix — Reference Information 99Texas Instruments (TI) Warranty Information Customers in the U.S. and Canada Only (One-Year Limited Warranty for Commercial Electronic Product This Texas instruments ("TI") electronic product warranty extends only to the original purchaser and user ofthe product. Warranty Duration. This TI electronic oduct is warranted to the criginal purchaser fer & period of one (1) year trom the orginal purchase ate, ‘Warranty Coverage. This T! electronic product is warranted against defective materials and construction. THIS WARRANTY IS VOID IF THE PRODUCT HAS BEEN DAMAGED BY ACCIDENT OR UNREASONABLE USE, NEGLECT, IMPROPER SERVICE, OR OTHER CAUSES NOT ARISING OUT (OF DEFECTS IN MATERIALS OR CONSTRUCTION. Warranty Disclaimers. ANY IMPLIED WARRANTIES ARISING OUT OF THIS SALE, INCLUDING BUT NOT LIMITED TO THE IMPLIED WAR- RANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE LIMITED IN DURATION TO THE ABOVE ONE-YEAR PERIOD. TEXAS INSTRUMENTS SHALL NOT BE LIABLE FOR LOSS OF USE OF THE PRODUCT OR OTHER INCIDENTAL OR CONSEQUENTIAL COSTS, EXPENSES, OR DAMAGES INCURRED BY THE CONSUMER, OR ANY OTHER USER. ‘Some slates/orovinges do no! allow the exclusion or Emialion of implies ‘warrants of consequential camages, so the above limitations or excl sions may not apply to you. Legal Remedies. This warranty gives you specific legalrights, and you may also have other rights that vary from state to stale or province to province, Warranty Performance. During the above one (1) year warranty period, your defective product will be either repaired or replaced with 2 recorai tioned model of an equivalent qually (at TI's option) when the product is returnes, postage prepaid, 0 Texas Instruments Service Faclty. The ‘warranty ofthe repaired of replacement unit will continue for the war- ranty of the original unit or six (6) months, whichever is longer. Other than the pastage requiremert, no charge will be made for such repair ‘anaior replacement. Tstongly recommends that you insure the product for value prior to mailing Software. Software is licensed, not sold. Tl and is Heensors do not warrant thai the software will be fr from errors or meet your specific requirements, All software is provided "AS I.” Copyright. The software ana any documentation suppliea with this, product are protected by copyright. ja & New Zealand Customers only ‘One-Year Limited Warranty for Commercial Electronic Product 100 Appendix — Reference Information‘This Texas Instruments electronic product warranty extends only to the original purchaser and user of the product. Warranty Duration. This Texas Instruments electronic product is warranted tothe original purchaser fora period of ane (1) year from the original purchase date. Warranty Coverage. This Texas Instruments electronic product is warranted against defective materials and construction. This war: ranty is void if the product has been damaged by accident or unrea- ‘sonable use, neglect, Improper service, or ther causes not arising ‘out of defects in materials of construction, Warranty Disclaimers. Any implied warranties arising out of this sale, including but not limited to the implied warranties of merchantability and fitness for a particular purpose, are limited in duration to the above one-year period. Texas instruments shall not be liable for loss of use of the product or other inci- dental or consequential costs, expenses, or damages incurred by the consumer or any other user. Except as expressly provided in the One-Year Limited Warranty {for this product, Texas Instruments does not promise that faci ities for the repair of this product or parts for the repair of this. product will be available. ‘Some jurisdictions do not allow the exclusion or imitation of implied ‘warranties or consequential damages, so the above limitations or ‘exclusions may not apply to you: Legal Remedies. This warranty glves you specttc legal rights, and you may also have other rights that vary Irom jurisdiction to jurisdic tion, Warranty Performance. During the above one (1) year warranty period, your detective product willbe either repaired or replaced with 22 new or reconditioned model of an equivalent qualty (at TI's option) ‘hen the product is returned to the original point of purchase. The repaired or replacement unit will continue for the warranty of the ‘original unit or six (6) months, whichever is longer. Other than your ‘east to return the product, no charge will be made for such repair andior replacement. TI stiongly recommends that you insure the product for value if you mail Software. Software is licensed, not sold. TI and its licensors do not warrant that the software wil be free from errors or me cific requirements. All software is provided "AS | Copyright. The sofware and any dacumentat product are protected by copyright. All Other Customers For information about the length and terms of the warranty, refer to your package andor to the warranty statement enclosed with this product, or contact your local Texas Instruments retaler/distributor. Appendix — Reference Information 101