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BAIIPlusTutorial
PartI
TheTIBAIIPlusisafairlyeasytousefinancialcalculatorthatwillserveyouwellinall
financecourses.Thistutorialwilldemonstratehowtousethefinancialfunctionstohandle
timevalueofmoneyproblemsandmakefinancialmatheasy.Iwillkeeptheexamplesrather
elementary,butunderstandingthebasicsisallthatisnecessarytolearntousethecalculator.
Pleasenotethatthedesignofthiscalculatorhaschangedslightlyovertheyears,butitworks
thesamewayevenifitdoesntmatchmypicture.
InitialSetup
Beforewegetstarted,weneedtocorrectly(inmyview,anyway)setupthecalculator.The
BAIIPluscomesfromthefactorysettoassumemonthlycompounding.Thatsfine,I
suppose,butitsbettertosetittoassumeannualcompoundingandthenmakemanual
adjustmentswhenyouenternumbers.Why?Well,thecompoundingassumptionishidden
fromviewandinmyexperiencepeopletendtoforgettosetittothecorrectassumption.Of
course,mostpeopledontrecognizeawronganswerwhentheygetone,sotheyblithelyforge
ahead.Tofixthisproblempress2ndthenI/Yandenter1whenprompted.NowpressEnter
andthen2ndCPTtoreturntoablankscreen.Problemsolved.
Oneotheradjustmentisimportant.BydefaulttheBAIIPlusdisplaysonlytwodecimal
places.Thisisnotenough.Personally,Iliketoseefivedecimalplaces,butyoumayprefer
someothernumber.Tochangethedisplay,press2ndthen.and,whenprompted,enterthe
numberofdigitsyouwouldliketoseedisplayed.YoumustthenpresstheEntertolockin
yourchoice.Iwouldpress2nd.5Entertodisplay5decimalplaces.Thatsit,the
calculatorisreadytogo.
Ifyoudontfindtheanswerthatyouarelookingfor,pleasechecktheFAQ.Ifitisntthere,
pleasedropmeanoteandIlltrytoanswerthequestion.
Example1—FutureValueofLumpSums
Wellbeginwithaverysimpleproblemthatwil
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