The BA II Plus Financial Calculator is a popular tool for performing a wide range of finance calculations in college. These aren’t typically used in the professional world, as spreadsheet software is the go-to. Here are the most common calculations finance majors will encounter:
1. Time Value of Money (TVM) calculations: TVM is used to calculate the present or future value of a stream of cash flows. You can use the BA II Plus to calculate the present value (PV), future value (FV), interest rate (I/Y), number of periods (N), and payment (PMT) for loans, investments, and other financial transactions.
2. Amortization calculations: Amortization is the process of paying off a loan over time, with regular payments that include both principal and interest. The BA II Plus can be used to calculate the monthly payment, total payments, and interest and principal amounts for an amortizing loan.
3. Bond calculations: The calculator can also be used to calculate the price, yield, coupon rate, and other parameters of bonds.
4. Net present value (NPV) and internal rate of return (IRR) calculations: NPV is used to determine the present value of future cash flows, while IRR is used to calculate the rate of return of an investment. The BA II Plus can be used to perform these complex financial calculations.
5. Depreciation calculations: Depreciation is the allocation of the cost of a tangible asset over its useful life. The calculator can be used to calculate the straight-line depreciation, accelerated depreciation, and other methods of depreciation.
Thank you!!! Please do a video using the calculator with examples!