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Help w/problem on BAIIPlus

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  • Help w/problem on BAIIPlus

    I'm reviewing the case where the compounding frequency is not equal to the payment frequency (Topic IIIB on the Actex review manual by London and Mocciolo). I've got the formulas/how to do it by hand but I was wondering if there is an easy (easier) way to do these problems using the BA II Plus calculator?

    For example:1) If i = .10 and 1000 is deposited at the end of every 3 years for the next 30 years, what is the accumulation immediately after the final deposit?

    I think there is a way to tell the calculator that I am depositing 1k every 3 years but compounding every 10 for 30 years, but I can't figure out how - and I'm currently having serious issues with my laptop and can't view Broverman's Calculator help file (Adobe viewer is gone and I can't download/install anything).

    Tips?

  • #2
    I can offer two suggestions:

    1) simply compute the interest rate for 3 periods, and use it for I/Y. Then, N would be the number of payments made. e.g. for interest rate 10%, (1.1)^3 -1 *100 = [I/Y] 10 [N] etc.

    2) use the P/Y function. Set P/Y to 1/3 and C/Y to 1. Then N = 30. etc.
    To set P/Y: 2nd [P/Y] 3 [1/x] [ENTER] [down arrow] 1 [ENTER] 2nd[QUIT].

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    • #3
      Originally posted by GreatRussian
      I can offer two suggestions:

      1) simply compute the interest rate for 3 periods, and use it for I/Y. Then, N would be the number of payments made. e.g. for interest rate 10%, (1.1)^3 -1 *100 = [I/Y] 10 [N] etc.

      2) use the P/Y function. Set P/Y to 1/3 and C/Y to 1. Then N = 30. etc.
      To set P/Y: 2nd [P/Y] 3 [1/x] [ENTER] [down arrow] 1 [ENTER] 2nd[QUIT].

      THanks for that - I had tried setting P/Y to 1/3, but couldnt figure out how to enter 1/3 - didn't think to use the inverse key. Thanks!

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