How to calculate ‘r’ for the below mentioned scenario: PV = 1000 A = 294.8 N = 5 r = ? The formula I am trying to use is the one for the PV of an Annuity. Thank you!
Using a BAII plus?
I am using BAII Plus Professional. Just bought the calculator recently and having difficulties to understand certain things. Please can you write down the steps how you calculated for “r”. Thanks!
Well it first depends on if it is an Annuity Due or not… if not… I have a BAII plus… which probably has the same setup… PV=1000 pmt=-294.8 (negitive b/c it is opposite of payment…if what you pay, pv, is positive, than what you receive, pmt, is negitive) FV= 0 n=5 compute i/y=14.5% Also, whenever you work TVM questions on your calculator…be sure to 2nd CLR TVM and 2nd CLR WORK to clear all previous work…
Thanks Chadtap! It works…
If you can get your hands on the schweser notes, check those out finfan, they walk you through most of the calculation questions that require you to know how to use the special functions of the calculator.