I am in the first reading and have now started the section of computing PV and FV of money and annuities. I can easily figure out the FV or PV of an even series of cash flows, compounded monthly, quarterly, or annually, but my challenge is figuring out the multiplier w/out using a financial calculator. are we allowed to use the financial calculators on the exam and just plug in FV and PV or do we have to figure it out manually/longhand by using the formulas?? also, in my management accounting book from college, it has “tables” of multipiers listed for FV, PV, FV/PV of an annuity etc for different times periods, and interest rates. i know we can’t haul this table in the exam, but can we use the financial calculators to figure FV/PV or are we supposed to be able to compute it long hand? (The latter option seems really time consuming). What I’m simply trying to ask is…Can we used a calculator on the exam that has the ability to compute PV and FV, or can we only use a simple electronic calculator?

Yes, you are allowed to use the TI BA II Plus or the HP 12c calculators on the exam. Don’t worry, you won’t have to waste time in figuring it out manually but good to know.

or TI BAII Plus Professional.

Here is a link I found that outlines the CFAI’s policy on calculators: http://www.cfainstitute.org/cfaprog/resources/examdetails/policies/calculator.html I also suggest you go to this CFA Candidate Preperation Toolkit site and familiarize yourself with other policies, if you aren’t already: http://www.cfainstitute.org/cfaprog/resources/

Yes you can use calculator that calculates FV PV etc, read the computer policy on the CFAI website. Only few models are allowed in the exam. There will be ‘no’ formula sheet or PV or FV tables.

thanks for the quick response guys! glad to know i’m not the only one up. im around st louis and it’s almost 1am here. got to get ready for a presentation tomorrow w/ a variable annuity prospect. I currently have the HP 12c that i got as a gift a long time ago and thought i’d never use!! i read somewhere though that there is something different about some of the calculations it makes though??? can’t remember exactley but i read it on here. any suggestions/ideas? i was considering looking into selling my HP 12c and buying the TI but didn’t know if that information was valid…

If you don’t already have one, get a TI BA II Plus Professional. I assume you’re taking the exam in December?? You can use this calculator on the exam, and all of it’s included functions including TVM… don’t worry about the formulas for problems you can do with the calculator, and concentrate more on the THEORY behind the math/calculations. Disclaimer: I haven’t taken LI yet, but I’ve been studying for 8 months and am reasonably sure that this is right.

I currently have the HP 12c that i got as a gift a long time ago and thought i’d never use!! i read somewhere though that there is something different about some of the calculations it makes though??? can’t remember exactley but i read it on here. any suggestions/ideas? i was considering looking into selling my HP 12c and buying the TI but didn’t know if that information was valid…

make sure you are very good with the calculator before the exam. You have on average 90 seconds to answer each question 120 qs and 180 minutes (3 hrs) 180/120 = 1.5 minutes or 90 seconds. fumbling with the calculator will KILL YOU