TI BA 2 Plus and APR

CFA Level I
#1

Okay I just picked up the TI BA 2 Plus Pro and I am tripping balls because I can’t calculate the APR.

For example, the answer to the practice question 16 on page 307 of the Ethics text it tells you what to punch into the calc. I punch all those values in and when I try to calc APR I get Error 5.

Here’s what it looks like :

N = 12

%i compute = X

PV = 1000

FV = 1061.68

PMT = n/a (=0)

I just noticed too that anytime you don’t enter a value for PMT, the calc doesn’t play nice…

#2

The PV has to be entered negative

#3

FV=PMT= +/-

PV= opposite of above

#4

Make PV negative because it is a cash out flow. Make PMT and FV as positive, because they are cash inflows. Thinking of it that way makes it easy to keep signs correct.

#5

Wow, thanks guys. You saved my life.

While learning about finance I have to learn about a totally new calculator.