How to Calculate TVM on the BA II Plus
Time-value-of-money is five registers — N, I/Y, PV, PMT, FV — plus the P/Y, C/Y and BGN/END settings. Store four, compute the fifth. Sign convention: money you receive is positive, money you pay is negative.
Step by step
- 1
Clear old values
Left-over registers are the #1 cause of wrong answers. Clear the TVM worksheet before each problem.
[2ND][CLR TVM]
- 2
Set P/Y (and C/Y)
Monthly payments: P/Y = 12. C/Y follows P/Y until you set it separately (e.g. quarterly compounding: ↓ to C/Y, 4, ENTER).
[2ND][P/Y]12[ENTER][2ND][QUIT]
- 3
Enter the four knowns
Value + key, in any order: periods into N, annual nominal rate into I/Y, amounts into PV / PMT / FV with correct signs.
360[N]6[I/Y]100000[PV]0[FV]
- 4
CPT the unknown
Press [CPT] then the missing key. The answer appears with the machine sign convention.
[CPT][PMT]
- 5
Check BGN if it is an annuity-due
Rent or lease payments occur at the START of periods: [2ND] [BGN], [2ND] [SET], [2ND] [QUIT]. The BGN indicator must show; see the BGN guide.
Worked example (T1): monthly mortgage payment
Borrow 100,000 for 30 years at 6% nominal, monthly payments (END). PMT = −599.55 — you pay 599.55 per month. Solve N or I/Y the same way: store the other four and CPT.
[2ND][CLR TVM][2ND][P/Y]12[ENTER][↓]12[ENTER][2ND][QUIT]360[N]6[I/Y]100000[PV]0[FV][CPT][PMT]
Web practice cannot replace the physical calculator in a proctored exam — only calculators on the exam organizer’s current list are allowed.
Frequently asked questions
Why is I/Y entered as an annual number with monthly P/Y?
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I/Y is always the NOMINAL annual rate. The calculator derives the periodic rate from P/Y and C/Y: with P/Y = C/Y = 12, it uses I/Y ÷ 12 per month.
Do I enter 6 or 0.06 for 6%?
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Enter 6 — percent values go in as whole percents (I/Y, CPN, YLD, NOM are all percent registers).
How do I solve for the number of periods?
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Store I/Y, PV, PMT (and FV), then [CPT] [N]. N comes back in PAYMENTS — divide by P/Y for years.