Education Technology

# Knowledge Base

## Solution 11220: Calculating Annual Payments on the BA II PLUS™ and the BA II PLUS™ PROFESSIONAL.

### How Do I Calculate Annual Payments on the BA II PLUS or the BA II PLUS PROFESSIONAL?

Example: What would the annual payment of a 30 year mortgage for $75,000 at 8.5% interest be? PV = 75000 I/Y = 8.5 N = 30 PMT = ? To Solve: 1) Press the [2nd] key and the [I/Y] key. (This enters the P/Y worksheet.) 2) Set P/Y to 1 for annual payments by entering 1 and pressing the [ENTER] key. This also sets the C/Y (Compounding Periods) to annually. 3) Press the [2nd] key and the [CPT] key. (This exits the P/Y worksheet.) 4) Press the [2nd] key and the [FV] key. (This clears the TVM worksheet.) 5) Enter 75000 and press the [PV] key. (This stores 75000 to the Present Value register.) 6) Enter 8.5 and press the [I/Y] key. (This stores 8.5 to the Interest Per Year register.) 7) Enter 30 and press the [N] key. (This stores 30 to the N register.) 8) Press the [CPT] key and the [PMT] key. The annual payment is$6,978.79.

Please Note: The payment is displayed as -6,978.79 because it is a negative cashflow.