Education Technology

# Knowledge Base

## Solution 11237: Computing Monthly Payments Using the BA II PLUS™ Family Calculator.

### How are monthly payments calculated on the BA II PLUS family calculator?

The monthly payment can be found by using the Time Value of Money feature on the BA II PLUS family calculator.

Example: What is the monthly payment of a mortgage for $75,000 at 8.5 % interest at a term of 30 years? PV = 75000 I/Y = 8.5 N = 30 years = 360 Periods PMT =? Clear Values and Compute: 1. Press the [2nd] key and the [FV] key. (This clears the TVM worksheet). 2. Press the [2nd] key and the [I/Y] key. (This enters the P/Y worksheet). 3. Set P/Y to 12 for monthly payments by entering 12 and the [ENTER] key. This also sets the C/Y (compounding periods) to monthly. 4. Press the [2nd] key and the [CPT] key. (This exits the P/Y worksheet). 5. Input 75000 and press the [PV] key. (This stores 75000 to the Present Value register). 6. Input 8.5 and press the [I/Y] key. (This stores 8.5 to the Interest Per Year register). 7. Input 30 and press the [2nd] key and the [N] key. (This multiples the 30 year term times P/Y). 8. Press the [N] key. (This stores 360 to the N register). 9. Press the [CPT] key and the [PMT] key. (To compute for the monthly payment). The monthly payment is$-576.69.

Please Note: The payment is displayed as -576.69 because it is a negative cashflow.