Present Value of an Annuity Example: Calculator Solution

Follow the steps below to find the Present Value of the Annuity using the Texas Instruments BA II Plus calculator.

First, set the calculator for monthly compounding.
[2nd][P/Y] 12 [Enter]
P/Y = 12 [2nd][Quit]
Clear the calculator
[2nd][CLR TVM] [2nd][Quit]
Enter the payment, interest rate, and number of payments (mt).
100 [PMT]
12 [I/Y]
24 [N]
[CPT] [PV]
The Present Value is $2124.34

 

© 2002 - 2010 by Mark A. Lane, Ph.D.