Time Value of Money Calculations on the BA II Plus Calculator

Welcome to this Time Value of Money calculations
tutorial using the BA II Plus calculator, compiled by Andrew Rossman.
In this tutorial we will only be using these ”Time Value of Money” keys.
That is, we will not be changing P/Y and C/Y values. P/Y and C/Y will be left at their
default values 1. So if you plan on changing them, please see
other videos posted on this channel. We will enter incoming payments as positive
and outgoing payments as negative. You can change the decimals to your desired
number of decimal places by pressing 2nd FORMAT. You can choose 9 to display all decimals but
I will leave it at 2. Press enter, and then 2nd quit.
Before solving any problem, Press 2nd CLR TVM to clear these TVM entries
You can always check the value stored in the TVM entries by pressing the Recall button
and then the TVM key. For example, RCL PV shows 0, and RCL PMT also shows 0 because
I cleared the TVM entries. So let’s look at the first example:
Solving for Payment. Laura takes a 15-year, $500 000 mortgage, on a new condo. At an interest
rate of 4% (that is compounded monthly), what is the monthly payment?
So we begin by pressing 2nd CLR TVM to clear previously done work.
Since we have monthly payments for 15 years, there will be 15x 12 payments which equals
180 payments in total. So we input 180 N
For the interest rate, we divide the 4% by 12 by pressing 4 divided by 12 equals 0.33
and then press I/Y. Note that there are more decimal places not
displayed by the calculator because it is set to 2 decimal places. Although the remaining
decimals are not displayed, they will still be used in the computations.
Note that it will be incorrect to just type 0.33 and press I/Y. You will be missing the
remaining decimal places not displayed by the calculator.
For Present value we enter 500,000 Present Value
Since we will have 0 balance at the end of 15 years, we enter 0 Future Value
And then CPT Payment. And that gives $3,698.44
Note that the value is negative because we input the present value as positive.
The next example shows how to solve for Present Value.
Helene is planning ahead for her daughter Paula’s college tuition. Paula begins college
in 5 years and will need $80,000. How much would Helene have to invest today at 6% compounded
annually to have $80,000 in 5 years? This is a compound interest problem where
the present value is required. We begin by clearing TVM entries by pressing
2nd CLR TVM. Since the duration is 5 years and interest
is compounded annually, we input 5 for N by pressing 5 N.
For 6% interest rate, we press 6 I/Y Since there are no recurring payments we input
0 PMT. For the future value, we enter 80,000 FV.
And then compute PV Which gives 59,780.65. Next let’s solve for future value.
Josh has an investment account with $50,000. If Josh earns 6% per year and contributes
$400 each month, how much will his investments be worth in 10 years?
Note here that interest is compounded per year. Therefore, interest will not be applied
to the $400 monthly payments until after 1 year. That is, until the payments add up to
12 x 400 which is $4800. In essence, we actually have 10 conversion
periods over the 10 years. So we input 10 N
For interest rate we input 6 I/Y We input 50,000 PV
And 4800 PMT. We then compute future value which gives 152,810.20
Next we solve for time. Example 4 – Solving for Time
Steven has $25,000 in credit card debt. His credit card charges 2% in monthly interest
and Steven pays $1,000 each month toward the balance. If Steven doesn’t make any further
purchases, how many months will it take to fully repay his debt.
At 2% monthly interest rate, let’s input 2 I/Y.
25,000 PV for the debt amount Since the payment is made to reduce the debt,
we input it as a negative value: 1,000 negative, and then PMT
Since the debt will be fully repaid, we input 0 for the future value: 0 FV.
And then compute N which gives 35 months. Next we solve for interest rate Martin’s savings account has $25,000 today.
In 5 years, the account is worth $32,000. What is the annual interest rate?
Since interest is compounded annually for 5 years, we input 5 N.
We’ll have to input the 25000 present value as negative because it is an outflow. So we
enter 25 000, negative, PV. We enter 0 PMT as there are no periodic payments.
For future value we enter 3200 FV And then compute interest rate I/Y which gives
5.06%. And that concludes this tutorial.
Thanks for watching.

94 comments on “Time Value of Money Calculations on the BA II Plus Calculator”

  1. Austin Williams says:

    I don't understand why sometimes you change the p/y and the c/y yet other times you just divide the interest rates. Can you briefly explain how you dissect the problem in order to determine whether you want to change that or just divide the i/y interest rate by 12? It's very confusing, but I can usually get the same answer using each method.

  2. baby bean says:

    Umm for FV I didn't get that on my calculator it came up as 156,606.2695
    :/ everything else before that seemed to be the same on my calculator

  3. saturdaycity says:

    Thank you so much, a perfect video! Cheers 😉

  4. Daniel Deufel says:

    When I do this on my BAII Plus Pro I get -3,676.2934. What am I doing wrong?

  5. BlizZ YT says:

    Your's is the best, no doubt Joshua – keep it up!

  6. Mong Peiling says:

    Thank you!!!

  7. EJIGU BIRRU says:

    that is help full. Ty

  8. Daegan Hillmer says:

    On the last question, why would the savings account value of $25,000 be an outflow and therefor negative?

  9. Andrei Guevorkian says:

    At 5:15, you convert PMT to be in terms of years. What if instead I convert I/Y and N to be in terms of months. So PMT=400 I/Y=6/12=0.5 and N=10×12=120. Plugging these into calculator (with PV same as before) you get -156k. So there's a small discrepancy. Would anyone know why?

  10. Tina Murphy says:

    What program did you use to make your videos?

  11. Carla Christian says:

    Thank you so much for your tutorial. It was very helpful.

  12. UltraRun says:

    double checking the mortgage payment is $2,848.19 using a BA II plus

  13. kay doyle says:

    nice pleasant voice to listen to

  14. charmmeoww says:

    Thank you so much! I was in the twilight zone about this subject while in class 3 hrs ago! Thanks again.

  15. Ravneet Kaur says:

    how do u input cash flows?

  16. Mofiyinfoluwa Aderonmu says:

    hello please what is your email address ?

  17. MIKE OXBEEG says:

    Thank you very much.

  18. maha agh says:

    Can i find , by using BA II plus , the balance after 4th payment if the payment is increasing by r% or by “number” ???

  19. Linda Amour Grant says:

    In Example #1, I have checked my calculations 3 times and continue to receive the same answer $2,992.38 which is different to the answer you received. Please clarify the calculations. Thanks.

  20. C C says:

    thank you Joshua!

  21. Craig Smith says:

    Super helpful. Thanks Joshua!!

  22. Lourdes Ji says:

    Hi Mr Emmanuel, In example 4, I typed in each item same as the example, I keep on getting 20.4753; I do not understand which went wrong? Could you please explain? Thank you

  23. Lourdes Ji says:

    Oh, I have found out why, I did not enter '-' in 1000 PMT, that caused the issue. How do I correctly determine every questions' positive and negative quickly? Thank you for this helpful tutorial.

  24. Lili Avalos says:

    Very Helpful! Thank you!!!!!

  25. Ian Anderson says:

    Great video, as always. Thanks

  26. Leonardo Hernandez says:

    You're videos are almost perfectly! Thank you!

  27. Luis Estrada says:

    $2,848.19 WTF¿¿¿¿¿ HELP!!!!!!!!!!! SOS PLEASEEEE

  28. Redskull says:

    hey josh if the answers are in negative do we display it as negative as final answer? coz am taking this module exam soon

  29. TheCbone1979 says:

    I really like your voice, clear and concise verbiage and the video itself helped me revisit how valuable the TVM functions are on my BA II.

  30. alicia Last says:

    I followed the example…but for the first example i am getting $3217.16 and not $3698.44 as you stated. What am i doing wrong?

  31. Nikhil Pritmani says:


  32. Zuby A says:

    Thank you so much for this video!

  33. Adrian S. says:

    5:16 I thought PMT is negative since it's an outflow. So I thought PMT = -4800 don't understand why it is positive in the example? Thank you in advance

  34. Zia Khan says:

    Hi Emmanuel can you explain why you put 2 as I/Y at 6:10 ? Why didn't you do 24% instead because its monthly interest right? I'm confused, thanks!!!

  35. clifford says:


  36. austin xu says:

    Thank you very much! Your teaching is so clear and understandable.

  37. SHER Alfonso says:

    Hi, thanks for your tutorial. Where can I find that emulator?? I really appreciate your help

  38. Amanda says:

    Best tutorial I found for BA II calculator! So helpful. Thank you!!

  39. Big Sky says:

    sho me da wey?

  40. Bobok says:

    tttthhaannkkyoouu soo muuch MAN!!

  41. krishna kumar Ghosh says:

    Thank you so much …

  42. Gloria Goodloe says:

    Thank you soooo much! i had no idea what to do

  43. peter pan says:

    du bis dummamaskfNSDFK

  44. Lavoria Pierce says:

    Very helpful. Easy to follow.

  45. Ebtisam Alhunaidi says:

    You're videos are almost perfectly

  46. Get Shreked420blaze says:

    Thank you so much sir!

  47. It'sAlexForShort says:

    I love you.

  48. Susan Osowe says:

    Thank you Josh

  49. Jake Beyer says:

    thank you!

  50. Ange Ferns says:

    Perfect video! nothing extra and everything you need to know. Very helpful that you solved every type of problem!

  51. Ibrahim Da'as says:

    Thank you so much

  52. Matthew Redfern says:

    Really helped. thanks fella!

  53. William Finlay says:

    Excellent video

  54. Mohamed Niangado says:

    hello i have followed all step by im not getting the right number its so weird

  55. A Denise says:

    Mr. Emmanuel, what could be wrong with my CPT button if it is not computing?

  56. Suhaib Mohamed says:

    simple, concise and to the point. Thank you, sir!

  57. KariWins says:

    Thank you so much for uploading this video! I was having a difficult time trying to use this for my finance class!

  58. Abraham Torres says:

    Thank You so much!!

  59. Mark Zalig says:

    Dude thank you. Just taught me better than my snooty professor could.

  60. NeFXP says:

    Thank you Joshua

  61. a. y. says:

    Great video, clear instructions. Thanks a lot!!

  62. Joshua Coronel says:

    Great video, but there is an error in example 3. Since payments are made monthly while interest is compounded annually (i.e. payments are more frequent than interest), the annuity is nominal. This problem cannot be solved using the calculator if P/Y isn't changed.

  63. candyfloss184 says:

    Oye…I am computing for eg 1 with my ba2 calculator and getting -2848.19. Pls advise

  64. hugoender says:

    Amazingly clear and concise examples! If only all the youtube video tutorials were this great. Thanks a ton! By the way, your voice and accent are awesome and make this video even better!

  65. Tyler Mullery says:

    learn easier and faster here than I do paying for my college degree

  66. Carson Wilson says:

    Well, you certainly made this a lot easier than Texas Instruments' own tutorial shit…

  67. E says:

    Why I always can't get the correct answer, I followed the instruction step by step. For the first example, i got -2848.1866

  68. carl gyim says:

    Very helpful. Thanks

  69. Razaz Eltom says:

    Thank you so very much! this is the best YouTube video to understand FV and financial calculator

  70. Anita E says:

    thank you for the simple, straight-forward instruction!

  71. Joe Doe says:


  72. Clara Inés Aguilar Arias says:

    Excellent video, thanks a lot. Very clear!

  73. dnyl sad club says:

    thx for saving mi b4 my exam

  74. Trickster Rogue says:

    hey I want to have this app, how you can have the app ?

  75. Dionne Stokes says:

    What is the rule on multiplying N X 12 AND Dividing the interest rate by 12. How do you know when to make the present value negative in regards to the example on the $25k in the savings account?

  76. e says:


  77. Anurup Rao says:

    Thank you Joshua!

  78. ray allen says:

    For additional tutorial on a website, I recommend this website,

  79. KBR says:

    Great video!

  80. ray allen says:

    Check out for a full and detaild Ba ii Plus experience https://simplifiedtutorialbaiiplus.wordpress.com/2019/11/25/honest-ba-ii-plus-review/

  81. Kaustav Dutta says:

    Very helpful video. Thanks a ton.

  82. Marcel Kushner says:

    What the hell ! You help me with one problem that has been haunting me forever ! CLR TVM !

  83. fernando cruz says:

    Why is 25000 in the last example an outflow?

  84. Jenny Titus says:

    For the first calculation I did exactly what you said on my BA II and I came up with a monthly payment of -$2,848.19

  85. Jenny Titus says:

    For the 2nd calculation my BA II came up with -$78,029.65

  86. Omar Alkhudairi says:


  87. Shelly Wheeler says:

    Thank you for showing the basics-enter your values then select CPT, then what your solving for i.e.PMT. Ugh this calculator has been driving me crazy! Thanks to you I'm solving problems without any issues!

  88. Michael DiFranco says:

    I don't understand. Why should it be negative?
    You say "Because it is an outflow", but isn't an outflow when you are taking money out? No money is being taken out here.

  89. roslynw7 says:

    Your videos are very helpful for my financial management class

  90. C H says:

    Thanks for the tutorial.

  91. Marianna Capeles says:

    Life saver.


    Thank you for your tutorial. It helps a lot to understand how to use calculator.

  93. college says:

    now I can calculate when my credit card debt will be paid off 🙂

  94. Rob says:

    I’m inputting EXACTLY what you did and getting the wrong numbers, clear Tvm keys and reset the calculator

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