Texas Instruments BA II Plus User Manual

40 BA II PLUS™ Calculator
Present Value in Present-Value Annuities
Example: Present Value of Cost Savings
The Furros Company purchased a machine that provides
annual savings of $20,000 per year for the next 10 years. Using
an annual discount rate of 10%, compute the present value of
the savings using an ordinary annuity and an annuity due.
•
For a present value ordinary annuity:
PV = ?
$20,000 $20,000 $20,000
. . .
0 1 9 N = 10
I/Y = 10
•
For a present value annuity due for a leasing agreement:
PV = ?
$20,000 $20,000 $20,000
. . .
0 1 9 N = 10
I/Y = 10

Texas Instruments BA II Plus Specifications

General

Type	Financial
Cover	-
Form factor	Pocket
Control type	Buttons
Product color	Black
Digits	10 digits
Display tilting	No
Display number of lines	1 lines
Memory registers	10
Power source	Battery