Texas Instruments BA II Plus User Manual

2: TVM and Amortization Worksheets 43
Example: Present Value of Perpetual Annuities
The Land of OZ has issued perpetual bonds for replacing bricks
in their highway system. The bonds pay $110 per $1000 bond.
You plan to purchase the bonds if you can earn 15% annually.
What price should you pay for the bonds?
Procedure Keystrokes Display
Clear.
& U P P
0.00
Calculate PV for a perpetual
ordinary annuity.
110
6
15
2 N
733.33
Calculate PV for a perpetual
annuity due.
H
110
N
843.33
You should pay $733.33 for a perpetual ordinary annuity and
$843.33 for a perpetual annuity due.

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