Texas Instruments BA II Plus User Manual

2: TVM and Amortization Worksheets 47
Example: Present Value of Lease Payments
Procedure Keystrokes Display
Set all variables to defaults.
& } !
RST 0.00
Set payments per year to 1.
& [
1
!
P/Y= 1.00

Set beginning-of-period
payments.
& ]
& V
BGN
Return to calculator mode.
& U
0.00
Enter number of periods.
5
,
N= 5.00

Enter periodic interest rate at
which your firm can borrow.
15
-
I/Y= 15.00

Enter annual lease payment.
36000
S /
PMT= -36,000.00

Compute present value of
lease payments.
% .
PV= 138,779.22

The present value of the lease payments is greater than the
purchase price of $125,000, so it would be best to buy the server
outright.

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