Im am baffled. my ba-II plus is not calculating TVM correctly. ive tried resetting, making sure end period was selected (i.e. ordinary annuity) but no luck. as an example i enter... n=1, i=10, pv=-1, pmt=0, and cpt for fv. it spits out an answer of 1.01. obviously a 10% yield on 1 over a period of 1 is 1.10 and not 1.01. what is going on. PLEASE HELP
Office Equipment & Supplies - Texas Instruments - BA-II Plus Calculator
Answers & Comments
It's giving you the correct answer for the problem you've input. When you specified 1 for n, you told it one month. If you specify more digits, you'll see that the answer is 1.00833333.
By default, the calculator works with annual interest rates but counts periods in months.
Based on your explanation above, changing to 12 gives the answer of 1.104713067 which is also incorrect. The answer should be 1.100000000 right?
If the interest is being compounded annually then yes, the result is 1.10. However if the interest is being compounded monthly then the result is 1.1047.