BA II Plus TVM Tutorial: N, I/Y, PV, PMT, FV
Tutorly · Finance · TVM
BA II Plus TVM Tutorial: N, I/Y, PV, PMT, FV
This BA II Plus TVM tutorial covers the whole skill in one move: enter any four of the five time-value keys, then compute the fifth. Set your calculator correctly, follow the cash-flow sign convention (money out is negative), and the BA II Plus solves almost every TVM problem in your finance course and the CFA exams.
The five TVM keys
Fix these settings first (once)
The sign convention is the other half of the battle: cash you pay out is negative, cash you receive is positive. If you invest money today, enter PV as a negative number — the BA II Plus then returns FV as a positive.
Worked example: how do you solve a TVM problem on the BA II Plus?
You invest $5,000 today at 6% per year for 10 years. What’s it worth at the end?
| Press | Display | Why |
|---|---|---|
| 10 → N | N = 10 | 10 years |
| 6 → I/Y | I/Y = 6 | 6% per year |
| 5000 → +/− → PV | PV = −5,000 | cash out today (negative) |
| 0 → PMT | PMT = 0 | no yearly payments |
| CPT → FV | FV = 8,954.24 | the answer |
Getting a wrong or negative answer? It’s almost always P/Y, a leftover PMT, or the sign. A tutor can fix your keystrokes in one session — book a session.
Common BA II Plus mistakes
Beyond P/Y and signs: forgetting to clear TVM between problems, entering a monthly rate into I/Y while leaving N in years, and using END mode when a problem has beginning-of-period payments (switch with 2ND → BGN). For converting between APR and EAR, use the calculator’s ICONV worksheet — see EAR vs APR, step by step.
Frequently asked questions
How do you solve TVM problems on the BA II Plus?
Set P/Y, clear TVM, then enter any four of N, I/Y, PV, PMT, FV using the sign convention (cash out negative), and press CPT plus the fifth key to compute the unknown.
Why is my BA II Plus giving the wrong answer?
Usually P/Y isn’t set to 1, a value is stuck in PMT or FV, or the signs are wrong. Clear TVM and re-enter with cash-out as negative.
What should P/Y be set to?
Set P/Y = 1 for annual problems and match it to the compounding frequency only when the question gives payments more than once a year.
Is the BA II Plus allowed on the CFA exam?
Yes — the TI BA II Plus is one of only two calculators approved for the CFA exams, which is why it’s worth mastering early.
Finance course or CFA prep got you stuck?
Book 1-on-1 tutoring on time value of money and the BA II Plus — we’ll drill the exact problem types your exam asks.
Book a session →
