how to calculate interest rate on ba ii plus

The example below will demonstrate how to calculate expected value of a return using the BAII Plus family financial calculators. Ideal for Accounting Economics Finance Marketing Conversely, when unemployment within an economy is low and there is a lot of consumer activity, interest rates will go up. To compute the interest rate of a loan using a BA II PLUS family calculator (includes the BA II PLUS AND BA II PLUS PROFESSIONAL), use the Time Value of Money feature and follow the example below: For example: What is the interest rate on a mortgage for $75,000 with payments of $576.69 each month for 360 months? Assume the cash flows consist of $ -8, $4, and $5 at dates zero, one, and . N = 2 4 = 8 periods. Method 1 Calculating Interest Rates 1 Plug your numbers into the interest formula to get your rate. Depreciation schedules Choose from six methods for calculating depreciation, book value and remaining depreciable amount. Fixed rates are rates that are set as a certain percentage for the life of the loan and will not change. We enter into the formula your current balance, original principal amount, number of compounds per year and time period and the formula gives us a resulting balance figure. For more information about or to do calculations involving inflation, please visit the Inflation Calculator. The more frequently interest compounds within a given time period, the more interest will be accrued. A short video on interest rate conversions using the Texas Instruments BA II Plus calculator - converting between nominal (or APR) and effective rates. There are 12 references cited in this article, which can be found at the bottom of the page. Derek owes the bank $110 a year later, $100 for the principal and $10 as interest. PROFESSIONAL), use the Time Value of Money feature and follow the Calculating Basic Loan Interest with BA II Plus. Examples of real-world applications of interest rates include mortgage rates, the charge on a person's outstanding debt on a credit card, business loans to fund capital projects, the growth of retirement funds, amortization of long-term assets, the discount offered by a supplier to a buyer for paying off an invoice earlier, and much, much more. RV Redemption value (% of par value) The amount paid to the owner of the bond when retired. For this chapter, the PMT value should be set at 0. for the third cash flow doing N = 3, FV = x, I/Y = z, and solve for PV. Part 1 | Part 2 | Part 3 | Part . Find many great new & used options and get the best deals for Texas Instruments BA-II Plus Financial Calculator New at the best online prices at eBay! Free Online Textbook @ https://businessfinanceessentials.pressbooks.com/This video introduces the effective annual rate concept and walks through a calculati. I = $3750. Include your email address to get a message when this question is answered. When there is less demand for credit or money, they lower rates in order to entice more borrowers. You'll need more information than just the principle, and when you get that information you can use the formula provided in the article above - or just use an online calculator. These cookies help identify who you are and store your activity and account information in order to deliver enhanced functionality, including a more personalized and relevant experience on our sites. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/1\/18\/Calculate-Interest-Rate-Step-1-Version-3.jpg\/v4-460px-Calculate-Interest-Rate-Step-1-Version-3.jpg","bigUrl":"\/images\/thumb\/1\/18\/Calculate-Interest-Rate-Step-1-Version-3.jpg\/aid2959064-v4-728px-Calculate-Interest-Rate-Step-1-Version-3.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"