Solving for the Interest Rate (Using the Texas Instrument BAS II Plus)

(Using the Texas Instrument BA II Plus)

There are times in our careers when we need to solve for an interest rate for a deal being offered. Or maybe someone offer to purchase an item from you over time and you know a dollar today is of more value than the same dollar tomorrow. Perhaps you wish to make an investment and you would like to know your rate of return.

Again, let suppose you are planning to give your son $400,000 in 18 years for his college needs. Let’s say you have $100,099.61 and you still have the 18 years before the $400,000 are needed.

What is the rate of interest you’ll need to earn to accomplish your goal of having $400,000?

N=18

I/Y=?

PV =$100,099.61

FV=$400,000

The calculator shows that you’ll need to earn 8% interest to meet your goal

Then enter 100099.61 now in the bottom right corner is a key which has a+ and – on it. That is how you show a negative number. It must be done for the calculator to understand what you’re doing. It is a negative 100099.61 because it takes money from you today.

Next enter 400000 then press FV

After this simply press the CPY and then the key for what you are solving for.

The calculator show you’ll need to earn 8% interest to meet your goal.

 Note: Images on this blog site are from a free source or taken by the author. No image or group of photos is intended to represent the people the author serves. The author does not care about Race (that is a politically correct term that he does not like because we are all of the same Race, the Human Race. He prefers the term ethnicity, color, religion, sex, gender, marital status, disability, genetic information, national origin, source of income, Veteran or military status, ancestry, citizenship, primary language or immigration status.) He is a service provider for all people. We will all rise together when we band together and help one another. Joseph Erwin is a Real Estate Broker, DRE # O2131799, and a CA general contractor # B 696662. He’s a member of the CRMLS and The East Valley Association of Realtors located in the Inland Empire region of Southern California.

(Using
the Texas Instrument BA II Plus)

There are times in our careers when we need to solve
for an interest rate for a deal being offered. Or maybe someone offer to
purchase an item from you over time and you know a dollar today is of more
value than the same dollar tomorrow. Perhaps you wish to make an investment and
you would like to know your rate of return.

Again, let suppose you are planning to give your son
$400,000 in 18 years for his college needs. Let’s say you have $100,099.61 and
you still have the 18 years before the $400,000 are needed.

What is the rate of interest you’ll need to earn to
accomplish your goal of having $400,000?

N=18

I/Y=?

PV =$100,099.61

FV=$400,000

The calculator shows that you’ll need to earn 8%
interest to meet your goal

Then enter 100099.61 now in the bottom right corner is
a key which has a+ and – on it. That is how you show a negative number. It must
be done for the calculator to understand what you’re doing. It is a negative
100099.61 because it takes money from you today.

Next enter 400000 then press FV

After this simply press the CPY and then the key for
what you are solving for.

The calculator show you’ll need to earn 8% interest to
meet your goal.

 Note: Images on this blog site are from a free
source or taken by the author. No image or group of photos is intended to
represent the people the author serves. The author does not care about Race
(that is a politically correct term that he does not like because we are all of
the same Race, the Human Race. He prefers the term ethnicity, color, religion,
sex, gender, marital status, disability, genetic information, national origin,
source of income, Veteran or military status, ancestry, citizenship, primary
language or immigration status.) He is a service provider for all people. We
will all rise together when we band together and help one another. Joseph Erwin
is a Real Estate Broker, DRE # O2131799, and a CA general contractor # B
696662. He’s a member of the CRMLS and The East Valley Association of Realtors
located in the Inland Empire region of Southern California.