Math 177 UCLA Winter 2023 Lecture notes Using the TI BA II Plus 1 2 Typically we use 8 decimal places To select how many decimal places the calculator uses 2ND FORMAT 8 ENTER 2ND QUIT 3 Example 1 Starting one year from today you will deposit 100 into a bank account earning 12 annual e ective interest You will do this for 5 years What are the accumulated funds at the time of the 5th payment answer 635 2847360 In between computations you want to clear all your work 4 5 Example 2 You will receive 100 per month at the end of each month for the next 3 years The nominal annual interest rate is 12 compounded monthly What is the accumulated amount at the end of three years answer 4 307 687836 Example 3 Payments of 400 are made every month for 5 years Sup pose the accumulated value at the time of the last payment is 26 000 What is the nominal interest rate compounded monthly 6 7 8 Calculating the value of bonds Translating the terminology PV price of the bound FV redemption amount PMT coupon amount I Y yield rate 9 Example 4 A 20 year 8 par valued bond has semiannual coupons and face value of 100 It s quoted purchase price is 70 40 What is the yield rate if it is quoted as a nominal rate compounded semiannually 10