Question: I need the steps for calculating the following problem on a financial calculator (BA II Plus), please. I already have the answers and formulas, just
I need the steps for calculating the following problem on a financial calculator (BA II Plus), please. I already have the answers and formulas, just looking specifically how to type on financial calculator. Thank you
a. If the one-year discount factor is .905, what is the one-year interest rate?
b. If the two-year interest rate is 10.5%, what is the two-year discount factor?
c. Given these one and two-year discount factors, calculate the two-year annuity factor.
d. If the PV of $10 a year for 3 years is $24.65, what is the three-year annuity factor?
e. From your answers to (c) and (d), calculate the three-year discount factor.
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