CFA question

1)Basic preliminary set up features of your TI BA II Plus

[•] Denotes keystroke; {•} Denotes data input

A)To set the number of payments per year (P/Y):
[2nd]→[P/Y]→{Desired # of payments per year}→[ENTER]→[CE/C]
P/Y should be set to 1 for all computations

B)To switch between annuity-due [BGN] and ordinary annuity modes:
[2nd]→[BGN]→[2ND]→[SET]→[CE/C]
Select END mode

C)To clear the time value of money memory registers:
[2nd]→[CLR TVM]

2) Solution to the Problem:
A) PV of the 10yr annuity @yr4:
[2nd]→[CLR TVM]
{10}→[N]
{9}→[I/Y]
{-4,000}→[PMT]
{0}→[FV]
[CPT]→[PV] = 25,670.6308

B) Discount the figure from (A) at the same 9% per annum for 4yrs and the annuity worth today:
[2nd]→[CLR TVM]
{4}→[N]
{9}→[I/Y]
{0}→[PMT]
{-25,670.6308}→[FV]
[CPT]→[PV] = 18,185.72 (Answer)

The annuity worth today = 4,000/(1 9%)^5 4000/(1 9%)^6 4000/(1 9%)^7 ...... 4000/(1 9%)^13 4000/(1 9%)^14

2008-04-28 11:40:27 補充：
The annuity worth today = 4,000/(1 9%)^5+ 4000/(1 9%)^6+ 4000/(1 9%)^7+ ......+ 4000/(1 9%)^13+4000/(1 9%)^14

2008-04-28 11:41:01 補充：
The annuity worth today = 4,000/(1+ 9%)^5+ 4000/(1+ 9%)^6+ 4000/(1+ 9%)^7+ ......+ 4000/(1+ 9%)^13+4000/(1+ 9%)^14

Step 1 Find the PV @ Year 5 will received ten year annuity $4,000
Change to BGN mode
Set the Payment Per Year (P/Y) to 1
Input data
N=10
I/Y=9
PMT=-4,000
FV=0
CPT PV = 27,980.98

That PV is a investor have a money @ year 5
back to today
FV=-27,980.98
PMT=0
I/Y=9
N=5
PV=18,185.71 --- Answer

Remember: re-set to END mode after process