TI BA II Plus Calculator Basics for the CFA Exam

In this tutorial

• Setting up your calculator: decimals, CHN vs AOS, P/Y, date format
• Memory functions and why they save exam time
• Nominal and effective rates with ICONV
• TVM: the five keys, sign convention and BGN mode
• Mortgages: monthly payment, AMORT and Jim Maher's Method A
• Exam-day checklist

1. Set up the calculator before you solve anything

The CFA Institute permits the TI BA II Plus and the HP 12C. The BA II Plus (and the Professional version) is the popular pick because its menus are easy to follow. Whatever model you own, the four settings below should be checked at the start of every practice session — they silently change your answers if left at defaults.

Decimal places

Out of the box the calculator usually shows two decimal places, which is too coarse for many exam questions. Most candidates set four places, and many set nine (floating display) so the calculator shows whatever precision is needed.

How to change it: press [2nd] then [FORMAT] (the decimal point key), you will see DEC = 2.00. Enter 4 (or 9 for floating decimals) and press [ENTER].

Calculation mode: CHN vs AOS

The calculator has two arithmetic engines. Chain mode (CHN) evaluates as you type, left to right, so 2 + 2 × 2 gives 8. Algebraic mode (AOS) respects standard order of operations, so the same entry gives 6. The CFA curriculum assumes standard math conventions, so AOS is the mode you want.

How to change it: press [2nd] then [FORMAT], scroll with the arrow keys until CHN appears, then press [2nd] then [SET] (the ENTER key) to toggle to AOS.

Payments per year (P/Y)

The default is 12 (monthly). In the CFA curriculum it is much safer to set P/Y to 1 and adjust N and I/Y yourself, because a stray P/Y=12 will quietly divide your interest rate and compound every answer the wrong way.

How to change it: press [2nd] then [P/Y]. If it does not show 1, press 1 then [ENTER].

Date format

Date format does not matter for ordinary TVM, but it is critical for the BOND worksheet. Press [2nd] then [FORMAT] and scroll until you see US 12-31-1990. If you prefer European day-month-year order, press [2nd] then [SET] to toggle to EUR 31-12-1990.

Once these four settings are locked in, they stay until a full reset wipes them. To keep the habit automatic, run through the same setup screen in a free BA II Plus simulator whenever you start a study block — thirty seconds now, zero surprises later.

2. Memory functions: stop re-typing long decimals

Multi-step problems force you to carry intermediate results. Writing down a nine-digit decimal and re-entering it invites typos. The BA II Plus stores up to ten values in memory slots 0–9, and the workflow is mechanical:

• Store — with the number on screen, press [STO] then a digit [0]–[9].
• Recall — press [RCL] then the same digit.
• Review — press [2nd] then [MEM] and scroll through every slot, so you can confirm you did not overwrite the value you still need.
• Clear all — press [2nd] then [MEM], then [2nd] then [CLR WORK].

One warning: a full reset ([2nd] then [RESET]) wipes memory and reverts decimals and AOS to factory defaults. Treat reset as a last resort, and re-apply the setup checklist afterwards.

3. Nominal and effective interest rates with ICONV

Distinguishing the stated annual rate from the effective annual rate (EAR) is a core concept, and the ICONV worksheet does the conversion without the formula. Suppose you have a 12% nominal rate compounded semi-annually:

1. Press [2nd] then [ICONV] (above the 2 key).
2. At NOM, enter 12 and press [ENTER].
3. Scroll up to C/Y, enter 2 for semi-annual compounding, press [ENTER].
4. Scroll to EFF and press [CPT].

Result: 12.36%. The same worksheet handles the BEY ↔ EAY conversions that appear in fixed-income questions — using the built-in function is faster and less error-prone than typing the EAR formula by hand.

4. Time value of money: the five keys and two habits

The "big five" keys sit in the third row: [N] periods, [I/Y] rate per period, [PV], [PMT], and [FV]. Between problems, two habits separate consistent scorers from the rest:

• Clear before every problem. Press [2nd] then [CLR TVM]. Old values left in the registers become "ghost" data that silently contaminates the next answer.
• Respect the sign convention. The calculator treats every entry as a cash flow: money coming in is positive, money going out is negative. Enter outflows with the [+/-] key. If your computed answer has the wrong sign, check whether you entered the flow in the wrong direction.

Annuity due: BGN mode

By default the calculator assumes payments happen at the end of each period (ordinary annuity). When a problem says payments occur at the beginning — an annuity due — switch modes:

1. Press [2nd] then [BGN].
2. Press [2nd] then [SET].
3. A small BGN indicator appears at the top right of the screen.

Switch back to END the moment the question is done. Forgetting is the single most common reason a perfectly entered TVM problem produces the wrong answer.

Rather than memorizing where each menu lives, follow along with the same key presses in BAII Fincal, which mirrors the BA II Plus layout and shows the worksheet flow step by step — the muscle memory transfers straight to the exam-room calculator.

5. Mortgages: payment, payoff balance and the fast shortcut

Mortgage questions are TVM in disguise: find the monthly payment, then find the remaining principal at some later payment.

Example: monthly payment on a $100,000, 30-year loan at 6% interest.

• N: 30 × 12 = 360
• I/Y: 6 ÷ 12 = 0.5
• PV: 100,000
• FV: 0
• Press [CPT] then [PMT] — result −599.55.

Payoff balance with AMORT

To find what is still owed after the 85th payment, use the amortization worksheet:

1. Press [2nd] then [AMORT] (above the PV key).
2. P1: enter 85 then [ENTER].
3. P2: enter 85 then [ENTER].
4. Scroll down to BAL — the balance is $89,488.

Jim Maher's "Method A": the fastest remaining-balance trick

When time is short, skip the AMORT menu entirely and recompute the present value of the remaining payments. Starting from the original loan setup:

1. Keep I/Y, PMT and FV unchanged.
2. Change N to the number of payments remaining — for a 360-month loan after 85 payments, enter 275.
3. Press [CPT] then [PV].

The displayed PV is the payoff amount, reached without navigating any extra menus. If a question asks for the balance after payment k and you are out of time, this is the sequence to use.

6. Exam-day checklist

• Float the decimals. Set 9 places; the display shows as many digits as needed without trailing zeros.
• Watch the BGN indicator. After any annuity-due problem, switch back to END immediately.
• Know what a reset costs. [2nd] → [RESET] → [ENTER] clears everything, including your AOS mode and decimals. Avoid mid-exam resets; if you must, re-apply the setup steps in section 1.

7. Practice until the keys are automatic

Setup, memory, ICONV, TVM, BGN and AMORT cover most of the "basic" keystrokes the CFA exam throws at you. The fastest way to lock them in is repetition with immediate feedback: try it in a free BA II Plus simulator and run each sequence from this tutorial until you can finish it without looking. When you are ready for project valuation, bond pricing and statistics, continue with the advanced BA II Plus functions tutorial.

References

This tutorial was written from the public study guidance published by Kaplan Schweser, based on the CFA Video Library series hosted by Jim Maher. The key-press sequences follow the standard behavior of the Texas Instruments BA II Plus.

• Kaplan Schweser — TI BAII Plus Calculator Basics for the CFA Exam
• Kaplan Schweser — TI BAII Plus Calculator Advanced Functions for the CFA Exam