Calculation

darshang3

New Member
Hi david can u tell me how to calculate the following expression with TI BA II PLUS PROFESSIONAL CALCULATOR

EXPRESSION IS

80e^-0.05*1


m not getting how to use exponential function here...plz let me know abt it.


Thanks
 

David Harper CFA FRM

David Harper CFA FRM
Subscriber
Hi Darshan,

I like to start with the exponent
.05 x 1 +-/ = -.05
2nd LN (display: 0.851229)
x 80 = 76.098

or if you like parens, could go left to right:
80 x (.05 +/- x 1) 2nd LN = 76.098

Please not LN() and EXP() are inverse functions, so, for example, LN(EXP(5%) = 5%

....and they share the same key, so 2nd LN gives you the e^

David
 

darshang3

New Member
Thanks david for ur help.
I am getting 76.10 for the above expression....is it correct....
as it is said that we can get some differences in calculators.
 

David Harper CFA FRM

David Harper CFA FRM
Subscriber
sure thing...differences are likely due to settings, so it's good to have the calculator set. Looks like you have the decimals set to 2.0.
Please try

2nd
(.) ;i.e., FORMAT
4
enter key

now your display should be 4 decimals

David
 

David Harper CFA FRM

David Harper CFA FRM
Subscriber
i think so, at least. 5 or 6 is okay too (easier to round off then go the other way). to me, 4 is a minimum b/c that gets you to 1 basis point (x.xx%). David
 

dthigale

Member
Hi David,

Isn't it easy to use the exponential function than LN unless I did not understand whay you specifically used LN function.

80e^-0.05*1

first calculate the expont: -.05 * 1 = -.05

keep the answer and press second e^x function key, thus you get the discount factor 0.951229

keep same answer and multiply by 80 to get 76.098354.

Thanks.

D.
 

David Harper CFA FRM

David Harper CFA FRM
Subscriber
Hi Dinesh,

Agreed, the LN is just to reference the same key; "they share the same key, so 2nd LN gives you the e^" ... on both my TI BA II+ and TI BA II+ pro the exponential function shares the LN() key, so i was just trying to explain where EXP can be found...but i agree with you, I think you must use the exp function to get the answer...David
 
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