Hi,
I just bought the BA II PLUS financial calculator for my financial management class and I dont really understand the user manual.
So for example, a collectionnor buy a painting for 2 million USDs and he think that in 5 years, he can sell it 4 million, How do I find the discount rate with the calculator?
I know How to find it when I write it down but I’m searching a quicker way with the calculator…
Thank you for your help!
I tried as you said but it gave me a error message (Error 5) ???
#1 by realtime1931@att.net on January 30, 2010 - 6:38 am
A better way to state you Question is:
What is the rate of appreciation (i/Yr) for a painting that is purchased today for $2M (PV) and sold 5yrs from now (n=60) for $5M (FV)… there being no additional outlays during the coming 5yrs (PMT = zero).
Input the above and Press the (i/Yr) button to get the answer of 18.466% per yr.