Kevin, thanks for uploading this video. I was running into an issue during my CPCU studying and I'd never used a financial calculator before. This helped me out a lot and you explained things very clearly. Thanks for your help!
Thank you so much from Spain! I have a financial maths exam next week and i was doing all the operations manually but i think its faster to do it with the calculator and as i have it.. ;)
You are correct. Continuous compounding is done using the exponential function. So 8% compounded continuously would be e^.08 = 8.329%. As a side note, that is not very different from compounded daily which gives an effective rate of 8.328%.
If you have infinite compounding periods (sometimes referred to as continuous compounding), it uses the exponential function (the italicized e) on your calculator. So, for example if you had 9% compounded continuously, you would take e raised to the 0.09 power and then subtract 1 and it would give you 9.4174%.
This video is great! Thank you! How would we calculate 8% EAR if were compounded to infinity? It may involve an "e" button on my TI Ba II however I am not entirely sure. Your help is welcomed! Thank you very much!
Good morning, I have a couple of problems building an adjustable rate mortgage table finding margin. Periodic rate and lifetime rate. Would you be willing to work these out on video on the ba 11 calculator?
Just curious if there is a way to clear the work after you are done your calculation for computing from effective to nominal or nominal to effective. Thanks again
steffi dias Just overwrite what is there. So, when it shows C/Y = 4, just type in 12 ENTER and then hit the up arrow to take you back to the EFF= screen. Then you can hit CPT to get your answer.
Hi, Is there a way to calculate 6% EAR to per month interest in financial calculator? (1.06)^(1/12)-1 = 0.4868% per month. This is the answer I want to get on the calculator.
What is the sequence of input buttons on calculator for continuous compounding? When I input the LN key first then enter rate I get “error”. If I input the rate then hit LN key it says same. If I input 2nd then LN then rate and CPT I get nothing! Not imputing correctly obviously:(
Note that it is the 2nd LN to get the e^x function. So, you'd type in the interest rate (as a decimal), then 2nd LN, then subtract 1. 0.09 2nd LN -1 = 0.09417428. Then convert that back to a percent = 9.417428%
Hello Sir, I have a question for the last question where the interest was 7.75 I tried solving it both ways but I got 8.01 instead of 8.05, what was I doing wrong ? I did (1+0.0775/7)^7 -1 and i'm getting 8.01
The step by step calculator inputs were exactly what I was looking for, and the formula explanation really helped me understand too. Thanks!
I know you made this video but you just changed my world!!! Thank you sooo much
Kevin, thanks for uploading this video. I was running into an issue during my CPCU studying and I'd never used a financial calculator before.
This helped me out a lot and you explained things very clearly. Thanks for your help!
very well put together video.........Clarity on display!! Thanks to the 3rd power!
Thank you so much!!!! Such a clear, perfect, detailed explanations in each videos!
Your explanations are excellent. I really appreciate your help! I'll continue to watch your videos to help me learn other concepts. Many thanks.
Thank you Mr .Bracker! Your explanations are very clear and appreciated.
This is a life saver! Simple, awesome and straight to the point!
This was so helpful. thank you so much Kevin. you are a life saver, & time saver.
Thanks Kevin Bracker, you really have made life simple and easy for us
This really helps. Thank you!
this was really great, thanks so much, im going to watch some of your other videos, this is a lot easier than what my teacher taught
I wish all my professors can use those clean and undstandable notes like yours
Very clear explanation. Before watching this video, I was so confused on what EAR is and how to compute it on my calculator. Thanks!!
Great video! Very simple and easy to understand. Thank you.
Thankyou so much ! This was very helpful 😊
THANK YOU VERY MUCH You just saved my grade
Thanks! This added a ton of value to me figuring out the calculator for my finance class.
Thank you so much from Spain! I have a financial maths exam next week and i was doing all the operations manually but i think its faster to do it with the calculator and as i have it.. ;)
Ur explanation made it easy n clear to understand, tq
Excellent explanation and demonstration using calculator. thank you very much (y)
You are correct. Continuous compounding is done using the exponential function. So 8% compounded continuously would be e^.08 = 8.329%. As a side note, that is not very different from compounded daily which gives an effective rate of 8.328%.
Great thanks, can you add continuous compounding?
Bruno Azemi for continuous compounding i thought it would be log??
excellent video
wonderful, clear video and told slowly enough to take it in comfortably. How about if you have infinite times compounded????
If you have infinite compounding periods (sometimes referred to as continuous compounding), it uses the exponential function (the italicized e) on your calculator. So, for example if you had 9% compounded continuously, you would take e raised to the 0.09 power and then subtract 1 and it would give you 9.4174%.
AWESOME! VERY much appreciate you making this SO clear :-)
Very clear explanation, thank you
thanks for the video, but how do we calculate for the case per calendar month?
how would you change this on the calculator to determine Effective Monthly Rate?
Thank you so much
This video is great! Thank you! How would we calculate 8% EAR if were compounded to infinity? It may involve an "e" button on my TI Ba II however I am not entirely sure. Your help is welcomed! Thank you very much!
You did very well. Thank you
Awesome Job! Thank you, Kevin Bracker. *****
Good morning, I have a couple of problems building an adjustable rate mortgage table finding margin. Periodic rate and lifetime rate. Would you be willing to work these out on video on the ba 11 calculator?
Super helpful, much appreciated!
Thanks alot🙏
very helpful, thank you
If the effective annual rate is given how to calculate the continuously compounding annual stated rate?
for continuous compounding just use 365 as the period or in his example "m"
Awsmmm explanation...thankxxx tons
Wow ...great job
Just curious if there is a way to clear the work after you are done your calculation for computing from effective to nominal or nominal to effective. Thanks again
When you are in the module (after pressing 2nd IConv), press 2nd CLR WORK and it will clear out the effective interest rate worksheet.
I wasn't able to clear the compounding periods .. It still shows as 4 when I want to enter 12
steffi dias Just overwrite what is there. So, when it shows C/Y = 4, just type in 12 ENTER and then hit the up arrow to take you back to the EFF= screen. Then you can hit CPT to get your answer.
Yup did that n it worked just fine.. Thank you for your timely reply..
Thank you sir.
Hi, Is there a way to calculate 6% EAR to per month interest in financial calculator? (1.06)^(1/12)-1 = 0.4868% per month. This is the answer I want to get on the calculator.
thanks so much great help
What is the sequence of input buttons on calculator for continuous compounding? When I input the LN key first then enter rate I get “error”. If I input the rate then hit LN key it says same. If I input 2nd then LN then rate and CPT I get nothing! Not imputing correctly obviously:(
Note that it is the 2nd LN to get the e^x function. So, you'd type in the interest rate (as a decimal), then 2nd LN, then subtract 1. 0.09 2nd LN -1 = 0.09417428. Then convert that back to a percent = 9.417428%
thanks bud. helped a lot
Thank You.. amazing job :)
What should I put for C/Y if it's weekly?
52 weeks per year
Good job!
Hello Sir, I have a question for the last question where the interest was 7.75 I tried solving it both ways but I got 8.01 instead of 8.05, what was I doing wrong ? I did (1+0.0775/7)^7 -1 and i'm getting 8.01
hi here is the forumula
ear= (1+0.0775/52)^52 - 1.0
Oh I did raise to the power 7 for one week but why is yours ^52?
compounded weekly...52 weeks in a week.
thank you so useful
thank you, much appreciated
Tutorial starts at 3:53
thank you!!!
Thanks!!
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Thank you.
I like you. Please do more videos (((((((:
Thank you
You da man!
thx
Merci ! =)))
Thank you so much!
Thank you.
Thank you!
Thank you!
Thank you!
Thank you!