How Many Decimals? calculator, problems, getting, wrong

irlfaan7

Hello All,

How many decimals are you guys using on your calculator. I am using the TI with 4 decimal places but I when doing some of the TVM problems in Stalla if I round to the fourth decimal I can end up getting the wrong answer.

Any suggestions?

Joe

JGovender

How could you end up with the wrong question? The range between the options on CFAI's answers are quite large so I don't think you can get messed up. Care to share an example from Stalla?

agulani

Here is a question:

If the annual percentage rate on a biweekly compouonded loan is 6.00%, which of the following is closest to the effective annual rate:

a) 6.168%
b) 6.176%
c) 6.180%

soddy1979

7.

I use 7 decimal places.

hariRaj

Yes b is correct. Did you have to go out to extra decimals?

scr879

Well to be honest, I was using Google's calc function. Didn't have my TI with me. But when I use my TI with 4 decimals I do get a different answer.

However, the difference between answers a-b-c is just too narrow and don't think that it will show up in the real exam.

manasib

Cool, thanks for your input.

Joe

btcapital

You should format your calculator to 9 decimal places. on the BA2+ hit the format button by pressing 2nd and hitting the decimal point button. enter 9 under DEC and hit enter.

Further to that if you understand the basic calculation to find EAR you should really be using the ICONV button (press 2nd, then hit the number 2 button). For the question above:

NOM = 6
C/Y = 26
EFF = CPT and you get 6.176315022

Saves time which will help come exam day.

invic

I think too many decimals is absolutely worthless and the screen numbers confusing.

I use 2 decimals for all calculations. The BA-II uses all possible decimals in its calculations no matter how many decimals you say you want, those are just what it shows you not what it uses. I multiply the final result by 100 or 1000 if the question requires it (which is not often).

Antonio

dontknow1987

I'm using 5 - HP 12c platinum.

best regards,
Marcin