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BA II Plus: Annuity Due Step by Step

Set BGN mode and calculate annuity-due values on the BA II Plus.

TL;DR

Annuity due means payments occur at the beginning of each period. Switch the BA II Plus to BGN mode, solve the TVM problem, then switch back to END mode.

Formula Reference

Annuity due value

Annuity due value = ordinary annuity value x (1 + r)

Beginning-of-period payments compound for one extra period.

BA II Plus Keystrokes

2nd BGN
2nd SET until BGN appears
2nd QUIT
Enter the TVM inputs
Compute the unknown value
Return to END mode after solving

Worked Example

Problem: Five beginning-of-year payments of $1,000 earn 5 percent. Find FV.
Set BGN mode, then enter 5 N; 5 I/Y; 0 PV; 1000 +/- PMT; CPT FV.
Result: FV is about $5,801.91.

Common Mistakes

Forgetting to return to END mode.
Using ordinary annuity keystrokes when the question says beginning of period.
Changing sign on the wrong cash flow.

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