Cfa Authorized Calculators

Practice Time Value of Money (TVM) and NPV calculations exactly as they appear on CFA authorized calculators.

CFA Authorized Calculators Comparison Table

Feature	TI BA II Plus Professional	HP 12C Platinum
Entry Method	Algebraic (Chained/AOS)	RPN and Algebraic
Statistical Models	6 Models	Standard Linear
Cash Flow Capacity	Up to 32	Up to 30
Ease of Use	High (Modern Interface)	Moderate (Learning Curve)

What are CFA Authorized Calculators?

The cfa authorized calculators policy is one of the strictest in the professional certification world. The CFA Institute strictly limits candidates to only two specific models: the Texas Instruments BA II Plus and the Hewlett Packard 12C. Using any other device during the exam leads to immediate disqualification and voiding of results. These cfa authorized calculators are designed to handle complex financial tasks like Time Value of Money (TVM), bond valuation, and statistical analysis.

Who should use these cfa authorized calculators? Any candidate enrolled in the CFA Program Level I, II, or III. A common misconception is that the “Professional” version of the TI BA II Plus is mandatory; however, the standard student version is also one of the cfa authorized calculators and is perfectly acceptable.

CFA Authorized Calculators Formula and Mathematical Explanation

At the heart of the cfa authorized calculators is the Time Value of Money equation. Whether you are using the TI or the HP model, the underlying mathematics remain consistent. The core formula solved by these cfa authorized calculators for an ordinary annuity is:

FV = PV(1 + i)ⁿ + PMT [((1 + i)ⁿ – 1) / i]

Variable	Meaning	Unit	Typical Range
N	Number of Periods	Count	1 – 360
I/Y	Interest per Year	Percentage	0% – 20%
PV	Present Value	Currency	Any
PMT	Annuity Payment	Currency	Any
FV	Future Value	Currency	Any

Practical Examples (Real-World Use Cases)

Example 1: Retirement Planning
A candidate uses one of the cfa authorized calculators to find the future value of a $10,000 initial investment (PV) with monthly contributions of $500 (PMT) at a 6% annual rate (I/Y = 0.5% per month) for 20 years (N = 240). The cfa authorized calculators would output an FV of approximately $262,481.

Example 2: Bond Pricing
When pricing a 10-year semi-annual bond with an 8% coupon and a 6% yield-to-maturity, cfa authorized calculators allow the user to input N=20, I/Y=3, PMT=40, and FV=1000 to find the price (PV) of $1,148.77.

How to Use This CFA Authorized Calculators Calculator

This simulator replicates the logic of cfa authorized calculators to help you check your manual practice.

1. Input your Present Value (PV): Remember to use a negative sign if it represents a cash outflow.
2. Enter the Interest Rate (I/Y) as a whole number (e.g., 7 for 7%).
3. Specify the number of Periods (N).
4. Input the Payment (PMT) amount if dealing with annuities.
5. The simulator instantly provides the Future Value (FV) and Net Present Value (NPV), mimicking the output of cfa authorized calculators.

Key Factors That Affect CFA Authorized Calculators Results

• Compounding Frequency: Changing from annual to monthly compounding significantly alters the result in cfa authorized calculators.
• Payment Timing: Ensure the “BGN” (Beginning) mode is set correctly if payments occur at the start of the period.
• Cash Flow Signs: One of the biggest mistakes with cfa authorized calculators is forgetting the sign convention (Inflow vs Outflow).
• Decimal Settings: By default, some cfa authorized calculators show only 2 decimals; candidates should increase this to 9.
• Clearing Memory: Always clear TVM and Cash Flow registers before starting a new problem.
• Rounding Differences: Slight differences may occur between the TI and HP models due to internal rounding algorithms.

Frequently Asked Questions (FAQ)

Are there any other cfa authorized calculators?

No, the list of cfa authorized calculators is limited strictly to the TI BA II Plus and HP 12C families.

Can I bring two cfa authorized calculators to the exam?

Yes, many candidates bring two cfa authorized calculators (one as a backup) to ensure they aren’t stuck if a battery fails.

How do I reset my cfa authorized calculators?

For the TI model, press [2nd] [RESET] [ENTER]. For the HP model, clearing memory varies by model but often involves holding [ON] while pressing [-].

Do proctors check the cfa authorized calculators?

Yes, proctors inspect cfa authorized calculators before you enter the testing room and may ask you to clear the memory in front of them.

Which of the cfa authorized calculators is easier for Level I?

Most candidates find the TI BA II Plus more intuitive due to its algebraic entry system compared to the HP’s RPN logic.

Is the TI BA II Plus Professional worth it?

The Professional model of these cfa authorized calculators includes extra features like Discounted Payback and Modified Duration, which can be helpful.

What happens if my cfa authorized calculators fail?

If you don’t have a backup, you must continue without a calculator. This highlights the importance of choosing reliable cfa authorized calculators.

Can I change the battery on cfa authorized calculators?

Yes, but you should do it weeks before the exam. TI uses a CR2032 or similar coin cell battery.