Owner manual

(Cont’d)
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter Interest 7 • 5 ˆ 7.50
Enter Term 2 5 T 25.00
Enter Tax% 1 • 5 t 1.50
Enter heating 1 2 5 s D 125.00
Enter Price 2 2 5 ) P
225,000.00
Enter %Down 3 5 d 35.00
Find $ Down d 78,750.00
Find Mortgage l 146,250.00
Display Qualifying
Ratios q 32.00 – 40.00
Find income
required q 55,355.59
Find maximum allowable Monthly
Debt q 369.04
Find P&I
Payment p 1,069.90
Find total p 1,476.15
Cash Flow
A real estate investor wishes to purchase a
home for $225,000 and rent it out. He’d like a
return of 9% and expects to sell it after 5
years for $275,000. He expects the annual
cash flows below. Find the IRR, NPV & NFV.
Annual Cash Flow
Year 1 $16,000
Year 2 $16,600
Year 3 $16,900
Year 4 $17,200
Year 5 $275,000
POCKET REFERENCE GUIDE — 26