User Manual

34 Mortgages and Amortization

BEAR-CH1.DOC BA Real Estate Guidebook Jackie Quiram Revised: 09/28/99 1:16 PM Printed: 09/28/99 1:16 PM

Page 34 of 36

Steps Keystrokes Display

ccept range for

fourth year and show

previous I%.

P1 = 37.00

P2 = 48.00

I% = 10.00

Increase I% to the cap

for the loan, and

show PMT and BAL

for fourth year.

I% = 12.00

PMT=

1,012.28

BAL= 96,688.17

Exit ARM.

96,688.17

The payment for the remainder of the loan is $1,012.28.

Note: The worksheet on the next page omits step 1,

clearing the TVM values, due to page size restrictions.

Finding Periodic Payments for an ARM

(Continued)

Solution

(Continued)