User Manual

44 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 44 of 36
Press
# ,
until the BGN indicator disappears.
Steps Keystrokes Display
Clear TVM values.
#
-
0.00
Set payment periods.
#
+
12 P/Y 12
Set compounding
periods for Canadian
loan.
j
2
j
C/Y = 2.00
2.00
Enter term of loan.
30
0
TRM = 30.00
Enter interest rate.
8.25
1
I% = 8.25
Subtract down
payment from price
to compute loan.
185
q X
17
q j
2
LN = 168,000.00
Compute payment.
$
3
PMT =
-
1,245.83
Enter number of
payments during
period and store as N.
5
O
12
j
#
*
N = 60.00
Compute balance after
five years.
$
4
FV =
-
159,879.69
Note: If you do not normally solve Canadian mortgage
problems, be sure to restore the compounding periods per
year to 12.
Finding the Balance on a Canadian Loan
A client is moving to Canada and will be living there for
five years. She will purchase a home while she is there
and will sell it when she returns to the U.S. She is looking
at a $185,000 home at 8¼% for 30 years. She has $17,000
to put down. Find her mortgage payment and her
remaining balance after the five-year period.
Solution