User Manual

Mortgages and Amortization 47
BEAR-CH1.DOC BA Real Estate Guidebook Jackie Quiram Revised: 09/28/99 1:16 PM Printed: 09/28/99 1:16 PM
Page 47 of 36
The first tax year (May through December) includes
payments 1 through 8.
Steps Keystrokes Display
Clear TVM Values.
#
-
0.00
Set P/Y and C/Y to 12.
#
+
12
j
j
P/Y = 12.00
C/Y = 12.00
12.00
Enter known loan
v
alues.
30
0
9.125
1
105
q
2
TRM =30.00
I% = 9.13
LN = 105,000.00
Calculate payment.
$
3
PMT=
-
854.31
Start amortization.
%
P1 = 1.00
Set P2 for 1st year.
j
8
P2 8
Display balance,
principal, and
interest for the first
tax year.
j
j
j
P2 = 8.00
BAL = 104,540.93
PRN=
-
459.07
INT =
-
6,375.41
(continued)
Finding the Principal and Interest Paid
You are buying a home with a 30-year, $105,000
mortgage with an annual interest rate of 9.125%. Assume
that the first payment is due in May. Find the principal
and interest you will pay on the loan during the first three
tax years.
Solution: First
Tax Year