38 — Q
UALIFIER
P
LUS
®
III
X
ARM Payment —
Worst-Case Scenario
Find the initial monthly payment on a 30-year, $176,000 mortgage at
8.25% annual interest rate, and then find the second and third year's
“worst-case” adjusted payments if this ARM loan increases 0.5% at
the end of each year. Then, find the remaining loan balance, current
interest rate and term.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter loan amount 1 7 6 ) l 176,000.00
Enter term in years 3 0 T 30.00
Enter annual interest 8 • 2 5 ˆ 8.25
Find initial monthly payment
(1st year) p “run” 1,322.23
Enter ARM parameters • 5 : 1 A 0.50 - 1.00
Find 1st adjusted (2nd year)
ARM payment A 1 ARM 1,383.53
Find 2nd adjusted (3rd year)
ARM payment A 2 ARM 1,444.72*
Find principal at start of
3rd year ® l 173,221.91
Recall current interest
rate ® ˆ 9.25
Recall remaining term ® T 28.00
*Note: You may continue pressing
A
to find the 4th, 5th year, etc. increasing ARM
payments. The display will show the payment number to the left.
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