50 — Q
UALIFIER
P
LUS
®
III
X
Bi-Weekly Term Reduction and Payment
Find the monthly P&I payment on a 30-year, $275,000 mortgage at
5.88% annual interest. Then convert it to a Bi-Weekly and find out
how many years it will take to pay off this loan, the total interest sav-
ings, the total interest and principal paid (as a comparison to the
regular loan), and the Bi-Weekly payment.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter loan amount 2 7 5 ) l 275,000.00
Enter term in years 3 0 T 30.00
Enter annual interest 5 • 8 8 ˆ 5.88
Find monthly P&I payment p “run” 1,627.61
Display amortization period a 1-360
Find total interest paid a 310,938.79
Re-display total principal a 275,000.00
Find total interest/principal
paid a 585,938.79
Now Solve for the Bi-Weekly Loan and Compare Interest Savings
and Total Interest/Principal Paid:
Find Bi-Weekly term s T “run” 24.60
Find total interest savings T 65,430.46*
Find total interest paid T 245,508.33
Find total principal T 275,000.00
Find total principal and
interest T 520,508.33
Find Bi-Weekly P&I payment
p 813.80
Clear calculator** o o 0.00
*Notice you save a significant amount (over $65K in this example) with a bi-weekly.
**Note: Return to monthly payment mode by pressing
o
twice.
Trust Deeds and Discounted Notes
Your calculator easily handles trust deed purchase price and yield
problems. Two things to remember are: (1) when entering or solving
for “yield” or “rate of return,” use the ˆ key, and (2) when entering or
solving for “purchase price” or “present value,” use the l key.
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