Calculated Industries 3430 - ARM Payment - Lifetime Cap

P
OCKET REFERENCE GUIDE — 19
ARM Payment — Lifetime Cap
• Loan: $230,000
• Term: 30 years
• Interest: 7.25%
• Lifetime cap: 4%
• ARM Interest Adjustment: 1% per year
Find the adjusted ARM payments through
year six:
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter loan 2 3 0 ) l
230,000.00
Enter term 3 0 T 30.00
Enter interest 7 • 2 5 ˆ 7.25
Find initial monthly P&I
payment p “run” 1,569.01
Enter interest
cap 4 s % CAP 4.00
Enter ARM
parameters 1 : 1 A 1.00 - 1.00
Find 1st “adjusted”
payment A “run” 1 1,724.90
Find 2nd “adjusted”
payment A 2 1,883.17
(Cont’d)