Calculated Industries 3430 - APR and Total Finance Charges

48 — Q
UALIFIER PLUS
®
III
FX
Finding the Value and Discount of a Trust Deed
Determine the value and discount required for a $75,000 mortgage,
payable at $937.50 per month, bearing interest at 11% per year, due
in seven years.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Store Loan Amount in
Memory 7 5 ) l μ M 75,000.00
Enter monthly Payment 9 3 7 • 5 p 937.50
Enter Term in years 7 T 7.00
Enter annual Interest rate 1 1 ˆ 11.00
Calculate remaining
balance s l 43,576.27
— DO NOT CLEAR CALCULATOR —
What should you pay for this trust deed if you want a 17% yield on
your investment?
STEPS KEYSTROKES DISPLAY
Enter your desired yield 1 7 ˆ 17.00
Compute value of mortgage l 59,243.35
Subtract from Memory s μ 59,243.35
Compute discount
(recall memory) ® μ M 15,756.65
Clear memory* ® ® 15,756.65
*Note: Pressing ® ® or turning the calculator O will clear the value stored in
Memory.