56 BA II PLUS™ Calculator
Interest and Loan Balance after Specified Payment
To evaluate the financial advisability of financing all or some of
the sale price of a property, a seller must know the amount of
interest that will be received and the remaining balance at the
end of the term (balloon payment).
A seller is asked to finance $82,000 at 10% annual interest,
amortized over a 30-year term but with a balloon payment due
after five years.
The seller wants to know:
•
The amount of the monthly payment.
•
The amount of interest he will receive.
•
The amount of the balloon payment.
Example: Compute Monthly Payment
Procedure Keystrokes Display
Set all variables to defaults.
&
}
!
RST 0.00
Enter number of payments
using payment multiplier.
30
&
Z
,
N= 360.00
Enter interest rate.
10
-
I/Y= 10.00
Enter loan amount.
82000
.
PV= 82,000.00
Compute payment.
%
/
PMT= -719.61
Example: Compute Amortization Schedule
(continued from previous example)
Procedure Keystrokes Display
Select Amortization worksheet.
&
\
P1= 1.00
Enter end period after five
years.
#
5
&
Z
!
P2= 60.00
View computed balance due
after five years.
#
BAL= 79,190.83
View computed interest paid
after five years.
#
#
INT= -40,367.43
If the seller financed the sale, he would receive:
•
$719.61 each month for five years.
•
$40,367.43 in interest over the five-year term.
•
$79,190.83 as the balloon payment.
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