Texas Instruments BA Real Estate - Getting Started

Prepared for ________________________________ By _________________________ Date ____________
Copyright © 1993, 1996 by Texas Instruments Incorporated.
6
BA Real Estate™ Worksheet
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Calculating a Balloon Payment to Retire a Mortgage
1. Clear TVM values (if not already cleared).
# -
2. Enter term of loan (in years).
0
3. Enter interest rate.
1
4. Enter loan amount.
2
5. Compute payment amount and
round the result.
$ 3
# n 3
6. Enter the number of payments made.
# *
7. Compute unpaid balance.
$ 4
8. Add payment computed in line 5.*
a ] 3
9. Calculate the balloon payment.
j
*
The balloon payment includes both the unpaid balance (step 7) and the final monthly payment.
Comment:
Another school of thought is to omit steps 8 and 9 and simply calculate an unpaid balance as the
balloon payment. The only difference between the two results is the amount of the final monthly
payment.