Texas Instruments BA Real Estate User Manual

Mortgages and Amortization 33
BEAR-CH1.DOC BA Real Estate Guidebook Jackie Quiram Revised: 09/28/99 1:16 PM Printed: 09/28/99 1:16 PM
Page 33 of 36
Press
# ,
until the BGN indicator disappears.
Steps Keystrokes Display
Clear TVM values.
#
-
0.00
Set P/Y and C/Y to 12.
#
+
12
j
j
P/Y = 12.00
C/Y = 12.00
12.00
Enter the loan
v
alues.
30
0
6
1
100
q
2
TRM= 30.00
I% = 6.00
LN = 100,000.00
Start ARM and
accept initial P1.
M
j
P1 = 1.00
P2 = 1.00
Change P2 to 12 and
show previous I%.
12
j
P2 = 12.00
I% = 6.00
Show PMT and BAL
for first year.
j
j
PMT=
-
599.55
BAL= 98,772.00
A
ccept range for
second year and
show previous I%.
j
j
j
P1 = 13.00
P2 = 24.00
I% = 6.00
Increase I% by 2%;
show PMT and BAL
for second year.
8
j
j
I% = 8.00
PMT=
-
730.86
BAL= 97,870.87
A
ccept range for
third year and show
previous I%.
j
j
j
P1 = 25.00
P2 = 36.00
I% = 8.00
Increase I% by 2%;
show PMT and BAL
for third year.
10
j
j
I% = 10.00
PMT=
-
869.05
BAL= 97,199.12
(continued)
Finding Periodic Payments for an ARM
A bank is lending $100,000 on an adjustable rate, 30-year
mortgage at 6% annual interest with an annual cap on the
interest rate of 2% and a lifetime cap of 6%. Find the
payment amount for each adjustment period assuming it
accelerates by the maximum amount at each adjustment
period.
Solution

Texas Instruments BA Real Estate Specifications

General

Type	Financial Calculator
Memory	10 memories
Power	Battery
Battery Type	CR2032
Automatic Power Down	Yes
Real Estate Functions	Yes
Financial Functions	Yes
Statistical Functions	Yes
Display	10-digit LCD