Texas Instruments BA Real Estate - Finding the Purchase Price of a Note to Meet a Required Yield

Other Financial Tools 79
BEAR-CH3.DOC BA Real Estate Guidebook Bob Fedorisko Revised: 08/29/96 9:19 AM Printed: 09/28/99 1:21 PM
Page 79 of 20
Finding the Purchase Price of a Note
to Meet a Required Yield
1. Clear TVM values (if not already cleared).
#
-
2. Enter term of original note (in years).
10
0
3. Enter interest rate of original note.
8
1
4. Enter amount of original note.
$25,000
2
5. Compute original payment.
$ 3
$
.
303.32
6. Recall total number of payments in
original note, and store in memory.
]
#
*
120.00
T g
7. Enter number of payments already made.
36
#
*
8. Compute current unpaid balance.
$ 4
$
.
19,460.72
9. Recall original number of payments.
] g
120.00
10. Subtract number of payments
already made to find number of
remaining payments, and save as
N.
X ]
#
* j
84.00
#
*
11. Set FV to zero, and then enter required
yield (for example, enter 10% as 10).
r 4
12
1
12. Compute discounted present value.
$ 2
$17,182.55