Texas Instruments BA Real Estate - Yield of a Discounted Mortgage

Other Financial Tools 81
BEAR-CH3.DOC BA Real Estate Guidebook Bob Fedorisko Revised: 08/29/96 9:19 AM Printed: 09/28/99 1:21 PM
Page 81 of 20
Yield of a Discounted Mortgage
1. Clear TVM values (if not already cleared).
#
-
2. Enter original term of loan (in years).
30
0
3. Enter interest rate.
8
1
4. Enter face value of mortgage loan.
$200,000
2
5. Compute payment amount.
$ 3
$
.
1,467.53
6. Enter discounted purchase price.
$180,000
2
7. Enter number of payments already
made and store in memory.
3
O
12
j
T
g
36
8. Calculate number of payments
remaining, and store as N.
]
#
*
X
] g j
324
#
*
9. Compute annual yield for remaining
term.
$ 1
8.89%