U
SER
’
S
G
UIDE
— 27
MORTGAGE LOANS/TIME-VALUE-OF-MONEY (TVM)
1.
The basic loan keys —
l
,
p
,
T
and
ˆ
— work just like
you would say them. For example, if you want to borrow
$100,000 for 30 years at 10% interest, just enter those three
known variables and press the key for the
unknown
fourth vari-
able:
p
.
2.
When calculating future value problems, enter the present value
into the
l
key.
3.
Financial values may be entered in any order you want.
4.
Entered values for Term and Interest are permanently stored
(they do not clear when the calculator is turned off).
5.
The calculator’s default setting is 12 payments per year, for
monthly loans.
6.
It is good practice to press
o
twice after completing a finan-
cial problem to ensure that you have cleared the previous
l
and
p
registers.
7.
When solving for a financial component, the calculator may dis-
play the word “run” in the display. Solving for interest may take
several seconds (up to 15) while the word “run” displays.
8.
Once you have calculated an answer, for example, a payment,
you can go back and change any financial variable and recalcu-
late your new answer
without
re-entering all of the other data.
This is handy for demonstrating various “what-if” loan problems.
9.
Successive presses of the
p
key will calculate:
1) the principal and interest (P&I) payment;
2) the PITI payment, which includes property tax, property
insurance and mortgage insurance, if entered;
3) the total payment (PITI plus any entered housing expenses);
and
4) the interest-only payment.
EXAMPLES
