46 — Q
UALIFIER
P
LUS
®
III
FX
Finding a Quarterly Payment
Find the quarterly P&I payment on a ten-year loan of $15,000 with
an annual interest rate of 12%.
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Set to four payments/year
4 s ÷
4.00
Enter Loan Amount
1 5 ) l
15,000.00
Enter Term in years
1 0 T
10.00
Enter annual Interest rate
1 2 ˆ
12.00
Find quarterly P&I Payment
p
“run” 648.94
Reset to 12 payments/year
1 2 s ÷
“run” 12.00
Trust Deeds and Discounted Notes
Your calculator easily handles trust deed purchase price and yield
problems. Two things to remember are:
(1) when entering or solving for “yield” or “rate of return,” use the
ˆ
key, and
(2) when entering or solving for “purchase price” or “present value,”
use the
l
key.
Purchase Price of a Note —
Fully Amortized
The mortgage you are thinking about buying has the following terms
and conditions: 15 years remaining, $100 per month incoming pay-
ments, and you want a 25% yield or return on your investment. In
this case you are paying for the income stream — the incoming pay-
ments — and not the future value. What price should you pay, on
this desired yield?
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Enter desired yield
2 5 ˆ
25.00
Enter term in years
1 5 T
15.00
Enter payment amount
1 0 0 p
100.00
Find purchase price
l
“run” 4,682.68
— DO NOT CLEAR CALCULATOR —
What if you want a 20% yield? Leave all of the above data and re-
enter the 20% interest over the old rate, then re-calculate the loan
amount.
STEPS
KEYSTROKES
DISPLAY
Enter your new desired
rate of return
2 0 ˆ
20.00
Find purchase price
l
"run" 5,693.80
