Calculated Industries 3423 - Manual (Page 43)

38 — Q
UALIFIER
P
LUS
® 4
X
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.
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, based
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” 4,896.97
— DO NOT CLEAR CALCULATOR —
What if you want a 30% yield? Leave all of the above data and re-
enter the 30% interest over the old rate, then re-calculate the loan
amount.
STEPS KEYSTROKES DISPLAY
Enter your new desired
rate of return 3 0 ˆ 30.00
Find purchase price l “run” 4,179.12