Calculated Industries 3442 - Manual (Page 44)

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Now, without clearing the calculator, add the pre-paid interest to the
loan’s points and fees if they are equal to 1.5% and $500, respectively.
Then find the Annual Percentage Rate (APR), based on these closing
costs.
STEPS KEYSTROKES DISPLAY
Store the pre-paid interest
in memory µ M 252.08
Find Loan Costs:
Recall loan amount
® l M 100,000.00
Find point cost x 1 • 5 % = M 1,500.00
Add fees + 5 0 0 = M 2,000.00
Add prepaid interest
stored in memory + ® µ = M 2,252.08
Find APR for this loan s ˆ M “run” 8.50
Clear All s x “All Cleared” 0.00
Equity Builder Loans
Your calculator includes an Equity Builder loan function ( s T )
that allows you to convert established, fully amortized monthly loans
into Equity Builders (in which one-half the monthly payment is made
every two weeks). Because you make two extra half-payments per
year (i.e., 26 equity builder payments is like making 13 payments
per year), these kinds of loans can amount to large interest savings
and a substantial reduction in the time it takes to pay them off.
You begin these problems by setting up the initial monthly loan and
then pressing
s T . The first press of T displays the Equity
Builder term, the second press shows the total interest savings over
the entire loan, the third press calculates the effective interest rate,
the fourth press calculates the total interest paid, the fifth press
shows the total principal paid, the sixth press shows the total princi-
pal and interest; and the last press calculates the Return on
Investment (ROI%) you’d gain from this type of loan. Press the
p
key to find the Equity Builder payment.
Note: Please see Equity Builder definition.