Calculated Industries 3442 - Manual (Page 72)

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(Cont’d)
Total payments of traditional fixed-rate loan: 755,151.67
Total payments of P-A-P loan: 842,120.24
Total return with investment: 219,313.23
*Note that, in this case, the total cost of the P-A-P loan is higher than the fixed-rate
loan; however, the initial savings is significant, at over $30K. At an entered ROI% of
7%, the return is over $38K.
**Additionally, while the P-A-P payments exceed the traditional fixed-rate loan by
$86,968, the investment return on the P-A-P cash flow is $219,313.23.
IMPORTANT: Be sure to change the P-A-P Recast setting via
the Preference Settings if you’re calculating a P-A-P loan with a
different recast period (other than the default of 10 years) for
the Zero-month P-A-P loan. See Preference Settings.
In addition, to change the display of P-A-P payments (i.e., to
display all payments instead of only displaying the first five
payments), see the Preference Settings.