Calculated Industries 3430-KIT - Manual (Page 43)

42 — Q
UALIFIER
P
LUS
® III
FX
Bi-Weekly Loans
Your calculator includes a Bi-Weekly loan function ( s T ) which
allows you to convert established, fully amortized monthly loans into
Bi-Weeklies (in which one-half the monthly payment is made every
two weeks). Because you make two extra half-payments per year
(i.e., 26 Bi-Weekly payments is like making 13 payments/year),
these kinds of loans can amount to large interest savings and a sub-
stantial reduction in the time it takes to pay them off.
You begin solving these problems by setting up the initial monthly
loan and then pressing
s T . The first press of T displays the
Bi-Weekly term, the second press shows the total interest savings
over the entire loan, a third press calculates the total interest paid, a
fourth press shows the total principal paid, and a fifth press shows
the total P&I Payments. Press the
p key to find the Bi-Weekly pay-
ment.
Bi-Weekly Term Reduction and Payment
Find the monthly P&I payment on a 30-year, $275,000 mortgage at
5.88% annual interest. Then convert it to a Bi-Weekly and find out
how many years it will take to pay off this loan, the total interest sav-
ings, the total interest and principal paid (as a comparison to the
regular loan), and the Bi-Weekly payment.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter Loan Amount 2 7 5 ) l 275,000.00
Enter Term in years 3 0 T 30.00
Enter annual Interest rate 5 • 8 8 ˆ 5.88
Find monthly P&I payment p “run” 1,627.61
Display amortization period a 1-360
Find total interest paid a 310,938.79
Re-display total principal a 275,000.00
Find total P&I paid a 585,938.79
(Cont’d)