Calculated Industries 3420 User Guide - Manual (Page 28)

U SER ’ S G UIDE — 27
Paying Off a Mortgage Early (Making Larger Payments)
How long does it take to pay off a 25-year fixed-rate mortgage of
$150,000 at 7.25% interest if you add an extra $200 to the mortgage
payment each month?
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter Mortgage Amount 1 5 0 ) l 150,000.00
Enter Interest 7 • 2 5 ˆ 7.25
Enter Term 2 5 T 25.00
Find P&I monthly Payment p 1,073.88
Add add’tl Payment amount + 2 0 0 = 1,273.88
Store as Payment p 1,273.88
Find reduced Term T “run” 16.95
Finding the Interest Rate
Find the interest rate if the mortgage amount is $98,500, term is 25
years and payment is $765 a month.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter Mortgage Amount 9 8 5 0 0 l 98,500.00
Enter Term 2 5 T 25.00
Enter monthly P&I Payment 7 6 5 p 765.00
Find annual Interest ˆ * “run” 8.21
Find periodic Interest ˆ 0.68
*Note: If desired, press s 9 , and press ˆ , and repeat to toggle between
Canadian Mortgage Interest and U.S. Interest modes. Display will read “CDN” when
calculating Canadian interest, and “USA” for U.S. rates.
Finding the Interest-Only Payment
Find the interest-only payment on a 5-year loan of $15,000 at 9%
interest.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter Loan Amount 1 5 ) l 15,000.00
Enter Term 5 T 5.00
Enter Interest 9 ˆ 9.00
Find monthly Interest-only
Payment p p p p * “run” 110.45
*The fourth press of the p key calculates the interest-only Payment.
3420UG-E-A 7/2/04 9:06 AM Page 27