Calculated Industries 3420 User Guide User Manual

Page 61

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60 — Q

UALIFIER

P

LUS

®

III

X

ARM Payment —

Worst-Case Scenario

Find the initial monthly payment on a 30-year, $176,000 mortgage at
8.25% annual interest rate, and then find the second and third year's
“worst-case” adjusted payments if this ARM loan increases 1% at
the end of each year. Then, find the remaining loan balance, current
interest rate and term.

STEPS

KEYSTROKES

DISPLAY

Clear calculator

o o

0.00

Enter Loan Amount

1 7 6 ) l

176,000.00

Enter Term in years

3 0 T

30.00

Enter annual Interest rate

8 • 2 5 ˆ

8.25

Find initial monthly

Payment (1st year)

p

“run” 1,322.23

Enter ARM parameters

1 : 1 A

1.00 - 1.00

Find 1st adjusted (2nd year)

ARM Payment

A

1 1,445.79

Find 2nd adjusted (3rd year)

ARM Payment

A

2 1,570.86*

Find principal at start of

3rd year

® l

173,350.16

Recall current Interest rate

® ˆ

10.25

Recall Remaining Term

® T

28.00

*Note: You may continue pressing

A

to find the 4th, 5th year, etc. increasing ARM

payments. The display will show the payment number to the left.

3420UG-E-A 7/2/04 9:06 AM Page 60

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