Calculated Industries 43285 - Manual (Page 38)

Decreasing ARM Payment
Calculate the initial monthly payment on a 30-year, $85,000
ARM loan at 10% interest, and then find the second and third
years’ adjusted payments if the loan’s rate of interest decreas-
es 1% at the end of each year.
Steps Keystrokes Display
Clear calculator [On/C] [On/C] 0.00
Enter loan amount 85,000 [L/A] 85,000.00
Enter term in years 30 [Term] 30.00
Enter annual interest 10 [Int] 10.00
Find initial mo. payment [Pmt] “run” 745.94
Enter ARM parameters 1 [:] 1 [Set] [ARM] – 1.00 – 1.00
Find 1st decreasing pmt [ARM] “run” 684.81
Find 2nd decreasing pmt [ARM] “run” 626.47
Increasing & Decreasing ARM Payment
Find the payment for the first three years for a $100,000, 30-
year ARM loan that starts out at 10% but increases 1% after six
months and then decreases to 1.5% after an additional 12
months.
Steps Keystrokes Display
Clear calculator [On/C] [On/C] 0.00
Enter loan amount 100,000 [L/A] 100,000.00
Enter term in years 30 [Term] 30.00
Enter annual interest 10 [Int] 10.00
Find initial monthly pmt [Pmt] “run” 877.57
Enter initial ARM adj. 1 [:] .5 [ARM] 1.00 – 0.50
Find increased adj. pmt [ARM] “run” 951.83
Enter 2nd ARM adj. 1.5 [:] 1 [Set] [ARM] – 1.50 – 1.00
Find decreased adj. pmt [ARM] “run” 842.56
37 – User’s Guide