Solution 11275: Calculating Annual Payment on the BA Real Estate™.
How do I calculate annual payments on the BA Real Estate?
The example shows how to calculate annual payments on the BA Real Estate.
Example: What are the annual payments on a mortgage for $75,000 at 8.5 % interest compounded annually over 30 years?
LOAN = 75000
I = 8.5
TERM = 30
PMT = ?
Enter the problem's components:
• Press the [2nd] key and the [I%] key.
• Enter 1 and press the [=] key. (This will set the Periods Per Year to 1.)
• The compounding periods has also changed to 1.
• Press the [ON/C] key twice. (This will clear the screen.)
• Press the [2nd] key and the [FV] key. (This clears the TVM worksheet.)
• Enter 75000 and press the [LOAN] key. (This stores 75000 to the Present Value register.)
• Enter 8.5 and press the [I%] key. (This stores 8.5 to the Interest per Year register.)
• Enter 30 and press the [TERM] key. (This stores 30 to the TERM register.)
• Press the [CPT] key and the [PMT] key.The annual payment is $6,978.79.
Note: The payment is displayed as -6,978.79 because it is a negative cashflow.
Please see the BA Real Estate guidebook for additional information.