Education Technology

# Knowledge Base

## 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.) Input the calculation: • 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.