Solution 11278: Calculating Monthly Payments on the BA Real Estate™.
How do I calculate the monthly payment on the BA Real Estate?The example below will demonstrate how to calculate monthly payments on the BA Real Estate.
Example: What would the monthly payment of a mortgage for $75,000 at 8.5% interest compounded monthly be, if it could be paid off in 30 years?
Input the following data:
LOAN = 75000
I% = 8.5
TERM = 30
PMT = ?
1. Press the [2nd] key and the [I%] key. (This enters the P/Y worksheet.)
2. Set P/Y to 12 for monthly payments by entering 12 and pressing the [=] key. The compounding period is automatically set to 12.
3. Press the [2nd] key and the [FV] key. (This clears the TVM worksheet.)
4. Enter 75000 and press the [LOAN] key. (This stores 75000 to the LOAN register.)
5. Enter 8.5 and press the [I%] key. (This stores 8.5 to the Interest per Year register.)
6. Enter 30 and press the [TERM] key. (This stores 30 to the TERM register.)
7. Press the [CPT] key and the [PMT] key.
Note: The payment is displayed as -576.69, because it is a negative cashflow.Please see the BA Real Estate guidebooks for additional information.