Education Technology

# Knowledge Base

## 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 = ? To Solve: 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. The monthly payment is$576.69.

Note: The payment is displayed as -576.69, because it is a negative cashflow.