Solution 11281: Calculating Quarterly Payments on the BA Real Estate™.
How do I calculate quarterly payments on the BA Real Estate?The example below will demonstrate how to calculate quarterly payments on the BA Real Estate.
Example: What is the quarterly payment of a mortgage for $75,000 at 8.5% interest compounded quarterly, if it has to be paid off in 30 years?
Input the 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 4 for quarterly payments by entering 4 and pressing the [=] key. C/Y is set to 4 automatically.
3. Press the [ON/C] key to clear the screen.
4. Press the [2nd] key and the [FV] key. (This clears the TVM worksheet.)
5. Enter 75000 and press the [LOAN] key. (This stores $75,000 to the Present Value register.)
6. Enter 8.5 and press the [I%] key. (This stores 8.5 to the Interest per Year register.)
7. Enter 30 and press the [TERM] key. (This stores 30 to the TERM register.)
8. Press the [CPT] key and the [PMT] key.The quarterly payment is $1,732.71.
Note: The payment is displayed as -1,732.71 because it is a negative cashflow.
Please see the BA Real Estate guidebook for additional information.