Education Technology

# Knowledge Base

## 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 = ? To Solve: 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.