# Knowledge Base

## Solution 23970: Calculating a Balloon Payment Using the BA II PLUS Family Calculator.

### How do I calculate a balloon payment using the BA II PLUS family calculator?

To calculate a balloon payment using the BA II PLUS family calculator, please follow example listed below.

Example: You are buying a \$75,000 lake house. With a 10% down payment, the interest rate will be 9.25% amortized over a 30-year period. However, the loan will be due and payable at the end of 15 years. How much will the balloon payment be at the end of 15 years?

• Press [2nd] [CLR TVM] to clear all TVM values.

• Press [2nd] [P/Y], input 12, then press [ENTER] [2nd] [QUIT].

• Input 360 and press the [N] key.

NOTE: The value of 360 was obtained by multiplying 30 (years) by 12 (number of payments per year).

• Input 9.25 and press the [I/Y] key.

• Input 75000 and press the subtraction key, then input 10 and the [%] key. Press the [=] key and then press the [PV] key to store 67,500. The 67,500 represents the loan amount.

• Compute the payment by pressing [CPT] [PMT], which will return -555.31.

• Enter the number of payments made in 15 years by inputting 180 and pressing [N].

NOTE: The value of 180 was obtained by multiplying 15 (years) by 12 (number of payments per year).

• Compute the unpaid balance by pressing [CPT] [FV]. The Future Value would be -53,953.92.

• Add the monthly payment to find the balloon payment by pressing [+] [RCL] [PMT] [=].

The final balloon payment is -54,509.23.

Please see the BA II PLUS family guidebooks for additional information.