Purchase Price Of A Note - Fully Amortized; Finding The Yield On A Discounted Note - Calculated Industries 3415 User Manual

Purchase Price of a Note — Fully Amortized
The mortgage you are thinking about buying has the following terms
and conditions: 15 years remaining, $100 per month incoming pay-
ments, and you want a 25% yield or return on your investment. In
this case you are paying for the income stream — the incoming pay-
ments — and not the future value.
STEPS
Clear calculator
Enter desired yield
Enter term
Enter payment amount
Find purchase price
What if you want a 20% yield? Leave all of the above data and re-
enter the 20% interest over the old rate, then re-calculate the loan
amount.
STEPS
Enter your new desired
rate of return
Find purchase price

Finding the Yield on a Discounted Note

An individual wants to sell you a note under the following terms: 60
months remaining in the term, a face amount when due of $7,500,
10% interest-only payments of $62.50 (incoming). He says he will
sell this note to you for $6,500 if you buy today. If you buy it, what
will be the yield on your investment?
STEPS
Clear calculator
Enter future value of
note when due
Enter purchase price
Enter remaining term*
Enter payment amount
Find your yield
*Note: Pressing s b identifies your entry as a periodic value.
KEYSTROKES
o o
2 5 ˆ
1 5 T
1 0 0 p
l
— DO NOT CLEAR CALCULATOR —
KEYSTROKES
2 0 ˆ
l
KEYSTROKES
o o
7 5 0 0 s l
6 5 0 0 l
6 0 s b T
6 2 • 5 0 p
ˆ
— DO NOT CLEAR CALCULATOR —
DISPLAY
25.00
15.00
100.00
"run" 4,682.68
DISPLAY
20.00
"run" 5,693.80
DISPLAY
7,500.00
6,500.00
60.00
62.50
"run" 13.70
U ' G — 51
SER S UIDE
0.00
0.00