Prepaid/Odd-Days Interest And Apr - Calculated Industries 3416 User Manual

Prepaid/Odd-Days Interest and APR

Find the monthly payment on a $100,000 loan at 8.25% annual
interest and 30-year term. Then, find the amount of odd-days inter-
est, or "prepaid" interest due, if the escrow closes on 7/21/03 and
the first payment is due 8/1/03.
STEPS
Clear calculator
Enter loan amount
Enter interest
Enter term
Find monthly P&I payment p
Find days between escrow closing and
date of 1st payment
Find the prepaid interest
due at closing
*Note: This is based on a 360-day year, as most banks use this method for comput-
ing prepaid interest.
Now, without clearing the calculator, add the prepaid interest to the
loan's points and fees if they are equal to 1.5% and $500, respec-
tively. Then find the Annual Percentage Rate (APR), based on these
closing costs.
STEPS
Store the prepaid interest
in memory
Find Loan Costs:
Recall loan amount
Find point cost
Add fees
Add prepaid interest
stored in memory
Find APR for this loan
Clear All
46 — M
ORTGAGE
KEYSTROKES
o o
1 0 0 ) l
8 • 2 5 ˆ
3 0 T
8 : 1 : 0 3 – 7 : 2 1
: 0 3 =
s :
— DO NOT CLEAR CALCULATOR —
KEYSTROKES
µ
® l
x 1 • 5 % =
+ 5 0 0 =
+ ® µ =
s ˆ
s x
Q P
UALIFIER LUS
®
DISPLAY
100,000.00
"run" 751.27
252.08*
DISPLAY
252.08
100,000.00
1,500.00
2,000.00
2,252.08
"run" 8.50
"All Cleared" 0.00
0.00
8.25
30.00
11.00