Bi-Weekly Loans; Bi-Weekly Term Reduction And Payment - Calculated Industries 3430 User Manual

Bi-Weekly Loans

Your calculator includes a Bi-Weekly loan function (s T) which
allows you to convert established, fully amortized monthly loans into
Bi-Weeklies (in which one-half the monthly payment is made every
two weeks). Because you make two extra half-payments per year
(i.e., 26 Bi-Weekly payments is like making 13 payments/year),
these kinds of loans can amount to large interest savings and a sub-
stantial reduction in the time it takes to pay them off.
You begin solving these problems by setting up the initial monthly
loan and then pressing s T. The first press of T displays the
Bi-Weekly term, the second press shows the total interest savings
over the entire loan, a third press calculates the total interest paid, a
fourth press shows the total principal paid, and a fifth press shows
the total P&I Payments. Press the p key to find the Bi-Weekly pay-
ment.

Bi-Weekly Term Reduction and Payment

Find the monthly P&I payment on a 30-year, $275,000 mortgage at
5.88% annual interest. Then convert it to a Bi-Weekly and find out
how many years it will take to pay off this loan, the total interest sav-
ings, the total interest and principal paid (as a comparison to the
regular loan), and the Bi-Weekly payment.
STEPS
Clear calculator
Enter Loan Amount
Enter Term in years
Enter annual Interest rate
Find monthly P&I payment p
Display amortization period a
Find total interest paid
Re-display total principal
Find total P&I paid
42 — Q
UALIFIER
KEYSTROKES
o o
2 7 5 ) l
3 0 T
5 • 8 8 ˆ
a
a
a
P ® III
LUS FX
DISPLAY
0.00
275,000.00
30.00
5.88
"run" 1,627.61
1-360
310,938.79
275,000.00
585,938.79
(Cont'd)