Bi-Weekly Loans - Calculated Industries 43285 User Manual

Bi-Weekly Loans

Your calculator includes a built-in Bi-Weekly loan function ([Set]
[Term]) 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 (since 26
bi-weekly payments is like making 13 regular monthly payments),
these kind of loans can amount to large interest savings and a
substantial reduction in the time it takes to pay them off.
You start these problems by setting up the initial monthly loan
and then pressing [Set] [Term]. A second press of [Term] shows the
total interest savings over the entire loan.
Bi-Weekly Term Reduction & Payment
Find the initial monthly payment on a 30-year, $76,500 mort-
gage at 10.25% annual interest rate, and then convert it to a bi-
weekly to find out how many years it will take to pay off this
loan and the total interest savings as well as the bi-weekly
payment amount.
Steps
Clear calculator
Enter loan amount
Enter term in years
Enter annual interest
Find monthly payment
Find Bi-Weekly term
Find total interest savings
Find bi-weekly payment
34 – Qualifier Plus IIx DT
®
Keystrokes
[On/C] [On/C]
76,500 [L/A]
30 [Term]
10.25 [Int]
[Pmt]
[Set] [Term]
[Term]
[Pmt]
Display
0.00
76,500.00
30.00
10.25
"run" 685.52
"run" 20.72
- 62,166.78
342.76