Trust Deeds & Discounted Notes - Calculated Industries Real Estate Master IIx User Manual

Trust Deeds & Discounted Notes
Two things to remember when calculat-
ing trust deed, purchase price and yield
problems are: 1) When entering or solv-
ing for "yield" or "rate of return," use the
[Int]
key, and 2) when entering or solv-
ing for "purchase price" or "present
value," use the
Purchase Price of a Note — Fully Amortized
The mortgage you are thinking about
buying has the following terms and con-
ditions: 15 years remaining, $100 per
month in incoming payments and you
want a 25% yield or return on your
investment. In this case you are paying
for the income stream, the incoming
payments, and not the future value.
Steps/Keystrokes
1. Turn calculator off then on:
[Off] [On/C]
2. Enter desired yield:
25 [Int]
3. Enter term and payment amount:
15 [Term]
100 [Pmt]
4. Find purchase price:
[L/A]
— D
O
[L/A]
N C
OT LEAR THE
key.
"run" 4,682.68
C
—
User's Guide — 35
Display
0.00
25.00
15.00
100.00
ALCULATOR