(Cont’d)
STEPS
KEYSTROKES
DISPLAY
Clear
o o
0.00
Enter Interest
7 • 5 ˆ
7.50
Enter Term
2 5 T
25.00
Enter Tax%
1 • 5 t
1.50
Enter heating
1 2 5 s D
125.00
Enter Price
2 2 5 ) P
225,000.00
Enter %Down
3 5 d
35.00
Find $ Down
d
78,750.00
Find Mortgage
l
146,250.00
Display Qualifying
Ratios
q
32.00 – 40.00
Find income
required
q
55,355.59
Find maximum allowable Monthly
Debt
q
369.04
Find P&I
Payment
p
1,069.90
Find total
p
1,476.15
Cash Flow
A real estate investor wishes to purchase a
home for $225,000 and rent it out. He’d like a
return of 9% and expects to sell it after 5
years for $275,000. He expects the annual
cash flows below. Find the IRR, NPV & NFV.
Annual Cash Flow
Year 1
$16,000
Year 2
$16,600
Year 3
$16,900
Year 4
$17,200
Year 5
$275,000
P
OCKET
R
EFERENCE
G
UIDE
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