52 — Q
UALIFIER
P
LUS
®
III
FX
ARM Payment —
Worst-Case Scenario
Find the initial monthly P&I payment on a 30-year, $176,000 mortgage
at 8.25% annual interest rate, and then find the second and third
year's “worst-case” adjusted payments if this ARM loan increases
1% at the end of each year. Then, find the remaining loan balance,
current interest rate and remaining term.
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Enter Loan Amount
1 7 6 ) l
176,000.00
Enter Term in years
3 0 T
30.00
Enter annual Interest rate
8 • 2 5 ˆ
8.25
Find initial monthly P&I
Payment (1st year)
p
“run” 1,322.23
Enter ARM parameters
1 : 1 A
1.00 - 1.00
Find 1st adjusted (2nd year)
ARM payment
A
1 ARM 1,445.79
Find 2nd adjusted (3rd year)
ARM payment
A
2 ARM 1,570.86*
Find principal at start of
3rd year
® l
173,350.16
Find current Interest rate
® ˆ
10.25
Find remaining Term
® T
28.00
*Note: You may continue pressing
A
to find the 4th, 5th year, etc. increasing ARM
payments. The display will show the payment number to the left.
