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
[L/A]
key.
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
Display
1. Turn calculator off then on:
[Off] [On/C]
CdA 0.00
2. Enter desired yield:
25 [Int]
CdA 25.00
3. Enter term and payment amount:
15 [Term]
15.00
100 [Pmt]
100.00
4. Find purchase price:
[L/A] “run”
4,896.97
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LEAR THE
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ALCULATOR
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34 — Qualifier Plus
®
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