16 Mortgages and Amortization
BEAR-CH1.DOC BA Real Estate Guidebook Jackie Quiram Revised: 09/28/99 1:16 PM Printed: 09/28/99 1:16 PM
Page 16 of 36
The formulas for the TVM and Amortization models
distinguish between inflows (cash you receive) and
outflows (cash you pay out).
•
You must enter inflows (money you receive) as
positive values.
•
You must enter outflows (money you pay out) as
negative values.
•
The calculator displays computed inflows as positive
values and computed outflows as negative values.
Key Sequence
Function
#
-
Sets TVM values to zero and
displays zero. This key sequence
does not affect the
BGN/END
,
P/Y
, or
C/Y
settings.
0
,
#
*
*
Enters or computes the term of a
loan in years (TERM), or the
number of payments (N) required to
repay the loan amount.
1
Enters or computes the annual
interest rate (I%).
2
Enters or computes the loan
amount.
3
Enters or computes the payment
amount (PMT).
4
Enters or computes the future value
(FV).
Example: Set the term of a loan to 30 years.
30
0
TRM= 30.00
* To avoid conflicting values for N and TERM, the
calculator automatically adjusts one when you enter or
compute the other. If you change the P/Y (payments per
year) setting after entering the term in years, N is
automatically adjusted to avoid a discrepancy.
The Time-Value-of-Money (TVM) Model
The TVM model lets you solve problems involving
regularly occurring, even payments, such as loans. When
you enter TVM values and settings, they are kept in
memory locations reserved specifically for them. Using
the other financial models does not affect these values
and settings.
Cash Inflows (+)
and Outflows (-)
Entering TVM
Values
