P
OCKET
R
EFERENCE
G
UIDE
— 35
ARM Payment —
Lifetime Cap
• Loan: $330,000
• Term: 30 years
• Interest: 7%
• Lifetime Cap: 4%
• ARM Interest Adj.: 1% per year
Find the adjusted ARM payments through
year six:
STEPS
KEYSTROKES
DISPLAY
Clear
o o
0.00
Enter Loan
3 3 0 ) l
330,000.00
Enter Term
3 0 T
30.00
Enter Interest
7 ˆ
7.00
Find initial monthly P&I
Payment
p
“run” 2,195.50
Enter interest
Cap
4 s %
CAP 4.00
Enter ARM
parameters
1 : 1 A
1.00 - 1.00
Find 1st “adjusted”
Payment
A
“run” 1 2,417.02
Find 2nd “adjusted”
Payment
A
2 2,642.10
(Cont’d)
3420PRG-E-A 7/2/04 9:07 AM Page 35
