Decreasing ARM Payment
Calculate the initial monthly payment on a 30-year, $85,000
ARM loan at 10% interest, and then find the second and third
years’ adjusted payments if the loan’s rate of interest decreas-
es 1% at the end of each year.
Steps
Keystrokes
Display
Clear calculator
[On/C] [On/C]
0.00
Enter loan amount
85,000 [L/A]
85,000.00
Enter term in years
30 [Term]
30.00
Enter annual interest
10 [Int]
10.00
Find initial mo. payment
[Pmt]
“run” 745.94
Enter ARM parameters
1 [:] 1 [Set] [ARM]
– 1.00 – 1.00
Find 1st decreasing pmt
[ARM]
“run” 684.81
Find 2nd decreasing pmt
[ARM]
“run” 626.47
Increasing & Decreasing ARM Payment
Find the payment for the first three years for a $100,000, 30-
year ARM loan that starts out at 10% but increases 1% after six
months and then decreases to 1.5% after an additional 12
months.
Steps
Keystrokes
Display
Clear calculator
[On/C] [On/C]
0.00
Enter loan amount
100,000 [L/A]
100,000.00
Enter term in years
30 [Term]
30.00
Enter annual interest
10 [Int]
10.00
Find initial monthly pmt
[Pmt]
“run” 877.57
Enter initial ARM adj.
1 [:] .5 [ARM]
1.00 – 0.50
Find increased adj. pmt
[ARM]
“run” 951.83
Enter 2nd ARM adj.
1.5 [:] 1 [Set] [ARM]
– 1.50 – 1.00
Find decreased adj. pmt
[ARM] “run”
842.56
37 – User’s Guide
