Amotization

Morgage= \$200,000 time 30 yrs interest 6% what will be the balance after the 48th payment. Q. How do we use the amortisation function of the TI BA II plus calculator? Please show the steps. a. 94,615 b. 186,109 c. 189,229 d.192,444

N=30*12, I/Y=6/12, PV=-200,000,FV=0, CPT PMT 2nd AMORT P1=1, P2=48, arrow down until you get Bal = 189,229

IMO the easiest way to do this is to simply calculate the PV of the remaining payments 48 payments from now. Though I am sure there is a quicker way to do it with AMORT.

thanks map1, that’s definitely how i’m going to do it now chiefly because my method would require two present value of annuity calculations

The PV is as simple as the AMORT. You just input 360-48 in N, and hit PV and there you have it.

I love my calculator

Map thanks you are a great teacher. Just curious how do you know every answer? I am writting for the 3rd time but I am not event an inch near your level. Any last minute tips.?

I’m good with numbers, patterns, algebra. I’m not good at concepts. Never been. Until I fully understand a concept, I’m dead. My memory has a short span. I’m scared to death. This is my second take on the exam. I’m growing a hunchback, and I try to understand what I did wrong in answers. The way I’m learning: from my mistakes.

map1 Wrote: ------------------------------------------------------- > The PV is as simple as the AMORT. You just input > 360-48 in N, and hit PV and there you have it. yeah, that’s true, i usually just use the present value of annuity formula

the problem with me is that I am not able to fully understand what is wrong with the questions. what should i look out for?. I tried the second set of shweser but scores on each second were not promising 77 on ethics was the highest with a 50 % on QM. I just have to pass this time but with these grades they have spoiled my day today.

map1 Wrote: ------------------------------------------------------- > I’m good with numbers, patterns, algebra. I’m not > good at concepts. Never been. Until I fully > understand a concept, I’m dead. My memory has a > short span. same here man, i majored in math so the quantitative stuff is pretty simple, but the accounting is killer

map1 Wrote: ------------------------------------------------------- > N=30*12, I/Y=6/12, PV=-200,000,FV=0, CPT PMT > > 2nd AMORT P1=1, P2=48, arrow down until you get > Bal = 189,229 Im doing this, but I still get a Bal of -200,000… NM got it.

CFABLACKBELT Wrote: ------------------------------------------------------- > map1 Wrote: > -------------------------------------------------- > ----- > > N=30*12, I/Y=6/12, PV=-200,000,FV=0, CPT PMT > > > > 2nd AMORT P1=1, P2=48, arrow down until you get > > Bal = 189,229 > > > Im doing this, but I still get a Bal of > -200,000… > > NM got it. dont forget to change N from 360 to 312… the PV will be correct

did it on HP12c. Hard one, I think. first you get PMT = 1199. Then change N to 312 from 360, hit PV, and you get 189,229. thanks