Everyone wants to be a millionaire. Let us assume it is your goal to have a million by the age of 60 and you are currently a 25 year old well into the beginning of your career. You have 35 years to save to achieve your goal. The question is how much do you need to save each month.
Assuming that the interest rate in a savings account is fixed at a rate of 3%, let us calculate what you need to save to reach your goal.
Enter the following:
PV - 0
Rate - 3
Terms - 420 months (35 years *12)
FV - 1000000
Press PMT and you get -1348.50.
Financial Calculator
A tool for business students, realtors, mortgage brokers, insurance agents, etc. for their daily calculation of mortgages, annuities, interest rates, and many more, most especially when their calculator is not available but their cell phone or PC is.
Wednesday, February 3, 2010
Calculate Balloon Mortgage
A loan in the amount of 100,000 at the interest rate of 8.5% for 30 years will balloon at the end of 5 years. How much is owed at the end of the fifth year?
This is a two step process. First, we need to find out how much needs to be paid each month if the loan is fully amortized in 30 years without the balloon.
Enter these three items:
PV - amount of the loan
Rate - interest rate
Terms - number of months to pay the loan
For example, a loan for 30 years of 100,000 at an interest rate of 8.5%, enter
PV - 100,000
Rate - 8.5
Terms - 360
The "Terms" is expressed in number of months which requires multiplying the number of years by 12, hence 30 years x 12 months per year = 360.
Press the PMT button and you get -768.91348. The resulting PMT value is generally, if not always, in the reverse sign of the present value, PV.
Second, we need to find how much is owed at the end of the fifth year when paying -768.91348 a month.
The calculator will still have all the values entered and calculated: PV(100000), Rate(8.5), Terms(360), and PMT(-768.91348). With a balloon mortgage, the term ends at the agreed upon time of 5 years, which is 60 months.
Replace the Terms value from 360 to 60 then press FV to calculate how much is still owed after the fifth year. In this case, it is -95490.26596. Again, it is generally in the opposite sign of the present value, PV.
This is a two step process. First, we need to find out how much needs to be paid each month if the loan is fully amortized in 30 years without the balloon.
Enter these three items:
PV - amount of the loan
Rate - interest rate
Terms - number of months to pay the loan
For example, a loan for 30 years of 100,000 at an interest rate of 8.5%, enter
PV - 100,000
Rate - 8.5
Terms - 360
The "Terms" is expressed in number of months which requires multiplying the number of years by 12, hence 30 years x 12 months per year = 360.
Press the PMT button and you get -768.91348. The resulting PMT value is generally, if not always, in the reverse sign of the present value, PV.
Second, we need to find how much is owed at the end of the fifth year when paying -768.91348 a month.
The calculator will still have all the values entered and calculated: PV(100000), Rate(8.5), Terms(360), and PMT(-768.91348). With a balloon mortgage, the term ends at the agreed upon time of 5 years, which is 60 months.
Replace the Terms value from 360 to 60 then press FV to calculate how much is still owed after the fifth year. In this case, it is -95490.26596. Again, it is generally in the opposite sign of the present value, PV.
Calculate Monthly Mortgage/Loan Payment
Enter these three items:
PV - amount of the loan
Rate - interest rate
Terms - number of months to pay the loan
For example, a loan for 30 years of 100,000 at an interest rate of 8.5%, enter
PV - 100,000
Rate - 8.5
Terms - 360
The "Terms" is expressed in number of months which requires multiplying the number of years by 12, hence 30 years x 12 months per year = 360.
Press the PMT button and you get -768.91348. The resulting PMT value is generally, if not always, in the reverse sign of the present value, PV.
PV - amount of the loan
Rate - interest rate
Terms - number of months to pay the loan
For example, a loan for 30 years of 100,000 at an interest rate of 8.5%, enter
PV - 100,000
Rate - 8.5
Terms - 360
The "Terms" is expressed in number of months which requires multiplying the number of years by 12, hence 30 years x 12 months per year = 360.
Press the PMT button and you get -768.91348. The resulting PMT value is generally, if not always, in the reverse sign of the present value, PV.
Subscribe to:
Posts (Atom)
