Schweser's Books 6 page 258 balance

Windjammer

How can we get “Outstanding morgage balance” in Answer 34?

willsucceed

Don’t have the book with me, but you can do the whole ammortizing schedule from year one. It should be given to you tho.

soverby

Pls let me know how to AMORT in my calculator (HP12C).

willsucceed

check the back of the calculator, it has some Amort. help.

Palantir

Amortization
The hp 12c enables you to calculate the amounts applied toward principal and
toward interest from a single loan payment or from several payments, and also
tells you the remaining balance of the loan after the payments are made.*
To obtain an amortization schedule:
1. Press fCLEARG to clear the financial registers.
2. Enter the periodic interest rate, using i or 12/.
3. Enter the amount of the loan (the principal), using PV.
4. Key in the periodic payment, then press CHS PMT (the sign of PMT must be
negative, in accordance with the cash flow sign convention).
5. Press gBEG or (for most direct reduction loans) gEND to set the payment
mode.
6. Key in the number of payments to be amortized.
7. Press fAMORT to display the amount from those payments applied toward
interest.
8. Press x

SFoyil

Thank you, but how can I get the number, $32,000,000, here in this solution?

optiix

it is 0.8*40 mio. That is it since it a interest only loan.

tarik64

Can someone please tell me know how to get to the annual interest expense portion ($2,240,000) of this interest only loan?

evolsteevol

*hand over face…
I just spent 20 mins on this.