User Manual

Example 2: A customer has an existing mortgage with a balance of $125.010, a
remaining term of 200 months, and a $1051.61 monthly payment. He wishes to
obtain a $200,000, 9 1/2% wrap-around with 240 monthly payments of $1681.71
and a balloon payment at the end of the 240th month of $129,963.35. If you, as a
lender, accept the proposal, what is your rate of return?
Keystrokes Display
CLEAR
200000
125010
-74,990.00 Net investment.
1051.61
1681.71
630.10 Net cash flow received by lender.
99
2
The above cash flow occurs 200 times.
1,681.71 Next cash flow received by lender.
39
39.00 Cash flow occurs 39 times.
129963.35
131,645.06 Final cash flow.
12
11.84 Rate of return to lender.