Calculator Tips

Question 1

Mortgage interest Paid

Answer 1

•Enter loan $ as +# and & solve PMT
•Set P/YR to 12 & hit gold before N to Calc TOTAL # periods
•Calc total pymts then - loan $
Answer is total int paid

Question 2

Rate of return for college savings

Answer 2

GP 6-4 quiz
Settings: Beg or end + Set periods per year to capture pymts correctly
Monthly payment is negative
FV is positive

Question 3

Bond Investment Value

Answer 3

TMV ROW; set p/yr to 2
FV = Face Value
I/Yr = CURRENT interest available
PMT = original interest income/2
N = # Yrs Gold x/P/Yr
Solve for PV

Question 4

Bond Conversion Value

Answer 4

PAR- Bond Par Value (assume 1k)
/
CP-Conversion Price
X
Ps- Stock price per share

Beware -par value may NOT be $1k

Question 5

Bond Floor Value

Answer 5

Max of bond value or conversion value
Calc both and compare

Question 6

Retirement planning calculation
(always use beginning mode)

Answer 6

1. Solve FV for $ needed ANNUALLY at start of Ret’t (I=infl rate) using present annual cost
2. Solve FV using #1 result as Pymt & infl adjusted int rate

(1+ Int rate) / (1+ infl rate) -1 x 100