# Mortgage Calculations using BA II Plus

Welcome! In this video, I’m going to use the BAii

plus calculator to solve this amortization problem. A $450,000 mortgage loan, financed at 2.8%

compounded semi-annually, requires month-end payments of $1850. How many payments are required? To solve this, let’s first set P/Y to 12

(since payments are made monthly) and then we set C/Y to 2 for semiannual compounding. Press 2nd Quit. Next input 2.8 I/Y for interest,

450,000 for Present Value, 1850 (negative) for payments (since payment

is an outflow), and then 0 Future value since we plan to pay

off the mortgage at the end. And when we compute N, we obtain 358.53. That is, 359 payments are required. The size of the 359th payment however will

be smaller than the previous payments of 1850. To find the principal repaid in the 10th payment,

we press 2nd AMORT, set P1 to 10, ENTER, scroll down,

set P2 to 10 as well, ENTER and when you scroll down, you see the outstanding

balance after the 10th payment, when you scroll down again, you see the principal repaid in

the 10th payment which is 823.06. Next we want to calculate the total interest

paid in the 2nd year. Since payments are made monthly, the first

year comprises of payments 1 to 12. The second year will comprise of the next

12 payments which will be 13th to the 24th. So we set P1 to 13 ENTER, scroll down, and

set P2 to 24 ENTER. Scroll down to interest, and we have a total

interest of $12,126.51 for the second year. Next we want to calculate the outstanding

principal balance at the end of the first four years. Since payments are made monthly, in four years

we have 4 times 12 which equals 48 payments. So 2nd AMORT, P1 can be any value less than

48 but we want to be sure we set P2 to 48 ENTER. And when we scroll down we see that the balance

is 409122.15. To find the total interest paid in the first

5 years, we set P1 to 1, scroll down and set P2 to 5 time 12 which

equals 60. ENTER then scroll down to INTEREST and we

have 59,172.31. Next we find the size of the final payment. Recall that N equals 358.53,

So the final payment is the 359th payment. So we set P1 and P2 to 359. And we can see here that the outstanding balance

is 870.25 which actually represents an overpayment if we make the regular payment of 1850. So to find the required last payment, we subtract

the overpayment value of 870.25 from the regular payment of 1850, and that gives 979.75. So the size of the las payment is 979.75. And that’s it for this video. Thanks for watching.

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Thanks bro. Your videos are so great ! (Especially in Finance and Linear Programming)

Thanks a lot

Hello,

Where can I find this emulator of the calculator for MAC?

Thanks

You explained it so well thank you

sir , you are great one and teaching comes very naturally in every video u post .Could you please make video about six sigma entire tools .

Did u conducted any course in mooc or edx online learning centre .If yes i would lk to enroll .

Please help me, my calculator said it is error 5

This video helped me learn how to use my new calculator. It's much easier to learn from watching someone else use it and understand how the functions work. Thank you.

Amazing… again appreciate all of your tutorials

Error 5? I changed PV -1850.

thank you so much. Vdo is vey clear and helpful. I was looking for such type of vdo since long.

Sir, Can you please tell me how to calculate bi-weekly/weekly mortgage payment? thanks

Thanks for your precious time. I can't tell you how grateful I am. You are a brilliant teacher and you are a star.

This is the most helpful video I have seen. You are so smart. Thank you!

Hello, is there any way that the BA II plus can be used to calculate interest only loans. An example is trying to calculate interest payments (monthly) on a two year loan for 520,000 without paying down principal.

thanks man, your awesome…

Excellent video………..Increasing my knowledge of my calculator exponentially. Thanks so much!

you lost me at "2nd 12 payments" really wish these videos talked a bit more about this.. vs just saying "click here then here.." #confusing

Very good video and straight forward.Way to go –very educative Thank you!!!!

Thank you so much! super helpful & very appreciated!

most informative video I've ever watched. tysm!!!

thank you so much. you. said my life for today

Very good video. Thank you Joshua!

10 people can't figure out how to use their calculators