Example:You’ve written three checks without updating your checkbook, and
you’ve just deposited your paycheck for $1,053 into your checking
account.If your last known balance
was $58.33 and the checks were written for $22.95, $13.70, and $10 What is
your current balance?
Appraisers and real estate salespersons andbrokers are interested in the financial
functions.Once you have worked
enough examples you will be able to completely manipulate loans, savings
accounts, bonds, capitalization problems, future value, present value,
yield capitalization problems, internal rates of returns, financial
management rates of return, any financial function can be solved with these
There are many times when you will want to find
the loan paydown or the equity build-up.How much to pay the loan off?This calculator, as most financial calculators, is designed to give
you the loan payoff at any period of the loan, the interest paid, the
principal paid and the balance.
You have a loan for $250,000 at 6.5% interest,
amortized for 30 years and payable in equal monthly installments of
$1,580.17 – when will your loan be paid down to $125,000?How much interest will you have paid?How much principal will you have paid?
Almost all financial calculators give you a
payment option.The payment could
be annually, monthly, weekly, daily, hourly.There are unlimited options for payments.The payments you will normally use are
Payments Per Year and Annual Payments.
Now you can display the interest paid during the
periods 1 – 12, the principle paid during period1 –12, the balance remaining on this $250,000 loan, you
can press NEXT and the calculator will calculate the next 12 periods or
period 12 – 24, finally, if you would like you can print the amortization
schedule for any period by pressing TABLE.
The EXIT key will always take you back to the
previous menu.With the 17BII you
will normally be able to return to any part of a loan that you need to
return to without re-imputing the information into the calculator.
The cash flow menu (CFLO) menu stores, studies,
and analyzes cash flows.The cash
flows can be paid out (negative) or received (positive), they can be a one
time cash flow or a group of cash flows that are of the same amount.
First you enter the cash flows as they are.This makes a list of the cash flows with
the proper sequence.From that list
you can find:
The Total amount of the cash flows
The Internal Rate of Return (IRR)
The Net Present Value (NPV)
The Net Uniform Series (NUS)
The Net Future Value (NFV)
For a specified periodic interest rate (I%)
The sign used for each cash flow calculation is
the same as those used in time-value-of-money calculations.
A typical series of cash flows is one of two
Ungrouped cash flows.These occur
in series of cash flows without groups of equal, consecutive flows.Because each flow is numerically or sign
different it is ungrouped.The
number of times each cash flow occurs is once.
Grouped cash flows.These occur in a series containing “groups” of equal,
consecutive cash flows.Consecutive, equal cash flows are called grouped cash flows.
The big difference between Ungrouped and Grouped
cash flows is that in Grouped cash flows there are two or more sequentially
identical cash flows.That’s
critical for grouped cash flows, THAT THEY ARE IDENTICAL.
To use CFLO, be sure your cash flows are
occurring at regular intervals and at the end of each period (should the
cash flow occur at the beginning of the period combine the cash flow and
the cash down payment.
Grouped Cash Flows
investment.We put $100,000 cash
down on an apartment building.We
receive $5,000 in cash flows at the end of year 1, 2, and 3.
$7,000 in cash flows at the
end of years 4, 5, and 6
$10,000 in cash flows at the end of years 7, 8, and 9
at the end of year 10 we sell the building a get $300,000 cash at close of
escrow, our cash flow for that year is $12,000 – What is the IRR?
Investment with grouped cash flows.You invest $9,000, with the promise of
monthly cash flows as shown.Calculate IRR% and find NPV and NFV at an annual interest rate of
9%.Remember MONTHLY RETURN.
Clear the cash flow register
Press 9,000 +/- INPUT and then press
500 INPUT , then 3 and INPUT, then press
1,000 INPUT, then 4, then press
0 INPUT, and press INPUT, then press
1,500 INPUT, then 3 times INPUT then press
EXIT and CALC and
IRR% and you will see
IRR%=1.53this is the monthly
9 ÷ 12 = 0.75 this
is the monthly periodic rate that you will use to determine the NPV and
Press I% to store 0.75 then press
NPV and read 492.95 then press NFV and read 535.18.
Real Estate Depreciation at this writing is
limited to Straight Line Depreciation.Residential Income property is privy to 271/2 year Straight Line and
Commercial/Industrial etc., properties is privy to 39 year Straight Line.
Other methods of depreciation have been used in
real estate over the years.They
are still used with personal property.They are worth looking at as they could easily be reintroduced into
You have two children and you estimate that it
will cost you $25,000 a year each, for each of their 5 years in
college.The children are 4 and 5
years old.You estimate that they
will both begin college in 16 years.You can save money in a savings account earning 3% annually,
compounded monthly.You need to
know how much money you will have to save on a monthly basis.