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A bank makes a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate...

A bank makes a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 4.25% compounded monthly, with monthly payments. What is the market value of this loan after 7 years of payments if the annual interest rate for this loan is 7% compounded monthly?

How would this be done on a BA II calculator???

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Answer #1

-1000000 -> Press PV

4.25/12 -> Press I/Y

30*12 - > Press N

0 -> FV

Press CPT and PMT

4919.3989

Next step

- 4919.3989 - > PMT

23*12 -> N

7/12 - > I/Y

0 - > FV

Press CPT and PV

673964.8382

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