Realtors and Mortgage brokers will especially appreciate the DISCOUNTING program as it makes YIELD tables a thing of the past. The examples below will demonstrate how simple it is to use the single screen program to quickly calculate many different scenarios. Why settle for approximations and interpolations when an exact calculation can be performed quickly. Actual examples were taken directly from a YIELD table booklet (white background image). It matters not whether you are an American or Canadian Realtor or Mortgage Broker as the software handles both, monthly compounding (American) and semi-annual compounding (Canadian). The program also lets you choose the accuracy and speed of the iteration. The user can quickly change + or - the Yield or the Discount term and save time and eliminating many tedious calculations.
DETERMINING THE DISCOUNT AT SPECIFIED YIELD
Software Answer: (Screenshot 2)
Notice how the balance is automatically shown (A) after 4 years. Mr. Buyer pays (B) $8,741.78 to buy the mortgage and his discount is (C).
DETERMINING THE MONTHLY PAYMENT NEEDED TO FULLY AMORTIZE THE MORTGAGE
Software Answer: (Screenshot 4)
By making the amortization period and discounting term the same (48 months) the monthly payment is calculated to be exactly $ 253.63
DETERMINE THE YIELD AT A SPECIFIED DISCOUNT
Software Answer: (Screenshot 6)
15% of $10,000 is $1,500 is entered in the "Dollar Discount you want" box. The actual yield is 16.809% which is more accurate than the value of 17% from interpolating tables.
ONE ANSWER TO THREE QUESTIONS
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