Graduated Payment |
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Graduated Payment |
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Graduated Payment
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Graduated Payment |
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Graduated Payment |
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A graduated payment loan can be computed with the percent step loan type. In a graduated payment loan,
the payments are graduated (percent stepped) for a certain number of years and then become steady.
Refer to the following example:
Graduated Payment - EXAMPLE |
A recently married young couple want to buy a starter home. Their salary is still relatively low. The maximum monthly payment that they can afford is $750.00. But, they think that they will be able to step their payments by 7% every year for at least the next 5 years as their salaries increase. The current interest rate is 12.75% per annum compounded monthly. They want a 30 year term. How large a mortgage can they afford?. |
Solve The Principal amount.
Enter the data into the Fixed Rate form with the Type field changed to Percent Step.
Press
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The monthly computed mortgage payment is $87786.07. |
Your filled out form should look like this.
Goto: Amount Step
