Calculated Industries 3420 Pocket Reference Guide - Manual (Page 40)

P OCKET R EFERENCE G UIDE — 39
Rent vs. Buy
• Term: 30 years • Tax: 1.25%
• Interest: 6.5% • Insurance: 0.35%
• Down: 10% • Tax Bracket: 30%
If your client is currently renting a home
for $1,250/month, find the comparable
home sales price and loan amount that
he or she could afford:
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter Term 3 0 T 30.00
Enter Interest 6 • 5 ˆ 6.50
Enter Down 1 0 d 10.00
Enter Tax% 1• 2 5 t 1.25
Enter Ins.% • 3 5 I 0.35
Tax bracket 3 0 s + 30.00
Enter rent to find comparable
home price 1 2 5 0 s P
237,898.12
Find comparable Loan
Amount P 214,108.31
Find PITI Pmt. P 1,670.51
Find annual Tax
savings P 5,046.09
Mo. Tax svgs. P 420.51
Reset Tax brkt. 2 8 s + 28.00
3420PRG-E-A 7/2/04 9:07 AM Page 39