In this video, we learn how to calculate mortgage payments using the BA 2 plus calculator. The question asks for a mortgage of $300,000, amortized over 30 years, with a 2.25 percent interest rate compounded semi-annually. To calculate the monthly payments, we first need to set all the variables to their defaults. Press the "2nd" button and then "FV" to clear the TVM (time value of money). Next, we need to set the number of compounding periods per year. Press "2nd" and then "i/y" to access the "p/y" (payments per year) setting. Since the question asks for monthly payments, set the "p/y" to 12. Enter "4" and then press the downward arrow. Note that the number of interest periods is 2, as the question asks for semi-annual payments. Press "2" and then enter. Press "C" and then "C" again to exit. For the number of payments, we need to multiply the number of years by the "p" value. We can use the payment multiplier. Enter the number of years, which is 30, and press "2nd" and then "n" to multiply it by the "p" value. Press "n" again to store it in "n". For the interest rate, enter 2.25 and then "i/y". Finally, enter $300,000 for the present value (PV). To calculate the payments, press "CPT" for compute and then "PMT" for payments.
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