Calculated Industries 3423 User manual

Q UALIFIER P LUS
®
4 X
ADVANCED REAL ESTATE FINANCE CALCULATOR with CASH FLOW
and BUILT-IN CANADIAN INTEREST MODE
Model 3423
C ANADIAN

The Canadian Qualifier Plus 4x was designed specifically for mort-
gage lenders, residential real estate agents and brokers for quick
mortgage calculations in the office or out in the field. It’s the most
complete and intuitive calculator of its kind. With the push of a few
buttons, it will instantly pre-qualify prospective buyers, find monthly
payments, and solve hundreds of mortgage problems!
Features:
• Easy and Complete Buyer Pre-Qualifying — with “Smart”
Keys for quick financing solutions or comparisons
• Find Qualifying Mortgage Amount, Income Required and
Maximum Allowable Debt
• Use two different Qualifying Ratios at once to compare
mortgage scenarios
• Compare “Restricted” with “Unrestricted” Qualifying
Mortgage Amount
• Flexible “what-if” Mortgage or TVM Calculations — Finds
Mortgage Amount, Term, Interest or Payment
• Instant P&I and Total (PITH) Payment
• Includes Property Tax, Mortgage Insurance and
Heating Expense
• Built-in Sales Price and Down Payment
• Instant Loan-to-Value (LTV)
• Works in Annual or Periodic Term and Interest
• Works in Canadian or U.S. Interest
• Date Math, Month Offset, and Odd-Days Interest (ODI)
• Complete Amortization
• Remaining Balance/Balloon Payment
• Bi-Weekly Mortgages
• Trust Deeds
• Future Value and Appreciation
• Also works as a Standard Math Calculator
• U.S. Mode, including additional features: APR and Total
Finance Charges, PITI/Total Payment, Interest-Only
Payment and Complete U.S. Buyer Pre-Qualifying, including
Tax, Insurance, and Mortgage Insurance
New!
• Cash Flows/Investment Analysis (IRR, NPV, NFV)
• Effective Interest Rate (EFF%)
• Metric/Imperial Conversions
Introducing the C ANADIAN Q UALIFIER P LUS
®
4 X
Mortgage Calculator

GETTING STARTED..........................................................................1
KEY DEFINITIONS .........................................................................1
Basic Operation Keys ..................................................................1
Mortgage/Time-Value-of-Money Keys..........................................2
Qualifying Keys............................................................................5
Cash Flow Keys...........................................................................8
U.S. Keys (Used in U.S. Mode)...................................................9
CALCULATOR SETTINGS ...........................................................10
Decimal Place Selection............................................................10
Canadian/U.S. Mode..................................................................11
Preference Settings ...................................................................12
MEMORY ......................................................................................14
Accumulative Memory ...............................................................14
Memory Storage Keys (M0-M5).................................................15
Additional Memory Storage Keys (M10-M19)............................16
BASIC ARITHMETIC EXAMPLES................................................17
Arithmetic...................................................................................17
Percentage Calculations............................................................17
Percent Change.........................................................................17
Figuring Straight Percent Commission......................................18
Reduction in Listing Price (Discount %) ....................................18
Simple, One-Year Home Appreciation (Add-on %)....................18
Delta Percent-Rate of Appreciation ...........................................19
USING THE FEET AND METERS CONVERSIONS....................19
USING THE DATE FUNCTION.....................................................20
EXAMPLES — CANADIAN MODE .................................................21
MORTGAGE/TIME-VALUE-OF-MONEY (TVM)............................21
Finding the Monthly Mortgage Payment....................................22
Finding the Term of a Mortgage.................................................22
Paying Off a Mortgage Early (Making Larger Payments)..........23
Finding the Interest Rate ...........................................................23
Finding the Mortgage Amount....................................................23
Non-Monthly Mortgages.............................................................24
Finding a Quarterly Payment.....................................................24
Bi-Weekly Mortgages.................................................................25
Bi-Weekly Term Reduction and Payment..................................25
Sales Price/Down Payment .......................................................26
Finding Mortgage Amount Based on Sales Price and
Down Payment .......................................................................26
Finding Sales Price and Payment Based on Mortgage Amount
and Down Payment ................................................................26
Finding Loan-to-Value (LTV) Based on Down Payment and
Sales Price..............................................................................27
Setting Property Tax Percent Rate ............................................27
Setting Property Tax Dollar Amount...........................................27
Total Payment (Including Heating Expense)..............................27
TABLE OF CONTENTS

Total Payment (Including Heating Expense and Property Tax
Entered as Percentage)..........................................................28
Total Payment (Including Heating Expense and Property Tax
Entered as Dollar Amount) .....................................................28
Finding Mortgage Amount (Including Canadian Mortgage
Insurance)...............................................................................29
Finding Monthly Mortgage (P&I) Payment (Including Canadian
Mortgage Insurance)...............................................................30
Amortization and Remaining Balance........................................30
Notes on Amortization................................................................30
Total Principal and Interest for a 25-Year Mortgage..................32
Total Principal and Interest (Including Canadian Mortgage
Insurance)...............................................................................32
Amortization List for Individual Year(s) — Using “Next”
Feature ....................................................................................33
Amortization List for Individual Year(s) — Using Month
Offset ......................................................................................34
Amortization List for Individual Payment(s) ...............................35
Amortization List for a Range of Payments or Years.................36
Balloon Payment/Remaining Balance Needed to Pay Off a
Mortgage.................................................................................36
Future Value...............................................................................37
Appreciation/Future Value..........................................................37
Basic Savings Account Problem (Future Value of an Initial
Deposit)...................................................................................37
Trust Deeds and Discounted Notes...........................................38
Purchase Price of a Note — Fully Amortized ............................38
Finding the Yield on a Discounted Note ....................................39
BUYER PRE-QUALIFYING...........................................................40
IMPORTANT NOTE: U.S. vs. Canadian Payment and
Qualifying Calculations...........................................................41
QUALIFYING EXAMPLES............................................................42
Recalling GDS/TDS Qualifying Ratios.......................................42
Storing New GDS/TDS Qualifying Ratios..................................42
Finding Qualifying Mortgage Amount and Sales Price
(Simple Example Excluding Property Tax) .............................43
Qualifying Mortgage Amount and Sales Price
(Including Down Payment, Property Tax and Monthly
Heating/Condo Fees)..............................................................44
Qualifying Mortgage Amount and Sales Price (Including
Canadian Mortgage Insurance)..............................................45
“Restricted” Qualifying ...............................................................46
“Unrestricted” Qualifying............................................................47
Qualifying Comparison (Comparing Two Different Mortgages or
Two Qualifying Ratios at Once)..............................................48
Finding Income Required and Allowable Monthly Debt.............49
Solving for Actual Qualifying Ratios...........................................50

CASH FLOW EXAMPLES.........................................................51
Calculating IRR, NPV, and NFV for Annual Cash Flows...........53
Calculating IRR, NPV, and NFV for Monthly Cash Flows .........54
Recalling and Replacing Cash Flows........................................55
Recalling and Replacing Cash Flow Frequencies.....................55
EXAMPLES — U.S. MODE .............................................................56
Finding the Monthly Mortgage Payment (Based on U.S. Interest
Rate).......................................................................................56
Finding the Interest-Only Payment............................................56
Interest-Only Payment (Entry) ...................................................56
Property Taxes, Property/Hazard Insurance and Monthly
Housing Expense....................................................................57
PITI Payment (Tax and Insurance Entered as Percentage)......58
PITI Payment (Tax and Insurance Entered as Dollar Amount)..58
Calculating Tax and Insurance Percentage or Dollar Amount...59
Finding the Interest Rate ...........................................................60
Finding the Term of a Loan........................................................60
Finding the Loan Amount...........................................................60
Finding Sales Price and Payment Based on Loan Amount and
Down Payment .......................................................................61
Total Principal and Interest for a 30-Year Loan .........................61
Amortization List for Individual Year(s) — Using “Next”
Feature ....................................................................................62
APR, Total Finance Charges (Including Mortgage
Insurance)...............................................................................63
Bi-Weekly Mortgages.................................................................64
Bi-Weekly Term Reduction and Payment..................................64
Qualifying Loan Amount and Sales Price (Complete Example
Including Down Payment, Tax/Insurance, Monthly Association
Dues) ......................................................................................65
“Restricted” Qualifying ...............................................................66
“Unrestricted” Qualifying............................................................66
Finding Qualifying Loan Amount and Sales Price for an
Interest-Only Loan..................................................................67
Finding Income Required and Allowable Monthly Debt.............68
Qualifying Comparison (Comparing Two Different Loans or
Two Qualifying Ratios at Once)..............................................69
APPENDIX .......................................................................................70
Default Settings..........................................................................70
Reset..........................................................................................70
Error Codes................................................................................71
Auto Shut-Off .............................................................................71
Battery........................................................................................71
Repair and Return......................................................................72
Warranty.....................................................................................73
Legal Notes................................................................................74
Looking For New Ideas..............................................................74
INDEX .............................................................................................75

U SER ’ S G UIDE — 1
KEY DEFINITIONS
Basic Operation Keys
OTurns all power off. The memory and most financial
registers are cleared.
oIf calculator is off, turns power on. If calculator is on,
a single press clears the last entry while a second
press in succession clears non-permanent entries.
Note: Clears Loan Amount, Payment, Price, Down Payment,
Income, Debt, Expense, and Canadian Mortgage Insurance.
+ – x Arithmetic operation keys.
÷ =
0– 9Keys used for entering numbers.
)Triple-zero key (saves time when entering 000 values).
bBackspace key (deletes incorrect entries one digit at
a time).
•Decimal point.
% Percent — Four-function (+, –, x, ÷) percent key.
See page 17 for examples.
µ Memory — Adds the displayed number to the inde-
pendent cumulative memory. Pressing s µ (M–)
will subtract the displayed value from the cumulative
memory. Pressing ® µ recalls and displays the
memory contents. Pressing ® ® displays and
clears the memory. See page 14 for details.
® Recall — Recalls and displays the contents of the
financial registers (e.g., ® ˆ). Also used for
Memory functions.
sUsed to set the number of displayed decimal places
(see section on Decimal Place Selection, page 10).
Also works with other keys to set or activate addi-
tional functions. (Think of it as a “shift” key on a
typewriter.) It will perform the function printed above
the key on the calculator's face.
GETTING STARTED

2 — Q UALIFIER P LUS
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X
s – Change Sign (+/-) — Changes the sign of the dis-
played value from positive to negative or vice versa.
s x Clear All — Clears all entered values and returns
any stored values to their default settings. Use this
only with caution, as it will reset ratios, payments
per year, decimal places, etc. back to their defaults
(see the Appendix for a list of these settings).
Note: Clear All will not affect any changes made to Preference
Settings.
Canadian Mode: s x will also return your calcu-
lator to Canadian Mode if you previously activated
U.S. Mode via s +.
s = Preferences (Prefs) — Activates the Preference Mode,
where you can program custom settings (see page 12).
w Meters to Feet — Converts entered value from meters
to feet.
s w Feet to Meters (ft4m) — Converts entered value
from feet to meters.
W Meters2to Feet2 — Converts entered value from
square meters to square feet.
s W Feet2 to Meters2 (ft24m2 ) — Converts entered value
from square feet to square meters.
s % Delta Percent ( ) — Finds the percent change
between two values.
Mortgage/Time-Value-of-Money Keys
The following keys let you solve Mortgage or Time-Value-of-Money
(TVM) problems, such as finding a Mortgage Payment, Term,
Interest, Future Value, or Amortization. Other useful keys, such as
Price and Down Payment, are also included. These keys let you
demonstrate various “what-if” mortgage scenarios to your clients.
l Loan Amount — Enters or solves for the initial mort-
gage amount or present value of a financial problem.

U SER ’ S G UIDE — 3
p P&I and Total Payment — Multi-function payment
key. Enters or solves for the Periodic Principal and
Interest (P&I) payment. In Canadian Mode, a sec-
ond press of the pkey calculates the Total
Payment (includes monthly property tax, insurance,
heating expense, and other applicable housing
expenses, such as condo fees). If entered,
Canadian Mortgage insurance is included in both
P&I and Total Payment. In U.S. mode, a second
press of the pkey calculates the PITI payment
(adds monthly property tax and insurance to P&I
payment). Pressing a third time in U.S. mode cal-
culates the total payment (PITI plus expenses).The
fourth press calculates the interest-only payment.
TEnters or solves for the number of years. Second press
gives the number of periods. An entered term greater
than 59 will be classified as periodic, not annual.
Note: Term is stored permanently, until you change it or perform
a Clear All ( s x ). You may enter a periodic term, if you prefer,
by pressing the s b (Periodic) keys prior to pressing T
(e.g., 3 6 s b T instead of 3 T ).
ˆ Interest — Enters or solves for the annual interest
rate. Second press gives the periodic rate.
Note: Interest is stored permanently, until you change it, by
performing a “Clear All”
(s x) , or reset.
s ˆ Effective Interest Rate (Eff%) — Converts value
stored as interest to equivalent U.S. rate.
s l Future Value (FV) — Enters or solves for the future
value of a financial problem.
P Sales Price — Enters or calculates Sales Price
based on the entries of Mortgage Amount (or equiv-
alent mortgage components) and Down Payment.
Note: An entered Sales Price will not normally change.
d Down Payment — Enters (in either percent or dol-
lars) or calculates Down Payment, based on the
entries of Mortgage Amount (or equivalent mortgage
components) and Sales Price. A second press
changes the entered down payment from a dollar
figure to a percent, or vice versa.
Note: Any number under 100 is assumed to be a percent down
payment. You do not have to label the value as a percent.

4 — Q UALIFIER P LUS
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s d Loan-to-Value (LTV) — Calculates the Loan-to-
Value percent when a Down Payment and Sales
Price, Mortgage Amount/Down Payment, or
Mortgage Amount/Sales Price are entered. Also cal-
culates the above dollar values if an LTV percent
and one of the above values are entered (e.g.,
entered Sales Price and LTV percent will calculate
Down Payment and Mortgage Amount).
s b Periodic — Used to specify a mortgage component
(Term or Interest) or Amortization/Remaining
Balance entry as periodic rather than yearly. For
example, 3 0 s b T enters 30 periods.
Also used to identify Periodic Income, Tax
Insurance, and Mortgage Insurance.
s ÷ Payments per Year (Pmt/Yr) — Used to set the
number of payment periods per year. Default value
is 12, for monthly.
Note: You can store the number of payments/year permanently or
semi-permanently. See “Preference Settings” on page 12).
a Amortization (Amort) — Finds Total Interest,
Principal, Remaining Balance, and Remaining Term.
The output of this key is as follows:
Press Display or Calculation
1 Displays range of periods
2 Calculates Total Interest for period range
3 Displays Total Principal for range
4 Calculates Total Principal and Interest
5 Calculates Remaining Balance
6 Calculates Remaining Term
s a Remaining Balance (Rem Bal) — Displays the
Remaining Balance when preceded by a single year
or range of years (or individual payment or range of
payments by also using the s b keys). Note
that you can also see the Remaining Balance by
cycling through the akey.
: Colon Separator (Date) — Used as a separator for
entering dates, qualifying ratios, and amortization
ranges.

U SER ’ S G UIDE — 5
s ) Month Offset — Used to set the first month of pay-
ment if other than January (e.g., Month 3).
s : Odd-Days Interest (ODI) — Calculates the pre-paid
interest, or simple interest accumulated (based on a
360-day year) during the days before the first mort-
gage payment is made, using the interest rate
stored in the Interest register. (U.S. Mode only.)
s T Bi-Weekly (Bi-Wkly) — Converts a regular monthly
loan to a Bi-Weekly loan, where the buyer may realize
significant interest savings. After loan variables are
entered, pressing s T displays the Bi-Weekly
Term (i.e., reduced term). The second press of T
shows the total interest savings; third press displays
the total interest paid; fourth press displays the total
principal; and fifth press displays the total principal
and interest paid. Pressing pwill calculate the
Bi-Weekly payment. Pressing s T again will exit
Bi-Weekly mode and re-calculate to the original term.
Pressing otwice will also exit Bi-Weekly mode.
Qualifying Keys
What are Canadian Qualifying Ratios?
According to the Canadian Mortgage and Housing Corp. (CMHC),
the first rule in Canadian qualifying is that monthly housing costs
should not exceed 32% of gross monthly income (this is called the
Gross Debt Service, or GDS ratio). Housing costs include monthly
Principal and Interest, Property Taxes and heating expenses. If
applicable, PITH can also include half the condominium fees and the
annual site lease if it’s a leasehold tenure.
The second qualifying rule is that the total monthly costs (i.e.,
monthly housing costs plus other long-term debt, such as car loans
and credit card payments) shouldn’t exceed 40% of gross monthly
income (this is called the Total Debt Service, or TDS ratio).
q (Qualify Based on GDS:TDS ratios of 32%-40%)
— A multi-function key which, based on entered
variables, performs the following pre-qualifying
functions:
(Cont’d)