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How To Discount Paper



Discounting Paper

I get repeatedly asked how to discount paper. Many people think this is some magical system used to discount a note or mortgage to a specific yield, but really it is quite simple if you have the right tools. I will show you below step by step how to discount a note using both the HP-12C and the Texas Instruments Business Analyst II Plus or BA II Plus.

Generally speaking you need to start by putting the terms of the existing loan into your calculator. For this example we will use a loan or note with a starting balance of $100,000, payable monthly at 6% interest and fully amortized for 30 years. Once this is in our calculator, we solve for payment. Now let’s assume we want to discount this loan to yield 10%. Since the loan is already in existence we can’t change the terms of the loan but we can change what we would pay for this loan to achieve our 10% yield. With the above information already in our financial calculator we change the interest rate to 10% and solve for PV or present value.

Using the BA II Plus the key strokes would be as follows:

1. Clear the financial registers by the beige 2nd key and then pressing the beige CLR TVM. I generally repeat this process by pressing the 2nd key and hitting CLR WORK also and some even add the 2nd key followed by the RESET key.

2. Next, you put in the terms of the above existing loan: 6 I/Y, 100,000 PV, 360 N and solve for the payment by hitting the CPT key followed by the PMT key. The calculator should read -599.55. The number is negative because the calculator is telling us that this is an OUTGOING payment vs an incoming payment which would be positive.

3. Next we put our new yield of 10% into the calculator by putting 10 into the calculator and then pressing I/Y to set the new interest per year at 10%.

4. Next, we press CPT and PV to compute the new present value and we get 68,319.27. This means that if you needed a 10% yield on your invested funds on the note described above, you would pay $68,319.27 for it. The difference between the $100,000 and the $68,319.27 is $31,680.73 which is the amount of the discount. This is a discount of about 32% ($31,680.73 divided by $100,000.00 =.3168 or rounded to.32 or 32%)

Now if the above note had been seasoned for 3 years or 36 months, when we were changing the interest or I/Y from 6 to 10, we would also change the N from 360 to 324 which is 360 – 36. Then we would solve for PV like we did above and get $67,056.46 as our discounted price.

If you are working with interest only payments enter the N as 99999. Working with balloon payments is a little trickier so contact us and we will discount that for you as a free service.

The entering of data on the 12C is a little different than the BA II Plus. To multiply 3 time 6 on the BA II you would enter the numbers just as you would say them; 3, X, 6, = and you would get 18. On the 12C you would enter 3, enter key, 6, and then X for times and you would get your answer of 18.

To run the same discounting on the 12C we would again enter the terms of the note or loan as it exists currently. We would clear it by pressing the beige f key and then the CLX to clear the financial registers.

Then go as follows:

1. 100000, PV, 360 N, 6 blue g key I, PMT and we would get the same payment as above of -599.55. Again negative numbers are sums going out and positive numbers are sums coming in.

2. Next enter the new interest rate 10, blue g, I, PV to get the discounted present value.

3. Interest only calculations can be achieved by entering 99999 into the N

4. As with the BA II Plus balloon payments are a little trickier but if you contact us we will be glad to discount your balloon payment deal free.

While I have an HP 12C and have used it over the years I prefer the BA II Plus. Back in the ’80’s I used one of the first Business Analyst calculators that Texas Instruments ever made and loved it. When I finally wore it out I checked around to buy a new one and ended up contacting Texas Instruments directly to order one. I told them how I love the machine and finally wore it out and needed a new one and was ready to buy it and they took my shipping information and sent me a new one totally free. I told them that they didn’t need to do that as the old calculator owed me nothing but they insisted and sent me the new BA II Plus totally FREE. Now that’s customer service.

I hope you find this helpful in discounting paper or notes or loans etc. If we can help you discount them or buy them from you, please contact me at your convenience.

Thanks for your time,

T J Stewart, Founder & CEO



Tesla CEO Elon Musk Tweeted Dogecoin to Reduce its Fees



Tesla CEO Elon Musk Tweeted Dogecoin to Reduce its Fees
  • Tesla CEO Elon Musk Tweeted Dogecoin to Reduce its Fees.
  • Billy Markus planned to release a Software upgrade.
  • According to Musk, the Dogecoin upgrade Core 1.14.4 is critical.

The co-founder and CEO of electric car maker Tesla and rocket manufacturer SpaceX is Elon Musk has supported the meme token Dogecoin by revealing what will help the growth of cryptocurrency. On Wednesday, Elon Musk commented to Billy Markus aka Shibetoshi Nakamoto’s Tweet, by suggesting to lower the fees to make the crypto a more viable payment option for everyone.

Moreover, the price of the Dogecoin continues to drop, he commented, “super important for DOGE fees to drop to make things like buying movie tix viable”.  

Accordingly, In May Elon Musk noted that he was giving ideas and working with the Dogecoin developers to increase the system transaction efficiency. The co-founder of Dogecoin, Billy Markus but he no longer working on the project. He accepted and agreed with Elon Musk’s tweet and planned for a release of a software upgrade.

More so, currently, Dogecoin co-founder Billy Markus demanding operators to upgrade to Dogecoin Core 1.14.4 so it will reduce the fees to become the default setting. The Dogecoin update which was released in August contains outstanding performance improvement as well as bug fixes. According to Musk, the Dogecoin upgrade Core 1.14.4 is critical.

Current Market Status of DOGE

At the time of writing, as per CoinMarketCap, the price of Dogecoin (DOGE) is trading at $0.2069 with a 24-hour trading volume of $2,227,558,097. In the last 24-hours DOGE decreased 6.57%, similarly, in the last 7 days DOGE bounces back 14.93%. And it dropped 26.20% within a month.

And if this drop continues then it will fall to support level $0.16. The next support level is $0.14 and $0.12. If DOGE breaks $0.23 then it will surge to the resistance level of $0.26 and it might also hit $0.30

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Billionaire Mike Novogratz Says He’s “Not Nervous” About Crypto Sell-Off



Picture of five crypto coins lined up

The crypto market has been subjected to major sell-offs since assets began to crash across the board. September which has been a historically bloody month for the market has stayed true to nature as various cryptocurrencies suffered crashes that dragged the market down. Due to this, over $1 billion longs have been liquidated in the market since Monday.

Billionaire Mike Novogratz was on CNBC to talk about the current market trends. But unlike most investors in the market, Novogratz does not seem at all worried about the numerous price dips rocking the market. Mike Novogratz is the CEO of Galaxy Digital, a hedge fund that manages assets ranging from traditional assets to cryptocurrencies.

Nothing To Worry About

Talking about the sell-off in the market, Novogratz explained that tensions were high in the space due to the current regulations talks by the SEC. He pointed to the developing Evergrande crisis, which Tether had been linked to, as also contributing to the sell-offs, which had put investors on edge. The CEO also pointed to long positions that were a little too optimistic, saying, “I think the market got itself a little too long.

Related Reading | September Leaves Behind Trail Of Blood, Bitcoin Long Liquidations

Novogratz sees the current market dips as a buy-the-dip opportunity. Simply stating, “I’m not nervous” in response to the bleeding market. In addition, the billionaire sees the Treasury introducing stablecoins which are going to be backed by Fed banks. “That’s going to be something we watch over the next week to three months.”

Crypto Market Holding At Critical Levels

Noting the crash, the CEO pointed out that the top two coins in the market had held at their critical positions. Spelling good news for the market. Following the Monday crash, bitcoin had held above $40,000 and Ethereum held up above $2,800 and Novogratz said, “As long as those hold, I think the market is in good shape.”

Related Reading | Bears Lose Hold On Market As Bitcoin Breaks $44,000, Crypto Market Tops Up $200 Billion

Both these assets had recorded massive losses following Monday’s opening. And bitcoin alone had seen over $800 million long positions liquidated in response to this. Ethereum had not fared any better in the market as the bloodbath had spilled over into altcoins. But despite this, the billionaire remains bullish on the market.

Another important factor for the billionaire was the amount of both public and private capital that was pouring into the space. At the beginning of the interview, Novogratz had mentioned that the crypto market had moved on from the story of bitcoin but has moved on to Web3. And investors, in a bid to not miss out on what could very well be the next internet, have funneled more and more money into the space.

Crypto total market cap falls back to $1.8 trillion | Source: Crypto Total Market Cap on
Featured image from Investopedia, chart from
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Crypto Market Cap Skyrockets 5.3% to Hit $2.05 Trillion



Crypto Market Cap Skyrockets 5.3% to Hit $2.05 Trillion