computing ERAT

brisby55

New member
Joined
Jun 18, 2026
Messages
0
Reaction score
0
On Schweser Alternative Investment Book page 17, there is an example for calculating CFAT and then ERAT. In figure 5, how do you compute the Outstanding Mortgage Balance? Their answer is (409,799).
Thanks for the help
 
Hi Brisby55 - If you enter the beginning mortgage balance into your calculator as purchase price $577,500 * amount of leverage used 0.75 = $433,124 as PV, I/Y = 6%/12 = 0.5, N = 30 year loan * 12 months = 360, FV = 0 because it is fully amortizing, then CPT PMT = -2,596.80.
Then hit 2ND AMORT to bring up the mortgage amortization schedule. Since the property is sold 4 years into the mortgage you want the remaining mortgage balance as of 4 yr * 12 months = 48 periods. Enter this as both P1 and P2 and page through the amortization schedule which should give you the balance noted in the problem $409,799.
 
Back
Top