HP 12C Financial calculator User Manual

Page 125

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Section 12: Real Estate and Lending 125

File name: hp 12c_user's guide_English_HDPMBF12E44

Page: 125 of 209

Printered Date: 2005/7/29

Dimension: 14.8 cm x 21 cm

Example 1: A borrower is charged 2 points for the issuance of his mortgage. If
the mortgage amount is $60,000 for 30 years and the interest rate is 11

1

/

2

% per

year, with monthly payments, what true annual percentage rate is the borrower
paying? (One point is equal to 1% of the mortgage amount.)

Keystrokes Display

fCLEARG

30gA

360.00

Months (into n)

11.5gC

0.96

Percent monthly interest rate (into i).

60000$

60,000.00

Loan amount (into PV).

P

–594.17

Monthly payment (calculated).

:$2b-$

58,800.00

Actual amount received by borrower
(into PV).

¼

0.98

Percent monthly interest rate
(calculated).

12§

11.76

Annual percentage rate.

Example 2: Using the same information as given in example 1, calculate the
APR if the mortgage fee is $150 instead of a percentage.

Keystrokes Display

fCLEARG

30gA

360.00

Months (into n)

11.5gC

0.96

Percent monthly interest rate (into i).

60000$

60,000.00

Loan amount (into PV).

P

–594.17

Monthly payment (calculated).

:$150-$

59,850.00

Effective mortgage amount (into PV).

¼

0.96

Monthly interest rate (calculated).

12§

11.53

Annual percentage rate.

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