HP 17bII+ User Manual
Page 277
F: RPN: Selected Examples 277
File name : English-M02-1-040308(Print).doc Print data : 2004/3/9
adjust the mortgage amount to reflect the points paid (PV = $60,000
－2%). All other values remain the same (term is 30 years; no future
value).
Keys: Display:
Description:
@c
e
If necessary, sets 12
payments per year and
End mode.
30
@
Figures and stores number
of payments.
11.5
60000
Stores interest rate and
amount of loan.
0
No balloon payment, so
future value is zero.
Borrower’s monthly
payment.
R
2
%-
Stores actual amount of
money received by
borrower into PV.
Calculates APR.
Example: Loan from the Lender’s Point of View. A $1,000,000
10-year, 12% (annual interest) interest-only loan has an origination fee
of 3 points. What is the yield to the lender? Assume that monthly
payments of interest are made. (Before figuring the yield, you must
calculate the monthly PMT = (loan x 12%)
÷ 12 mos.) When calculating
the I%YR, the FV (a balloon payment) is the entire loan amount, or
$1,000,000, while the PV is the loan amount minus the points.