HP 12C User Manual page 157

ALG Mode:
If fees are stated as a percentage of the mortgage amount (points),
recall the mortgage amount (:$); press -; key in the fee
(percentage) rate; press b$.
If fees are stated as a flat charge, recall the mortgage amount
(:$); press -; key in the fee amount (flat charge); press $.
If fees are stated as a percentage of the mortgage amount plus a flat
charge, recall the mortgage amount (:$); press -; key in the
fee (percentage) rate, press b-; key in the fee amount (flat
charge); press $.
4. Press ¼ to obtain the interest rate per compounding period.
5. RPN: To obtain the annual nominal percentage rate, key in the number
of periods per year, then press µ.
5. ALG: To obtain the annual nominal percentage rate, press µ. Key in the
number of periods per year, then press ³.
Example 1: A borrower is charged 2 points for the issuance of his mortgage. If
the mortgage amount is $160,000 for 30 years and the interest rate is 5.5% per
year, with monthly payments, what true annual percentage rate is the borrower
paying ? (One point is equal to 1% of the mortgage amount.)
Keystrokes
(RPN mode)
f]
gÂ
fCLEARG
30gA
5.5gC
160000$
P
:$2b-
$
¼
12§
File name: hp 12c pt_user's guide_English_HDPMF123E27
Printed Date: 2005/8/1
Section 12: Real Estate and Lending
Keystrokes
Display
(ALG mode)
f[
gÂ
fCLEARG
360.00
30gA
0.46
5.5gC
160,000.00
160000$
P
–908.46
:$-2b
156,800.00
$
¼
0.47
5.68
§12³
Page: 157 of 275
Dimension: 14.8 cm x 21 cm
157
Months (into n)
% monthly interest rate
(into i).
Loan amount (into PV).
Monthly payment
(calculated).
Actual amount received
by borrower (into PV).
% monthly interest rate
(calculated).
Annual percentage rate.