HP 12C Platinum User Manual page 159

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 $160,000 for 30 years and the interest rate is 5.5% per
year, with monthly payments, what true annual percentage rate is the borrower
paying ? (One point is equal to 1% of the mortgage amount.)
Keystrokes Keystrokes
(RPN mode) (ALG mode)
f] f[
g gÂ
fCLEARG fCLEARG
30gA 30gA
5.5gC 5.5gC
160000$ 160000$
P P
:$2b-
:$-2b
$
$
¼ ¼
12§
§12³
Section 12: Real Estate and Lending
Display
Months (into n)
360.00
% monthly interest rate
0.46
(into i).
Loan amount (into PV).
160,000.00
Monthly payment
–908.46
(calculated).
Actual amount received
by borrower (into PV).
156,800.00
% monthly interest rate
0.47
(calculated).
Annual percentage rate.
5.68
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