HP 12c Solutions Handbook page 36

2. Key in the remaining balance of the loan and press
balance is the difference between the loan amount and the total principal
from the payments which have been made.
To calculate the remaining balance, do the following:
a. Key in the previous remaining balance. If this is the first mortgage
adjustment, this value is the original amount of the loan. Press
b. Key in the annual interest rate before the adjustment (as a percent-
age) and press
c. Key in the number of years since the last adjustment. If this is the
first mortgage adjustment, then key in the number of years since
the origination of the mortgage. Press
d. Key in the monthly payment over this period and press
e. Press
3. Key in the adjusted annual interest rate (as a percentage) and press
. To calculate the new monthly payment:
a. Key in the remaining life of the mortgage (years) and press
b. Press
To calculate the revised remaining term of the mortgage:
c. Key in the present monthly payment and press
d. Press
Example: A homeowner purchased his house 3 years ago with a $50,000
variable rate mortgage. With a 30-year term, his current monthly payment
is $495.15. When the interest rate is adjusted from 11.5% to 11.75%, what
will the monthly payment be? If the monthly payment remained
unchanged, find the revised remaining term on the mortgage.
Keystrokes
CLEAR
50000
11.5
3
495.15
.
to find the remaining balance, then press
.
to find the new monthly payment.
12 to find the remaining term of the mortgage in years.
Display
50,000.00
0.96
36.00
-495.15
35
Original amount of loan.
Original monthly interest rate.
Period.
Previous monthly payment.
. The remaining
.
.
CLEAR
.
.
.