HP 12c Solutions Handbook page 5

CLEAR
20
8
6.75
200132.06
0
10
300000
0
200132.06
12
Sometimes the wrap around mortgage will have a longer payback period
than the original mortgage, or a balloon payment may exist.
where:
n = number of years remaining in original mortgage
1
PMT = yearly payment of original mortgage
1
PV = remaining balance of original mortgage
1
n = number of years in wrap-around mortgage
2
PMT = yearly payment of wrap-around mortgage
2
PV = total amount of wrap-around mortgage
2
BAL = balloon payment
0.56 Monthly interest rate (into i).
200,132.06 Loan amount (into PV).
Monthly payment on existing
-2,031.55
mortgage (calculated).
0.83 Monthly interest on wrap-around.
-300,000.00 Amount of wrap-around (into PV).
Monthly payment on wrap-around
3,585.23
(calculated).
Net monthly payment received (into
1,553.69
PMT).
-99,867.94 Net cash advanced (into PV).
Nominal yield (IRR) to lender
15.85
(calculated).
4