Canadian Mortgages; Periodic Payment Amount - HP 12c Platinum Reference Manual

In Canada, interest is compounded semi-annually with payments made monthly. This
results in a different monthly mortgage factor than is used in the United States and
preprogrammed into the HP 12C Platinum. This difference can be easily handled by the
addition of a few keystrokes. For any problem requiring an input for ¼ , the Canadian
mortgage factor is calculated first and then this value is entered in for ¼ in the
calculation to give the answer for Canada.
The keystrokes to calculate the monthly Canadian mortgage factor are:
RPN Mode:
1.
Press f CLEAR Gg .
2.
Key in 6 and press n .
3. Key in 200 and press \$ .
4. Key in the annual interest rate as a percentage and press +ÞM .
5. Press ¼ .
ALG Mode:
1. Press f CLEAR Gg .
2. Key in 2 and press n .
3. Key in the annual interest rate as a percentage and press z 2 ¼ .
4. Key in 1 and press $M .
5. Press 12 n¼ .
The Canadian mortgage factor is now stored in ¼ for future use. The examples below
show how this factor is used for ¼ in Canadian mortgage problems. Example 3 shows
how to reverse this procedure and obtain the annual Canadian interest rate from the
monthly Canadian mortgage factor.

Periodic Payment Amount

Example 1: What is the monthly payment required to fully amortize a 30-year, $30,000
Canadian mortgage if the interest rate is 9%?
12c platinum / 12C
RPN Keystrokes
fCLEARG
gÂ
6n200\$
9+ÞM¼
30gA
30000$0M
P

Canadian Mortgages

12c platinum
ALG Keystrokes
fCLEARG
gÂ
2n9z2¼
1$M12n¼
30gA
30000$0M
P
Display
Canadian mortgage factor.
0.74
Total monthly periods in
360.00
mortgage life.
Monthly payment.
-237.85
131
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