Add-On Interest Rate Converted To Apr - HP 12c Platinum Reference Manual

Example 1: A $60,000 land loan at 10% interest calls for equal semi-annual principal
payments over a 6-year maturity. What is the loan reduction schedule for the first year?
(Constant payment to principal is $5000 semi-annually). What is the fourth year's
schedule (skip 4 payments)?
12c platinum / 12C
RPN Keystrokes
5000?0
10\2z\
\\
60000~b
:0+
O:0-
~b
:0+
O:0-
4:0§-
~b
:0+
O:0-
~b
:0+
O:0-

Add-On Interest Rate Converted to APR

An add-on interest rate determines what portion of the principal will be added on for
repayment of a loan. This sum is then divided by the number of months in a loan to
determine the monthly payment. For example, a 10% add-on rate for 36 months on $3000
means add one-tenth of $3000 for 3 years (300 x 3) - usually called the "finance charge" -
for a total of $3900. The monthly payment is $3900/36.
This keystroke procedure converts an add-on interest rate to a annual percentage rate
when the add-on rate and number of months are known.
12c platinum
ALG Keystrokes
5000?0
60000?1
10z2³?2
:1§:2b+
:0?-1³
:1
§:2b+
:0?-1³
:1
4§:0³?-1
:1§:2b+
:0?-1³
:1
§:2b+
:0?-1³
:1
Display
Semi-annual interest rate.
5.00
First payment's interest.
3,000.00
Total first payment.
8,000.00
Remaining balance.
55,000.00
Second payment's interest.
2,750.00
Total second payment.
7,750.00
Remaining balance after
50,000.00
the first year.
Seventh payment's interest.
1,500.00
Total seventh payment.
6,500.00
Remaining balance.
25,000.00
Eighth payment's interest.
1,250.00
Total eighth payment.
6,250.00
Remaining balance after
20,000.00
fourth year.
Lending 25
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