HP 17bll+ User Manual page 194

1. Since the payment amount is not given, calculate it ( PMT ) first. Use the
given mortgage amount ( PV = $60,000) and interest rate ( I%YR =
1
11 / %).
2
2. To find the APR (the new I%YR ), use the PMT calculated in step 1 and
adjust the mortgage amount to reflect the points paid (PV = $60,000
－ 2%). All other values remain the same (term is 30 years; no future
value).
Keys:



@c
e
30 
@
11.5 
60000 
0 


R
v
2
- %


Example: Loan from the Lender's Point of View. A $1,000,000,
10-year, 12% (annual interest) interest-only loan has an origination fee
of 3 points. What is the yield to the lender? Assume that monthly
payments of interest are made. (Before figuring the yield, you must
194 14: Additional Examples
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Description:
If necessary, sets 12
payments per year and
End mode.
Figures and stores number
of payments.
Stores interest rate and
amount of loan.
No balloon payment, so
future value is zero.
Borrower's monthly
payment.
Stores actual amount of
money received by
borrower into PV .
Calculates APR.