HP 10bII+ User Manual Page 151

Financial calculator.

Table 13-1 1 Calculating the annual percentage rate considering fees
Keys
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Example: Interest-Only Loan With Fee
A 1,000,000, 10-year, 12% (annual interest) interest-only loan has an origination fee of three
points. What is the yield to the lender? Assume that monthly payments of interest are made.
Set to End mode. Press
Table 13-12 Calculating the annual percentage rate
Keys
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160,000.00
160,000.00
if BEGIN annunciator is displayed.
1,000,000.00
- 1 ,000,000.00
1,000,000.00
970,000.00
Display
Description
360.00
Stores length of mortgage.
Stores original amount of
mortgage.
0.00
The loan will be completely paid
off in 30 years.
- 1 ,230.26
Calculates payment.
Recalls loan amount.
156,800
Subtracts points.
8.72
Calculates APR, considering
fees.
Display
Description
12.00
Sets payments per year.
12.00
Stores interest rate.
120.00
Stores length of mortgage.
Stores original amount of
mortgage.
Enters amount due at end of
term. Payments are interest only
so entire loan amount is due.
- 1 0,000.00
Calculates interest-only
payments.
Recalls loan amount.
Subtracts points.