Table 13-15 Calculating the annual interest rate of 9.5%
The first option costs slightly less.
In Canadian mortgages, the compounding and payment periods are not the same. Interest is
compounded semi-annually while payments are made monthly. To use the TVM application
in the HP 10bII+, you need to calculate a Canadian mortgage factor (which is an adjusted
interest rate) to store in I/YR.
For additional information on interest rate conversions, see Interest Rate Conversions in Ch. 6.
What is the monthly payment required to fully amortize a 30-year, 130,000 Canadian
mortgage if the annual interest rate is 12%?
Table 13-16 Calculating the monthly payment for Canadian mortgage
Stores second interest rate.
- 1 3,261.64
Calculates total interest and
Stores known nominal percentage
and number of compounding
Calculates annual effective rate.
Sets payments per year.
Calculates Canadian mortgage
factor (adjusted interest rate).
Stores other known values for
- 1 ,308.30
Calculates monthly payment for