HP 12c User Manual page 125

Example 1: A borrower is charged 2 points for the issuance of his mortgage. If
the mortgage amount is $60,000 for 30 years and the interest rate is 11
year, with monthly payments, what true annual percentage rate is the borrower
paying ? (One point is equal to 1% of the mortgage amount.)
Keystrokes
gÂ
fCLEARG
30gA
11.5gC
60000$
P
:$2b-$
¼
12§
Example 2: Using the same information as given in example 1, calculate the
APR if the mortgage fee is $150 instead of a percentage.
Keystrokes
gÂ
fCLEARG
30gA
11.5gC
60000$
P
:$150-$
¼
12§
File name: hp 12c_user's guide_English_HDPMBF12E44
Printered Date: 2005/7/29
Section 12: Real Estate and Lending
Display
360.00
Months (into n)
0.96
Percent monthly interest rate (into i).
60,000.00
Loan amount (into PV).
–594.17
Monthly payment (calculated).
58,800.00
Actual amount received by borrower
(into PV).
0.98
Percent monthly interest rate
(calculated).
11.76
Annual percentage rate.
Display
360.00
Months (into n)
0.96
Percent monthly interest rate (into i).
60,000.00
Loan amount (into PV).
–594.17
Monthly payment (calculated).
59,850.00
Effective mortgage amount (into PV).
0.96
Monthly interest rate (calculated).
11.53
Annual percentage rate.
Page: 125 of 209
Dimension: 14.8 cm x 21 cm
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