Canadian Mortgage Example - HP 20B User Manual

Canadian Mortgage Example

Calculate the monthly payment for a 25-year (N=300) Canadian mortgage valued at 350,000.00, if the nominal interest rate is
6.0%, compounded twice yearly (C/YR=2) with 12 payments per year (P/YR).
Table 3-7 Canadian Mortgage Example
Keys
:u
>I
O
:[12
I<2
I
O300N
6Y350
00V
M
To reset the menu, press
O
reset, or to cancel. To exit the menu, press
are both set to 12 payments/compounding periods per year.
Display
:x
. With TVM displayed, press
Description
Opens the Mode menu, starting with the current FIX value
(number of digits to the right of the decimal point).
Scrolls to TVM mode and sets mode to TVM Canada .
Returns to default calculator screen.
Opens P/YR menu. Inputs 12 for P/YR and 2 for C/YR.
Exits menu and inputs values for N, I/YR, and PV.
Calculates the monthly payment as required by the example.
I
. At the TVM Reset prompt, press
O
once again. With the menu set to its default settings, P/YR and C/YR
38
Time Value of Money
I
to