HP 113394 User Guide - Page 157

Section 12: Real Estate and Lending 157 ALG Mode: z If fees are stated as a percentage of the mortgage amount (points), recall the mortgage amount (:$); press -; key in the fee (percentage) rate; press b$. z If fees are stated as a flat charge, recall the mortgage amount (:$); press -; key in the fee amount (flat charge); press $. z If fees are stated as a percentage of the mortgage amount plus a flat charge, recall the mortgage amount (:$); press -; key in the fee (percentage) rate, press b-; key in the fee amount (flat charge); press $. 4. Press ¼ to obtain the interest rate per compounding period. 5. RPN: To obtain the annual nominal percentage rate, key in the number of periods per year, then press µ. 5. ALG: To obtain the annual nominal percentage rate, press µ. Key in the number of periods per year, then press ³. Example 1: A borrower is charged 2 points for the issuance of his mortgage. If the mortgage amount is $160,000 for 30 years and the interest rate is 5.5% per year, with monthly payments, what true annual percentage rate is the borrower paying? (One point is equal to 1% of the mortgage amount.) Keystrokes (RPN mode) f] g fCLEARG 30gA 5.5gC 160000$ P :$2b$ ¼ 12§ Keystrokes (ALG mode) f[ g fCLEARG 30gA 5.5gC 160000$ P :$-2b $ ¼ §12³ Display 360.00 Months (into n) 0.46 % monthly interest rate (into i). 160,000.00 Loan amount (into PV). -908.46 Monthly payment (calculated). Actual amount received 156,800.00 by borrower (into PV). 0.47 % monthly interest rate (calculated). 5.68 Annual percentage rate. File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 157 of 275 Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm