HP 113394 User Guide - Page 267
United Kingdom Calculations
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Appendix G United Kingdom Calculations The calculations for most financial problems in the United Kingdom are identical to the calculations for those problems in the United States - which are described earlier in this handbook. Certain problems, however, require different calculation methods in the United Kingdom than in the United States, even though the terminology describing the problems may be similar. Therefore, it is recommended that you ascertain the usual practice in the United Kingdom for the financial problem you are solving. The remainder of this appendix describes three types of financial calculations for which the conventional practice differs significantly between the United Kingdom and the United States. Mortgages The amount of the repayments on home loans and mortgages offered by banks in the United Kingdom can usually be calculated as described under Calculating the Payment Amount, page 58. Building Societies in the United Kingdom, however, calculate the amount of these repayments differently. In general, the repayment amount of a Building Society mortgage is calculated as follows: first, the annual repayment amount is calculated using the annual interest rate; second, the periodic repayment amount is calculated by dividing the annual repayment amount by the number of repayment periods in one year. Furthermore, the calculations used by Building Societies are rounded; therefore, to match their scale repayment figures you would have to round your calculations accordingly. 267 File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 267 of 275 Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm