HP HP12C hp 12c_user's guide_English_E_HDPMBF12E44.pdf - Page 126

126 Section 12: Real Estate and Lending Example 3: Again using the information given in example 1, what is the APR if the mortgage fee is stated as 2 points plus $150? Keystrokes g Display fCLEARG 30gA 11.5gC 60000$ P :$2b150-$ ¼ 12§ 360.00 0.96 60,000.00 -594.17 58,800.00 58,650.00 0.98 11.80 Months (into n) Percent monthly interest rate (into i). Loan amount (into PV). Monthly payment (calculated). Effective mortgage amount (into PV). Monthly interest rate (calculated). Annual percentage rate. Price of a Mortgage Traded at a Discount or Premium Mortgages may be bought and/or sold at prices lower (discounted) or higher (at a premium) than the remaining balance of the loan at the time of purchase. Given the amount of the mortgage, the periodic payment, the timing and amount of the balloon or prepayment, and the desired yield rate, the price of the mortgage may be found. It should be noted that the balloon payment amount (if it exists) occurs coincident with, and does not include, the last periodic payment amount. Information is entered as follows: 1. Press g and fCLEARG. 2. Key in the total number of periods until the balloon payment or prepayment occurs; press n. (If there is no balloon payment, key in total number of payments and press n.) 3. Key in the desired periodic interest rate (yield) and press ¼. 4. Key in the periodic payment amount; press P.* 5. Key in the balloon payment amount and press M.* (If there is no balloon payment, go to step 6.) 6. Press $ to obtain the purchase price of the mortgage. * Positive for cash received; negative for cash paid out. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 126 of 209 Dimension: 14.8 cm x 21 cm