HP (Hewlett-Packard) 17bII Calculator User Manual


 
F: RPN: Selected Examples 277
File name : English-M02-1-040308(Print).doc Print data : 2004/3/9
adjust the mortgage amount to reflect the points paid (PV = $60,000
2%). All other values remain the same (term is 30 years; no future
value).
Keys: Display: Description:
@c
e
  

If necessary, sets 12
payments per year and
End mode.
30
@
 Fi
g
ures and stores number
of payments.
11.5
60000

Stores interest rate and
amount of loan.
0

No balloon payment, so
future value is zero.

Borrower’s monthly
payment.
R
2
%-

Stores actual amount of
money received by
borrower into PV.
 Calculates APR.
Example: Loan from the Lender’s Point of View. A $1,000,000
10-year, 12% (annual interest) interest-only loan has an origination fee
of 3 points. What is the yield to the lender
? Assume that monthly
payments of interest are made. (Before figuring the yield, you must
calculate the monthly PMT = (loan x 12%)
÷ 12 mos.) When calculating
the I%YR, the FV (a balloon payment) is the entire loan amount, or
$1,000,000, while the PV is the loan amount minus the points.