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F: RPN: Selected Examples 277
File name : 17BII-Plus-Manual-E-PRINT-030709 Print data : 2003/7/11
adjust the mortgage amount to reflect the points paid (PV = $60,000
－2%). All other values remain the same (term is 30 years; no future
value).
Keys: Display: Description:
"
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.
@c
e
"
"
"
#$ 5?@2 H<A"
0EAH"
If necessary, sets 12
payments per year and
End mode.
30
@
T
<8%'(&((" Figures and stores number
of payments.
11.5
U
60000
V
"
5O8'(K(((&(("
Stores interest rate and
amount of loan.
0
X
GO8(&(("
No balloon payment, so
future value is zero.
W
50:8/.,+&#-"
Borrower’s monthly
payment.
R
V
2
%-
V
"
5O8.*K*((&(("
Stores actual amount of
money received by
borrower into PV.
U
;6@28##&-'" 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.