HP 17bII+ User Manual
Page 194
194 14: Additional Examples
File name : English-M02-1-040308(Print).doc Print data : 2004/3/9
1. Since the payment amount is not given, calculate it (PMT) first. Use the
given mortgage amount (
PV = $60,000) and interest rate (I%YR =
11
1
/
2
%).
2. To find the APR (the new I%YR), use the PMT calculated in step 1 and
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
@
Figures 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
v