Table 13-9 Calculating the balloon payment

Keys

Display

Description

 

 

 

V\Ú

60.00

Stores number of payments until

 

balloon.

 

 

 

É

88,706.74

Calculates the balloon payment

 

(add to final payment).

 

 

 

Step 3

Enter actual, current values for N and PV; then find the new I/YR for the discounted mortgage with balloon.

Table 13-10

Keys

Display

Description

 

 

 

vÙAYGÙ

 

payments.

 

18.00

Stores remaining number of

 

 

 

jd:::yÏ

-79,000.00

Stores price of mortgage.

 

 

 

Ò

20.72

Calculates the return on this

 

discounted mortgage.

 

 

 

Annual Percentage Rate for a Loan With Fees

The Annual Percentage Rate, APR, incorporates fees usually charged when a mortgage is issued, which effectively raises the interest rate. The actual amount received by the borrower (the PV) is reduced, while the periodic payments remain the same. The APR can be calculated given the term of the mortgage (N periods), the annual interest rate (I/PR), the mortgage amount (new PV), and the amount of the fee.

Remember the cash flow sign convention: money paid out is negative; money received is positive.

Example: APR for a Loan With Fees

A borrower is charged two points for the issuance of a mortgage. (One point is equal to 1% of the mortgage amount.) If the mortgage amount is 160,000 for 30 years and the annual interest rate is 8.5% with monthly payments, what APR is the borrower paying?

Set to End Mode. Press \¯if BEGIN annunciator is displayed.

Table 13-11

Calculating the annual percentage rate considering fees

 

 

 

 

Keys

 

Display

Description

 

 

 

JG\Í

12.00

Sets payments per year.

 

 

 

 

 

g7VÒ

8.50

Stores interest rate.

 

 

 

 

 

 

142 Additional Examples

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Image 150
HP 10bII+ Financial manual Vùaygù, JdyÏ, G7VÒ, Annual Percentage Rate for a Loan With Fees
Page 149 Page 151

10bII+ Financial specifications

The HP 10bII+ Financial Calculator is a versatile and powerful tool designed to meet the needs of finance students, professionals, and anyone involved in financial planning and analysis. Known for its compactness and user-friendly interface, this calculator incorporates a range of features specifically tailored for financial calculations, making it an essential gadget for banking, real estate, and investment analysis.

At the heart of the HP 10bII+ is its ability to perform a wide variety of financial functions, including time value of money calculations, cash flow analysis, bond pricing, and depreciation. Its built-in functions facilitate the computation of interest rates, present and future values, net present value (NPV), internal rate of return (IRR), and annuities. This array of functionalities allows users to tackle complex financial problems with ease.

One of the standout technologies in the HP 10bII+ is its RPN (Reverse Polish Notation) input system, which allows for efficient data entry and calculation. Users can perform consecutive calculations without the need for parentheses, streamlining the process significantly. Alternatively, the calculator can also function with a standard algebraic input, catering to different user preferences.

The design of the HP 10bII+ is sleek and compact, making it highly portable and easy to handle. With a large, easy-to-read display, it ensures that users can view their calculations clearly, even in low-light environments. The keys are well-spaced and tactile, allowing for a comfortable typing experience during intensive calculations.

The calculator also offers a range of memory functions, enabling users to store and recall important values easily. This is particularly useful for financial professionals who must deal with multiple calculations and refer back to previous results frequently.

Additionally, the HP 10bII+ is powered by two AAA batteries, providing a long battery life that ensures reliability during extended use. It also features an automatic shut-off function, which conserves battery life when the calculator is not in use.

In summary, the HP 10bII+ Financial Calculator is a high-performance device that combines essential financial functions with user-friendly design and robust technology. Whether for educational purposes or professional finance work, its capabilities make it an invaluable asset for anyone dealing with financial calculations and decision-making.
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