HP 10bII+ Financial JGÒ, D:\Ú, JG\Í, J:\Ú, AD§Ï, -AG§Ï, JS::::Ï, J::::::

Table 13-11	Calculating the annual percentage rate considering fees
Keys		Display	Description
D:\Ú		360.00	Stores length of mortgage.
JS::::Ï			mortgage.
		160,000.00	Stores original amount of
:É		0.00	The loan will be completely paid
			off in 30 years.
Ì		-1,230.26	Calculates payment.
vÏ		160,000.00	Recalls loan amount.
-AG§Ï		156,800	Subtracts points.
Ò		8.72	Calculates APR, considering
			fees.

Example: Interest-Only Loan With Fee

A 1,000,000, 10-year, 12% (annual interest) interest-onlyloan has an origination fee of three points. What is the yield to the lender? Assume that monthly payments of interest are made.

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

Table 13-12 Calculating the annual percentage rate

KeysDisplay Description

JG\Í	12.00	Sets payments per year.
JGÒ	12.00	Stores interest rate.
J:\Ú	120.00	Stores length of mortgage.
J::::::		mortgage.
	1,000,000.00	Stores original amount of
Ï
yÉ	-1,000,000.00	Enters amount due at end of
		term. Payments are interest only
		so entire loan amount is due.
Ì	-10,000.00	Calculates interest-only
		payments.
vÏ	1,000,000.00	Recalls loan amount.
AD§Ï	970,000.00	Subtracts points.

Additional Examples 143