HP 10bII+ Financial G\Í, d7VÒ, PvÙ4, JG\Ó, JG\Í, :ÉD:\Ú, JD::::Ï

Table 13-15	Calculating the annual interest rate of 9.5%
Keys		Display	Description
d7VÒ		9.50	Stores second interest rate.
Ì		-368.38	Calculates payment.
PvÙ4		-13,261.64	Calculates total interest and
			principal.

The first option costs slightly less.

Canadian Mortgages

In Canadian mortgages, the compounding and payment periods are not the same. Interest is compounded semi-annually while payments are made monthly. To use the TVM application in the HP 10bII+, you need to calculate a Canadian mortgage factor (which is an adjusted interest rate) to store in I/YR.

For additional information on interest rate conversions, see Interest Rate Conversions in Ch. 6.

Example

What is the monthly payment required to fully amortize a 30-year, 130,000 Canadian mortgage if the annual interest rate is 12%?

Table 13-16 Calculating the monthly payment for Canadian mortgage

Keys	Display	Description
JG\Ó	12.00	Stores known nominal percentage
		and number of compounding
		periods.
G\Í	2.00
\Ð	12.36	Calculates annual effective rate.
JG\Í	12.00	Sets payments per year.
\Ó	11.71	Calculates Canadian mortgage
		factor (adjusted interest rate).
JD::::Ï		mortgage.
	130,000	Stores other known values for
:ÉD:\Ú	360.00
Ì	-1,308.30	Calculates monthly payment for
		Canadian mortgage.

146 Additional Examples