HP 12C manual Add-On Interest Rate Converted to APR

			0	55,000.00	Remaining balance.
				2,750.00	Second payment's interest.
	0			7,750.00	Total second payment.
			0	50,000.00	Remaining balance after the first
					year.
4		0		1,500.00	Seventh payment's interest.
	0			6,500.00	Total seventh payment.
			0	25,000.00	Remaining balance.
				1,250.00	Eighth payment's interest.
	0			6,250.00	Total eighth payment.
			0	20,000.00	Remaining balance after fourth
					year.

Add-On Interest Rate Converted to APR

An add-on interest rate determines what portion of the principal will be added on for repayment of a loan. This sum is then divided by the number of months in a loan to determine the monthly payment. For example, a 10% add-on rate for 36 months on $3000 means add one-tenth of $3000 for 3 years (300 x 3) - usually called the "finance charge" - for a total of $3900. The monthly payment is $3900/36.

This keystroke procedure converts an add-on interest rate to a annual percentage rate when the add-on rate and number of months are known.

1.Press and press CLEAR .

2.Key in the number of months in loan and press

.

3.Key in the add-on rate and press .

4.Key in the amount of the loan and press * (*Positive for cash

received; negative for cash paid out.) .

5.Press .

6.Press 12 to obtain the APR.

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