HP 12C manual Cash flow occurs 39 times, Final cash flow, Rate of return to lender

Example 2: A customer has an existing mortgage with a balance of $125.010, a remaining term of 200 months, and a $1051.61 monthly payment. He wishes to obtain a $200,000, 9 1/2% wrap-around with 240 monthly payments of $1681.71 and a balloon payment at the end of the 240th month of $129,963.35. If you, as a lender, accept the proposal, what is your rate of return?

$125010	240 mos.	$129963.35
$1681.71	$1681.71	$1681.71

$-1051.61 $-1051.61

200mos.

$-200000

Keystrokes Display

CLEAR	-74,990.00	Net investment.
200000
125010
1051.61	630.10	Net cash flow received by lender.
1681.71
99
		The above cash flow occurs 200
		times.
2
	1,681.71	Next cash flow received by lender.
39	39.00	Cash flow occurs 39 times.
129963.35	131,645.06	Final cash flow.
12	11.84	Rate of return to lender.

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