158 Section 12: Real Estate and Lending

Example 2: Using the same information as given in example 1, calculate the APR if the mortgage fee is $750 instead of a percentage.

Keystrokes

Keystrokes

Display

 

(RPN mode)

(ALG mode)

 

 

 

 

 

 

 

f]

f[

 

 

 

 

 

 

 

 

 

 

 

 

fCLEARG

fCLEARG

 

 

 

 

 

 

30gA

30gA

360.00

Months (into n)

5.5gC

5.5gC

0.46

Percent monthly interest

 

 

 

rate (into i).

 

 

 

 

160000$

160000$

160,000.00

Loan amount (into PV).

P

P

–908.46

Monthly payment

 

 

 

(calculated).

:$750-:$-750159,250.00

Effective mortgage

$

$

amount (into PV).

¼

¼

0.46

Monthly interest rate

 

 

 

(calculated).

 

 

 

 

12§

§12³

5.54

Annual percentage rate.

Example 3: Again using the information given in example 1, what is the APR if the mortgage fee is stated as 2 points plus $750?

Keystrokes

Keystrokes

Display

 

(RPN mode)

(ALG mode)

 

 

 

 

 

 

 

f]

f[

 

 

 

 

 

 

 

 

 

 

 

 

fCLEARG

fCLEARG

 

 

 

 

 

 

30gA

30gA

360.00

Months (into n)

5.5gC

5.5gC

0.46

Percent monthly interest

 

 

 

rate (into i).

160000$

160000$

160,000.00

Loan amount (into PV).

P

P

–908.46

Monthly payment

 

 

 

(calculated).

:$2b-

:$-2b

156,050.00

Effective mortgage

750-$

-750$

amount (into PV).

File name: hp 12c pt_user's guide_English_HDPMF123E27

Page: 158 of 275

Printed Date: 2005/8/1

Dimension: 14.8 cm x 21 cm