HP 17bII manual 11.5 , 194 14 Additional Examples

1.Since the payment amount is not given, calculate it (PMT) first. Use the given mortgage amount (PV = $60,000) and interest rate (I%YR = 111/2%).

2.To find the APR (the new I%YR), use the PMT calculated in step 1 and

adjust the mortgage amount to reflect the points paid (PV = $60,000 － 2%). All other values remain the same (term is 30 years; no future value).

Keys:







@c e

30@ 

11.5

60000 

0



R

v-2%





Display:	Description:
	If necessary, sets 12
	payments per year and
	End mode.

   
	Figures and stores number
	of payments.
	Stores interest rate and
	amount of loan.
	No balloon payment, so
	future value is zero.
	Borrower’s monthly
	payment.
	Stores actual amount of
	money received by
	borrower into PV.
	Calculates APR.

Example: Loan from the Lender’s Point of View. A $1,000,000, 10-year, 12% (annual interest) interest-only loan has an origination fee of 3 points. What is the yield to the lender? Assume that monthly payments of interest are made. (Before figuring the yield, you must

194 14: Additional Examples

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