Appendix E: Formulas Used 263
File name: HP 12c Pt Converted_user's guide_English_HDP0F123E02_080207
Page: 257 of 281
Printed Date:
{
2007/8/2Dimension: 14.8 cm x 21 cm
The Rent or Buy Decision
Market Value = PRICE(1 +
I
)
n
where:
I
= appreciation per year (as decimal)
n
= number of years
Net Cash Proceeds on Resale = Market Value – Mortgage Balance – Commission
The interest rate is obtained by solving the financial (compound interest) equation
for
i
using:
n = number of years house is owned
PV = down p closing costs
PMT = mortgage p taxes + maintenance
–
rent – (% tax)
(in taxes)
FV = net cash proceeds on resale
Annual interest rate = 12 ×
i
Summary of Contents for 12C
Page 1: ...HP 12c Platinum Financial Calculator User s guide H Edition 5 HP part number F2231AA 90001 ...
Page 15: ...Part I Problem Solving ...
Page 48: ...48 Section 3 Basic Financial Functions ...
Page 104: ......
Page 105: ...Part II Programming ...
Page 156: ......
Page 157: ...Part III Solutions ...
Page 230: ......
Page 231: ...Appendices ...
Page 277: ......