Additional Examples
142
Step 3
Enter actual, current values for
N
and
PV
; then find the new
I/YR
for the discounted mortgage
with balloon.
Annual Percentage Rate for a Loan With Fees
The Annual Percentage Rate,
APR
, incorporates fees usually charged when a mortgage is
issued, which effectively raises the interest rate. The actual amount received by the borrower
(the
PV
) is reduced, while the periodic payments remain the same. The
APR
can be calculated
given the term of the mortgage (
N
periods), the annual interest rate (
I/PR
), the mortgage
amount (new
PV
), and the amount of the fee.
Remember the cash flow sign convention: money paid out is negative; money received is
positive.
Example: APR for a Loan With Fees
A borrower is charged two points for the issuance of a mortgage. (One point is equal to 1%
of the mortgage amount.) If the mortgage amount is 160,000 for 30 years and the annual
interest rate is 8.5% with monthly payments, what APR is the borrower paying?
Set to End Mode. Press
\¯
if
BEGIN
annunciator is displayed.
V\Ú
60.00
Stores number of payments until
balloon.
É
88,706.74
Calculates the balloon payment
(add to final payment).
Table 13-10
Keys
Display
Description
vÙAYGÙ
18.00
Stores remaining number of
payments.
jd:::yÏ
-79,000.00
Stores price of mortgage.
Ò
20.72
Calculates the return on this
discounted mortgage.
Table 13-9 Calculating the balloon payment
Keys
Display
Description
Table 13-11 Calculating the annual percentage rate considering fees
Keys
Display
Description
JG\Í
12.00
Sets payments per year.
g7VÒ
8.50
Stores interest rate.
Содержание 10bII+
Страница 1: ...i HP 10bII Financial Calculator User s Guide HP Part Number NW239 90001 Edition 1 May 2010 ...
Страница 3: ...iii HP 10bII Financial Calculator ...
Страница 30: ...At a Glance 22 ...
Страница 144: ...Statistical Calculations 136 ...
Страница 183: ...Warranty Regulatory and Contact Information 9 ...
Страница 184: ...Warranty Regulatory and Contact Information 10 ...