4.7

Out of 3 Ratings

Owner's of the HP (Hewlett-Packard) Calculator HP 12C Financial Calculator gave it a score of 4.7 out of 5. Here's how the scores stacked up:
  • Reliability

    5.0 out of 5
  • Durability

    5.0 out of 5
  • Maintenance

    5.0 out of 5
  • Performance

    5.0 out of 5
  • Ease of Use

    3.5 out of 5
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Section 12: Real Estate and Lending 159
File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 159 of 275
Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm
Keystrokes
(RPN mode)
Keystrokes
(ALG mode)
Display
¼
¼
0.48
Monthly interest rate
(calculated).
12
§
§
12
³
5.73
Annual percentage rate.
Price of a Mortgage Traded at a Discount or Premium
Mortgages may be bought and/or sold at prices lower (discounted) or higher (at a
premium) than the remaining balance of the loan at the time of purchase. Given
the amount of the mortgage, the periodic payment, the timing and amount of the
balloon or prepayment, and the desired yield rate, the price of the mortgage may
be found. It should be noted that the balloon payment amount (if it exists) occurs
coincident with, and does not include, the last periodic payment amount.
Information is entered as follows:
1. Press and fCLEARG.
2. Key in the total number of periods until the balloon payment or prepayment
occurs; press n. (If there is no balloon payment, key in total number of
payments and press n.)
3. Key in the desired periodic interest rate (yield) and press ¼.
4. Key in the periodic payment amount; press P.
*
5. Key in the balloon payment amount and press M.
*
(If there is no balloon
payment, go to step 6.)
6. Press $ to obtain the purchase price of the mortgage.
Example 1:
A lender wishes to induce the borrower to prepay a low interest rate
loan. The interest rate is 5% with 72 payments remaining of $137.17 and a
balloon payment at the end of the sixth year of $2,000. If the lender is willing to
discount the future payments at 9%, how much would the borrower need to prepay
the note
?
Keystrokes
(RPN mode)
Keystrokes
(ALG mode)
Display
f]
f[
f
CLEAR
G
72
n
f
CLEARG
72n
72.00
Months (into n).
*
Positive for cash received; negative for cash paid out.