HP 12c Owners Manual

  Section 11: Multiple Programs  121 
 
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Example 1: 
Assuming that program memory still contains the last program from 
the preceding section (which consisted of 17 program lines), store after that 
program the office-supplies program from Section 8 (page 88). Since this is the 
second program to be stored in program memory, we’ll ensure that a i
00 
instruction separates it...

122   Section 11: Multiple Programs 
 
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Example 2:
 With the two programs now stored in program memory from the 
preceding examples (occupying 27 program lines), store the amortization program 
from Section 9(page 103). Since there are already two programs stored in 
program memory, we’ll skip step 3 in the procedure above. Furthermore, since the 
amortization program ends with...

 
 
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Part III 
Solutions  

 
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  Section 12 
Real Estate and Lending 
Annual Percentage Rate Calculations With Fees 
Borrowers are usually charged fees in connection with the issuance of a mortgage, 
which effectively raises the interest rate. The actual amount received by the 
borrower (PV) is reduced, while the periodic payments remain the same. Given the 
life or term of the mortgage, the interest...

 Section 12: Real Estate and Lending 125 
 
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Example 1:
 A borrower is charged 2 points for the issuance of his mortgage. If 
the mortgage amount is $60,000 for 30 years and the interest rate is 111/2% per 
year, with monthly payments, what true annual percentage rate is the borrower 
paying?
 (One point is equal to 1% of the mortgage amount.) 
Keystrokes Display  
gÂ...

126  Section 12: Real Estate and Lending 
 
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Example 3:
 Again using the information given in example 1, what is the APR if 
the mortgage fee is stated as 2 points plus $150?
 
Keystrokes Display  
g 
  
fCLEARG 
  
30gA 
360.00 Months (into n) 
11.5gC 
0.96 Percent monthly interest rate (into i
). 
60000$ 
60,000.00 Loan amount (into PV). 
P 
–594.17 Monthly payment...

 Section 12: Real Estate and Lending 127 
 
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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 $2000. If the lender is willing to 
discount the future payments at 9%, how much would the borrower need to prepay 
the note?...

128  Section 12: Real Estate and Lending 
 
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Yield of a Mortgage Traded at a Discount or Premium 
The annual yield of a mortgage bought at a discount or premium can be 
calculated given the original mortgage amount, interest rate, and periodic 
payment, as well as the number of payment periods per year, the price paid for 
the mortgage, and the balloon payment amount (if it...

 Section 12: Real Estate and Lending 129 
 
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Keystrokes Display  
79000Þ$ 
–79,000.00 Input price of mortgage (into PV; 
negative to indicate money paid 
out). 
¼ 
0.97 Yield per month (calculated). 
12§ 
11.68 Percent annual yield. 
Example 2:
 Using the same information given in example 1, calculate the annual 
yield if the loan is to be paid in full at the end of the fifth...

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The Rent or Buy Decision 
The question of whether to rent or purchase a residence is not always easy to 
answer, especially when the time period over which you would own or rent a 
house is short. This program performs an analysis which could be helpful in 
reaching a decision. Essentially, it calculates a yield or rate of return on...