HP 12C Platinum User Manual page 162

162 Section 12: Real Estate and Lending
Keystrokes Keystrokes
(RPN mode) (ALG mode)
9gC
9
gC
137.17P
137.17
*
2000M$
2000
Example 2: A 6.5% mortgage with 26 years remaining and a remaining
balance of $249,350 is available for purchase. Determine the price to pay for this
mortgage if the desired yield is 12%. (Since the payment amount is not given, it
must be calculated.)
Keystrokes Keystrokes
(RPN mode) (ALG mode)
f] f[
g gÂ
fCLEARG fCLEARG
26gA 26gA
6.5gC 6.5gC
249350Þ$ 249350Þ$
P P
12gC 12gC
$ $
*
Note that the payments are positive because this problem is in seen from the viewpoint of the
lender who will be receiving payments. The negative PV indicates money that was lent out.
Display
0.75
P *
137.17
–8,777.61
M$
Display
312.00
0.54
1,657.97
1.00
–158,361.78
Discount rate (into i).
Monthly payments (into
PMT).
Amount necessary to
prepay the note.
Months (into n).
Percent monthly interest
rate (into i).
Monthly payment to be
received (calculated).
Desired monthly interest
rate (into i).
Purchase price to achieve
the desired yield
(calculated).