Solving For Yield - HP 0012C-90001 User Manual

154 Section 14: Leasing 154 Section 14: Leasing
154 154 Section 14: Leasing Section 14: Leasing
Solving

Solving for Yield

Solving Solving for Yield for Yield for Yield
To calculate the periodic yield, information is entered as follows:
1. Press g and fCLEARG.
2. Key in the total number of payments in the lease then press \.
3. Key in the total number of payments made in advance then press
?0-w.
4. Key in the periodic payment to be received then press P.
5. Key in the total amount of the loan then press Þ:0:P
6. Press ¼ to obtain the periodic yield.
Example 1: A lease has been written to run for 60 months. The leased equipment Example 1: Example 1: Example 1:
has a value of $25,000 with a $600 monthly payment. The lessee has agreed to
make 3 payments at the time of closing ($1800). What is the annual yield to the
lessor ?
Keystrokes Keystrokes
Keystrokes Keystrokes
gÂ
fCLEARG
60\3
?0-w
600P
25000Þ:0
:P +$
¼
12
Display Display
Display Display
57.00
Number of periodic payments.
3.00 Number of advance payments.
-23,200.00 PV.
1.44 Monthly yield (calculated).
17.33 Annual yield (as a percentage).
+$.