United Kingdom Calculations; Mortgages - HP 0012C-90001 User Manual

12c financial calculator

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United Kingdom Calculations

United Kingdom Calcula

The calculations for most financial problems in the United Kingdom are identical to

the calculations for those problems in the United States — which are described

earlier in this handbook. Certain problems, however, require different calculation

methods in the United Kingdom than in the United States, even though the

terminology describing the problems may be similar. Therefore, it is recommended

that you ascertain the usual practice in the United Kingdom for the financial

problem you are solving.

The remainder of this appendix describes three types of financial calculations for

which the conventional practice differs significantly between the United Kingdom

and the United States.

The amount of the repayments on home loans and mortgages offered by

the United Kingdom can usually be calculated as described under Calculating the

Payment Amount, page 46. Building Societies in the United Kingdom, however,

calculate the amount of these repayments differently. In general, the repayment

amount of a Building Society mortgage is calculated as follows: first, the

repayment amount is calculated using the annual interest rate; second, the

repayment amount is calculated by dividing the annual repayment amount by the

number of repayment periods in one year.

Furthermore, the calculations used by Building Societies are rounded; therefore, to

match their scale repayment figures you would have to round your calculations

accordingly.

Appendix F

203

tions

banks

annual

periodic

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