HP 12c Platinum Reference Manual page 10

10 Real Estate
Where:
n = number of years remaining in original mortgage
1
PMT = yearly payment of original mortgage
1
PV = remaining balance of original mortgage
1
n = number of years in wrap-around mortgage
2
PMT = yearly payment of wrap-around mortgage
2
PV = total amount of wrap-around mortgage
2
BAL = balloon payment
Example 2: A customer has an existing mortgage with a balance of $125,010, a
remaining term of 200 months, and a $1051.61 monthly payment. He wishes to obtain a
$200,000, 9 ½% wrap-around with 240 monthly payments of $1681.71 and a balloon
payment at the end of the 240th month of $129,963.35. If you, as a lender, accept the
proposal, what is your rate of return?
$125010
$1681.71
$ -1051.61
$ -200000
12c platinum / 12C
RPN Keystrokes
gÂ
fCLEARG
200000Þ\
125010+gJ
1051.61Þ\
1681.71+
240 mos.
$1681.71
...
$ -1051.61
200 mos.
12c platinum
ALG Keystrokes
gÂ
fCLEARG
200000Þ
+125010gJ
1051.61Þ
+1681.71gK
$ 129963.35
$1681.71
...
Display
Net investment.
-74,990.00
Net cash flow
630.10
received by lender.
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