HP 12c Reference Manual

Download Solutions handbook of HP 12C Calculator for Free or View it Online on All-Guides.com.

Brand: HP

Category: Calculator

Type: Solutions handbook

Model: HP 12C , HP 12C#ABA - 12C Financial Calculator

Pages: 165

Download HP 12C Solutions handbook

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21
Add-On Interest Rate Converted to APR
An add-on interest rate determines what portion of the principal will be
added on for repayment of a loan. This sum is then divided by the number
of months in a loan to determine the monthly payment. For example, a
10% add-on rate for 36 months on $3000 means add one-tenth of $3000
for 3 years (300 x 3) - usually called the "finance charge" - for a total of
$3900. The monthly payment is $3900/36.
This keystroke procedure converts an add-on interest rate to a annual
percentage rate when the add-on rate and number of months are known.
1. Press and press CLEAR .
2. Key in the number of months in loan and press
.
3. Key in the add-on rate and press .
4. Key in the amount of the loan and press * (*Positive for cash
received; negative for cash paid out.) .
5. Press .
6. Press 12 to obtain the APR.
0
55,000.00 Remaining balance.
2,750.00 Second payment's interest.
0
7,750.00 Total second payment.
0
50,000.00
Remaining balance after the first
year.
4 0
1,500.00 Seventh payment's interest.
0
6,500.00 Total seventh payment.
0
25,000.00 Remaining balance.
1,250.00 Eighth payment's interest.
0
6,250.00 Total eighth payment.
0
20,000.00
Remaining balance after fourth
year.