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HP 17Bii, 17Bii+, and 19Bii Calculators - Calculating a Blended Interest Rate

Description
When two mortgages at different interest rates exist on a piece of property, it may be desirable to find the interest rate on the entire transaction or the blended interest rate. To calculate the blended rate, it is necessary to know the amount and term of each mortgage, and either the interest rate of each mortgage, or the periodic payment amount.
Calculating the blended interest rate
To calculate the blended interest rate with two mortgages:
1. Enter the BLEND equation into the Solver as follows:
BLEND:IF(S(PMT1):PV1-P
MT1xUSPV(%I1÷12:N1):IF(
S(PMT2):PV2-PMT2xUSPV(%
I2÷12:N2):PV1+PV2-PMT1x
USPV(%BL÷12:N1)-PMT2xUS
PV(%BL÷12:N2)))
2. Verify the equation:
• For the HP 17bii and 17bii+, press EXIT, EXIT, YES (to save), then CALC.
• For the HP 19bii, press CALC.
3. Store the following variables from the first loan:
• Amount of first loan in PV1
• Total monthly payment in N1
• Annual interest rate (as a percentage) in %I1
4. Press PMT1 to calculate the first loan's monthly payment.
5. Store the following variables from the second loan:
• Amount of second loan in PV2
• Number of monthly payments in N2
• Annual interest rate (as a percentage) in %I2
6. Press PMT2 to calculate the second loan's monthly payment (If PMT2 is already known, just store it).
7. Press %BL to calculate the blended interest rate.
Example of calculating the blended interest rate
A buyer purchases a home with a 30-year, 10.25 percent, \$65,000 mortgage. The seller has agreed to carry a 12 percent, \$15,000 second mortgage for 7 years. What is the blended rate of the two mortgages?
 Keys Display Description Press 65000, then PV1 PV1=65,000.00 Enter the first payment value Press 360, then N1 N1=360.00 Enter the number of payments for the first loan Press 10, [.], 2, 5, then %I1 %I1=10.25 Enter the interest rate of the first loan Press PMT1 PMT1=582.47 Calculates the amount of the first payment Press 15000, the PV2 PV2=15,000.00 Enter the second payment value Press MORE More variables Press 84, then N2 N2=84.00 Enter the number of payments for the second loan Press 12, then %I2 %I2=12.00 Enter the interest rate of the second loan Press PMT2 PMT2=264.79 Calculate the amount of the second payment Press %BL %BL=10.39 Calculate the blended interest rate
note:
The solver searches for an iterative solution and displays intermediate estimates.

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Country: United States