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## HP 12c Calculator - Reverse Annuity Mortgage Payment

Description
A reverse annuity mortgage allows people over 62 years of age to use the equity they have in their homes to generate monthly income. The following procedure determines the amount of the monthly payment that they will receive.
1. Press g, BEG, f, FIN, then CLX
2. Key in the number of years in the loan and press g, then 12x
3. Key in the annual interest rate (as a percentage) and press g, then 12÷
4. Key in the amount of the initial cash flow (if it exists) and press PV
5. Key in the total loan amount and press CHS, then FV
6. Press PMT to calculate the monthly payment.
Example of calculating a reverse annuity mortgage
Loan amount = \$64,000.00
Term = Five years
Interest rate = 13 percent
Initial payment = \$2,500.00
 Keys RPN mode) Display Description Press g, then BEG BEGIN Press this if the BEGIN annunciator is not on the display. Press f, FIN, then CLX 0.00 Clears the finance and x registers Press 5, g, then 12x 60.00 Stores the term Press 13, g, then 12÷ 1.08 Stores the interest rate Press 2500, then PV 2,500.00 Stores the initial payment Press 64000, CHS, then FV -64,000.00 Stores the total loan amount Press PMT 698.41 Calculates monthly payment received
A graduated reverse annuity mortgage means that the monthly payments are less in the beginning, and increase at a specified rate for the term of the loan. A program to calculate the monthly payments follows. Key in the program, then use this procedure.
1. Key in the number of years in the loan and press STO, then 0
2. Key in the annual interest rate (as a percentage) and press STO, then 1
3. Key in the total loan amount and press STO, then 2
4. Key in the annual percentage increase in the payment and press STO, then 3
5. Key in the amount of the initial cash flow and press STO, then 4. If there is no initial cash flow, key in 0 and press STO, then 4
6. Press R/S to calculate the payment received in the first year.
7. Repeat step 6 to calculate the payment for subsequent years.
8. Optional: Press RCL, then 5 to display the loan factor. Press RCL, then 6 to display the initial cash flow factor.
9. For a new loan, return to step 1 and key in any values that have changed.
Example of calculating a reverse annuity mortgage with increasing payments
Same as previous example plus an increase in payment of 6 percent per year.
##### note:
If the program is not keyed in yet, click here for instructions and key in the program first. Go to Section 8 in the Owner's Handbook if using a program for the first time.
 Keys (RPN mode) Display Description Press f, PRGM, then CLX 0.00 Resets the program and clears the x register Press 5, STO, then 0 5.00 Stores the term Press 13, STO, then 1 13.00 Stores the interest rate Press 64000, STO, then 2 64,000.00 Stores the total loan amount Press 6, STO, then 3 6.00 Stores the increase in payment Press 2500, STO, then 4 2,500.00 Stores the initial payment Press R/S 628.85 Calculates monthly payment for year 1 Press R/S 666.58 Payment, year 2 Press R/S 706.58 Payment, year 3 Press R/S 748.97 Payment, year 4 Press R/S 793.91 Payment, year 5
Program for graduated reverse annuity mortgages
 Keys (RPN mode) Display Press f, P/R, f, then PRGM 00- Press f, then FIN 01- 42 34 Press g, then END 02- 43 8 Press 1 03- 1 Press RCL, then 3 04- 45 3 Press % 05- 25 Press + 06- 40 Press RCL, then 1 07- 45 1 Press 1 08- 1 Press 2 09- 2 Press 0 10- 0 Press 0 11- 0 Press ÷ 12- 10 Press 1 13- 1 Press + 14- 40 Press 1 15- 1 Press 2 16- 2 Press yx 17- 21 Press ÷ 18- 10 Press 1 19- 1 Press [ - ] 20- 30 Press EEX 21- 26 Press 2 22- 2 Press x 23- 20 Press i 24- 12 Press 1 25- 1 Press CHS 26- 16 Press PMT 27- 14 Press RCL, then 0 28- 45 0 Press STO, then 7 29- 44 7 Press n 30- 11 Press FV 31- 15 Press STO, then PMT 32- 44 14 Press g, then BEG 33- 43 7 Press RCL, then 1 34- 45 1 Press g, then 12÷ 35- 43 12 Press 1 36- 1 Press g, then 12x 37- 43 11 Press 0 38- 0 Press FV 39- 15 Press PV 40- 13 Press RCL, then 0 41- 45 0 Press g, then 12x 42- 43 11 Press 0 43- 0 Press PMT 44- 14 Press FV 45- 15 Press 1/x 46- 22 Press STO, then 5 47- 44 5 Press RCL, then 4 48- 45 4 Press g, then x=0 49- 43 35 Press g, GTO, then 63 50- 43,33 63 Press RCL, then 0 51- 45 0 Press g, then 12x 52- 43 11 Press RCL, then 1 53- 45 1 Press g, then 12÷ 54- 43 12 Press 1 55- 1 Press PV 56- 13 Press FV 57- 15 Press STO, then 6 58- 44 6 Press x 59- 20 Press RCL, then 2 60- 45 2 Press + 61- 40 Press g, GTO, then 64 62- 43,33 64 Press RCL, then 2 63- 45 2 Press RCL, then 5 64- 45 5 Press x 65- 20 Press R/S 66- 31 Press 1 67- 1 Press STO, [ - ], then 0 68- 44 30 0 Press RCL,then 0 69- 45 0 Press g, then x=0 70- 43 35 Press g, GTO, then 79 71- 43, 33 79 Press R 72- 33 Press R 73- 33 Press RCL, then 3 74- 45 3 Press % 75- 25 Press + 76- 40 Press R/S 77- 31 Press g, GTO, then 67 78- 43,33 67 Press RCL, then 7 79- 45 7 Press STO, then 0 80- 44 0 Press CLX 81- 35 Press g, GTO, then 00 82- 43,33 00 Press f, then P/R 1.00
Registers
 Register Use n Used i Used PV Used PMT Used FV Used R0 # years R1 Percent interest R2 Loan amount R3 Percent increase R4 Initial R5 Loan factor R6 CF factor R7 Used

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