Actions

Actions

## hp-share-print-widget-portlet

Actions
• Information
HP fraudulent caller alert - protect yourself from scams

Learn what to do if you are contacted by fraudulent callers posing as HP representatives. This could be a scam; do not provide any personal information.

View article

Actions

## HP 12c Calculator - Calculating Canadian Mortgages

Introduction
In Canada, interest is compounded semi-annually with payments made monthly. This results in a different monthly mortgage factor than that used in the United States and pre-programmed into the HP 12c calculator. This difference can be handled by the addition of a few keystrokes. For any problem requiring an input for [i], the Canadian mortgage factor is calculated first, and then this value is entered in for [i], to give the answer for Canada.
Information
The keystrokes to calculate the Canadian Mortgage factor are as follows:
1. Press [f], CLEAR [FIN], [g], then END.
2. Key in 6 and press [n].
3. Key in 200 and press ENTER, then PV.
4. Key in the annual interest rate as a percentage and press [+], CHS, then FV.
5. Press [i].
The Canadian mortgage factor is now stored in [i] for future use.
Example of periodic payment amount
What is the monthly payment required to fully amortize a 30-year Canadian mortgage if the interest rate is 9 percent?
 Keystrokes (RPN mode) Display Explanation [f], CLEAR [FIN], [g], END, 6, [n], 200, ENTER, PV, 9, [+], CHSFV, then [i] 0.74 Canadian mortgage factor 30, [g], then [12x] 360.00 Total monthly periods in mortgage life 30000, PV, 0, FV, then PMT -237.85 Monthly payment
Example of number of periodic payments to fully amortize a mortgage
An investor can afford to pay \$440 per month on a \$56,000 Canadian mortgage. If the annual interest rate is 9.25 percent, how long will it take to completely amortize this mortgage?
 Keystrokes (RPN mode) Display Explanation [f], CLEAR [FIN], [g]. END, 6, [n], 200, ENTER, PV, 9.25, [+], CHS, FV, then [i] 0.76 Canadian mortgage factor 440, CHS, then PMT -440.00 Monthly payment 56000, PV, 0, FV, then [n] 437.00 Total number of monthly payments
Example of effective interest rate (yield) [PV]9.25
A Canadian mortgage has monthly payments of \$612.77 with a maturity of 25 years. The principal amount is \$75,500. What is the annual interest rate?
 Keystrokes (RPN mode) Display Explanation [f], CLEAR [FIN], [g], END, 25, [g], [12x], 612.77, CHS, PMT, 75500, PV, then [i] 0.72 Canadian mortgage factor 6, [n], 0, PMT, 200, CHS, PV, FV, RCL, PV, then [+] 8.75 Annual interest rate.
Example of balance remaining at end of specified period
A Canadian mortgage has monthly payments of \$612.77 at 8.75 percent interest. The principal amount is \$75,500. What will be the outstanding balance remaining at the end of 10 years?
 Keystrokes (RPN mode) Display Explanation [f], CLEAR [FIN], [g], END, 6, [n], 200, ENTER, PV, 8.75, [+], CHS, FV, then [i] 0.72 Canadian mortgage factor 612.77, CHS, PMT, 10, [g], [12x], 75500, PV, then FV -61,877.18 Outstanding balance remaining at the end of 10 years.

Actions

## hp-online-communities-portlet

Actions

### Support Forum

Join the conversation! Find Solutions, ask questions, and share advice with other HP product owners. Visit now

Actions