User Manual

Canadian Mortgages
In Canada, interest is compounded semi-annually with payments made monthly.
This results in a different monthly mortgage factor than is used in the United
States and preprogrammed into the HP-12C. This difference can be easily
handled by the addition of a few keystrokes. For any problem requiring an input
for , the Canadian mortgage factor is calculated first and then this value is
entered in for in the calculation to give the answer for Canada. The keystrokes
to calculate the Canadian Mortgage factor are:
1. Press CLEAR .
2. Key in 6 and press
.
3. Key in 200 and press
.
4. Key in the annual interest rate as a percentage and press
.
5. Press
.
The Canadian mortgage factor is now stored in for future use. The examples
below show how this factor is used for in Canadian mortgage problems.
Periodic Payment Amount
Example 1: What is the monthly payment required to fully amortize a 30-year,
$30,000 Canadian mortgage if the interest rate is 9%?
Keystrokes Display
CLEAR
6
200
9
0.74 Canadian mortgage factor
30
360.00 Total monthly periods in mortgage life
30000 0
-237.85 Monthly payment