User`s guide

Additional Examples146
The first option costs slightly less.
Canadian Mortgages
In Canadian mortgages, the compounding and payment periods are not the same. Interest is
compounded semi-annually while payments are made monthly. To use the TVM application
in the HP 10bII+, you need to calculate a Canadian mortgage factor (which is an adjusted
interest rate) to store in I/YR.
For additional information on interest rate conversions, see Interest Rate Conversions in Ch. 6.
Example
What is the monthly payment required to fully amortize a 30-year, 130,000 Canadian
mortgage if the annual interest rate is 12%?
d7VÒ
9.50 Stores second interest rate.
Ì
-368.38 Calculates payment.
PvÙ4
-13,261.64 Calculates total interest and
principal.
Table 13-15 Calculating the annual interest rate of 9.5%
Keys Display Description
Table 13-16 Calculating the monthly payment for Canadian mortgage
Keys Display Description
JG\Ó
12.00 Stores known nominal percentage
and number of compounding
periods.
G\Í
2.00
\Ð
12.36 Calculates annual effective rate.
JG\Í
12.00 Sets payments per year.
\Ó
11 . 71 C a l c u l a t e s Canadian mortgage
factor (adjusted interest rate).
JD::::Ï
130,000 Stores other known values for
mortgage.
:ÉD:\Ú
360.00
Ì
-1,308.30 Calculates monthly payment for
Canadian mortgage.