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Calculator problems on Michigan exam

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hal

Sophomore Member
Joined
Apr 4, 2002
Professional Status
Certified Residential Appraiser
State
Michigan
I am preparing to take an exam for the state license level. I need help w/the amortizing type problems on my hp12c. I want to understrand some steps and not just memorize them. questions like what is the balance on a 25 year loan of $50,000 at 9% interest after the 5th year.

What does the RCL key, end and begin key do/mean. What are all the steps after entering the # of payments and % intterest rate.

If you can help with any other problems like these where I use the calculator I would appreciate it.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
RCL is recall.
End is to set the amort. schedule to the end of the month (for loan payments).
Begin is to set the amort. schedule to the begining of the month (for lease payments).

As for the key strokes, I don't remember...... I went to the 10B years ago because it did more with less key strokes, and that is what CCIM recommended at the time.

Ask HP directly:
http://h20015.www2.hp.com/en/product.jhtml...hp12cfinan81575
 

John Hassler

Senior Member
Joined
Jul 23, 2002
Professional Status
Certified Residential Appraiser
State
California
Mortgage calc's use the top five lefthand keys. "n" number of periods, "i" interest rate, "PV" Present Value, "PMT" Payment, and "FV" Future Value. If you have any four of these you can solve for the fifth. FV defaults to zero. PV is always a negative number since it represent a cash outlay.

In your example, punch "50,000" then "CHS" (change sign) to make a negative, then "PV". Next punch "25" then "n" for yearly payments (or "25" "g" "n" for monthly payments). Then enter "9" "i" for yearly interest (or "9" "g" "i" for monthly). You don't need to enter a future value since this is a fully amortizing loan (the balance is zero at the end of the loan term). The order of the data input is not critical.

Now hit the "PMT" key. This is your yearly (or monthly if you entered data with the "g" key) payment. Now all five factors have been caculated and can be modified.

To determine the loan amount at the end of five years, key in "5" "n" (or "5" "g" "n" if you are doing monthly periods). Then hit "FV". This is the loan balance at the end of 5 years. In your example it is $46,467.15 using annual payments or $46,636.22 using monthly payments.

Hope this helps.

John hassler
 

Dan Leggett

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Mississippi
yellow [f] key toggles to top row commands printed in yellow.
blue [g] key toggles to front of key commands printed in blue.
PV=Present Value of the Loan Amount
n=number of payments (preceeded by blue [g] will multiply by 12 for monthly payments)
i=interest rate (preceeded by blue [g] will divide by 12 for monthly payments)
PMT=Amount of Payment
FV=Future Value, will give loan balance but does not breakout interest paid versus principle paid.

Assuming a monthly payment the keystrokes are as follows:
50,000 [PV] (do not change [CHS], it's not the cash outflow)
25 [g][12x] (25 years times 12 months)
9 [g][12/] (9% annually divided by 12 months)
[PMT] Solves for payment, the result will be a negative number because this is the cash outflow. Result should be -419.60

To solve for amortization after 5 years, leave the -419.60 in the calculator and press 60 (5 years times 12 months) then [f][AMORT]. Calculator will start flashing "running" then display -21,812.10, that is the amount of interest paid after 60 payments. Press [x>y] the calculator will display -3,363.90, that is the amount of principle paid against the original loan amount. Press the same key [x>y] and it will redisplay the -21,812.10 interest paid.

50,000 (orignal loan amount) - 3,363.90 (principle paid) = 46,636.10 loan balance. It's math, there's usually more than one way to fry a cat.

Good Luck
 

hal

Sophomore Member
Joined
Apr 4, 2002
Professional Status
Certified Residential Appraiser
State
Michigan
BANG!!!!!!!!!!!!!! That was dynamite guys. Thanks
 

slacker

Junior Member
Joined
Feb 20, 2002
BANG!!!!!!!!!!!!!! That was dynamite guys. Thanks

That's the sound I heard when I threw my HP12c against the wall.

Get the TI Business calculator and you can start performing these tasks in English and with half the keystrokes and headaches.

RPN went out with the Slide Rule
 
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