HP 10bII - Page 99

Example.
You
currently
have
$4,572.80
in
an
account
at
Dream
World
Investments
that
earns
18%
annual
interest
compounded
continuously.
At
the
end
of
cach
month,
you
deposit
$250.00
in
the
account.
What
will
the balance
be after
15 years?
Keys:
Display:
Description:
@@®®%®
0.18
Divides
nominal
rate
by
100.
ее
1.20
Raises
¢
to
0.18
power.
2090009
19.72
Calculates
annual
effective
rate.
се
19.72
Stores
effective
rate.
Фое
12.00
Sets
payments
рег
year.
Qon)
18.14
Calculates
annual
nominal rate for a
monthly payment
period.
Set to End Mode. Press if BEGIN annunciator is displayed.
OOOe
180.00
Stores
number
of
months.
aoon
-250.00
Stores
regular
payment.
DADACA
4,572.80
Stores
current
balance
as
a
negative
value
(like
an
initial
investment).
(v)
297,640.27
Calculates
account
balance after 15 years of
payments with 18%
interest compounded
continuously.
Yield
of
a
Discounted
(or
Premium)
Mortgage
The annual yield of a mortgage bought at a discount or premium can be
calculated given the original mortgage amount (PV), interest rate (I/ YR),
periodic payment (PMT), balloon payment amount (FV), and the price
paid for the mortgage (new PV).
Remember the cash flow sign convention: money paid out is negative;
money received is positive.
8: Additional Examples 99