HP 12C Solutions Handbook

4
Sometimes the wrap around mortgage will have a longer payback period
than the original mortgage, or a balloon payment may exist.
where:
n
1
= number of years remaining in original mortgage
PMT
1
= yearly payment of original mortgage
PV
1
= remaining balance of original mortgage
n
2
= number of years in wrap-around mortgage
PMT
2
= yearly payment of wrap-around mortgage
PV
2
= total amount of wrap-around mortgage
BAL = balloon payment
CLEAR
20
8
6.75
0.56 Monthly interest rate (into i).
200132.06
200,132.06 Loan amount (into PV).
0
-2,031.55
Monthly payment on existing
mortgage (calculated).
10
0.83 Monthly interest on wrap-around.
300000
-300,000.00 Amount of wrap-around (into PV).
3,585.23
Monthly payment on wrap-around
(calculated).
0
1,553.69
Net monthly payment received (into
PMT).
200132.06
-99,867.94 Net cash advanced (into PV).
12
15.85
Nominal yield (IRR) to lender
(calculated).

HP 12C Specifications

General

Type	Financial Calculator
Display	LCD, 10 digits
Manufacturer	Hewlett-Packard
Programming	Keystroke
Memory	20 memory registers
Functions	statistical functions
Dimensions	12.7 x 7.87 x 1.52 cm (5 x 3.1 x 0.6 in)