Loans With A Constant Amount Paid Towards Principal; Add-On Interest Rate To Apr; Add-On To Apr With Credit Life - HP 12c Solutions Handbook

Lending

Loans with a constant amount paid towards Principal

• BAL = remaining balance after time period k.
k
• CPMT = Constant payment to principal.
• BAL = PV - (k x CPMT)
k
• Kth payment to interest = i (BAL
• Kth total payment = CPMT + (PMT

Add-On Interest Rate to APR

• r = add-on rate as a decimal.
• n = number of monthly payments.
• APR = 1200i, where i is the solution in the following equation:

Add-On to APR with Credit Life

• CL = credit life as decimal.
• AMT = loan amount.
• FC = finance charge.
•
G
--- - = PMT
n
•
G CL n
--------------------------- -= amount of credit life
12
) = (PMT
k
)
i k
n 1 1
–
------------------ - = ----------------------------- -
n i
1 + ----- -r
12
n
  r
----- -
1 +
 
12
-------------------------------------------------------------- -
2
n n
   
----- - ----- -
1 CL
– –
   
12 12
151
)
i k
– n
+ i
CL r