The Rent Or Buy Decision - HP 12C User Manual
Platinum financial calculator
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Also See for 12C:
- User manual (288 pages) ,
- Owner's handbook manual (213 pages) ,
- Reference manual (168 pages)
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258 Appendix E: Formulas Used
The Rent or Buy Decision
Market Value = PRICE(1 + I)
where:
I
= appreciation per year (as decimal)
n
= number of years
Net Cash Proceeds on Resale = Market Value – Mortgage Balance – Commission
The interest rate is obtained by solving the financial (compound interest) equation
for i using:
n
= number of years house is owned
PV
= down payment + closing costs
PMT
= mortgage payment + taxes + maintenance – rent – (% tax)
(interest + taxes)
FV
= net cash proceeds on resale
Annual interest rate = 12 × i
File name: hp 12c pt_user's guide_English_HDPMF123E27
Printed Date: 2005/8/1
n
Page: 258 of 275
Dimension: 14.8 cm x 21 cm
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