HP 12C Financial Programmable Calculator User Manual Page 152

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151
Lending
Loans with a constant amount paid towards Principal
BAL
k
= remaining balance after time period k.
CPMT = Constant payment to principal.
BAL
k
= PV - (k x CPMT)
Kth payment to interest = i (BAL
k
) = (PMT
i
)
k
Kth total payment = CPMT + (PMT
i
)
k
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.
n
1
n
12
------ r+
-------------------
11i+()
n
i
------------------------------=
1
n
12
------


r+
1
n
12
------


CL
n
12
------


2
CL r×
---------------------------------------------------------------
G
n
---- P M T=
GCLn××
12
---------------------------- =
amount of credit life
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