HP 20b Business Consultant Financial Calculator User Manual download pdf (Page 43)

Canadian Mortgages: TVM Canada

4 Canadian Mortgages: TVM Canada

Figure 1 The Menu Map for the P/YR Menu

In Canada, interest rates for mortgages are, by law, given as a nominal interest rate,

compounded twice yearly. This means that the compounding period for the per-period interest

rate calculation differs from the compounding period when payments are made.

By default, the calculator performs calculations assuming that the number of compounding

periods always equals the number of payments per year. You can, however, enable the TVM

Canada option in the Mode menu, which enables you to select the number of compounding

periods per year. For more information, refer to Chapter 1, Basic Features.

To open the P/YR menu, press :[. Note the following change in features with TVM

Canada enabled:

1. The P/YR key opens a menu with two items: P/YR and C/YR in which you can specify

the number of payments and compounding periods per year. See Figure 1.

2. In the Interest Conversion menu, the C/YR item is the same value as the C/YR item in the

P/YR menu, and it no longer affects P/YR. However, note how if you now change the

value of P/YR, the calculator automatically sets C/YR so it equals your new value

assigned to P/YR. This means that if you modify P/YR, you also need to modify C/YR, if

P/YR and C/YR are different values in your TVM problem.

P/YR

C/YR

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HP 20b Business Consultant Financial Calculator User Manual Page 43