HP 10bii - A home mortgage problem

The maximum monthly mortgage repayment you can make is $850. You can make a $14,000 down payment. The current interest rate is 8.75%. For a mortgage of 25 years, what is the maximum purchase price that you can afford?

Following are the hp12c keystrokes used to solve the problem in this:

• Set your calculator to 1 P_Yr.

• Remember to clear the memory but pressing [C ALL].

  Should show 1 P_Yr on the screen for about 2 seconds.

• Enter 8.75 ÷ 12 and then press [ I/YR ].

• Enter 25 x 12 and then press [ N ].

• Enter 850 and press [+/-] then press [PMT].

• Enter 0 and press [FV].

• Finally press [PV] to get the answer.

The answer should be 103,388.26.

Here is how to solve the same problem using the HP 12c or HP 12c Platinum.

Further Reading: TVM.