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 Ã· 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.