136
Canadian Mortgages
In Canada, interest is compounded semi-annually with payments made
monthly. This results in a different monthly mortgage factor than is used in
the United States and preprogrammed into the HP-12C. This difference
can be easily handled by the addition of a few keystrokes. For any
problem requiring an input for , the Canadian mortgage factor is
calculated first and then this value is entered in for
in the calculation to
give the answer for Canada. The keystrokes to calculate the Canadian
Mortgage factor are:
1. Press CLEAR .
2. Key in 6 and press .
3. Key in 200 and press .
4. Key in the annual interest rate as a percentage and press
.
5. Press .
The Canadian mortgage factor is now stored in for future use. The
examples below show how this factor is used for
in Canadian
mortgage problems.
Periodic Payment Amount
Example 1: What is the monthly payment required to fully amortize a 30-
year, $30,000 Canadian mortgage if the interest rate is 9%?
Keystrokes Display
CLEAR
6 200
9
0.74 Canadian mortgage factor
30
360.00 Total monthly periods in mortgage life
30000 0
-237.85 Monthly payment
To Next Page
Loading...
Need help?
General
