Greetings! -
I'd like to learn how to properly verify a term of a "reverse morgage" calculation. If I may provide an example - I know: the monthly advance to the consumer is $492.51 and that the total of consumer's loan cost is $4,500, the contract interest rate is 9.0%, and the estimated time of repayment is 10 years (based on life expectancy at age 78. I also know that the appraised value of the dwelling is $100,000 and that the assumed dwelling appreciation rate is 8%. How do I verify using a programmable HP 12C that the Total-annual-loan-cost rate = 10.87%. In other other words, can some provide me with the keystrokes?
Thanks, Willing To Learn
Edited: 4 Mar 2004, 2:40 p.m.