(12C) Rule of 78

01072017, 05:38 PM
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(12C) Rule of 78
HP 12C: Rule of 78
When a mortgage, a loan, a lease, or other annuity is paid early, we can determine how much interest rebate is due by the Rule of 78: Rebate = ( (n – k + 1) * FC ) / ( (n + 1) * n) Where: n = the length of the annuity (number of periods) k = the period where the loan is paid off FC = total interest, finance charge = PMT * n – PV The program will require the user to input and compute the annuity variables [ n ], [ i ], [ PV ], and [PMT] ([FV] if a balloon payment is required). Then enter the period # where the loan is paid off (k), and press [R/S]. Program: Keep in mind: this is done on the HP 12C (regular). For the HP 12C Platinum, the code for Last X is 43, 40 ([ g ] [ + ]) STEP; KEY; CODE NUMBER 01; STO 1; 44, 1 02; RCL PMT; 45, 14 03; RCL n; 45, 11 04; *; 20 05; RCL PV; 45, 13 06; +; 40 07; CHS; 16 08; STO 0; 44, 0 09; RCL n; 45, 11 10; RCL 1; 45, 1 11; ; 30 12; 1; 1 13; +; 40 14; *; 20 15; RCL 1; 45, 1 16; ÷; 10 17; LST x; 43, 36 18; 1; 1 19; +; 40 20; ÷; 10 21; GTO 00; 43, 33, 00 Example: On a 48 month purchase of a $20,000 car, financed at 5%, the purchaser pays the car off early after 24 payments (k = 24). What is the rebate? Output: Find the payment: [ f ] [X<>Y] (CLEAR FIN) (if necessary) 48 [ n ] 5 [ g ] [ i ] (12÷) 20000 [ PV ] [ PMT ] (payment = 460.59) 24 [R/S] Rebate: $87.84 Source: Rosenstein, Morton. Computing With the Scientific Calculator Casio: Tokyo, Japan. 1986. ISBN10: 1124161430 

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