Rate of return with balloon payment
This will calculate: if you loan money and receive equal periodic payments plus a lump sum balloon, this will calculate your rate of return.
Example: you loan me $35,000. I pay you $600 per month for 5 years and also $10,000 at the end of the 5th year. What is your rate of return?
Because P/YR is set to 12, the HP-10B gives the annual rate directly. There is no need to multiply by 12.
Prefer to let the site do the arithmetic? Use the rate of return with balloon form.
- HP-10B keystrokes
-
1
12
P/YR
Sets twelve periods per year
- 2 5 N
- 3 35000 +/- PV
- 4 600 PMT
- 5 10000 FV
- 6 I/YR = 9.29
P/YR tells the calculator how many payments there are in a year. Set it first: 12 for monthly, 1 for annual. It stays set until you change it. +/- changes the number to a negative. On the HP-10B every cash outlay is entered as a negative, which is why the answer comes back positive — it is money you receive.