# Knowledge Base

## Solution 11198: Calculating Canadian Mortgages on the BA-35 Solar.

### How do I calculate Canadian mortgages on the BA-35 Solar?

For a TVM calculation involving adjustments for a Canadian mortgage scenario, the interest rate per compounding period will need to be converted to a rate per payment period. The example below will demonstrate calculating the monthly payment on a Canadian mortgage using the BA-35 Solar.

Example: A home buyer borrows $60,000 for 20 years at an annual interest rate of 13% compounded semiannually. How much are the monthly payments? Compute as follows: • Press the [AC/ON] key to completely clear the calculator. • Press the [2nd] key and the [CE/C] key. (This clears all memory registers of the calculator.) • Press [2nd] [CPT]  to fix the calculator to two decimal places. First, the interest rate per compounding period must be converted to a rate per payment period. • Input 2 and press [N] for the number of compounding periods per year. • Input 13 divided by 2 [=] to calculate the rate per compounding period, then press the [%i] key. (The answer is 6.50) • Input 1 and press the [PV] key. • Press [CPT] [FV]. (The answer is 1.13) • Input 12 and press [N] for the number of payments per year. • Press [CPT] [%i] to compute the interest rate per payment period. (The answer is 1.06) • Input 60000 and press the [PV] key. • Input 20 and press the [2nd] key and the [N] key. (This multiplies the 20 years by 12 which equals 240 payments.) Press the [N] key again to store the new value to the N register. • Input 0 and press the [FV] key. • Press the [CPT] key and the [PMT] key. The calculated monthly payment is$688.52.