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.
Please see the BA-35 Solar Quick Reference Guide for additional information.