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Solution 11208: Computing Effective APR with Points and Fees on the BA-35 Solar.

How do I compute effective APR with points and fees on the BA-35 Solar?

The example below will demonstrate how to calculate an effective APR with points and fees on the BA-35 Solar.

Example: Assume there is a $100,000 mortgage with 2 points and $5,000 in fees. At an 8% interest rate for 360 months, what is the effective APR after points and fees?

Compute as follows:
• Press [AC/ON] to clear the memory registers.
• Input 360 and press the [N] key.
• Input 8 [2nd] [%i], then press [%i] again to store the monthly rate.
• Input 100,000 and press [PV].
• Press [CPT] [PMT] to compute monthly payment.

The computed monthly payment is $733.76.

Compute the actual loan amount by subtracting points and fees.
• 100 000 [-] 2 [%] [-] 5000 [=] 93,000.

• Press [PV] to store this new present value.
• Press [CPT] [%i] to compute the interest rate.
• Multiply this value by 12 to calculate the annual rate.

The effective APR after points and fees is 8.78%.

For additional information on using the BA-35 Solar, please take a look at the BA-35 Solar Quick Reference Guide.