Accuracy of HP Financial Calculators - Canadian mortgage

[solwarda]

Thomas Klemm: I don't quite understand your objection. I'm simply converting 3% nominal annual rate compounded semi-annually into a monthly nominal rate for the purpose of calculating the requisite monthly payment. You can do this in a number of ways. For example, you can compound 3% semi-annual rate into "effective" annual rate as follows: 3/200=.015 +1=1.015^2=1.030225-1 x 100=3.0225, which is the effective annual rate. Then you can take the 12th root of that, which will give you the above nominal monthly rate.