The Dow closed at 12,217.56 on December 30, 2011. On December 31, 2001, it closed at 10,021.57. If you had bought a share of the Dow in 2001 and sold it in 2011, what would your return have been?
(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)
Answer to 12/19/2011 problem:
(N=360,I=4,PV=100,000,FV=0) PMT= -477.42
What is the payment on a $100,000 at 4% amortized over 30 years?
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Answer to 12/05/2011 problem:
(I=15,PV= -60,000, PMT=0,FV=90,000) N=32.64
Updated Home Affordable Refinance Program (HARP) by the Federal Housing Finance Agency:
How many months would it take for a $60,000 investment to be worth $90,000 if it was invested at 15%?
(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)
Answer to 11/07/2011 problem:
(N=96,I=6,PV=100,000,PMT= -700) FV= -$75,434.29
There is a loan of $100,000 at 6% with a payment of $700 a month. If the loan has a balloon provision at the end of eight years, how much will the balloon payment be?
(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)
Answer to 10/24/2011 problem:
(N=360,I=6,PV=80,000,FV=0) PMT= $479.64
(N=360,I=4.25,PV=63,000,FV=0) PMT = $309.92
Difference $169.72
Looks like the HARP program is going to get some modifications that might allow you to refinance at the lower rates that are available today. If you have not used the HARP program to modify your mortgage, I would encourage you to talk to your lender. If you didn’t qualify before, you might be eligible after December 1.
http://money.cnn.com/2011/10/24/real_estate/housing_refinance/
You borrowed $80,000 at 6% amortized over 30 years a few years ago and the balance is now $63,000. If you refinanced with a 30 year loan at 4.25% today, how much would you save every month?
(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)
Answer to 10/10/2011 problem:
(N=360,I=15,PV=-0,PMT= -50) FV=$346,163.98
If you invest $50 every month for 30 years at 15%, how much money would you have?
(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)
Answer to 09/26/2011 problem:
(N=6,PV= -2500, PMT=500,FV=0) I=65.66%
Ray is renting a room in a house for $500 a month. He negotiates to pay 5 months in advance and get the 6 month free. What is his return?
(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)
Answer to 09/12/2011 problem:
(N=180,I=5,PV=45,000,FV=0) PMT= -$355.86
You find a rental house for $60,000 that you can finance with a 75% LTV loan at 5% over 15 years. How much will your payment be every month?
(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)
Answer to 08/29/2011 problem:
(N=60,PV=0,PMT=-718.08,FV=44,669.85) I=1.46%