Calculator Problem – 02/28/2011

 You purchase a rental for $48,000 that rents for $725.  Expenses are 1/3 of the gross rent.  If you borrowed 75% of the purchase price at 7% and applied all of the net rent to the payment, how fast could you pay off the loan?

 (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 02-14-2011 problem:

50.48% (N=48, PV= -2250, PMT=109.84, FV=0)
                  (N=48, I=11, PV=4250, FV=0)