Calculator Problem – 06/29/2015

If you had a loan of $1.125m at 5% and made payments of $20,000 a month, how long would it take to 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 https://www.facebook.com/garyjohnstonseminars for the answer.)

Answer for 06/15/2015:

(N=300,I=5.25,PV=500,00,FV=0) PMT= -2996.24
(N=300,I=5.5,PV=500,000,FV=0) PMT= -3070.44

3070.44-2996.24=74.20

(N=120,I=12,PV=0,PMT=74.20) FV=17068.87

(N=60,I=12,PV=17068.87, FV=0) pmt=379.69

379.69+2996.24=3375.93

(N=120,I=5.25,PV=500,000,PMT= -2996.24) FV= -372722.95
(N=180,I=5.5,PV=500,000,PMT= -3070.44) FV= -282920.40

(N=60,PV=372722.95,PMT= -3375.93,FV= -282920.4) I= 6.81