Calculator Problem – 07/29/2013

You purchase a house for $78,000 in April of 2011 and the net rent is $600 a month.  In July of 2013, you sell it for $150,000.  What has been your 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 for 07/15/2013 problem:

(N=120,I=4,PV=355,000,FV=0) PMT=3,594.20
(N=120,I=6,PV=355,000,FV=0) PMT=3,941.23

$3,941.23 x 120 = $472,947.60
$3,594.20 x 120 = $431,304.00
Difference          =$   41,643.60