Calculator problem – 11/05/2012

You invest $100,000 at 22% for thirty six months.  You get paid $1000 every month and the rest accrues.  What is amount you will receive at the end?

(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.)

(N=360,I=3.5,PV=100,000,FV=0) PMT= -449.04
(N=360,I=8,PMT= -449.04,FV=0) PV=61,197.38
(N=180,I=3,PV=100,000,FV=0) PMT= -690.58
(N=180,I=8,PMT= -690.58,FV=0) PV=72,262.87

Difference in loans = $72,262.87 – $61,197.38 = $11,065.49