Calculator Problem – 11/08/2010

 You purchase a mobile home with land for $25,000. You borrow all of the money for the purchase from a private money source at 8%. It will rent for $600 and expenses are 1/3 of the gross rent. If you apply all of the net rent to the loan, how long will it take to pay it off?

 (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 2010-10-25 problem:

PV= -39,634.39 (N=63, i=12, PMT= 851, FV=0)