What is the payment on a loan of $31,500 at 4.25% amortized over 12 years?

(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 04/09/2012 problem:

(N=6,PV= -1000,PMT=200,FV=0) I=65.66%

You are currently making monthly payments of $200.  The person you are paying agrees to take a lump sum of 5 payments now and give you credit for the next 6 payments.  What is 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 to 03/26/2012 problem:

(N=48,PV=-8000,PMT=250,FV=0) I=21.53%

If you refinance a loan balance of $65,000 at 4.5% amortized over 30 years, what is your new monthly payment?

(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 01/30/2012 problem:

(N=60,I=15,PV= -25,000,PMT=100) FV= $43,822.08

Instead of buying a new car for $25,000, you invest that money at 15% and decide to keep repairing your old car which costs $1200 a year.  How much money would you have at the end of five years?

(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 01/16/2012 problem:

(N=360,I=4,PV=48750,FV=0) PMT= -232.74

You purchase a house for $65,000.  You get a thirty year, fixed rate, 75% LTV mortgage at 4%.  What is the monthly payment?

(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 01/02/2012 problem:

(N=120,PV= -10,021.57,PMT=0,FV=12,217.56) I=1.98%

The Dow closed at 12,217.56 on December 30, 2011.  On December 31, 2001, it closed at 10,021.57.  If you had bought a share of the Dow in 2001 and sold it in 2011, what would your return have been?

(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 12/19/2011 problem:

(N=360,I=4,PV=100,000,FV=0) PMT= -477.42

What is the payment on a $100,000 at 4% amortized over 30 years?

(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 12/05/2011 problem:

(I=15,PV= -60,000, PMT=0,FV=90,000) N=32.64

How many months would it take for a $60,000 investment to be worth $90,000 if it was invested at 15%?

(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 11/07/2011 problem:

(N=96,I=6,PV=100,000,PMT= -700)  FV= -$75,434.29

There is a loan of $100,000 at 6% with a payment of $700 a month.  If the loan has a balloon provision at the end of eight years, how much will the balloon payment be?

(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 10/24/2011 problem:

(N=360,I=6,PV=80,000,FV=0)          PMT= $479.64
(N=360,I=4.25,PV=63,000,FV=0)     PMT = $309.92
Difference                                                               $169.72

You borrowed $80,000 at 6% amortized over 30 years a few years ago and the balance is now $63,000.  If you refinanced with a 30 year loan at 4.25% today, how much would you save every month?

(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 10/10/2011 problem:

(N=360,I=15,PV=-0,PMT= -50) FV=$346,163.98