Calculator Problem – 05/04/2015

If you have a note that is paying you $100 a month, how many payments would you need to sell to someone that wanted to make 7% on their money if you need to raise $5000?

(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 04/20/2015:
(I=10,PV=42,000,PMT= -2000,FV=0)  N=23.18

Calculator Problem – 02/23/2015

You can purchase a farm with 5% down, 45% of the purchase price with a FSA loan at 1.5% amortized over 40 years (with a maximum FSA loan of $300,000) and 50% of the purchase price with bank loan at 5% with 10 years fixed, amortized over 20 years.  If you wanted to maximize the FSA portion of the loan, how much should the purchase price 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 https://www.facebook.com/garyjohnstonseminars for the answer.)

Answer for 02/09/2015:
(N=63,I=10,PMT= -132.15,FV=0) PV=$6,456.69

Calculator Problem – 02/09/2015

You have a loan at 10% with payments of $132.15 a month that can be paid off in 63 months.  What is the current balance of 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 01/26/2015:
(N=120,I=8,PV= -100,000,PMT= -8333.33) PV=$1,746,514.32