Calculator Problem – 07/28/2014

You buy acreage for $150,000 with 10% down and the balanced carried over 30 years but the note will balloon in 20 years at 5% interest.  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 https://www.facebook.com/garyjohnstonseminars for the answer.)

Answer for 07/14/2014 problem:

(N=12,PV= -85,PMT=0,FV=140) I=50.95%

Calculator Problem – 07/14/2014

You have been paying a vendor $140 every year, for several years, for a special service.  Recently, the vendor had a special offer that you can buy two years of service if you pay $225 today.  What would be the return on your money (monthly compounding) if you took the offer?

(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 06/30/2014 problem:

(N=360,I=8,PV=0,PMT= -300) FV= 447,107.83

Calculator Problem – 06/30/2014

If you make $2000 a month and contribute 10% into a 401k and the company matches dollar for dollar up to 5% and the 401k makes 8% per year, how much would you have after 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 https://www.facebook.com/garyjohnstonseminars for the answer.)

Answer for 06/16/2014 problem:

(N=480,I=10,PV=0,PMT=100) FV= 632,407.96
$632,407.96 – $75,936.88 = $556,471.08
240 * $100 = $24,000

Calculator Problem – 05/05/2014

You find someone that will sell their house for $100,000.  She wants $30,000 at closing and will carry the balance amortized for thirty years at 5%. You create two notes: one for $70,000 for her to keep and another one to sell. You find a note buyer that is happy with an 8% return and will buy the note at closing.  If both notes have the same terms, what will the face amount of the second note need to 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 04/21/2014 problem:

(N=48,PV= -11,250,PMT=345,FV=0) I=20.44%

If you invested $11,250 into a deal that generated 48 monthly payments of $345, what would your return 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 04/07/2014 problem:

(N=24,I=20,PMT=495,FV=0) PV=$9,725.75