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