You own a trailer park that has an empty lot that would rent for $495. If you only get 24 months out of the trailer, how much could you pay for a trailer if you wanted to earn 20% on your money?
(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 03/24/2014 problem:
(N=60,I=4.25%,PV=15,000,FV=0) PMT = $277.94
P/YR=1 (N=5,I=4.5%,PV=15,000,FV=0) PMT = $3,416.87
$277.94 * 12 = $3,335.28 – $3,416.87 = $81.59