(See Calculator Problem – 07/16/2012 & 07/30/2012). If the note holder agreed to reduce the interest payment to 5.25%, how many months of payments would you save?

(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 07/30/2012 problem:

(N=156,I=7,PMT= -8722.11,FV=0) PV = 891,763.99