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Calculator Problem – 06/29/2015

If you had a loan of $1.125m at 5% and made payments of $20,000 a month, how long would it take to pay off 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 06/15/2015:

(N=300,I=5.25,PV=500,00,FV=0) PMT= -2996.24
(N=300,I=5.5,PV=500,000,FV=0) PMT= -3070.44

3070.44-2996.24=74.20

(N=120,I=12,PV=0,PMT=74.20) FV=17068.87

(N=60,I=12,PV=17068.87, FV=0) pmt=379.69

379.69+2996.24=3375.93

(N=120,I=5.25,PV=500,000,PMT= -2996.24) FV= -372722.95
(N=180,I=5.5,PV=500,000,PMT= -3070.44) FV= -282920.40

(N=60,PV=372722.95,PMT= -3375.93,FV= -282920.4) I= 6.81

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Calculator Problem – 06/15/2015

You have a choice between two $500,000 loans.  The first loan is fixed for 10 years @ 5.25% and amortized over 25 years.  The second loan is fixed for 15 years at 5.5% and amortized over 25 years.  If you took the 5.25% loan and invested the difference between the two payments at 12% then at the end of ten years started taking a monthly draw down of the investment that is still returning 12% to add to your current payment, what interest rate could you then support to end up at an equivalent point at the end of the 15 year loan?

Join us on Facebook as Bruce shows us how to solve this one.  😉  Good morning Bruce!

(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 06/01/2015:

(N=300,I=5,PV=500,500,FV=0) PMT= -2925.87

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Calculator problem – 04/06/2015

You borrow $1,500,000 at 30 day LIBOR with a 1 3/4 spread amortized over 18 years.  If LIBOR is 17 basis points today, what is your 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 03/23/2015:

(N=240,I=5%,PV=333,333.33,FV=0) PMT= -2,199.85

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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