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## Calculator Problem – 01/26/2015

If you start with \$100,000 and add \$100,000 a year in monthly installments earning 8% compounded monthly, how much money would you have at the end of 10 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.)

(I=4,PV=300,000,PMT= -5000,FV=0) N= 67.05

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## Calculator Problem – 01/12/2015

You purchase a property for \$350,000.  The seller wants \$50,000 down and payments of \$5000 a month at 4%.  How long will it take you to pay off the property?

(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.)

(N=120,PV= -20,000,PMT=500,FV=0) I=28.14%

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## Calculator Problem – 12/15/2014

You sell a property for \$140,000 that you purchased for \$65,000 for cash three years earlier.  What was the return (monthly compounding) on your invested capital?

(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.)

(N=120,I=8,PV= -500,000,PMT=0) FV=   \$1,109,820.12
(N=120,I=4.5,PV= -500,000,PMT=0) FV=\$   783,496.39
\$   326,323.73

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## Calculator Problem – 12/01/2014

What is the difference over 10 years of investing an IRA with a beginning balance of \$500,000 at 8% instead of 4.5% (compounded monthly)?

(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.)

(N=360,I=18,PV= -649,PMT=0) FV=\$138,044.75

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## Calculator Problem – 11/17/2014

A new iPhone costs \$649.  If you kept your old phone and invested the \$649 at 18%, how much would you have at the end of the 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.)

(N=60,I=10,PMT= -276.97,FV=0) PV= \$13,035.70

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## Calculator Problem – 11/03/2014

A tractor company is offering \$0 down and 0% financing for 60 months.  If the tractor costs, \$16,618 and your cost of capital is 10%, what is the equivalent cash price today?

(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.)

(N=360,I=4,PV=100,000,FV=0) PMT=\$477.42
(N=360,I=5,PV=100,000,FV=0) PMT=\$536.82
\$ increase                                               \$  59.40
% increase = \$59.40 / \$477.42 = 12.44%

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## Calculator Problem – 10/20/2014

If you have a \$100,000 loan amortized over thirty years, what percent does the payment increase if interest rates go from 4% to 5%?

(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.)

(N=360,I=12,PV=25,500,PMT=0) FV=\$916,715.85

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## Calculator Problem – 10/06/2014

You sell a property for \$140,000 that you purchased for \$65,000.  You choose to 1031 exchange the proceeds instead of paying capital gain taxes today at the rate of 34%.  If you invested the money you would have paid in taxes for 30 years at 12%, how much money would you have?

(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.)

(I=15,PV=0,PMT= -100,FV=100,000) N= 209.51

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## Calculator Problem – 09/22/2014

How long would it take you to create a \$100,000 nest egg, if you invest \$100 a month at 15%?

(Internalize the difference between this answer and the 09/08/2014 problem.)

(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.)