Posted on

Calculator Problem – 01/31/2011

 You loan a company $50,000 and they make you 24 payments of $2833.33.  What is the return on your investment? (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 01-17-2011 problem:

 $1,478,654.36 (N=480, I=7.25, PV=0, PMT= -525)132.10% (N=5, PV= -35,000, PMT=0, FV=59,000)

Posted on

Calculator Problem – 01/17/2011

A twenty-two-year-old teacher makes $30,000 a year. The teacher contributes 8% of her salary to her retirement and the school contributes another 13% on a monthly basis. If her retirement account earns 7.25% on investments, how much money will she have when she is 62?

(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 01-03-2011 problem:

132.10% (N=5, PV= -35,000, PMT=0, FV=59,000)

Posted on

Calculator Problem – 12/20/2010

A pack of cigarettes costs $5 and a person smokes a pack and a half a day. If he instead put that money in an investment that earns 12%, how much money would he have in 40 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 http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)

Answer to 12-06-2010 problem:

$2002.43 (N=60, I=6, PV= -6000 PMT=0) (N=60, I=0.3, PV= -6000 PMT=0)

Posted on

Calculator Problem – 12/06/2010

You have $6000 in a savings account earning 0.3%. If you had instead invested it in something earning 6%, how much more money would you have at the end of 5 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 http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)

Answer to 11-22-2010 problem:

N=26.35 (I=31.99, PV=100 PMT=0, FV= -200)

Posted on

Calculator Problem – 11/22/2011

If you have credit card balances at a 31.99% rate, how many months at that rate is it before the stuff you bought on that credit card costs you twice as much as it did originally?

 (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 11-8-2010 problem:

N= 81.12 (I=8, PV=25000 PMT= -400, FV=0)

Posted on

Calculator Problem – 11/08/2010

 You purchase a mobile home with land for $25,000. You borrow all of the money for the purchase from a private money source at 8%. It will rent for $600 and expenses are 1/3 of the gross rent. If you apply all of the net rent to the loan, how long will it take to pay it off?

 (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 2010-10-25 problem:

PV= -39,634.39 (N=63, i=12, PMT= 851, FV=0)

Posted on

Calculator Problem – 10/25/2010

 How much would you pay for a note that has 63 payments of $851 if you wanted to make 12% 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 http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)

Answer to 2010-10-11 problem:

 I=1.07% (N=360, PV= 500,000, PMT= -1625, FV=0)

Posted on

Calculator Problem – 2010-10-11

If you could pay off a loan of $500,000 with monthly payments of $1625 over 30 years, what would be the interest rate on 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 http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)

Answer to 2010-09-27 problem:

I=86.86% (N=48, PV= -2000, PMT=150, FV=0)

Posted on

Calculator Problem – 2010-09-27

 You purchase a mobile home for $2000, then sell it on terms for payments of $150 for 48 months. What is your return?

(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 2010-09-13 problem:

N=22.01 (I=14.99, PV=6700, PMT= -350, FV=0)

Posted on

Calculator Problem – 2010-08-30

You invest $30k at 20% for 20 years. What is the future value using monthly compounding? If you then borrowed another $30k to invest in the same 20% investment and agreed to pay the lender 10%, interest only, on a monthly basis for the same 20 years and invest the increased cash flow from the borrowed money back into the same investment, how much would you have at the end of 20 years? What would be the return on your initial $30k?

(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.)

The answer to the 2010-08-16 calculator problem is  I=17.27% (N=60, PV= -16,000, PMT= 400, FV=0)