If I understand correctly the money was loaned on June 1, 1993 and the first payment would then come due on July 1, 1993. This would make the 90th payment come due on 12/1/2000, not 11/1/2000.
No matter. If the payor wanted to pay it all off on 11/1/2000 I would expect a check for $48,147.24 (see my spreadsheet). Am I missing something? I have no idea.
I believe the CPA is closer to the right answer. The debtor would be liable for not only the principal balance but one month’s accrued interest, interest being paid in arrears.
Nor would I accept the idea that he can pay it one day earlier and dodge a full month’s interest. I’d calculate the interest accrued using an average daily balance.
A borrower borrowed $72,000 on June first 1993 for 90 months at 8.5%(15 year amortization)@ $709.01 per month with a baloon due upon payment # 90 (November 1- 2000).
What would the baloon be?
I’ve had a banker say $47,071.29
I’ve had a CPA say $47,395.23
(plus 335.74) = $47,730.97
The $335.74 he says is for intrest in November (in arrears).
The debtor (via Voyager (MLS) software) says $47,437.92 if paid by 10/31/2000.
I need some help here… Please (grin)
What would the baloon be at the final payment. (# 90)?
Posted by Paul_NY on February 02, 2000 at 13:23:44:
If the payments begin on July 1st 1993:
The balance after paying the 89th payment is $47438.23. If the lender charges you the interest for the 90th month, add $336.02. This makes a total of $47774.25.