My hi-tech calculator comes up with 10.067 months so I would use the K.I.S.S. method. Trying to explain the .067 in the 11th month to a buyer may become difficult and confusing (not to mention the math involved lol).
If you round down to 10 payments the monthly amount would be $201.28 for a total of $2,012.80.
If you round up to 11 payments the monthly amount would be $183.93 for a total of $2,023.23.
11 payment might be a little more attractive to the buyer and will net you a few more bucks.
Can someone please check my math? - Posted by Carey_PA
Posted by Carey_PA on October 29, 2000 at 13:25:33:
Hey gang,
I just got an offer from someone and I’m trying to figure out their payments. Now I know I’ve done this before, BUT it’s been a little while I want to make sure I’m not screwing myself.
Price of the home: $2500 (hey I got it for free and it’s a dump)
Downpayment: $600
Payments: $200/month
Interest Rate: 12.75 %
Now I calculate that the number of payments is for: 10.06 so, that would mean 10 payments of $200 right? Somehow, it’s just not making sense to me today. Please someone correct me if I’m wrong, or just reassure me if I’m right.
Carey, You are correct. Balance of $1900 @ 12.75 for 10 Mo. is $201.28 to be exact, but who is going to argue over $1.28 a month?? If you’re selling “as is” it’s all profit anyway…Good Luck…Dan
