Check my math… - Posted by Andrea

Posted by Andrea on April 26, 2000 at 04:38:52:

Hi Mark,

It looks to me like you need to reduce their payment:

N 48 I 13% PMT $227.89 PV $8495.00

Your investor’s portion looks like this:

N 36 I 18% PMT $108.46 PV $3000.00

Your part would be (and here’s where I’m not sure there isn’t a better way):

PV=$2500.00

36*119.43 ($227.89-$108.46) is $4299.48*

12227.89 (remaining 12 pmts) is $2734.68

$4299.48 + $2734.68 = $7034.16 (total pmts to you)

Now we get to the part you were asking about… here’s how I did it and maybe I goofed:

You could divide the total by 48 (getting an average pmt)

$7034.16/48 = $146.55

Making your yield problem look like this:

N 48 I 64.68% PMT $146.55 PV $2500

Like I said, double check my math… and if anyone does this in a different way I sure would like to be shown too.

Hope this helps,

Andrea