Thank you for your reply.She will try that,and see if it works.Of course,I am the one in this family who also has a puny math mind(I tend to go for tech stuff,like building and maintaining comps).I am only capable of figuring time value of money and amortizations now.
Dennis & I have been going thru the “Deals on Wheels” study course. I’ve got the hang of figuring payments, and reading amort tables and can follow the facts, figures, and logic of the text…UNTIL Lonnie says figure the yield of investment. That’s when he loses me. I follow the cash flow, rule of 72, and understand how and why 2 $2500 deals is better than 1 $5000 even without the logic of more people have $2500 than $5000, but what math equation am I missing to calculate the yield? We’re using a financial cal T.I. BA II plus and have learned alot lately about making it give us answers, but apparently on this, I haven’t got a clue as to the question to ask it.
but I would think that you should be able to put the amt you invested (less the downpayment) into the PV, the amout of payments you are receiving into PMT, and the length of the note into N. Then calculate for I and maybe multiply by 12 if the number is obviously wrong (your calculator may be figuring for monthly interest). I think it would actually be more accurate if you used ‘round years’ to figure annual yield, but this should get you in the ball park.
Jbernet (see below) figures his actual after taxes money, which is way cool, but beyond my puny math mind as yet
That what you were wanting? Or have I missed it completely?