Present Value Mortgage calculations with down payment.

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Guest

I have the following question and I don't know how to account for the down payment. Can anyone help me? I think I need the present value formula but I don't know how to account for the downpayment.


1. Elynor bought a vacation property for $2,500.00 down and quarterly mortgage payments of
$550.41 at the end of each quarter for five years. Interest is 8% compounded quarterly. What
was the purchase price of the property?
 
Hi Kalahari!

=PV(8%/4,5*4,-550.41,0,0)+2500
Returns: 11499.9924271997
But most likely price was $12,500 with errors due to rounding.

If this is an assignment project:

Add the syntax
Convert hard code to cell references
Document your explanation (especially, the rate, number of periods and
signs used and returned)
Acknowledge assistance received


And please let me know where I can buy a vacation property for 12500?
--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.
Kalahari said:
I have the following question and I don't know how to account for
Click to expand...
the down payment. Can anyone help me? I think I need the present
value formula but I don't know how to account for the downpayment.
 
Thank you very much. That worked.

By the way I'm from Canada, eh. The farther north you go, the cheaper the land

K.
 
Error due to rounding (over a thousand dollars ?)
Norman Harker said:
Hi Kalahari!

=PV(8%/4,5*4,-550.41,0,0)+2500
Returns: 11499.9924271997
But most likely price was $12,500 with errors due to rounding.

If this is an assignment project:

Add the syntax
Convert hard code to cell references
Document your explanation (especially, the rate, number of periods and
signs used and returned)
Acknowledge assistance received


And please let me know where I can buy a vacation property for 12500?
--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.

the down payment. Can anyone help me? I think I need the present
value formula but I don't know how to account for the downpayment.
Click to expand...
 
Hi Peo!

Sure was!

--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.
 
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