Show Me How To Figure Rates?!
Okay, so let's say that I offer a private investor 9% interest only payments for a year with 3 months extra when I payoff the amount at the end. Let's say the loan is for $100,000.
Will someone please email me or show me here how you figure out what the payments to that investor would be each month, etc.
Thanks,
The Solutions Kid
[addsig]
A simple search for "loan payment calculator" on google or such will turn up a million places. I have a TI-83 graphing calculator that has a program to figure payments as well as a java program that i downloaded to my cell phone.
There is also one here on TCI. Look under the 'My Tools' section of your 'My TCI' profile and you'll find it.
Roger
So, let me see if I have this correct:
9% per annum simple interest only payments each month on $100,000 equals 9% X $100,000 = $9,000 divided by 12 = $750 per month. Three months additional upon pay off = 3 X $750 = $2,250. Total if paid off in exactly one year = 12 X $750 = $9,000 + 2,250 = $11,250 and you owe the $100,000 full principal due upon payoff.
Is this right? And if it is, how do you go about deciding what rates to offer private investors?
[addsig]
The rate and terms offered and accepted are all between you and the investor funding the deal. It's all negotiation.
Roger