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Posted by Anne_ND on June 20, 2001 at 18:36:50:

John and others,

A seller has verbally accepted my offer on his
contract for deed. Problem is, neither of us is
sure of the face value of the contract because of
how his attorney wrote it up, and because his payor
has consistently paid a little extra each month.

I suppose I should be able to figure this out myself,
but can someone help me here?

Original date of note: October 15, 1998 (due
date of first payment)
Original value of note:
N=88
I=7.75%
P=$392.
FV=0

so I get PV of $26,251.06.

Leaving aside the fact that the contract says the
PV should be either $26,200 or $26,216 (as I said,
it was poorly written), assuming the PV is
$26,251.06, how do I calculate the PV as of 5/15/01,
after 32 payments have been made? The payor has
consistently paid $400/month.

My problem is understanding how I account for the
payment of $400 per month (rather than the $382
which is due each month). I don't just type in
$400 under P- what do I do? I have an HP 17BII.

I believe the current value to be slightly less
than $18,371, and the seller is willing to sell
to me for $14,109 for the whole contract. There
are no other liens, house is valued at $27,000.

Thank you!

Anne

Follow Ups:

• Congratulations! Paul Drummond 08:13:45 6/21/2001 (5)
  • Re: Congratulations! syed 08:57:25 3/07/2002 (1)
    • Re: Congratulations! John Behle 01:09:34 3/11/2002 (0)
  • Thank you Anne-ND 09:34:53 6/21/2001 (2)
    • Re: Thank you Cian Hawkins 07:36:59 11/22/2004 (0)
    • Re: Thank you Helen Jones 21:01:24 8/09/2004 (0)

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