All Topics / Heads Up! / 11 second solutionj

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  • Profile photo of petert2petert2
    Member
    @petert2
    Join Date: 2003
    Post Count: 1

    Hi Steve,
    Page 31 of your book, Step 2:why do you divide the
    rent by 2 & step 3:why do you multiply by the figure 1000.
    Question 2: Page 161 – Interest (5) is that figure suppose to be $20,000 instead of $14,000?
    Thankyou
    Peter

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,750

    Hi Peter,

    Thanks for your post and welcome to the forum community.

    Re: /2 and * 1000… this is just the equation that always results in a 10.4% return.

    Re: Interest…

    Purchase Price = $250,000
    Loan @ 70% = $175,000.
    Interest on loan @ 8% p.a. = $14,000

    Cheers,

    Steve McKnight

    **********
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    Success comes from doing things differently

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