"AMORTIZATION, SELLER'S EQUITY, BUYER'S EQUITY. An INTEREST BEARING DEBT is said to be AMORTIZED when all liabilities which include the principal and interest are discharged by a sequence of usually equalpayments. The BUYER'S EQUITY in the property, at any time, is that part of property which he has paid. The SELLER'S EQUITY is that part of the price of theproperty that remains to be paid. ANNRATE% is the annual interest rate. NUMYEARS is the term in years. PAYMNINT isthe payment interval in months. PERPAYMN is the periodic payment. VALUDEBT is the debt's value. PURPRICE is the purchase price and DWNPYMNT is the down payment. SELLEREQ is the seller's equity at the end of PERIOD#. BUYEREQ is the buyer's equity at the end of PERIOD#. *** Answers to problems *** (a) Set ANNRATE%=14.75, DWNPYMNT=10,000, NUMYEARS=30, PAYMNINT=1 (monthly=1), PERIOD#=50, PURPRICE=128,000. The buyer's equity is BUYEREQ=26,674.08. Type any key to exit. ||(a) Mr. Nurlmann buys a house for $128,000. He puts $25,600 (20%) down and borrows the balance at 14.75% compounded monthly. He makes equal payments at the end of each month for the next 30 years. What is his equity just after making the 50th payment? Type , to see answers. Type (F2) to return to helpfile. ''(c) Copyright PCSCC, Inc., 1993"
