Tuesday, November 23, 2010

Math question; bank loans. Do I have enough information to get an approximation?

A person paid $600 per acre for 600 acres and he pays $1750 per month. Based on typical loan practices for today on farm land (unimproved land), what information can I figure out and how can I do it?

Are interest rates for this type of loan typically 15 years? 30 years? Are they typically below 12%?

Form what you said (600 times $600) is the cost of the land and paying back at $1750/month then at is

600 times600/1750

that is 15 mouths to pay it back at 12% that is360000 times12/100 that is$4320+ $36000=$40320

nort this not set in stone and in can be more or less. But that;s the maths

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