Posted by Tony-VA on June 14, 2001 at 18:00:30:
Lynda,
Lonnie does a very good job of explaining how to work the numbers in his first book “Deals On Wheels.”
But to give you some idea.
PV= Present Value
…this would be how much money you have left in the deal. To calculate your yield, you will subtract out the down payment paid by the buyer then put that new number in as PV.
N= number of payments
%= The annual percent. Depending upon the financial calculator you are using, you may have to devide that number by 12 to get the monthly figure in line with the N (number of monthly payments).
PMT= the amount they pay each month.
Hope this helps.
Tony Colella