# Help-explaination needed on article

Discussion in 'Real Estate' started by snowflake, 3rd Jul, 2006.

1. ### snowflakeNew Member

Joined:
21st Jun, 2006
Posts:
2
Location:
Melbourne
Short time member- first time poster..

Can someone please explain how the equation for "interest payments" of \$14718 was calculated on the "living off equity" article on page 7.....Sorry but this is the one piece of the equation that I am missing for making my own spreadsheet....Sorry ....I feel a bit dumb asking.

2. ### PunterPunter

Joined:
29th Jun, 2006
Posts:
23
Location:
Perth
Hi there!

I am also new here and am trying to understand the artical down to every word.

Here is a backward calculation. If my interpretation is correct then two conclusions.. I am getting hang of the artical and I am good at maths

So here it is

20,000 over four years = 80,000 over one year
21,000 over three years = 63,000 over one year
22,050 over two years = 44,100 over one year
23,152.5 over one year = 23,152.5 over one year

Thus total capital of 210,252.5 over one year at 7% = 14,718

Would like to see your worksheet if possible.

Punter
-----------
Sucessful people don't do different things, they do things differently.