Math Problem for a loan expert.

How much you can borrow is based on your credit history.

I have excellent credit history, highest you could possibly have actually. the thing is I dont want to wait over a nine year period to recieve the payments. I want a lump sum up front, and then use the installments I am getting to pay off the loan, so that it all evens out. The thing is how much can I borrow?

I was just avoiding the question, because I have no idea.

$203,409 @ 6%/year results in monthly payments of $2,442.08 (which is $29,305/12).

However, at the end of 9 years, you have paid $263,744.64 for that $203,409.

The payment on a loan is calculated by.

P=Ai(1+i)^n/[(1+i)^n-1]

A is the amount of the loan, and P would be your installment payment, i is interest per period (in decimal) and n is the number of periods.

All you have to do is substitute in i=6% (.06), n=9, and P=$29,305. Then rearrange to solve for A (the loan amount).

A=[(1+i)^n-1]/[Pi(1+i)^n-1]

putting in the numbers you get

A=[(1.06)^9-1]/[$29,305*0.6*(1.06)^9]

Ah hell! You got a calculator.

BTW a much wiser investment of that annuity you got, is tuition.

Rap