Expert: Robert Hanzel - 3/18/2007

Question
I am a college student and I am strugglimg with my homeowrk. I a have a Finanical calculator that I can figure out. I am not asking to do my homework for me, I would just like to give my homework question and hope that you could tell me how to figur it out. I truly hope you can help me.  Here is my question: Candace is buying an apartmetn for $220,000. She will pay 10% down and $19,800 a year for 10-years. What is the real purchase price if she could get an interest rate of 5% on invested money?  PLEASE HELP ME. I am getting really frustrated with this question and a few others. Thank you so much for taking the time to try and help me.  Nikii

Answer
Nikii, I am sorry, but we are not allowed to help with homework questions and I have to keep to the rules that I agreed to when I signed up to participate. However, I can tell you that you can solve this using an algebraic equation. Just use the equation you have and solve for the interest rate. Remember your algebra rules and switch things around so you can solve for interest. I am sorry that I cannot help much more. Good luck!