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Updated over 2 years ago on . Most recent reply

User Stats

15
Posts
9
Votes
Matt D.
  • Rental Property Investor
  • Chattanooga, TN
9
Votes |
15
Posts

Present Value of $500/mo x 30 years?

Matt D.
  • Rental Property Investor
  • Chattanooga, TN
Posted

Not sure this is the right section but would appreciate your thoughts.

For reasons immaterial to this question, another investor agreed to pay be $500 per month every month for 30 years. He will keep his word but, if I’m willing, would like to buy me out of this agreement.

How would you calculate the present value of buying out of the agreement?

  • Matt D.
  • Most Popular Reply

    User Stats

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    Bill B.#3 1031 Exchanges Contributor
    • Investor
    • Las Vegas, NV
    9,511
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    Bill B.#3 1031 Exchanges Contributor
    • Investor
    • Las Vegas, NV
    Replied

    Mr. Google found these guys..

    https://financial-calculators....

    And they say $93,000 at 5%. Guesstimate

    $135k at 2% lowest reasonable guess, and $68k at todays 8%

    So around $90k?

    Loading replies...