Money Blog - Selling my note early to increase my return


THE SCENARIO Let's say I bought half of a note on terms, but after I got it, I wanted to sell it in such a way that my returns would increase. Here's how I bought the note: 60 payments of $377.70 Here's what I got for that money: 94 payments of $450 My return on this investment will be 10%. So let's say that after 34 months of receiving payments, I want to sell the note, and I want my overall return on my money to be 11.5%. The question is: How much would I have to sell my half of the note for, in order to make my total return 11.5%?
THE SOLUTION This problem breaks down in two steps. First, I need to find out what the value of my investment will be after I'm done making my paymen... Read more...