Click for Online Courses at iRealtySchool.com

Discounting Notes (Seller Carrybacks)

You write a contract with a seller carryback.  The seller will carry $60,000 for 10 yrs at 8% interest with monthly payments.  An investor will buy the note (carryback) but desires a 12% rate of return.  How much money will the seller receive by selling the note?
Answer:  $50,739.58

HP-10B

12    Sets period per year
120 
8
60000

-

 727.97
12
50,739.58

HP-12C

10 
8   
60000 

-

727.97 
12 
50,739.58

Online Courses at iRealtySchool.com



Copyright 2026, iRealtySchool.com.
All rights reserved.
A Division of REcentral, LLC