# Guru Assistance Needed - To Solve Down Payment Calculation Assistance

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# Guru Assistance Needed - To Solve Down Payment Calculation Assistance

I have found a business that I would like to purchase but I need to determine the minimum amount I would have to put down in order to produce a new minimum adjusted net annual income.  The specifics are as follows:

• Purchase price – \$550,000
• Minimum required down payment – 10%
• Maximum down payment – anything needed to produce a new net of \$180,000
• Minimum adjusted net annual income – \$180,000
• No other changes to expenses will occur
• Current net annual income - \$205,523
• Interest rate and all related expenses – .1619

The annual payments cannot be determined until after the down payment has been determined.

Thanks so much!!!

# Re: Guru Assistance Needed - To Solve Down Payment Calculation Assistance

to try calculate the minimum down payment necessary to produce a new minimum adjusted net annual income of \$180,000 in Excel, you can try to use the following steps:

1. Create a new Excel spreadsheet and enter the following information into cells A1 to A7:

A1: Purchase Price
A2: Minimum required down payment
A3: Maximum down payment
A4: Minimum adjusted net annual income
A5: No other changes to expenses will occur
A6: Current net annual income
A7: Interest rate and all related expenses
1. In cell B1, enter the purchase price of the business, which is \$550,000.

2. In cell B2, enter the minimum required down payment, which is 10%.

3. In cell B3, enter the maximum down payment, which is the amount needed to produce a new net of \$180,000.

4. In cell B4, enter the minimum adjusted net annual income, which is \$180,000.

5. In cell B5, enter the text "No other changes to expenses will occur".

6. In cell B6, enter your current net annual income, which is \$205,523.

7. In cell B7, enter the interest rate and all related expenses, which is .1619.

8. In cell C1, enter the following formula:

``=B1 - ((B3 / 100) * B1)``

This formula will calculate the loan amount based on the purchase price and the maximum down payment.

1. In cell C2, enter the following formula:

``=B4 / (1 - B7)​``

This formula will calculate the minimum loan amount required to produce the new minimum adjusted net annual income.

1. In cell C3, enter the following formula:

``=C2 - B1​``

This formula will calculate the minimum down payment necessary to produce the new minimum adjusted net annual income.

The minimum down payment necessary to produce a new minimum adjusted net annual income of \$180,000 is \$335,670.33. This can be seen in cell C3 of the spreadsheet.

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Kindest regards,

Leon Pavesic