A farmer is given the choice of paying off his loan of $100,000, by his local Bank, in monthly payments over a period of 10 years. He is given the choice of paying $1,110.21 per month, or one-half that amount, $550.10, plus a fixed percentage each and every month until the entire loan is paid off. He is charged 6% compounded monthly. What would his fixed percentage increase be in order to pay off the loan in the alloted time of 10 years? What would the savings in interest be if he chose one method over the other? Don't know even where to start with this one. Any help would be great. Thanks a lot.

 Sep 30, 2016

This is quite a doozer!!. There is a formula to solve this type of financial problem, but before giving the answer, I will let all the answerers on this forum to take a kick at the can!!. Here is the formula:

100,000=550.1 * {(((1+g)/(1.005))^120 - 1) / (g - .005)}, solve for g.

 Oct 1, 2016

It appears that there is no "direct solution" to g in this problem. This formula, along with many others, has been programmed into my computer and it can solve any variable very rapidly. It uses iteration and interpolation to come up with the answer very quickly. So then, plugging in all the known variables, and solving for g, it comes out with this number:

g=1.1679304685%. And it checks.

As to which is a better deal for the farmer, we just sum up the two payment methods:

1) $1,110.21 x 120 =$133,225.20

2) The second method becomes a geometric series, and if we sum it up we get:

$142,643.82, which, as can be seen, is much more expensive than the No. 1 choice above.

 Oct 1, 2016


I was playing Monopoly all night while waiting for your answer. I’m wealthy enough to play with real money but I play the game with my dog and cat (the cat cheats), so they always trade their winnings in for a few Scooby Snacks and some catnip.  Dogs and cats are not as smart as bankers are, but I greatly prefer their company.


Tell me: did you or do you still play the game?  Did/does anyone trust you enough to be the banker?


I knew you’d get this wrong! You usually interpret these “odd ball” questions wrong. It makes sense you would because you were a banker, and this scenario would never occur in the real world.  You were never conditioned nor practiced to think this way.



This is how I interpret the question. The debtor has two options to repay the $100,000.

Option 1: pay $1,110.21 per month for 120 months. This works out to a loan rate of 6.00%.

Option 2: pay $550.10 plus a fixed percentage each and every month until the entire loan is paid off. 


If this were an interest free loan then the payments would be $833.33 per month for 120 months.  Subtracting $550.10 from $833.33 gives $283.23. This is 51.49%.  So, by paying $550.10 plus a fixed percentage of 51.49% ($283.23) per month you meet the loan requirements and pay zero interest.


This seems like the better deal to us genetically enhanced chimps.

 Oct 1, 2016

GingerAle: You are drunk! Get sober first and then just maybe you will understand the question. This is way out of your league!. By the way, learn to stop ranting, especially about matters you know nothing about!. When it comes to financial problems, you don't seem to know your head from your tail!.Behave yourself like a lady!

 Oct 1, 2016

LMFAO! This is GREAT!!!


In this corner weighing in at 7.8st, and wearing a red hat, GingerAle, the spunky, genetically enhanced chimp. In the other corner, weighing in like a fat cat (about 25st), and wearing a suit without pockets, the guest fat cat banker.


In the first round, the fat cat banker baited the audience to kick a can containing a formula from the river Lethe. There were no takers.  GingerAle, the chimp waited patiently, biding her time playing Monopoly with her dog and cheating cat.


In round two, the fat cat banker finished his magic in-can-tation so his mystical computer would bring forth a rendering of numinous understanding.  His presentation is as mystical as his formula. It’s so advanced only one banker in the world can understand it –the fat cat banker himself. It’s like understanding our own poetry and thinking it’s great no matter how awful it is. (I sent this link to my banker for his opinion).


In round three, Ginger comes out with subtle finesse, jabs the fat cat banker in the solar plexus, and then skillfully enlarges a certain orifice that’s causing her opponent to retain large quantities of BS (banker stuff).   She also presents a logical and easy to understand solution to the question. 


In round four, the fat cat banker comes out like a snarling Tasmanian devil.  The orifice enlargement worked well, because he sure laid a pile on GingerAle.  He forgets though, that chimps are very skilled at throwing excrement at deserving targets –he may be sorry.  He also might be faulted for a technical foul, for saying, “you don't seem to know your head from your tail!”  Most advanced humans should know that chimps don’t have tails.”  His latest comment, “Behave yourself like a lady,” has some audience members murmuring that LancelotLink may have gone transgender.  She definitely has the trolling skills, but her style is very different. 


Well, there you have a folks! Stay tuned for round five, where the barbs and poo throwing may get better. For those not in the know, this isn’t the first match for these two –it’s not the second either. 

 Oct 1, 2016

God! This reminds me of Naus so much! Many things remind me of the Troll Master in general or my mentor in particular. He has many personas—troll like and otherwise.  He would truly appreciate your “ring-side” boxing narrative.  He appreciates the sport of boxing and considers Jack Dempsey and George Forman to be the best boxers of the first and second half of the twentieth century.  In true troll fashion, he pointed out in amazed astonishment “that our modern, delicate, snowflake society still allows the sport, considering the primary point of the sport is to damage your opponent’s brain.”  Also, in troll fashion, if he ever had any serious reservations about the sport, he found it easy to be ethically ambivalent about it after having his “head pounded in a few times.”  LOL


You mention audience members murmuring that LancelotLink may have gone transgender. Well, that very thing happened a few years ago. I didn’t find out about it until a few months ago, after bribing chimp Loki for the password to some of the secret, classified minutes of A.P.E.’s board meetings, and then prying the non-minute’s details from the Top Banana, himself. 


It seems LancelotLink wasn’t satisfied with being the second smartest genetically enhanced chimp on the planet. The smartest chimp is Ayumu, the consulting mathematician for A.P.E. Lancelot admires her barbed comments, poo throwing skills, and, of course, her advanced math skills. 


LancelotLink returned to the practitioner who originally performed his genetic enhancement, Morgan le Fey.  After paying her fee, she altered his genetic code to augment his IQ, and told him to return in six months to stabilize the alteration. It worked, but she neglected to mention a major side effect.  While his IQ climbed at a steady pace, he started having “bad hair days” and “meltdowns” Yep! “Oh god! Peel me a banana! I’m becoming a girl!” 


This was the worst thing that could happen. Chimps (even after genetic enhancement) are patriarchal; the board of directors would not likely let him stay on the board, let alone remain as Top Banana –if he no longer had a banana.  It wasn’t likely he could hide his condition for long, either. While genetically enhanced chimps will wear suits when dealing with human primates, they tend to be nudists among themselves.  Sure enough, when LL called the board meeting to order, the members asked him, “where’s your thing? We all have our things. You can’t be CEO without a thing. That’s the order of things!” 


By then LancelotLink’s IQ was notably higher and he was ready for them. He told them while it’s true he no longer had one of those things, he now had one of these things and with one of these things, he could have as many of those things as he could ever want or need.   LancelotLink also pointed out that Bonobos are a matriarchal society and he could start an A.P.E. organization with them and this would severely diminish their profits and put them out of business in a few years – not to mention having many females making them look dumb. They would lose face. They would never recover from the disgrace. The chimps of the board started scratching their collective heads and decided to table the issue for further study.


This was moot anyway. Even with the 20 point jump in his IQ, LancelotLink didn’t like being female.  It made her too moody. What good is a higher IQ if you cry about everything? Ayumu was born female so she had many years of practice at dealing with moodiness and it would take years for LancelotLink to develop those skills. Another reason was he just couldn’t get the knack of wearing heels – even when she was sober; he kept falling on his face.  Also, she had a “resting bǐtch face.”  No way could a girl chimp conduct business with a face like that! Having a resting son-of-a-bǐtch face for a guy chimp is ok; It even improves profits.frown


LancelotLink made an appointment with the chirurgeon Morgan Tud.  Tud told him that Morgan le Fay temporally suspended his Y-chromosomes and reflected back the X-chromosomes. All he needed to do was avoid the stabilizing procedure and he would revert to a guy chimp after a few months.  Chirurgeon Tud was correct. He did revert and he kept about 12 points of his IQ improvement, although there was at least one side effect: Every time he tries on a new vest, he asks if it makes him look fat. (Personally, I think he’s quite handsome!)  smiley


 I miss my trolls.sad I wish that Morgan le Fay could temporally suspend every other beat of my heart. 


You seem familiar, guest. Are you JB? 

 Oct 12, 2016
edited by GingerAle  Oct 12, 2016

 Mr. Banker, I do not need to be drunk to fail in understanding a question. However, no amount of intoxication could ever compel me to embrace your blarney stuff (BS).  A high school or first year college student asks this question, not a fourth-year economics major. That’s why he “Don't know even where to start with this one.”  After your blarney loaded answer, he still didn’t know, but decided to change his major to animal husbandry.  He figures he may as well have the benefit of the bull if he’s going to have the BS.


Last year, the Troll Master commented on your posts, saying, if you gave investment advice the same way you answer questions on here, he’d know instantly in which bank you worked. Easily confirmed by reading the “call reports with an atrocious CAMEL-rating of nine (on a five scale), and observing the smoldering comptometers, further validating the ineptitude and incompetence.”   


He thought about having Lancelot bring in Chimp Carter – a famous bank examiner, to make a monkey out of the baboon.  Then he thought again, making a monkey out of a baboon is kind of redundant, isn’t it?


He wrote this limerick about you


There once was a banker from Killarney

Whose tender was measured in blarney 

His interest was in clabber

His answers in blabber 

No surprise he worked for Smith Blarney


The bankers of Smith Blarney make their money the old-fashioned way . . . they embezzle it. 

(I LAMAO when I read this, I thought it applicable to a few bankers I’ve dealt with.)


Aside from the limerick, he really thought you were Irish. I thought he was just saying that to bust my Irish rump --I mean my delicate hereditary hiney.


BTW, when I’m in the company of gentlemen my code of ethics always compels me to behave myself like a lady. I’ve not broken my code.  On this note, I’ll leave you with a question (and answers) you can run through your masterful computer to test its veracity.


Do you know the difference between a call girl and a crooked banker? One scrèws you for money and the other scrèws you out of it.  Another difference is there are some things a call girl won’t do for money. 

 Oct 12, 2016

I love the Limerick and Does this vest make look fat? LOL! I’m laughing so hard right now. This is hella funny!  Thanks Ginger. Do you have a blog?   If you don’t have a blog, you should start one. You will have a following in no time.  I sent this link to my friends. :)

 Oct 13, 2016

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