1. Looking for potential trust deed investments in the classified ads you stumble upon the following listing on Craigslist:

- $100,000 2nd Trust Deed for Sale

- Original Loan Amount: $100,000

- Original Interest Rate: 10%

- Original Loan Term: 10 years

- Monthly Payment: $900.00

- Number of payments remaining: 52

- Existing 1st Trust Deed = $350,000

- Market Value of Property = $700,000

Questions:

A) Assume the seller accepts your offer... what rate of return would you receive if the loan was prepaid by the borrower 10 months after you purchased it.