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A B D E H I J K L M N 140 Question 2: What price should Blue Algae obtain if the pool is sold
A B D E H I J K L M N 140 Question 2: What price should Blue Algae obtain if the pool is sold immediately to an investor with a required 141 annual return of 11% and the monthly prepayment rate is 0.1% ? \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline Month & PaymentsfromBorrowers & Interest & Principal & PrepaidPrincipal & ServiceFee & Pool Balance & CashFlowtoInvestor \\ \hline \multicolumn{8}{|l|}{0} \\ \hline \multicolumn{8}{|l|}{1} \\ \hline \multicolumn{8}{|l|}{2} \\ \hline \multicolumn{8}{|l|}{3} \\ \hline \multicolumn{8}{|l|}{4} \\ \hline \multicolumn{8}{|l|}{5} \\ \hline \multicolumn{8}{|l|}{6} \\ \hline \multicolumn{8}{|l|}{7} \\ \hline \multicolumn{8}{|l|}{8} \\ \hline \multicolumn{8}{|l|}{9} \\ \hline \multicolumn{8}{|l|}{10} \\ \hline \multicolumn{8}{|l|}{11} \\ \hline \multicolumn{8}{|l|}{12} \\ \hline \multicolumn{8}{|l|}{13} \\ \hline \multicolumn{8}{|l|}{14} \\ \hline \multicolumn{8}{|l|}{15} \\ \hline \multicolumn{8}{|l|}{16} \\ \hline \multicolumn{8}{|l|}{17} \\ \hline \multicolumn{8}{|l|}{18} \\ \hline \multicolumn{8}{|l|}{19} \\ \hline \multicolumn{8}{|l|}{20} \\ \hline \multicolumn{8}{|l|}{21} \\ \hline \multicolumn{8}{|l|}{22} \\ \hline \multicolumn{8}{|l|}{23} \\ \hline \multicolumn{8}{|l|}{24} \\ \hline \multicolumn{8}{|l|}{25} \\ \hline 26 & & & & & & & \\ \hline \end{tabular} Required Return Price
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