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A borrower has obtained a 25-year, $2,500,000 loan at 5% with monthly payments from Bank A. Ten years later, Bank B wants to purchase the
A borrower has obtained a 25-year, $2,500,000 loan at 5% with monthly payments from Bank A. Ten years later, Bank B wants to purchase the mortgage from Bank A and Bank B wants to get at least 6% return from the purchase. How much would Bank B be willing to pay for the loan?
a) $1,538,918.3 b) $1,625,978.1 c) $1,731,899.4 d) $1,848,111.9
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