A builder is offering $$135,534$ loans for his properties at $9$ percent for $25$ years. Monthly payments are

based on current market rates of $9\mathrm{.}5$ percent and are to be fully amortized over $25$ years. The property

would normally sell for $$150,000$ without any special financing.

Required:

a$.$ At what price should the builder sell the properties to earn, in effect, the market rate of interest on the

loan? Assume that the buyer would have the loan for the entire term of $25$ years.

b$.$ At what price should the builder sell the properties to earn, in effect, the market rate of interest on the

loan if the property is resold after $10$ years and the loan repaid?

Complete this question by entering your answers in the tabs below.

At what price should the builder sell the properties to earn, in effect, the market rate of interest on the loan? As:

buyer would have the loan for the entire term of $25$ years. $($Do not round intermediate calculations. Round your

to the nearest whole dollar amount.$)$

Sale value