A bulder is offering $$105,970$ 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 $$120,000$

without any speklal financing.

Required:

a$.$ At what price should the builder sell the propertles 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 repald?

Complete this question by entering your ans 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? Assume that the

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

Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.

Sale value