A customer wants to purchase a new home for 220.000.

The customer contracted to sell her/his present home to a buyer for $250.000 - but the proceeds will be paid a year from now.

So she/he needs a bridge financing.

The bank offers a discount loan with an interest rate of 15 percent.

Will the customer accept it? Explain your answer.

Assume that the customer has no other revenue in the next 12 months and has not other asset to sell.