Question
A property recently sold for $750,000 with a $75,000 down payment. The seller held the mortgage with an annual interest rate of 5.5%, amortized monthly
A property recently sold for $750,000 with a $75,000 down payment. The seller held the mortgage with an annual interest rate of 5.5%, amortized monthly over 20 years. The market interest rate is 7%.
What is the cash equivalent value of the mortgage assuming that is held for the full term? What would be the value of the financing adjustment? What would be the adjusted value?
OK TO USE FINANCIAL CALCULATOR, BUT SHOW STEPS. Thank you.
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MATLAB An Introduction With Applications
Authors: Amos Gilat
3rd Edition
0470108770, 978-0470108772
