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Answer Questions Part A To Part C An investor has $60,000 to invest in a $280,000 property. The investor can obtain either a $220,000 loan
Answer Questions Part A To Part C An investor has $60,000 to invest in a $280,000 property. The investor can obtain either a $220,000 loan at 9.5 percent for 20 years or a $180,000 loan at 9 percent for 20 years and a second mortgage for $40,000 at 13 percent for 20 years. All loans require monthly payments and are fully amortizing. a. (Show All You Works For Your Calculations) Which alternative should the investor choose, assuming they will own the property for the full term? b. (Show All You Works For Your Calculations) Would your answer change if the borrower plans to own the property only 5 years? c. (Show All You Works For Your Calculations) Would your answers to (a) and (b) change if the second mortgage had a 10-year term
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