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Now seven more years have passed, a total of ten years since you bought the condo. The real estate market slowed down and then it
Now seven more years have passed, a total of ten years since you bought the condo. The real estate market slowed down and then it crashed. For the next 6 years, your condo appreciated at 1% per year, but then over-building finally caught up with Colorado and in year 10 the housing market fell 20%. You pay a broker a 5% commission to sell the condo. You also have closing costs of $2,500. What is the principal balance you owe on the mortgage at the end of year ten? (Hint: be careful here... It's 10 years since you bought the condo, but you refinanced to a new mtge at the end of year three... so be careful: how many months have passed on this new mortgage?) You sell the condo, receive cash (Q26) and pay off the mortgage (Q27). How much cash do you have left after the sale
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