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Your offer to buy a $ 2 5 0 , 0 0 0 house has been accepted. Down payment is 2 0 % and you

Your offer to buy a $250,000 house has been accepted.
Down payment is 20% and you will use a 30-year loan to pay off the remaining 80%(i.e. $200000).
Interest rate is 4.8% APR compounded monthly.
You are planning to sell the house in FIVE years. You know there will be a 6.5% 'Selling Expenses'.
The forecasted house value in Five years will be 10% higher than today.
How much will be the 'before taxes cash flow from house sale'?
Hint: First, calculate the mortgage balance in five years
Second, cash flow from sale = house value in five years - selling expenses - mortgage balance in five years
Group of answer choices
A.73995
B.28212
C.50620
D.none of the above

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