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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 $ house has been accepted.
Down payment is and you will use a year loan to pay off the remaining ie $
Interest rate is APR compounded monthly.
You are planning to sell the house in FIVE years. You know there will be a 'Selling Expenses'.
The forecasted house value in Five years will be 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
B
C
Dnone of the above
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