The vendor of a property agrees to take back a $55,000 mortgage at a rate of 7.5%

Question:

The vendor of a property agrees to take back a $55,000 mortgage at a rate of 7.5% compounded semiannually with monthly payments of $500 for a two-year term. Calculate the market value of the mortgage if financial institutions are charging 9.5% compounded semiannually on two-year term mortgages.