Bart Mover, CPA, has been asked for advice by a client wishing to sell her home. The client has found a buyer who has agreed to the following terms of sale:

However, the client's attorney has advised her that any interest rate in excess of 10 percent is usurious and should be avoided. The client will accept a 10 percent mortgage interest rate from the buyer, but would like to increase the selling price of the home by a corresponding amount.
{Required:}
Ignoring tax effects, by what amount should the selling price be increased to compensate Mover's client for the lower interest rate? (Hint: the monthly payment for a loan of \(\$ 1\) over 20 years at \(12.5 \%\) is \(\$ .0113615\); at \(10 \%\) it is \(\$ .0096504\).)

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Selling price........ Down payment.. Interest rate.......... .......S150,000 .....25% ...... 12.5% Length of mortgage...............20 years.