$14.$ Consider the following below market financing problem for two identical properties:

A B

Price $$130,000$ $$115,000$

Loan Balance $$80,000$

$($assumable$)$ $$80,000$

$($new loan$)$

Down payment $$50,000$ $$35,000$

I $7\%8\%$

Term $20$ Years $20$ Years

a$.$ What is the monthly payment for each loan option?

b$.$ What is the rate of return on the $$15,000$ investment in the first alternative? Does this seem attractive from the viewpoint of an investor?