Question: A home builder is offering $ 1 0 0 , 0 0 0 loans for his homes at 9 percent for 2 5 years. Current
A home builder is offering $ loans for his homes at percent for years. Current market rates are percent for year loans. The home would normally sell for $ without any special financing. At what price should the builder sell the homes to earn, in effect, the market rate of interest on the loan rounded to the nearest dollar Assume that the buyer would have the loan for the entire years.
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