A property recently sold for $2,200,000 with a $440,000 down payment. The seller held the mortgage with

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A property recently sold for $2,200,000 with a $440,000 down payment. The seller held the mortgage with an annual interest rate of 5.5%, amortised monthly over 20 years. The market interest rate is 7%.

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What is the cash equivalent value of the mortgage assuming that is held for the full term?

What would be the value of the financing adjustment?

What would be the adjusted value of the subject? Round to the nearest $5,000.

Related Book For answer-question

Fundamentals of Investments Valuation and Management

ISBN: 978-0077283292

5th edition

Authors: Bradford D. Jordan, Thomas W. Miller

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Posted Date: May 10, 2023 02:35 AM

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A property recently sold for $2,200,000 with a $440,000 down payment. The seller held the mortgage with

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To calculate the cash equivalent value of the mortgage we need to determine the monthly mortgage payment and then discount it to present value using t... View the full answer

Fundamentals of Investments Valuation and Management

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