Question: I found part A = $145,116. But i need help finding part B. Please help! A builder is offering $129,564 loans for his properties at
A builder is offering $129,564 loans for his properties at 9 percent for 25 years. Monthly payments are based on current market rates of 95 percent and are to be fully amortized over 25 years. The property would normally sell for $140,000 without any special financing Required: a. At what price should the builder sell the properties to earn, in effect, the market rate of interest on the loan? Assume that the buyer would have the loan for the entire term of 25 years b. At what price should the builder sell the properties to earn, In effect, the market rate of interest on the loan if the property is resold after 10 years and the loan repald? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below
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