Question: Suppose you can get a loan with a below - market interest rate from a home builder . The fully amortizing FRM loan has 4

Suppose you can get a loan with a below - market

Suppose you can get a loan with a below - market interest rate from a home builder . The fully amortizing FRM loan has 4 % interest rate , 30 year amortization , $240 000 loan amount . If the home usually sells for $300 000 at what price should the homebuilder sell the home to you in order to earn a market return of 4 5% on the loan ? Assume you will hold the loan for 30 years $313.864 $320 489 $305 689 $329.092

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