Three years ago, Jim bought a house at which time he arranged a mortgage for $150,000....
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Three years ago, Jim bought a house at which time he arranged a mortgage for $150,000. The loan has monthly payments of $875 and an outstanding balance of $132,585.18 due at the end of the 5 year term. Jim has just received an offer from Alice to buy his house. Alice's offer consists of $30,000 cash and assumption of the existing financing for the remainder of the term. If current lending rates for 2year term mortgages are 7.75% per annum, compounded semiannually, what is the market value of Alice's offer, rounded to the nearest dollar? Three years ago, Jim bought a house at which time he arranged a mortgage for $150,000. The loan has monthly payments of $875 and an outstanding balance of $132,585.18 due at the end of the 5 year term. Jim has just received an offer from Alice to buy his house. Alice's offer consists of $30,000 cash and assumption of the existing financing for the remainder of the term. If current lending rates for 2year term mortgages are 7.75% per annum, compounded semiannually, what is the market value of Alice's offer, rounded to the nearest dollar?
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