What is the equivalent cash value of the offer in Problem 11 if the vendor financing arrangement

Question:

What is the equivalent cash value of the offer in Problem 11 if the vendor financing arrangement is for the same 10-year amortization but with
a. A five-year term?
b. A one-year term?
In Problem 11
A property is listed for $175,000. A potential purchaser makes an offer of $170,000, consisting of $75,000 cash and a $95,000 mortgage back to the vendor bearing interest at 8% compounded semiannually with monthly payments for a 10-year term and a 10-year amortization.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: