Question

A property recently sold for $300,000 with a 20 percent down payment. The seller financed the property at 2.5 percent for 30 years with monthly payments. At the time of the sale, market interest rates were 4.5 percent. What is the cash equivalent purchase price? $209,000 $225,000 247,100 300,000

Answer 1

monthly payment

=(300000*80%)/((1-(1+(2.5%/12))^(-30*12))/(2.5%/12))

=948.3

cash equivalent price

=(948.3*((1-(1+(4.5%/12))^(-30*12))/(4.5%/12)))+300000*20%

=(948.3*197.3)+300000*20%

=247100

the above is answer..