An investor buys a property for $657,000 with a 25-year mortgage and monthly payments at 7.5% APR. After 18 months the investor resells the property for $719,912. How much cash will the investor have made from the sale, once the mortgage is paid off?

An investor buys a property for $657,000 with a 25-year mortgage and monthly payments at 7.5% APR. After 18 months the investor resells the property for $719,912. How much cash will the investor have made from the sale, once the mortgage is paid off?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Question 28: Assume that the compounding frequency of the provided APR is monthly

An investor buys a property for $657,000 with a 25-year mortgage and monthly
payments at 7.5% APR. After 18 months the investor resells the property for
$719,912. How much cash will the investor have made from the sale, once the
mortgage is paid off?
...
O A. $107,987
B. $154,267
C. $61,707
O D. $77,133

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