Donald bought his house 3 years ago, at which time he arranged a $395,000 mortgage. This loan was written at a rate of 2.75% per annum, compounded semi-annually, with a 4-year term and 30-year amortization period. The loan has monthly payments of $1,610 and the outstanding balance due at the end of the 4-year term will be $359,032.96. Today, 36 months into this loan, Donald has received an offer from Tina to buy his house for $55,000 cash, plus assumption of the existing mortgage on the property. If current mortgage rates for 1-year terms are 4.25% per annum, compounded semi-annually, calculate the market value of Tina's offer, rounded to the nearest dollar. $418,133 $426,494 $398,125 $433,386

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