Sh7Please help me Solution Thankyou The vendor of a property agreesto take back a $200,000mortgage at a rate of 4.5%compounded semiannually withmonthly payments of $900 for atwenty-year term. Calculate themarket value of the mortgage iffinancial institutions are charging6.5% compounded semiannuallyon twenty-year term mortgages.

Mortgages are secured loans in which the property is collateral and these loans make buying of home…

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The vendor of a property agrees to take back a $200,000 mortgage at a rate of 4.5%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 9P

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The vendor of a property agrees to take back a $200,000 mortgage at a rate of 4.5% compounded semiannually with monthly payments of $900 for a twenty-year term. Calculate the market value of the mortgage if financial institutions are charging 6.5% compounded semiannually on twenty-year term mortgages. A) $129,239.43 OB) $124,604.43 OC) $122,539.43 OD) $121,979.43 E) $121,539.43
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