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