A seller has offered you a $1,000,000 interest-only 5 year loan at 6% (annual payments) , when market interest rates on such loans are 8%. Basing your decision on market values, how much more should you be willing to pay for the property than you otherwise think it is worth, due to the financing offer?
A) Zero, by definition.
B) $26,497
C) $79,854
D) $98,412
Correct Answer:
Verified
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A) Leverage
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