The owner of a property listed at $145,000 is considering two offers. Offer C is for $140,000 cash. Offer M is for $50,000 cash and a mortgage back to the vendor for $100,000 at a rate of 8% compounded semiannually and payments of $750 per month for the five-year term. If current five-year rates are 10.25% compounded semiannually, what is the cash equivalent value of M's offer?

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The Answer of The owner of a property listed at $145,000 is considering two offers. Offer C is for $140,000 cash. Offer M is for $50,000 cash and a mortgage back to the vendor for $100,000 at a rate of 8% compounded semiannually and payments of $750 per month for the five-year term. If current five-year rates are 10.25% compounded semiannually, what is the cash equivalent value of M's offer?

The Owner of a Property Listed at $145,000 Is Considering