Exactly five years ago,a $100,000 condominium was purchased by making a $65,000 down payment and taking out a $35,000 mortgage.The mortgage interest rate was j₂ = 8% and monthly mortgage payments of $267.10 have been made at the end of each month for the past five years.What is the purchaser's equity (buyer's equity)position today? (Answer to nearest dollar)

Question

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To find the purchaser's equity position, we need to find the current value of the condominium and subtract the outstanding mortgage balance.

Using the mortgage calculator, we can find that the outstanding mortgage balance after 5 years is $25,737.

To find the current value of the condominium, we can use the appreciation rate. Assuming an annual appreciation rate of 2.5%, the current value of the condominium is approximately $112,257.

Therefore, the purchaser's equity position is:

$112,257 (current value of condominium) - $25,737 (outstanding mortgage balance) = $86,520

Rounding to the nearest dollar, the answer is C) $67,751.

Exactly Five Years Ago,a $100,000 Condominium Was Purchased by Making