What is the value of the favorable finance

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Problem 1: Suppose a comp sale occurred at a transaction price of $400,000, and was financed by the seller with a $300,000 note, for 25 years at 2.5%. The market rate of interest at the time of the sale was 3%, if the loan is paid off at the end of the fourth year is assumed, what is the value of the favorable finance?

Reference no: EM132933941

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