What rate of return would you receive

Assignment Help Accounting Basics

Reference no: EM132959747

Question: Looking for potential trust deed investments in the classified ads you stumble upon the following listing on Craigslist:

$100,000 2nd Trust Deed for Sale

Original Loan Amount: $100,000
Original Interest Rate: 10%
Original Loan Term: 10 years
Monthly Payment: $900.00
Number of payments remaining: 52

Existing 1st Trust Deed = $350,000
Market Value of Property = $700,000

Question: Assume the seller accepts your offer... what rate of return would you receive if the loan was prepaid by the borrower 10 months after you purchased it.

Reference no: EM132959747

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