There Are Two Offers on a Property Listed at $185,000

question 31

Short Answer

There are two offers on a property listed at $185,000. Mr. Smith is offering $183,000 cash. Ms. Jones's offer consists of $100,000 cash and a mortgage back to the vendor for $90,000 at a rate of 7.5% compounded semi-annually and payments of $700 per month for a three-year term. If current three-year rates are 9.5% compounded semi-annually, what is the equivalent cash value of Ms. Jones's offer?

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Definitions:

Self-Service

A business model or service design that allows customers to access services and perform tasks without direct assistance from staff, often through digital platforms or kiosks.

Internet Shopping

The act of purchasing goods or services over the internet, using various devices like computers, tablets, or smartphones.

Global Retail

The selling of goods and services across international borders, through either physical stores or digital platforms, to consumers in different countries.

Independent Retailers

Retail outlets owned and operated by individuals or groups, not part of a larger chain or brand, often offering unique products or personalized services.