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Steve Johnson purchased a home two years ago, at which time he arranged for a mortgage for $175,000 amortized over 20 years with a 5-year term and monthly payments. The interest rate on the mortgage was 7% per annum, compounded monthly, calling for monthly payments of $1,356.78 and an outstanding balance of $150,948.60 due at the end of the 5-year term. Steve has just received an offer on his house from Linda. Linda's offer consists of $45,000 cash and assumption of the existing mortgage for the remainder of the term. If current market rates for 3-year term mortgages are 5% per annum, compounded monthly, what is the market value of Linda's offer, rounded to the nearest dollar?
a. $220,233
b. $254,368
c. $237,989
d. $243,966

Sagot :

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