A seller offers to finance the loan of a building to you as an investment. The...

A seller offers to finance the loan of a building to you as an investment. The mortgage loan of $280,000 will be for 20 years and requires an annual mortgage payment of $24,000 at the end of each year. Should you finance the purchase through the seller or borrow the funds from a financial institution at a current rate of 10%? How does the seller's interest rate change if the mortgage payment to the seller is required at the beginning of each year (annuity due)?

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago

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