How much will the bank pay for the mortgage

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Reference no: EM13834766

A couple sold their home. In addition to cash, they took a mortgage on the house. The mortgage will be paid off by monthly payments of $232.50 for 10 years. The couple decides to sell the mortgage to a lend bank. The bank will buy the mortgage, but requires a 1% per month interest rate on their investment. How much will the bank pay for the mortgage?

1. $21,318.14

2. $16,205.48

3. $33,215.16

4. $12,856.27

Reference no: EM13834766

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